A Financial Analysis Of 3m Finance Essay - Free Essay Example

Currently, 3M operates in more than 65 countries. The company produces a large variety of products, such as: adhesives, abrasives, laminates, passive fire protection, dental products, electronic materials, electronic circuits and optical films. 3M started operating on the North Shore of Lake Superior in Two Harbors, Minnesota in 1902. Five businessmen (Henry S. Bryan, Hermon W. Cable, John Dwan, William A. McGonagle, Dr. J. Danley Budd) came together to mine a mineral deposit used for manufacturing grinding-wheels. As it turned out, the deposit didnt have much of a value, so they opted to concentrate on sandpaper products. In 1914, 3M launched its first exclusive product: Three-M-ite cloth. Few other innovative products followed: waterproof sandpaper, masking tape, and the very well known Scotch brand tape. In 1929, 3M decided to expand its business internationally and started operating in Europe. The same year, the companys stock was first traded over the counter. In 1946 the company went public on the New York Stock Exchange (ticker symbol MMM). The company is a component of the Dow Jones Industrial Average and of the SP 500.  [1] 1.2 Company Profile 3M Company is an American transnational enterprise based in Maplewood, Minnesota, and represents one of the major players in the conglomerate industry. Below are presented some of the highlights that compose the companys profile: 3M Co.  [2] 3-M Center St Paul, MN  55144-1000 Index Membership: Dow Jones Composite Dow Industrials SP 100 SP 500 SP 1500 Super Comp Sector: Conglomerates Industry: Conglomerates Employees (last reported count): 74,835 1.2.1 Organizational Structure 3Ms general offices and research laboratories are located in St. Paul, Minnesota. Locally, 3M has nine sales offices and operates 74 manufacturing facilities. Outside the United State, 3M has 148 sales offices and 93 manufacturing .3M owns all of its physical properties.  [3] Key Executive: Bellow, there are presented few of the key people that are currently running this enterprise: Mr. George W. Buckley, Chairman, Chief Executive Officer and President Mr. Patrick D. Campbell, Chief Financial Officer and Senior VP Mr. Inge G. Thulin, Executive VP of International Operations Mr. Brad T. Sauer, Executive VP of Health Care Business Mr. Jean Lobey, Executive VP of Safety Security Protection Services Business.  [4] 2. Major lines of business  [5] 3M serves its customers through six business segments: 1. Consumer and Office (15% of total sales). 3M is providing its customers with a large variety of products such as house cleaning materials and office supplies. Some of the most popular ones are: Post-it ®, Scotch ®, Scotch-Brite ®, FiltreteÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢, O-Cel-OÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢, NexcareÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢, and CommandÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢ 2. Display and Graphics (13.5%). As a top technological innovator, 3M provides its customers with products such as: display enhancement films; reflective materials, graphics, and projection systems. 3. Electro and Communications (9.8%). Due to its continuous innovative efforts, 3M managed to provide solutions for customers in many fields: electrical, electronics and communications. They contribute to reliable sources of electrical power, high-performance electronic devices, and reliable, high sp eeds telecommunications network. 4. Health Care (18.6%). 3M is considered a global leader in medical and oral care products, drug delivery and health information systems, providing its customers with innovative and trustful products that help care professionals improve the quality of care services. 5. Industrial and Transportation (30.8%) The company supplies a large variety of innovative products such as tapes, abrasives, adhesives, specialty materials and filtration systems to different markets: from automotive to aerospace to renewable energy to electronics. 6. Safety, Security and Protection Services (13.8%). 3Mproducts-personal protective equipment, safety and security products, substantially contribute to the safety, security and productivity of people, facilities and systems around the world. 1.3 Operating Strategies 1.3.1 Mission Statements and Management Objectives: The main mission statement and management objectives, as presented in the companys annual report are: Demonstrate uncompromised honesty and integrity in all activities and relationships. Promote individual initiative , innovation and leadership, Establish and maintain a culture dominated by fairness and trust, where respect and responsibility, are valued and recognized. Create a safe workplace for 3M employees. Satisfy customers with high quality products and services. Provide investors with an attractive return. Respect the social and physical environment worldwide. 1.3.2 Business model and Strategies 3M business model is based on the ability to not only develop unique products, but also to manufacture them efficiently and consistently around the world (3M).   [6] 3M is a diversified technology enterprise with an international presence in different businesses, such as: industrial and transportation, healthcare, display and graphics, consumer and office, safety, security and protection services, and electro and communications. The industrial and transportation business includes products such as food and beverage, personal care, and automobiles. Industrial products include polyester, foil, and tape. Transportation sector provides the market with different types of insulation components and catalytic converters. The health care segment produces supplies and equipment for medical and dental use. The display and office business supplies stationary products, and home-improvement products. Besides the already mentioned business sections, 3M also manages a safety segment and an ele ctro and communications segment. In order to remain a respected leader in its field, 3M employs a series of strategies. The company is continuously trying to increasing market share and the popularity of their brands. Also they make significant efforts to maintain existing customers and attract new ones. This is a very important issue considering the number of substitute products currently available on the market. Besides the already mentioned strategies that 3M employs in order to run a successful business, they also practice a very interesting hedging strategy .Instead of concentrating on a single industry, 3M operations are spread over a large variety of sectors. So, at any point in time, the effect of a slow growth sector is counteracted by the prosperity of another sector. Due to this hedging strategy, the company stock price manages to maintain relative stability.  [7] Also, they continue to spend significant amount of funds on RD, which is critical for their image as a leading innovator, pay dividends, buy back stock and raise shareholders equity, the chief aim being the ability to offer a good return to all their investors. This is a solid company, with a very high degree of liquidity in an extremely good financial health. Another strategy that makes 3M well known is there acquisition strategies. On an average, the company performs ten to twenty acquisitions every year. This enables 3M to continuously grow, penetrate new markets and explore new technologies. Other strategies that 3M employs refer to continuous innovation, in order to introduce new products to various markets that company operate in, gaining market share in the existing markets and aiming to become more and more important to the end customers. 1.4 SWOT Analysis SWOT is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a business.  [8] 3M SWOT analysis:  [9] Strengths: The company operates in a large variety of business sectors: industrial and transportation, healthcare, display and graphics, consumer and office, safety, security and protection service, electro and communication. Strong research and development capabilities. (According to 3M 2009 Annual Report, the company spent more than a billion dollars in RD). Multinational presence. The company operates more than 65 countries. Solid financial condition. (A complete Income Statement and Balance Sheet are presented in the annexes). Weaknesses: Low inventory turnover, which impacts inventories and margins. Some key segments are registering inferior performance. Strong and aggressive competitors. Opportunities: Acquisitions in key operating areas. 3M performs an average of 20 acquisitions e very year. Continued global expansion. Healthcare spending levels in the US are increasing. Security concerns caused by a weak US economy, combined with some unfortunate events that are threatening the safety of American people, (9/11/2001, N1H1 virus infection) brings new opportunities for 3M security business. Threats: The fluctuation of commodity and energy prices (increasing).In order to mitigate this risk, the company is engaging in a multitude of forward physical contracts and price agreements. Exchange rates fluctuations. The company operates worldwide, so the exchange rates and any fluctuations of it may negatively impact the companys results. Environmental regulations. People are becoming more and more aware of the importance of respecting the environment. Any new rules and regulation may require additional funds to be invested in order to work green. 1.5 Core competencies A core competence represents the companys collective knowledge about how to coordinate diverse production skills and technologies (C.K. Prahalad and Gary Hamel).  [10] 3M runs an extremely diversified business, spread over numerous sectors: industrial, transportation, display and graphics, security etc. In order to manage and keep all this different types of businesses together, the company holds competencies in substrate, coating and adhesives. Besides possessing these competencies, the company also created a multitude of ways to share and apply them. The result of such combination of technology, skills and knowledge, allows 3M to participate on a multitude of businesses and markets. The literature points out that the core competencies of any company should benefit the end customer of the product and should be very difficult to copy by the competitors. 3M is aware that the stronger the customer perception in recognizing the superiority of their products, the less likely th e threats of substitutes. The company makes continuous efforts to differentiate its products among the multitude of similarities offered by the competitors and their efforts are successful due to the fact that they are supplying high quality, innovative and reliable products at competitive prices. Moreover, it is a companys core competencies that keeps the businesses together. This aspect is crucial for 3M, as the company operates in multiple business sectors, worldwide. It seems that 3M fully understood this concept and its enormous advantages, because they are investing consistently in their core competencies and ability to innovate, the chief aim being to provide the market and the end customers with innovative products that really stand out. 2. Industry analysis 2.1 Industry Definition, Structure and Major Competitors. The Industrial Conglomerate industry consists of large organizations engaged in multiple business lines within the industrial sector, where at least two business lines comprise a substantial portion of the companys total operation (The New York Times, Oct 1, 2010).  [11]  The industrial conglomerate industry contains the following sectors: Basic Materials, Consumer Cyclical, Consumer Non-Cyclical Energy, Health care, Industrials and Transportation, Technology, Telecommunication, Utilities. Exhibit1. Direct Competitor Comparison  [12] MMM AVY DD JNJ Industry Market Cap: 63.58B 4.02B 42.30B 174.16B 9.47B Employees: 74,835 31,300 58,000 115,500 28.26K Qtrly Rev Growth (yoy): 17.70% 15.40% 21.80% 0.60% 14.50% Revenue (ttm): 25.39B 6.31B 30.43B 62.59B 10.28B Gross Margin (ttm): 48.78% 28.26% 29.94% 69.98% 33.80% EBITDA (ttm): 7.03B 695.10M 5.42B 19.70B 1.63B Operating Margin (ttm): 23.18% 6.96% 13.08% 26.90% 12.29% Net Income (ttm): 3.94B 250.90M 3.13B 13.53B N/A EPS (ttm): 5.48 2.37 3.43 4.84 1.92 P/E (ttm): 16.28 16.04 13.60 13.06 19.15 PEG (5 yr expected): 1.28 1.44 1.61 2.09 1.28 P/S (ttm): 2.50 0.63 1.38 2.78 1.27 AVY = Avery Dennison Corporation produces pressure-sensitive materials, office products, tickets, tags, labels, and other converted products. DD = EI DuPont de Nemours Co. (DuPont) operates as a science and technology company worldwide. JNJ =Johnson Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The com pany operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Industry = Conglomerates Exhibit2. Comparison between 3M, the Conglomerate Industry and the direct competitors, benchmarked against DOW and SP 500. Source: https://finance.yahoo.com 2.2 Industry profitability and growth. In order to get an idea about the main characteristics of the players in this industry, I have selected few key statistics. The financial indicators listed bellow shows the fact that this are large companies, highly leveraged (most of them), providing the investors with a small to average return. Market Capitalization: 366B Price / Earnings: 13.5 Price / Book: 4.1 Net Profit Margin: 7.5% Price to Free Cash Flow: 27.4 Return on Equity: 12.5% Total Debt / Equity: 242.3 Dividend Yield: 2.4% Exhibit 3. Comparison between the evolution of 3M common stock and the industry. Source: https://finance.yahoo.com 2.3 PEST Analysis of the External Factors affecting the Industry PEST analysis stands for Political, Economic, Social, and Technological analysis and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.  [13]  Performing such an analysis and applying the findings will give any company a significant competitive advantage. The model identifies four factors that have a major impact on the companys macroeconomic environment:  [14] Political Economical Social Technological Political Factors: Among the most significant political factors that can affect 3Ms business are: tax policies, employment laws, environmental regulations, trade restrictions and tariffs, and political stability. 3M is making all the necessary investments in order to comply with these laws. In 2009, 3M spent around $15 million for projects regarding the protection of the environment. The mentioned funds have provided among other things, pollution control devices at all its properties. Economical Factors: economic growth, interest rates, exchange rates, inflation rate. Due to large geographical presence, and the fact that 63 percent of its revenue is generated from outside the United States, the companys results may be affected by exchange rates and their fluctuation. In order to mitigate this risk, the company engages in a multitude of forward contracts. Also, the Companys business may be negatively affected by other factors, both internal and external that are beyond its control, such as instability and downturns in financial markets or economies in some countries or regions, in which the Company operates. Social Factors: population growth rate, age distribution, health and safety awareness, career attitude. 3M, through its business policies is aiming to create a safe workplace, to encourage individual initiative and innovation in an atmosphere of flexibility, cooperation and trust, promoting a culture where promise keeping, fairness, respect and pers onal accountability are valued, encouraged and recognized.  [15] Technological Factors: RD activities, automation, technology incentives, rate of technological change. Research and development activities constitute an important part of 3Ms business and have been a significant contributor to the companys sales growth. Research, development expenses accounted for $1.2 billion in 2009, $1.4 billion in 2008 and $1.3 billion in 2007.  [16] 2.4 Porters Five Forces Analysis of the Industry Competition Porters five forces is a framework for the industry analysis developed by Michael E. Porter of Harvard Business School in 1979 .The model is based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector(Thurlby,1998). The model identifies five forces which would impact on an organizations behavior in a competitive market: The rivalry between existing sellers in the market. The threat of new entrants on the market. The threat of substitute products available in the market The bargaining power of the suppliers. The power of the customers in the market. Full comprehensions of each of these five forces and the impact they have on the companys business, provide organizations with the necessary information to enable them to choose the right operating strategy in order to be successful in their market.  [17] 2.4.1. The rivalry between existing sellers in the market The conglomerate industry, although very complex, extending over a multitude of business, seems to be dominated by few key players, and 3M Co is one of them. In order to gain competitive advantage, 3M is aiming to stay ahead of the trend by continuously providing the market with new products and technologies. Given its strong balance sheet, the company is able to react fast to any negative changes in the market (lower the price of its products), in order to maintain existing customers and attract new ones. Moreover, in facing competition the company is offering well differentiated products, well known and trustful brands, the chief aim being extra value added products and services for the end customers. 2.4.2. The Threat of new entrants The threat of new entrants is dictated by the market entry barriers. The entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents position (Porter, 1980b; Sanderson, 1998). Such barrier s refer to: Cost of entry: In order to enter this industry and compete against the existing firms, the cost of capital required would be extremely high. 3M is a well known company, with an aggressive mergers and acquisition strategy, holding an impressive market share. Distribution channels: 3M products are sold through numerous distribution channels, including wholesalers, retailers, and dealers in many countries around the world. The company has established a large and very well defined distribution network, developed through long association with skilled marketing and sales representatives. Cost advantages not related to the size of the company, like contacts and expertise play a major role in the companys performance. Government legislations: for example, introduction of new laws might weaken companys competitive position; 3M had to improve their environmental performance via new environmental, health and safety policies in order to comply with new government standar d and regulations. Many times this requires additional funds, changes into production processes, products, and that some firms may find it difficult to do so without increasing the prices of their products and services. Differentiation: 3M is a well known brand that already gained customer respect and loyalty and the products that represent this company have a high ratio of value to price. 2.4. 3. The Threat of Substitutes Products available on the market Although the threat of substitutes in this sector is high, due to the fact that there is a large number of a substitute product available in the market, 3M products differentiate themselves through superior quality and innovativeness. The firm invests strongly in RD, in order to insure that they deliver extra -added value products, and the existing customers will not be tempted to choose from the many available substitutes. Other aspects that should be considered when trying to mitigate the risk of losing customers to subs titute products refer to: relative price performance of substitute, buyer switching costs, ease of substitution, substandard product, and quality depreciation. 2.4.4. The bargaining power of suppliers In the conglomerate industry, the power of supplier is relatively modest, due to the fact that the companies in this industry are very large corporations. This companies act on an international scale, having access to an increase number of suppliers and the buying is done in bulk, immense quantities. There is still some risk regarding the price fluctuation of commodities, like oil, oil derivatives, energy, due to possible shortage. 3M is trying to mitigate this risk engaging in prices agreements and forward physical contracts. 2.4.5. The bargaining power of buyers. When trying to assess the power of buyers, two aspects need to be considered: size and concentration of the customers correlated with the concentration of the competitors. In the conglomerate industry, the bargai ning power of the buyers is relatively high due to the fact that all the players in the market are targeting the same customers via similar products. Also, the end customers are more and more informed, and their expectations are continuously growing. Another aspect that should be considered in this case is that the cost of switching between suppliers is relatively low. A buyer has many options; therefore 3M makes a continuous effort to insure that their products are permanently aligned with customer preferences and needs. 2.5 Summary The nature of competition in an industry is strongly affected by the above mentioned forces. As a rule we can state that, whenever buyers and suppliers have high degrees of power, the result translates into a high competitive industry. The industry of conglomerate is moderate to high competitiveness, due to the fact that new entries are difficult (high capital requirements), but this effect is counteracted by the fact that the players in this sector are extremely large and diversified corporations, with solid resources and very aggressive financial strategies. 3. Economic Outlook 3.1 Global Outlook There is no doubt that we are on the path of economical recovery, but the speed of things moving in the right direction is slow, considering the severity of the financial crisis. In advanced economies, such as U.S., small improvements in labor markets, housing markets, and corporate bonds market generated some positive developments in the overall economy. In the emerging and developing economies, (such as China, India, and Brazil) the recovery process seems to be much faster. Even among the advanced economies, the recovery process happens at different speeds, depending of the way that the local government has chosen to deal with the crisis. If we compare The United States with Europe or Japan, we see that the American economy is doing much better than the other two. This phenomenon may have something to do with some of the following: fiscal stimulus was larger in US, the nonfinancial corporate sector is less reliant on bank credit, bond markets have improved which stimulated inv estments, and many financial and nonfinancial organizations went radical restructuration and improved productivity. In Japan, due to the appreciation of the yen, the countrys exports feel dramatically, which ultimately impacts the recovery process. Similar situation can be observed in Europe. Some of the economies of this region suffered a major contraction, not only because of the financial crisis, but the real estate too. Overall the economical and financial conditions present themselves as fragile and difficult. There are some signs of recovery, especially in the emerging economies, and is expected that this will help along the recovery process of the advanced economies.  [18] 3.2 Regional outlook Asia is leading the global recovery and the regions contribution to global growth will continue to exceed that of other regions in the next two years, (Source: The International Monetary Fund). China registered 8.4 percent growth last year, and the projections for the next year are similar (9%growth in GDP for 2010). In the region, the GDP has increased 6.8 percent in 2009. The recovery process has been driven by exports combined with low internal demand and ultimately low household consumption. The inflow of capital in the region has increased, stimulating investments and speeding up the recovery process. According to IMF, for the next period of time, Asias main policy challenge will remain to achieve a rebalancing of growth from external to domestic sources. On global level, there is a political and economical issue regarding the Chinese government decision not to appreciate their local currency, and the way this decision is affecting the world trade. Europe, especially the emerging nations, was strongly hit by the financial crisis. In this region the GDP decreased by approximately 4.6 percent in 2009. The projections for 2010 GDP show an increase of 2.3 and 2.2 percent in 2011. The growth rates in most economies in the region will remain slow, due to major contraction in exports and weak capital inflow. Besides the already mentioned factors, other variables such as : high unemployment, real estate crisis, bank restructuring operations, tight credit policies, and high interest rates will also restrain the recovery process. Other regions, such as Latin America and the Caribbean seem to be dealing with the crisis a little bit better than other countries .The last year GDP registered a 2.6 percent drop, and the prognosis for 2010 and 2011 are quite optimistic showing a growth of 3.1 percent and 3.6 percent, respectively. The recovery process is still relatively slow, due to weaker investment and not enough tourism, both important sources of external f inances. The lack of tourism may be explained by high unemployment in United States and other high-income countries. The Middle East and North Africa region experienced, an overall GDP growth slowing to 2.9 percent in 2009. The forecasts for 2010 show an increase in GDP of 3.7 percent in 2010 and 4.4 percent by 2011. These projections regarding the recovery process are based on few assumptions such as: the global demand for oil will increase, and oil prices will stabilize. The financial and economical crisis and their effects were not felt as deep in the region of South Asia. In this area, the GDP registered 5.7 percent growth in 2009. This represented a slowing of growth comparing to the boom period, mainly due to a significant decrease in investments, correlated with low domestic demand. The projections for 2010 and 2011 look optimistic: 6.9 and 7.4 percent respectively. 3.4 Local outlook According to the U.S. Bureau of Economic Analysis (BEA), the US economy is still growing, but at a slower pace than the first quarter of 2010(2.4% versus 3.7% in the first quarter of 2010). Some of the reasons that will restrain the recovery process are the following: The financial institution will need to recover from losses due to loan defaults. In order to boost the recovery process, the government offered numerous stimulus packages. The housing market registered slight improvements, but failed to meet the expectation. The main disruption in the housing sector was caused by a dramatic drop in house prices, and housing starts, which eventually caused an unbalance between demand and supply. As the credit crunch is ameliorating and the unemployment is falling we start to notice a slight improvement in the housing markets. National deficit is large. The state and local government are cutting down on their spending, the only exception being some of the programs aimed to help out households in periods of recession. Programs as such are: Unemployment Insurance Program and the Supplemental Nutrition Assistance Program (Food Stamp Program). Personal income and spending rose in the last year but not significantly. Unemployment is estimated to be 9% for 2010 and continuing to slowly decline from there on. Saving rate also climbed, meaning that the people are still cautious. Household are still dealing with the loss of wealth, relatively tight credit policies and unemployment. Consumer sentiment is better, but lower then thought. Massive equity loss is dampening households consumption. Overall, US economic reports point to a slow growth and the fact that there is still uncertainty. Nevertheless the general belief is that the economy is on the path to recovery, as the worst has passed.  [19] 4. Ten year pro forma forecast In order to forecast 3Ms sales for the next ten years I have taken into consideration the following aspects: Overview of the global, regional and local economic outlook. 3Ms Sales risk factors  [20] Analysis of the companys historical data Underlying Assumptions The previous chapter offers a comprehensive description of the general state of the economy, on both international and national level. At company level, in order to attempt an accurate sale forecast, we have to consider the following risks that can affect the revenue: Companys results are impacted by worldwide economical conditions. The Company operates in more than 65 countries, and therefore the Companys business may be negatively affected by both, internal and external factors, some of them, beyond the companys control: instable financial markets or decline in economic activity in some of the countries or industries in which the Company operates. Foreign currency exchange rates and their fluctua tion may also have a negative impact on the Companys revenue. Because the Companys financial statements are denominated in U.S. dollars and 63 percent of the Companys revenue is coming from outside the United States, the Companys results could be negatively affected if the U.S. dollar appreciates significantly against foreign currencies. The Companys growth objectives are strongly influenced by the timing and market response to its new products, and also the capacity to continually supply the market with innovative and high quality products. The Companys future revenues are influenced by the price and availability of purchased components, raw materials, energy and all other resources that the company needs for everyday operations. Acquisitions, strategic alliances, and all other possible organizational restructuring could affect the companys future revenues. The Companys future revenues may be affected by different laws, rules and regulations regarding product liability, antitrust, or environmental protection. Next step is an analysis of the companys historical data. A complete Income Statement and Balance Sheet for the period under analysis are presented in the annexes. Exhibit4. 3M Sales and Cost of Sales. Historical data And finally, in order to produce the pro forma statements, we would have to base our findings on some underlying assumptions: No disruptions or major economical, financial and political downturns in US and internationally. No shortage in raw material and other components. The company is trying to mitigate this risk by engaging in price agreements and physical future contracts. It is difficult to predict such a shortage and the effects that this would have on the companys results. US economy slowly improving. The worse is over, but there is still uncertainty ahead. Interest rate, tax rate remain constant COGS constant (52% of Sales). Exhibit5. Sales and Cost of Sales Forecast Exhibit6. 3MSales and Cost of sales Starting with 2008 the company has undergone radical restructuring, giving up some activities and also performing certain product moves between its business segments. This was done to ensure perfect allignment with the needs of customers and markets under the curent conditions.Such actions resulted in 64000 people loosing their job in the attempt of cutting costs in order to overcome tough economic challenges.  [21] The financial tsunami, started to significantly affect 3M businees in the third quarter of 2008, resulting in a negative sale growth rate of 8%. As overall economy is improving, 3Ms sales are climbing, but the growth rate remains modest. According to the 2009 Annual Report, the focus for 2010 is to accelerate growt, and gain market share. Due to the the current conditions 3M is presented with the opportunity to continue this strategy and even increase investments in order to gain market share from the competitors. The company has the ability to finance its gr owth with internal funds and therefore is not dependent on external resources that might be diffcult to obtain, and posibly costly too. Mergers and acquisition activities play an important role in the projected growth rate(g), therefore we could state that (g) behaves in the same manner as a step function would. The companys organic growth standalone is relatively modest, but together with acquisition( 10 to 20 acquisition per year), the company delivers an acceptable growth rate. (aproximately 8% yearly , in normal condition. This rate also reflects acquisitions activities). A stronger US economy, will eventually cause the strenghtening of the US dollars(2013-2014). As the company s financial statements are denominated in US dollars, and 63%of its revenue its coming from outside US, this will have a slightly negative impact on the total revenues . The company is employing various hedging strategies in order to reduse the risk of foreign currency fluctuation rates (future cont racts). Starting with 2016, I anticipate visible and sustainable signs of recovery, and by 2018, the company will be reaching the same growth rate it had in 2007, before the major economical and financial crisis hit.

The Ethical Dilemma Of Performance Enhancing Drugs

Ethical dilemmas often face a challenge on deciding what the right action to take is, and therefore are quite complex. Nevertheless, there are situations in which majority of individuals feel there is a clear acceptable choice. Specifically, the use of performance enhancing drugs through the public eye, are often not sanctioned as acceptable. With â€Å"the number of professional athletes using steroids [†¦] estimated to be fewer than 1%† (Petersen Kristensen, 2009). Throughout this paper the scenario regarding performance enhancing drugs will be analyzed specifically focusing on the ethical dilemma, the Christian core beliefs, how they relate to this situation, the resolution, evaluation, and comparison to other options. Ethical Dilemma The†¦show more content†¦It is stated in the bible that â€Å"furthermore, it isn’t good to be ignorant, and whoever rushes into things misses the mark† (Proverbs 19:2). Stating that when humans rush a process, that does not need to be rushed, the end product will not be reached. Another statement from the bible adds â€Å"may integrity and uprightness preserve me, for I wait for you† (Psalm 25:21). Integrity; doing the right thing when nobody is watching. Indicates that although no other human being might be around it is important to not deceive oneself. The core belief of the Christian worldview is â€Å"faith working though love† (Galatians 5:6). Which can be influence this scenario by having love for one another and wanting the best for those around. Resolution The Christian worldview proposal for resolving the ethical dilemma can be interpreted in different forms. One of which would be to get more information on this specific performance enhanced drug, going deeper than the surface to know about the details that were not originally brought up before deciding whether to try it. Seeking more information on the safety is recommended (Petersen Kristensen, 2009). Not only looking up the drug online but also seeking guidance from God and or a religious authoritative figure, if the signs from God a bit complicated to understand. The Christian world view mentions how integrity andShow MoreRelatedThe Ethical Dilemma Of Performance Enhancing Drugs1364 Words   |  6 PagesBenchmark Assignment: Ethical Dilemmas These days it seems as society is constantly being faced with Ethical Dilemmas. Whether it is normal everyday citizens, actors, business executives, and even athletes. The way that every person deal with ethical dilemmas is by relying on their worldview. The world of professional sports is a very tough and competitive place. 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The term ethics represents the moral value where a person is concern for a good behavior, and considers it as an obligation to not only consider personal well-being but also that of others. Thus, ethical behavior is the most appropriate behavior, which includes moral obligations, principles and values and also understanding the difference between right and wrong. An Ethical dilemma is a situation, which is very complex and createsRead MoreThe Ethical Dilemma Faced With Performance Enhancing Drugs, Christian Worldview Beliefs, And How Different Worldviews1237 Words   |  5 PagesEthical dilemmas are something that almost every person will face at various times in their life. Often, even more than once. We were born sinners, so there are times people, even though knowing right from wrong, struggle with making the right decision. How a person works through the dilemmas they face are considerably influenced by their worldview. In this paper, we will look at the ethical dilemma a student faces when confronted with performance enhancing drugs, Christian worldview beliefs, andRead MoreEthical Dilemmas1304 Words   |  6 PagesEthical Dilemmas Kevin Brock April 26, 2015 CWV 101: Christian Worldview Instructor: Peter Rasor People from all walks of life face many ethical dilemmas. These dilemmas have consequences. Our worldview determines how we deal with these dilemmas, and guides us to the right decisions. In this essay, I will examine an ethical issues through my Christian worldview. I will also present other viewpoints, and compare them to mine. Ethical Dilemma This dilemma involves my friend Paul. Paul hasRead MoreEthical Dilemmas : An Ethical Dilemma1377 Words   |  6 PagesEthical dilemmas are presented to humanity often. What is an ethical dilemma made up of? Ethical dilemmas consist of controversial choices, peer pressure, strong opinions of society on both sides, and pull against personal values. However, the knowledge bank that a person has, or is willing to acquire will influence the resolution made. Paul is a young man that has had several accomplishments, including the starting position that he earned by working hard in the weight room and on the field. AlthoughRead MorePerformance Enhancing Drugs Should Be Banned1223 Words   |  5 Pagesto performance enhancing drug use in athletes. Performance enhancing drugs should continue to be banned due to health risk factors, the element of cheating and abuse of the athlete s body. Paul is a dedicated young athlete. He works hard on the field and hard in the weight room training his body to peak conditioning for his sport. As a result of his hard work, Paul has secured a spot in the starting lineup. As his team develops and grows, Paul sees his team mates taking a performance enhancingRead MoreThe Issue Of Ethical Dilemmas1489 Words   |  6 PagesEthical dilemmas are presented to humanity often; dilemmas consist of controversial choices, peer pressure, strong opinions of society on both sides, and pull against personal values. However, the knowledge bank that a person has, or is willing to acquire will influence the resolution made. Paul is a young man that has had several accomplishments, including the starting position that he earned by working hard in the weight room and on the field. Although, members of the team have been trying a newRead MoreWhy Athletes Are Becoming An Elite Athlete909 Words   |  4 PagesWe’ve seen over time an increase i n the concern of athlete’s health whether it be from alcohol and/or drug abuse, and eating disorders such as anorexia nervosa, bulimia nervosa, or other disordered eating patterns. Both problems could be detrimental to the individual’s health and both raise ethical dilemmas for a coach to consider. In this paper we will further discuss the issues associated with both drug or substance abuse and eating disorders in athletes. The first topic that will be discussed isRead MoreLance Armstrong Ethical Dilemma Case Study1806 Words   |  8 PagesEthical Dilemma The decision maker for the ethical dilemma for the lance Armstrong case is Chris Carmichael, the coach. The decisions are: To always overlook the use of PED or to never always overlook the use of PED. These two choices both have undesirable outcomes. To always overlook the use of PED: This option is undesirable because it the discovery of PED usage will lead to termination from the sport, resulting in failed coaching business. Never overlook the use of PED: This option us undesirable

Speed Marketing and High Medium Low - Free Essay Example

Sample details Pages: 1 Words: 273 Downloads: 4 Date added: 2017/09/16 Category Advertising Essay Did you like this example? Assignment 2: 21-Speed Gizmos: Break-even and marketing profitability. By- Rohit Pratap Singh Questions: 1. Gizmos selling price at each suggested retail price? Ans:- |Retail Price |$124. 95 |$99. 95 |$74. 95 | |Selling Price |$87. 47 |$69. 97 |$52. 47 | 2. Break-even Volume of DCS assembly at $124. 95? $99. 95? $74. 95? Ans:- |Retail Price |$124. 95 |$99. 5 |$74. 95 | |Break-even Volume: |9392 |14073 |28056 | 3. Profit margin before taxes for 1993 and 1994 at $74. 95? Ans:- Profit Befor Tax @ $74. 95 in 1993 = $403,364 Profit Befor Tax @ $74. 95 in 1994 = $568,037 4. How would you price the DCS? I would price it at $99. 95. Would you launch the DCS? Yes certainly I will. Reasons:1. Brake even in less than a year. 2. More than 100% profit in the very first year and subsequent years 3. Increased revenue in sale would consolidate its position in the market segment. 4. Profit Realization from DCS sales will provide extra income to invest in new products. 5. With Increasing revenues and Profits, Investors will become interested In Speed Gizmos thus opening new financial sources to fund new projects. I would price it at $99. 95. Reason- Consider Following Profit Calulations | |Year |High |Medium |Low | |Retail price | |$124. 95 |$99. 5 |$74. 95 | |Selling Price | |$87. 47 |$69. 97 |$52. 47 | |Total Profit Before Tax |1993 |$698,006 |$699,197 |$403,364 | |Total Profit Before Tax |1994 |$921,608 |$923,036 |$568,037 | |Total Profit Before Tax |1995 |$1,189,929 |$1,191,644 |$765,644 | |Combined Profit | |$2,809,543 |$2,813,877 |$1,737,044 | Don’t waste time! Our writers will create an original "Speed: Marketing and High Medium Low" essay for you Create order Maximum Profit in the first year and subsequent years considering same expenses and 20% increase in sales volume. Although there would be threat of Competitor’s entry but at the same time the chances of higher rate of growth are more. Adding a radio option of $5to the DCS will Change the Final Pricing of the material and to break even at the same No. and similar Profits with the new cost The Following Pricing has to be adapted. | |High |Medium |Low | |Initial Retail Price |$124. 5 |$99. 95 |$74. 95 | |Initial Selling Price |$87. 47 |$69. 97 |$52. 47 | |Brake Even No. |9392 |14073 |28056 | |New Material Cost |29. 50 |29. 50 |29. 50 | |Final selling Price |$93. 35 |$75. 85 |$58. 35 | |Final Retail Price |$133. 35 |$108. 35 |$83. 35 |

She’s Come Undone by Wally Lamb Essay - 687 Words

Before taking this course, I always looked at films and read books just as the average person does; interesting plot and how long will it hold my interest, but this course gave me an entire different perspective when watching films and reading books. Now that I have taken this course and have watched the required films, the most important thing when watching other movies and reading books, is the meaning behind each scene and how they relate and affect our world. For this paper, I will discuss a book that I read a long time ago, which is She’s Come Undone by Wally Lamb and how this book relates to this course. She’s Come Undone is a story about a girl named Dolores Price. In this book, the author takes you through Dolores’ life, starting†¦show more content†¦In this particular film Harold was very interested in death, and because of this he attempted many fake suicide attempts as a cry for help and attention. When Harold meets a woman named Maude, she te aches him many life lessons and the importance of living life to the fullest. In turn Harold opens up to her about his thoughts and feelings and the two of them become great friends. This film relates to She’s Come Undone because just like Harold, Dolores battled her own issues and attempted suicide. Both of these characters meet people who help them understand that life is worth living no matter the struggles or hardships we face. With Harold, there was Maude and for Dolores, there was Dr. Shaw. Dr. Frost mentioned something in the notes that I believe helped both of these characters get through there hard times and that is: One of the most powerful and saving emotions is laughter. It helps keep us healthy both emotionally and physically. We can literally laugh our way out of illness! During the talks with Maude and the therapy sessions with Dr. Shaw, both Harold and Dolores were able to laugh through their troubles. As I mentioned before, I really enjoyed this course bec ause it gave me a different perspective on what to look for when watching films and read books. She’s Come Undone was a great book the first time I read it and even better this time around. This book relates to the other films as well, but theShow MoreRelatedShes Come Undone by Wally Lamb Essays1253 Words   |  6 PagesObesity and mental illness cause constant struggle in the life of Dolores Price, and social and behavioral aspects of family, social network, socioeconomic status and behavior change play vital roles in the health issues that she endure. Shes Come Undone follows Dolores and her struggles with health and behavior problems from childhood, through adolescence and into adulthood. We first meet Dolores as a happy, care-free child, but when her father leaves Dolores and her mother unexpectedly her lifeRead MoreI Know This Much Is True By Wally Lamb1079 Words   |  5 Pages Book Review: I Know This Much Is True by Wally Lamb. â€Å"Its not just a book it’s a life experience† These are the words of Oprah Winfrey as she heavily promoted Wally Lamb’s latest novel following his best seller; She’s Come Undone. Oprah, clearly an undeniable fan of Wally Lamb’s works trumpeted her review of She’s Come Undone to her audience in 1997. Now she has returned to promote ‘I Know This Much is True’ which no doubt will captivate her followers. Being a loyal Oprah fan myself, I haveRead MoreShe s Come Undone By Wally Lamb1767 Words   |  8 PagesIn the book She’s Come Undone by author Wally Lamb, we travel on a journey with a young girl Dolores Prices, as she matures from early childhood to adulthood and all the terrible things that accompany her along her voyage. It was rather intriguing the Wally Lamb did such an excellent job of writing in a first person perceptive as a woman. He accredits his ability to his older sisters. Wally Lamb wrote this book to hel p emphasize one’s journey to self-discovery. This book’s theme heavily shows theRead MoreThe True Meaning Of Madness2862 Words   |  12 Pagesshe chose what to do with her life. Esther constant bitter emotions and society’s expectations and gender roles is what lead her to be mad. 3. Yet Silvia Plath isn’t the only writer to include madness as a scapegoat for her protagonist in She’s Come Undone Dolores goes through a difficult life. As a child she sees her mother and father getting a divorce, and she sees how it is she dad’s fault but she does not blame him, instead she blames her mother. Yet Dolores’s father is clearly the one toRead MoreShe s Come Undone By Wally Lamb1983 Words   |  8 PagesThroughout the course of any being’s life, they are greatly influenced by the people and environment around them. In the coming of age fictional biography, She’s Come Undone by Wally Lamb, the reader follows the protagonist Delores Price throughout her journey in life from the age four to forty. Delores goes through many trials and tribulations in the course of her life, which include witnessing abuse and infidelity, experiencing rape, alienation, the deaths of her loved ones, suicidal tendencies

What Kind Of Relationships Can Proportions Represent

What kind of relationships can proportions represent? Students will be able to solve and apply proportions AI.L.3: Represent real-world and other mathematical problems using an algebraic proportion that leads to a linear equation and solve such problems. AI.L.11: Solve equations and formulas for a specified variable, including equations with coefficients represented by variables. They need to know how to solve equations with fractions. They also need to know how to multiply fractions and divide integers. Bell-Ringer/Warm-up/Hook: Warm Up 10minutes The bell ringer â€Å"Warm Up† is my spiral activity. I always start the class with problems from the previous class. Because the topics in this unit build on each other, the warm up is also my†¦show more content†¦During this lesson I will give the class the option of having me read the first one or taking a volunteer. Either way, I will allow the class a minute of two to read the questions quietly on their own before it is read aloud. After the word problems I will use the gradual release method to make sure the class completely understands how to cross-multiply and divide to solve proportions. After we understand the method, I will increase the difficulty on the problems by introducing proportions with sums or differences in one of the numerators. The final type of proportions will have a sum or difference in both numerators. This type of problem asks students to rely on the concept more than the others because they are theoretical proportions and have fewer applications. Independent Practice: 15 minutes The assignment only has 15 questions on it, but it is likely that most students will do more than 15 questions because they have to get the question correct in order to move on. The attached assignment will look similar to the student’s assignment but it will not be the exact same because mathXL generates different problems for each student. The assignment will be on mathXL. Students need to go to their internet browser, type in pearsoneasybridge.com to get there. We have used this website a lot this year so they wont need very many directions for how to find the assignment. MathXL is a great program

Unit M2 D1 free essay sample

Use the Drawing Tools tab to change the formatting of the pull quote text box. ] [Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Drawing Tools tab to change the formatting of the pull quote text box. ] [Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Drawing Tools tab to change the formatting of the pull quote text box. ] [Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Drawing Tools tab to change the formatting of the pull quote text box. ] This is the homepage for Gocompare. com which is one of confused. com main rivals and at this moment in time has more market share, I think is due to the fact gocompare. We will write a custom essay sample on Unit M2 D1 or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page com seems to offer customers better deals and more in depth customer promise reports. Gocompare. com advertising is more appealing easy to remember and they offer people who are loyal to the site the chances to be entered into a free draw with the chance to win a free car and the reen livery stands out compared to other competitors. Evaluate how successful a particular business organisation has been in preparing for growing use of e-business. D1 For D1 I will have to evaluate how successful Apple has been in preparing for growing use of E-Business. Overall in the past few years Apple has become more and more successful through preparing for the growth of E-Business for today’s society. The company has taken in and analysed competitors behaviour in order to remain market leaders and stay at the forefront of high end products such as IPhone and there IMacs range. Apple have tried to create a unique feel for their products when compared with Microsoft they have been trying to play catch up with Apple in all the same categories they both operate in. Apple use very different marketing techniques compared to Microsoft which has made Apple the number one brand in the world. One feature that Apple offers that Microsoft doesn’t have is ITunes and an App store which offer customer to buy as much music as they want to be stored on their phone, iPod or computer or mac. This means that Apple appeals to a larger target group and can get more business. One feature that Microsoft offers is paying by card and if Apple didn’t offer this then Microsoft would have an advantage over them, the fact that the company may take every detail from competitors and produces a unique brand shows that they have been successful in coping within the E–Business world. Apple are also offering different feature for their devices that will linked them together through the â€Å"Cloud† a feature that a lot of competitors are looking at also. The â€Å"Cloud† is a virtual storage space where you can keep information for free or for a price depending on how much storage space you want. Apple have marketed this by telling people that all their information can be kept in the cloud safely along with family pictures that could get lost if kept on your computer or mac. For Microsoft they don’t have any stores they have their operating systems in other companies’ computers which are sold at stores like pc world. So for them it’s very important that they keep expanding their E-Business activities and make sure competitors don’t have any advantages over them. Apple went from 357 stores at the end of fiscal 2011 to 390 stores at the end of fiscal 2012, up 33 from the year prior. Apple earned an average of $51. 5 million per store, up from $43. 3 million last year. Over the past year Apple has made over $40 billion in online sales, these figures illustrate that Apple use of promotional techniques. With Apples ever expanding their online features which are becoming more and more successful each year they are putting a lot of pressure on other competitors E-Business strategies and plans. With their pricing strategies and other marketing techniques online are proving to be the best in this competitive market.

FBO Operation Essay Example For Students

FBO Operation Essay Human Resources/ManagementEmployees4HausAir fixed base operation will provide the highest quality of flight instruction and comfortable charter services to the public; without compromising an ounce of safety, at a price lower than the competition. Human Resources/ Management FunctionsBreakdown of initial staff to begin at HausAir. (5) Receptionist/ClericalJason Henderson(Full Time)(6) Flight Instructors(Chief) Adam MacDonald(Full Time)(4) Mechanics(Chief) Greg Radd (IA; Full Time)Miguel Sanchez (AP; Full Time)(4) Line AttendentsJosh Hodny (Full Time)FlightOfficeServiceFinanceSalesThe HausAir flight instructors will follow some basic guidelines. They will be responsible for:? Student training for appropriate licenses? Maintaining proficiency in maneuvers? Proficiency required flight knowledge? Proficiency instructional techniques? Promoting a positive image of general aviation? Perform duties assigned by chief pilot? Maintaining safe and professional habitsThe position requires a minimum commercial multi-engine land instrument airplane and CFI certificate and those without a CFII will be expected to obtain the certificate within 6 months of start date. Instructors must be able to train a student from wherever their current ability level is to proficiency to the practical test standards for the certificate desir ed.Instructors will be required to follow HausAir flight training syllabus unless there is prior approval from the chief flight instructor. Instructors will be expected to give biannual flight reviews, checkouts to customers planning to rent aircraft and act as pilot or crewmember as required for charter operations. The FBO will follow all rules applicable to our business in order to create a profitable and safe environment. Start up requirements:? Obtain business licenses/permits ? FAR 47 Aircraft Registration? FAR 135 Air Taxi Operators/ Commercial Operators? FAR 145 Repair Station Certification? FAR 157 Notice of Construction on Airport? FAR 43 Maintenance, preventive maintenance, rebuilding, and alteration? FAR 61 Certification: Pilots, flight instructors, and ground instructors? FAR 67 Medical Standards and certification(Insuring that my charter pilot and flight instructors are current)? FAR 135 Air Taxi Operators/Commercial Operators? HMR 175 Fuel Considerations? Meet local/community requirements? Maintain Airport Minimum StandardsThe Piper Warrior will be used as the primary/instrument trainer and rental aircraft. The Bonanzas will be used as a complex trainer, rental, and some charter operations when it would be more economical or when the Baron is unavailable. The Baron will be used solely a charter aircraft. HausAir plans on purchasing all the aircraft through financing. This will enable ownership and benefit from tax savings. By financing we will avoid the lump cash sum all at once through payments. Financing will also give us some cash to utilize in other areas of out operations. Purchasing with cash would not give us flexibility and leasing is not cost effective and would limit our available excess cash. This aircraft is to be used for flight training and rental. The following numbers will be based on a $140,000 Piper Warrior. ? Piper Warrior- flown 60hrs/monthFuel (75% POWER)= $17.30Interest and Depr. 60hrs/month=$12.00Overhaul reserve and indirect cost=$16.00 Total (operational cost/hr)=$52.80Allowing for a 25% profit margin every hourCustomer cost is $52.80/.75 = $70.40Each aircraft will require a flight checkout from a CFI. The checkout will cover aircraft systems, procedures, and will follow the advisory circular for checkout procedures. Rental of the warrior will require a private license. Student pilots training with HausAir will also be allowed to rent aircraft for lessons. Pilots renting aircraft will be required to present: student pilot certificate (if required), pilots license logbook. Rental of other aircraft will have more stringent time requirements based on insurance and other factors; to be determined at a later time. The overall breakdown for the cost of an hour of flight instruction is as follows:TypeCostIns.Handling BenefitsTotal Above I outlined the per hour cost of the instruction. To keep training costs down and attract more students, I will not be applying a profit margin to the flight instructor rate. The figures I have arrived at below are based on a 100 hour/month with 6 same grade students for each instructor. It does not take into consideration that my instructors may teach in more than one category. Type of InstructorBenefits(Medical, Life, dental)PayWith four passenger seats, this aircraft is designed for the business traveler but may be used for any operation. It will not land at any airstrip that is not established with runway lights (unless down for repair). This aircraft will not initially be used for rental. .u62e60cb75231d17be8676ebd3487e632 , .u62e60cb75231d17be8676ebd3487e632 .postImageUrl , .u62e60cb75231d17be8676ebd3487e632 .centered-text-area { min-height: 80px; position: relative; } .u62e60cb75231d17be8676ebd3487e632 , .u62e60cb75231d17be8676ebd3487e632:hover , .u62e60cb75231d17be8676ebd3487e632:visited , .u62e60cb75231d17be8676ebd3487e632:active { border:0!important; } .u62e60cb75231d17be8676ebd3487e632 .clearfix:after { content: ""; display: table; clear: both; } .u62e60cb75231d17be8676ebd3487e632 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u62e60cb75231d17be8676ebd3487e632:active , .u62e60cb75231d17be8676ebd3487e632:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u62e60cb75231d17be8676ebd3487e632 .centered-text-area { width: 100%; position: relative ; } .u62e60cb75231d17be8676ebd3487e632 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u62e60cb75231d17be8676ebd3487e632 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u62e60cb75231d17be8676ebd3487e632 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u62e60cb75231d17be8676ebd3487e632:hover .ctaButton { background-color: #34495E!important; } .u62e60cb75231d17be8676ebd3487e632 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u62e60cb75231d17be8676ebd3487e632 .u62e60cb75231d17be8676ebd3487e632-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u62e60cb75231d17be8676ebd3487e632:after { content: ""; display: block; clear: both; } READ: MY FIRST TATOO EssayOil (Incl. Oil Filter @ 50 Hour Intervals)= $1.86Engine Airframe (100 Hours @ $38.00/Hour)= $37.35Total direct operating cost= $137.72Profit Margin of 40 %= $96.28Total per hour charge= $250.00The Baron flies at an average speed of 230 statute miles per hour. Based on all of the information presented in this section I will charge $1.08 per statute mile flown. Since we did lower the profit margin a little we will be required to charge a lay over fee. That will be equal to 75% of the $45 per hour charge for the pilots wage. This extra charge will not start to occur until the lay over exceeds 1 hour. One way charters, that are not picking up pay load on the return flight, there will be a charge of $.84 per mile. The reduction in price is accomplished but removing profit margin. HausAir will operate under FAR part 135 and under some of these regulations dealing with the certification and proficiency of the aircraft, crew, and flight operations. HausAir will use the regulations below to develop a manual for policies and procedures, operations specifications manual operating certificate acceptable for use. Copies of the manual will be issued to pilots and be accessible to other necessary employees. FAR 135 Subpart C- Aircraft and Equipment135.163 Equipment requirements: Aircraft carrying passengers under IFR. FAR 135 Subpart E- Crew RequirementsFAR 135 Subpart F- Flight Time and Duty Period Req. 135.267 Flight time limitations and rest req. for one and two pilot unscheduled operations FAR 135 Subpart G- Crewmember Testing Req. FAR 135 Subpart B- Flight Operations135.101 Second in command Req. under IFR135.109 Pilot in Command or second in command designation. 135.113 Passenger occupancy of pilot seat. 135.123 Emergency and emergency evacuation dutiesThe Determination of the hourly wage begins with the national average for a mechanic with an AP license, currently $11.83. HausAir is interested in having the best mechanics working for us and are happy with their pay.To start our shop rates will begin as follows until we have a better idea of our variable and fixed costs. The wages for out mechanics will begin at, but are subject to change based on shortages, business and regional mechanic average pay. Periodic research will be conducted by our sales and office team to determine how we fit into the national structure. The mechanics shop will not have paper library, but an electronic library. Manuals will be computer based to avoid large shelving units, paper loss, etc. The maintenance hanger will be separate from the storage hanger. Equipment will be purchased by HausAir. Consideration will be made to other variable costs including hazardous waste storage/disposal, overstock parts, building costs etc. We plan to earn a 40% profit. Which gives us a total fuel price of $2.74. With an average of 2000 gallons of fuel being sold/used in a week, that nets an income of $5480 with a profit of 2200 a month. Fuel will be stored and fueled by the fuel truck. Line service will fuel all incoming aircraft, regardless of size. HausAir will carry a wide selection of supplies and keep current with charts, approach plates, books and other aviation publications. We can make between 40-60% profit but will charge what competitors like sportys pilot shop charge. We will match their price and work prices around that range. Insurance is an important protection for this FBO. Due to the high amount of risk involved in aviation it will be important to hold monthly safety meetings, and have rotating safety officer schedule that will change every day. There are many different kinds of insurance that we must purchase. Some of the insurance coverage that is required:Fire and Natural disaster coverageBibliography:Bibliographyhttp://www.airplane.com/be58.htmRichardson, Rodwell, Baty (1995) Essentials of Aviation Management. Dubuque, IA: Kendall/Hunt Publishing Company.