Samsung Yemen Lcd Tv & Its Accessories

Test MARKETING PLAN FOR SAMSUNG 3D TV â€Å"Inspire the world, make what's to come. † 1. 0 Executive Summary Samsung Electronics has demonstrated to the business world that they are one of the most esteemed innovation organizations in the business. With more innovation headways than our market can deal with now and time, Samsung has made ready for the future in gadgets. One of the most mainstream new â€Å"toys† in the market today, is the mind boggling 3D TV. The primary 3D TV was propelled in March of 2010, and has just majorly affected the market.Samsung ruled the market, controlling nearly90% of the complete offer. Samsung’sâ product, the 9000 arrangement TV, isâ incomparable to rivalry with its ultra-meager screen, estimating just 0. 3 creeps in width. The 9000 arrangement additionally accompanies a full shading range that makes for anâ incredible survey understanding. 2. 0 Situation Analysis Samsung’s current procedure in the 3D TV advertise is to hold onto a predominant piece of the overall industry while the market is being spearheaded and to keep up the larger part piece of the overall industry all through the phases of the 3D TV life cycle.With the ongoing arrival of 3DTVs into the market in mid 2010, the item is as yet viewed as in the presentation phase of the item life cycle. While Samsung presented itsâ new motto, â€Å"Inspire the world, Create the Future,† the organization's most grounded accentuation over the most recent two years has been on union andâ integration. Samsung has re-sorted out theirâ corporation to support cross-fertilization and advancement. This is shown by the dynamic way to deal with the market that Samsung has taken, recognizing the absence of prompt development in the market, and improving to get ready for the possible development in the market.Targeted Segment With the advancement of 3D TV innovation, Samsung’s target showcase is handily distinguished as the Early Adapter. An early connector is aâ consumer who has a fast pace of dispersion, the rate at which the market acknowledges another item or item thought. One Strategy Analytics Survey recognized â€Å"Cube Tubers† as the most probable purchasers ofâ products accessible in the 3D TV market. â€Å"Cube Tubers,† are twice as prone to communicate enthusiasm for getting 3D TV programming at home. These shoppers speak to aâ rather little eight 10% of the overall population.They are most likelyâ young, mid-twenties to late thirties Caucasian males,â educated and wedded. They appear to be theâ most likely contender to show enthusiasm for purchasing the most current age of the TV showcase. Alongside the â€Å"Cube Tubers,† the more extensive objective market will in general be families with small kids. The intended interest group for 3D TVs will for the most part beâ found in or nearâ bigger urban areas. These areas must beâ considered the prime market territories beca use of the probability of the accessibility of 3D content in urban zones instead of away from urban communities in the more technologicallyâ constrained rustic regions. Serious Analysis . Sony collaboration 2. Mitsubishi Inc. 3 . Panasonic Inc. 4 . LG Electronics Inc. 5 Vizio Inc. 1 Sony Corporation Sony is a Japanese organization that utilizations web publicizing as a predominant aspect. They offer various recordings and PDF reports on their sites to assist clients with understanding their business. When composing into Google, Sony doesn't come upâ first, in any case, Best Buy was one ofâ the pioneers, who sell Sony TV’s. Sony ends up in the main five of the piece of the pie of the past patterns of the TV showcase, for the most part in the best three as of not long ago being knock down to fifth as of late in the FPTV advertise. Mitsubishi Inc. Mitsubishi Inc. is additionally a Japanese companyâ with a Very wide item blend, and an advertising hypothesis that the sky i s the limit. They Aim to discharge their 3D TVs fundamentally through privately owned business deals instead of in broadly acclaimed retail locations like most brands. Mitsubishi has proceeded toâ use and immaculate DLP innovation, made by Texas Instruments, while Samsung has proceeded onward from DLP and has discharged some delightful Plasma, LCD and LED 3D TVs.Mitsubishi’s contrast isâ in its image quality,â although DLP offers extraordinary picture quality the innovation has numerous downsides, for example, bulb substitution and inside cleaning to keep up picture quality that ruin customers from purchasing their item. Mitsubishi is the latest adherent of patterns by as of late receiving the Smart TV idea and coordinating Internetâ connectivity into the unit. .3 Panasonic Inc. Panasonic, another Japanese organization, is another contender discovering its way to the main three pieces of the pie in the TV market.Panasonic expects to beâ the No. 1 Green Innovation Com pany in the Electronics Industry by 2018, the 100th commemoration of theirâ founding. After Samsung started a sudden value war with Panasonicâ at the opening of the 3D showcase, they reported a hope to miss deals focuses for the main year. Showing Samsung’s sound information on great valuing techniques keeping contenders nervous. Panasonic’s chief 3D item contrasts inâ the backdrop illumination piece, selecting to utilize plasma for theâ opening of the 3D advertise. LG Electronics Inc.LG Electronics is a Korean organization. LG Electronics Inc. , positioning as the world's second-biggest creator of level screen TVs, said it expects to reinforce its quality in the blossoming 3D TV advertise, looking to get an offer bigger than its objective for the fluid gem show (LCD) TV showcase. LG is looking at 25â percent of the worldwide 3D TV market this year, which adds up to 950,000 deals dependent on a yearly market figure of 3. 8million units. That contrasts and LG's 15â percent piece of the overall industry target for LCD TVs, orâ 25 million units. LG had concentrated on theâ mass market.Initially LG’s objectiveâ was to make impression among the sizable working class, and other than its forceful valuing, little toâ distinguish it fromâ other purchaser strong organizations. 5 Vizio Inc. Vizio is a piece of the overall industry pioneer in the business, however its case to progress is in its capacity to followâ technology and advertise patterns. Vizio’s vision is to be the business leaderâ in purchaser gadgets by reliably conveying the most recent advancements at the most reasonable cost. Vizio has created cost effective creation techniques that permit them to subvert the nature of the items marginally and the cost for what they sell at significantly.SWOT Analysis Strength A. Great Innovative Products †Brand Prestige Samsung’s 3D TV showcase items lead theâ industry as they have spearheaded the dispatch of t heâ new advertise portion inâ early 2010. Samsung’s LED TV product offering has earned the esteem of the best picture quality accessible in the market by Consumer Electronics Reports. Those very items areâ also driving theâ way in advancement in the method of style and claim to buyers, as Samsung discharged the 9000Series, which is theâ thinnest 3D TV accessible atâ . 31 inches.Samsung is a solid corporate brand knownâ for its quality items andâ advanced innovation use. The brand notoriety that Samsung hopes to persist from the LED, LCD and Plasma markets, trusting buyers will handily recognize the brand and partner it with it top notch items from an association devoted to providingâ market driving items. B. Accessibility of Resources Samsung as of late moved 300 specialists from their conspicuous semiconductor specialty unit inside the association, and set up another TV business unit.The migration of these designers hasâ allowed SE to create showcase items a long ways past the innovation and inventive limit of contenders. C. Steady Focus on R;D Samsung Electronic has been routinely reinforcing its exploration and improvements (R;D) work. The organization gives noteworthy assets and thoughtfulness regarding create buyer preferredâ products with imaginative and particular highlights. It is apparent from the way that, the organization contributed roughly 5. 0% of its income in R;D activitiesâ over 2008 and 2009. 2 WeaknessesA. Absence of Association with 3D Gaming Content Unlike SE’s contender Sony, Samsung doesn't have an immediate relationship with content supplier for 3D gaming. Recognizing that the 3D gaming portion will represent a generous piece of the overall industry, one could deduce Sony’s relationship with gaming reassures like PlayStation asâ a upper hand over Samsung. B. Excellent, High Price Understanding SE values having great items, one can construe that SE canâ justifiably charge the most significant expense for those famous products.To keep up a predominant piece of the pie as the market for 3D TVs extends, SE’s set up target buyer willâ have to grow. With theâ target buyer set up financially as the upper degree of the white collar class and all degrees of the privileged as of now, the objective should extend to consolidate all individuals from the working class. 3 Opportunities A. Vital coalitions that improve the company’s item contributions Samsung Electronics has gone into vital concurrences with a portion of the notable organizations of the world in the ongoing past.For example, during June 2009,the organization marked a patent cross permit concurrence with Toshiba for semiconductorâ technologies. Toshiba is the main player in the NAND streak memory advertise with a large number of patens under itsâ name. Toshiba is additionally in the front line of developments in this item class with a few new innovations under its credit. By marking the cross authorizing paten t concurrence with Toshiba, Samsung Electronics keeps on approaching significant NAND streak process innovation just as staggered cell streak memory structure IP pertinent for future NAND streak ages.

Theme of Feminism in The Women Who Walked into Doors Free Essays

The Women Who Walked Into Doors The Feminist focal point permits us to see a bit of writing from an alternate point of view. It applies the viewpoint of women's liberation to a specific bit of writing. There are countless women's liberation scholarly speculations and all with an alternate edge of review the writing. We will compose a custom article test on Subject of Feminism in The Women Who Walked into Doors or on the other hand any comparative point just for you Request Now A few speculations take a gander at the manner in which words and images in the book are gendered. Different speculations show the distinction of composing among male and female creators. Numerous speculations likewise center around generalizations and imbalances of women’s ights and how they are represented in a book. Fundamentally the women's activist focal point encourages you dissect a book dependent on the ways of thinking and perspectives on cutting edge women's liberation the any bit of writing. The Women Who Walked into Doors is a book about a lady named Paula and her battle against her harsh spouse that went through the 17 years of their marriage beating and mishandling her. I am almost certain that each and every individual who has perused this book concurs that it is actually a women's activist novel with Roddy Doyle, the writer, truly attempting to investigate the existence a woman’s mind under maltreatment. The main indications of woman's rights come from the get-go in the book. Paula is by all accounts pulled in to a person named Charlo Spencer who is viewed as a â€Å"ride†, a term used to characterize a drawing in looking individual. We see the possibility that ladies are into â€Å"bad boys† shown by Paula when she succumbs to Charlo. She states what he looks like attractive with his cigarette, a calfskin coat, and blue denim Jeans. This was a run of the mill depiction of a â€Å"bad boy’ in the 90’s. She additionally expressed that he had a criminal record as though it were something worth being thankful for and rather appealing. As the novel advances a great deal of women's activist hypotheses are introduced, for example, the dauntlessness is young ladies in the 90’s and even in current occasions. Paula is a daring person and likes to investigate around and not so much terrified of results. This again addresses the women's activist hypothesis that ladies will in general be silly chiefs in their late high school hood. An ideal model from the book is when Paula disregarded her father’s see on Charlo when he made it evident he loathed Charlo and said he is a lawbreaker. Anyway later in the novel as she develops more established she understands her dad was correct and just attempting to secure her. This again bolsters during a phase of their life, ladies will in general settle on inept choices that they will lament later on throughout everyday life. After Paula gets hitched to Charlo and the maltreatment and beatings start Roddy Doyle truly begins to push some solid women's activist speculations through. One of the most significant being the dependence that a lady has towards a man and truly takes this plan to its pinnacles. This is depicted by Paula all through the vast majority of the novel, despite the fact that Charlo beats, assaults, and misuses her she despite everything says she adores him and she can’t leave him. For her own security and prosperity she was not ready to relinquish the man who she cherished at this point who mishandled her. This should show how ladies are reliant on men and being beat by a man is better than not having one. At long last he most significant hypothesis being introduced I accept is the awkwardness of intensity among people and the limit ot a woman’s resistance towards harsh conduct. All through their marriage Paula has been feeble by not having the option to settle on any options or have any state in how things are done, supposing that she were to shout out she would almost certainly get beaten by Charlo. This shows the lopsidedness in force and disparity in women’s rights in the 90’s when this book was composed. Additionally regardless of whether Paula needed to leave Charlo she didn't have the ability to all alone. Anyway the thought introduced is that ladies carry on just like this is the issue is etween a couple, in the novel, when Charlo takes a gander at Nicola, his most seasoned little girl, in a grimy route as though he needs to hurt her is when Paula’s limit is reached. She takes a griddle and whips him in the kitchen at that point shows him out of the house for good. This carries us to the possibility that when women’s won't go to bat for themselves yet when their kids are focused on they do the incomprehensible to ensure them. The way that this book was composed by a male writer is extremely noteworthy for how he developed the book from a females point of view and make it so viable in sending its messages and affecting on the peruser. Step by step instructions to refer to Theme of Feminism in The Women Who Walked into Doors, Papers

Technophobia Is a Fear Related to the Loss of Control

Technophobia Is a Fear Related to the Loss of Control Phobias Types Print Technophobia Is a Fear Related to the Loss of Control By Lisa Fritscher Lisa Fritscher is a freelance writer and editor with a deep interest in phobias and other mental health topics. Learn about our editorial policy Lisa Fritscher Updated on October 05, 2018 Sam Diephuis / Stone / Getty Images More in Phobias Types Causes Symptoms and Diagnosis Treatment The fear of technology, also known as technophobia, is the fear or dislike of advanced technology or complex devices, especially computers. Technophobia is surprisingly common. In fact, some experts believe that we all suffer at least a small amount of nervousness when confronted with new technology. In todays rapidly changing world, it can be easy to feel out of touch. Fear of Technology Through the Ages Technophobia may seem like a new phenomenon, a product of the information age that began in the 1960s and continues to ramp up at lightning speed today. Yet there were reports of technophobia at least as early as the Industrial Revolution. Whenever there are major changes in how we do things, particularly if machines are involved, technophobia is likely to occur. Fear of Technology Social and Cultural Factors The more we use an item, the more comfortable we become with that item. Traditionally, teens and young adults are the first to embrace new products and the first to become proficient with them, followed shortly by younger children. Adults are generally somewhat slower to adopt new technologies, and some seniors may never embrace them. For example, when I was a kid in the 1980s, everybody knew that if your VCR clock was flashing, you had to get a kid to set it. Today, my grandmother, now in her 90s, refuses to own a cell phone. Gender differences may also play a role, although this seems to be changing. In the early days of the personal computer revolution, the stereotypical computer user was a male in his 20s or early 30s, probably living in his parents basement. Although stereotypes are usually wrong, many females inherently believed that they were unable to relate to computers. Now, of course, computers are a ubiquitous part of life for most people, male or female. New Technology Makes Us Feel Out of Control In the late 1980s, my mothers workplace was equipped with a few Commodore 64 computers. My family members were all early adopters, and weve had computers in our house since 1981. But for many of my moms coworkers, this was their first exposure to the technology. One woman in the office, a highly educated, well-trained mental health therapist, flatly refused to touch any of the computers. She was afraid of hitting the wrong button and wiping out her bank account. One of the most basic technology fears is rooted in the loss of control. We dont necessarily understand exactly how a new piece of technology works, so our imaginations fill in the details. Its human nature to want to be in control of our environment, and its scary to think that we might not have as much control as we had hoped. Doomsday Phobias Of course, the ultimate loss of control is a doomsday scenario. From sentient robots bent on destruction to missiles that launch themselves and begin World War III, films, literature, and TV shows are filled with technology gone wrong. We are afraid of an uncertain future, and our minds begin to fill in the blanks. Mass Hysteria Who could forget the Y2K scare? As the rumor went, banks, government agencies, and society as we knew it was going to shut down the moment that we passed into the new millennium. Why? Because computer designers forgot to program the systems to handle four-digit dates. The theory was that the two-digit 00 years would cause the networks to crash.? Of course, January 1, 2000, came and went without incident. Most major systems were already capable of handling four-digit dates, and those that didnt were mostly reprogrammed well before the critical date. Even those home computers that werent reprogrammed made it through with barely a hiccup. Y2K, along with the original radio broadcast of War of the Worlds and the 1994 TV movie Without Warning, stand as some of the finest examples ever of mass hysteria. Different Types of Doomsday Phobias

Movie Life Is Beautiful By Roberto Benigni - 1339 Words

We all are shaped by our experiences in our lives. And the memories, good and bad, have permanently altered our outlook towards our lives and future. We are nothing but a mind over matter that is a product of our experiences under specific circumstances in our lives. If our circumstances were any different, our experiences would have been very different as well and would result in a different memory that will remain with us forever. Perhaps they lie dormant in our minds for long, but only until similar circumstances arise in our lives. I tend to draw some inspiration from the character Guido; Roberto Benigni played in the movie Life is Beautiful where in the second half of the movie he tries to create a totally different experience of a†¦show more content†¦In India, people don’t just travel in railways but they talk about the whole world, eat, pray, play etc. under the same Sun. I was travelling from Vadodara to Ankleshwar by Gujarat Express train in a general coach during my undergraduate studies. Let me describe here a little bit about the general coach of the trains of Indian railways. You are lucky if you can take a proper breath. You are luckier if you can keep your both legs on the surface. You are world’s luckiest person if you can manage to sit anywhere (means anywhere) somehow. I was standing near to the passage. I saw a family standing next to me. The family consisted of total three members the mother, the father and their son. Their looks and dressings mentioned that they belonged to a rich or upper middle class category of families. The father was asking his son whether he liked travelling in the general coach of the train or not. And the son replied with a big â€Å"No†. The story was like this. The family had travelled by flight just a day before their train journey. The son had tasted the essence of flying before having the harsh experience of train journey. Now, his father pointed towards the passengers of the train and gave a valuable lesson to his son that, only study and proper education could give him the comfort of air travel otherwise he would end up with the hardships of the trains just like the experience which they and theShow MoreRelatedLife Is Beautiful Essay713 Words   |  3 PagesIn the movie Life Is Beautiful, a Jewish man and his family are put into a concentration camp during the Holocaust. The movie gives an inside look at the horrors the Jews were faced with during the Holocaust. Life Is Beautiful should be incorporated into a unit on the Holocaust in schools because it shows everything the Jews were faced with, it handles expressing the horrors of the Holocaust without being too graphic, and it would help students get a more personal feeling of what happened toRead MoreRoberto Benigni’s Life is Beautiful Essay712 Words   |  3 PagesThe Film Life is Beautiful In the movie Life Is Beautiful, a Jewish man and his family are put into a concentration camp during the Holocaust. The movie gives an inside look at the horrors the Jews were faced with during the Holocaust. ?Life Is Beautiful? should be incorporated into a unit on the Holocaust in schools because it shows everything the Jews were faced with, it handles expressing the horrors of the Holocaust without being too graphic, and it would help students get a more personalRead MoreEssay about The Things that Money Can and Cannot Buy1589 Words   |  7 PagesMoney, the media of exchange for products and services, provides things people need, like food, clothing, shelter, or medicine. People spend most of their life looking for it. My parent for example, works from sunrise to sunset to obtain it. The more money people have the more benefits they can get, because they will be able to get a bigger and better houses, clothes, or food. Less money means stress in bill payments, gas prices, and f ood prices. With money, people can fulfill their material needRead MoreThe Rise of Anti-semitic Views Under the Nazis Essay580 Words   |  3 PagesThe rise of anti-semitic views under the nazis made survival challenging for the jews of Europe. Life is Beautiful directed by Roberto Benigni and Maus by Art Spiegelman present the Holocaust in different ways. Life is Beautiful uses comedy to show Guido’s effort to keep his son alive. While Maus uses Vladek’s application of industrial skills to keep his family alive. Both stories show the peoples effort to survive at all costs using the skill set that they have. The two works about Holocaust survivalRead MoreThe Humanistic Study Of History2329 Words   |  10 Pagesbetween movies and novels is the fundamental illusion of photography, says Richard Slotkin, a professor of history at Wesleyan University who has written about the movies-as-history genre. Even when you know that something didn t happen, movie photography gives you the illusion that it did. According to Aristotle â€Å"History is an account of what individual human beings have done and suffered† . Taking this reference as a base to unravel the topic of the present essay, it is clear theRead MoreThe Diary Of A Young Girl By Roberto Benigni1030 Words   |  5 PagesMooyaart-Doubleday and the movie, Life is Beautiful directed by Roberto Benigni, explains the story of two different people and their experiences through the Holocaust. In her diary, Anne Frank explains her experience of hiding from the Holocaust. In the movie, it explains Guido ´s experience of the Holocaust and how he had to protect his son during the event. Throughout their experiences, Anne and Guido have many differences and similarities. In both the book and the movie, Anne and Guido demonstrateRead MorePortrayal of the Holocaust in Maus Written by Spiegelman and Life is Beautiful Directed by Roberto Benigni768 Words   |  4 PagesBoth Maus, written by Art Spiegelman, and Life is beautiful , directed by Roberto Benigni have two very different portrayals of the holocaust and their main characters both have different strengths that allow them and their families to keep afloat during the Holocaust. Vladek and Guido use their individual strengths to survive the prison camps and help their loved ones to survive as well. Both Vladek and Guido have families they need to keep track of while living in the harsh environment of the concentrationRead More The War Experience in Italian Film Essay3455 Words   |  14 Pagesof the aforementioned corpus. The war experience in Italian film can be succinctly considered through a detailed analysis of Rome, Open City (Roma, Città   Aperta, Roberto Rossellini, 1945), Salo: 120 Days of Sodom (Salà ² o le 120 Giornate di Sodoma, Pier Paolo Pasolini, 1975), and Life is Beautiful (La Vita à ¨ Bella, Roberto Benigni, 1997). Though all three films take place during roughly the same diegetic time period, they are each separated in production and release date by up to 30 years. Read MoreLiterary And Cinematic Works Of `` Maus ``1856 Words   |  8 PagesIn the decades following the end of World War II there have been many literary and cinematic works portraying what life was like during the Holocaust. Many of these have come from survivors themselves but never the less even some of the most well-known works have come from second generation Holocaust victims or rather children whose parents were a part of it. One of the most renowned pieces is Art Spiegelman’s non-fiction graphic novel â€Å"Maus†. Originally published in 1980, it details the experiences

10 US Education System Problems

Look at any major poll on American priorities, and education is near the top. A recent poll from the respected Rasmussen Reports indicated it was the fifth highest priority, and a major concern of nearly 60 percent of American voters. It is good that the American public is concerned about education, because the teaching of our children faces many issues. Here are 10 core issues facing the American education system. Politics Many of the crises and issues discussed below need a solution. However, our political system, from city councils to the state legislatures to the federal government, solutions are paralyzed by intractable, partisan gridlock. Politicians from both parties seem more interested in being right and placing blame on the other party. Democrats are fixated on more funding for schools, and while that would help, the education system needs reform, not just money. Republicans are intent on demonizing teacher unions, and ignore the reality that education reform encompasses a wide array of challenges, not just teacher benefits. Common Core State Standards The federal government introduced Common Core State Standards in 2010, and encouraged states to adopt it by providing federal grants to those states that agreed to enroll. The standards focus on improving basic English language and math skills. To date 46 states have enrolled, but progress has been mixed. Nevertheless, the standards are an attempt to address the sad reality that American students fare poorly when compared to European and Asian students. Most criticism of the standards cite a â€Å"one-size-fits all† approach. This is valid criticism. Hopefully, the federal government can continue work on the standards, perhaps making them a bit more flexible. However, there is much resistance to the standards by Republicans, many of whom claim standards to be the federalization of K-12 education. Perhaps there’s some truth to that, but the real question is, where have the states been these last 30 years while the system deteriorated? Technology New technology, from notebooks for every student to online learning, plays a role in education, and can be very helpful in testing and improving skills. However, it also exacerbates the issue of funding disparities. Schools rich in money can afford tablets and wireless access for all students, while poor schools struggle to keep the schools safe, maintained, and heated during winter. The result is growing inequalities in education opportunities, which poses a challenge nationwide improvement. School Safety With numerous recent tragedies where students died, a dedicated focus on school safety is understandable. However, too much security and control can make our schools seem like mini-prisons. In fact, former Attorney General Eric Holder expressed just that concern. Teaching vs. Learning Much focus on improving education involves holding teachers accountable for student achievements. Yet, more focus is necessary on improving how students learn, not how teacher educate. Grading Over-reliance on grades to assess progress and grade inflation are issues that take up too much of educators’ time. Many educators believe that grades poorly assess progress, yet precious time is squandered on emphasizing them rather than addressing other issues on this list. Classroom Size When budgets tighten, classroom sizes expand. While studies show that about 15 students per class is the maximum to ensure a good learning environment for teacher and student, many classrooms are bursting at the seam with more than 30 or 40 students. Family Environment While education reform often focuses on test standards, teacher accountability, and classroom size, a far larger factor looms over education reform. That factor is the family environment. What happens at home impacts a student’s ability to learn. While family environment is a broader social issue, how it affects students needs to be considered when discussing reform. Cheating There’s no question that student cheating is a problem. The only real question is what is worse: rampant cheating that goes undetected, or the apparently prevailing view among students that cheating’s not really a big deal. Distractions The time that school administrators, counselors, and teachers spend with students and students’ issues is precious. And yet, the government and society impose a smothering blanket of political correctness, school lunch nutrition standards, invasive security requirements, and a whole host of other issues that belong in the lawmaking and policymaking areas of government, not in the nations’ schools.

Hertz Corporation Free Essays

string(239) " Earnings from equity investment in SABMiller \(344\) 3,676 Net earnings attributable to noncontrolling interests 1,224 2,421 Net earnings 2,606 1,255 Provision for income taxes 1,382 \(1 \) Net earnings attributable to Altria Group, Inc\." ALTRIA GROUP, INC. (MO) 10-Q Quarterly report pursuant to sections 13 or 15(d) Filed on 07/26/2012 Filed Period 06/30/2012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. We will write a custom essay sample on Hertz Corporation or any similar topic only for you Order Now 20549 FORM 10-Q (Mark One) y QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2012 OR ? TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from o Commission File Number 1-08940 Altria Group, Inc. (Exact name of registrant as specified in its charter) Virginia 13-3260245 (State or other jurisdiction of incorporation or organization) (I. R. S. Employer Identification No. ) 6601 West Broad Street, Richmond, Virginia 23230 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code (804) 274-2200 Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ? No ? Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( §232. 05 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ? No ? Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of â€Å"large accelerated filer,† â€Å"accelerated filer† and â€Å"smaller reporting company† in Rule 12b-2 of the Exchange Act. Large accelerated filer ? Accelerated filer ? Non-accelerated filer ? (Do not check if a smaller reporting company) Smaller reporting company ? Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ? No ? At July 16, 2012 , there were 2,032,833,474 shares outstanding of the registrant’s common stock, par value $0. 33 1/3 per share. Table of Contents ALTRIA GROUP, INC. TABLE OF CONTENTS Page No. PART I – FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011 3 Condensed Consolidated Statements of Earnings for the Six Months Ended June 30, 2012 and 2011 5 Three Months Ended June 30, 2012 and 2011 Condensed Consolidated Statements of Comprehensive Earnings for the Six Months Ended June 30, 2012 and 2011 7 Three Months Ended June 30, 2012 and 2011 8 Condensed Consolidated Statements of Stockholders’ Equity for the Year Ended December 31, 2011 and the Six Months Ended June 30, 2012 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011 10 Notes to Condensed Consolidated Financial Statements 12 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 Item 4. Controls and Procedures 99 PART II – OTHER INFORMATION Item 1. Legal Proceedings 100 Item 1A. Risk Factors 100 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 100 Item 5. Other Information 101 Item 6. Exhibits 102 Signature Signature 103 – 2- Table of Contents PART I – FINANCIAL INFORMATION Item 1. Financial Statements. Altria Group, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions of dollars) (Unaudited) June 30, 2012 December 31, 2011 Assets Consumer products Cash and cash equivalents $ Receivables 1,528 $ 3,270 256 268 Leaf tobacco 799 934 Other raw materials 184 170 Work in process 269 316 Inventories: Finished product 432 Other current assets 1,779 1,207 Deferred income taxes 359 1,684 1,207 468 Property, plant and equipment, at cost 607 5,143 Total current assets 7,131 4,750 2,512 2,131 Goodwill 4,728 2,619 Less accumulated depreciation 2,216 5,174 Other assets 12,098 6,486 Investment in SABMiller 5,174 12,088 Other intangible assets, net 5,509 472 1,257 31,494 33,385 3,012 Total consumer products assets 3,559 Financial services Finance assets, net Other assets 41 Total Assets $ 18 3,053 Total financial services assets 3,577 34,547 $ See notes to condensed consolidated financial statements. Continued – 3- 36,962 Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Continued) (in millions of dollars, except share and per share data) (Unaudited) June 30, 2012 December 31, 2011 Liabilities Consumer products Current portion of long-term debt $ Accounts payable 600 $ 600 335 503 Marketing 581 430 Taxes, except income taxes 218 220 Accrued liabilities: Employment costs 110 225 Settlement charges 2,184 3,513 Other 1,217 1,311 Dividends payable 836 7,643 13,089 Long-term debt 841 6,081 Total current liabilities 13,089 Deferred income taxes 5,074 4,751 Accrued pension costs 1,139 1,662 Accrued postretirement health care costs 2,367 2,359 Other liabilities 606 602 28,356 30,106 1,764 Total consumer products liabilities 2,811 Financial services Deferred income taxes Other liabilities 119 3,141 30,239 33,247 33 32 935 Total liabilities 330 1,883 Total financial services liabilities 935 Contingencies (Note 11) Redeemable noncontrolling interest Stockholders’ Equity Common stock, par value $0. 33 1/3 per share (2,805,961,317 shares issued) Additional paid-in capital 5,647 Accumulated other comprehensive losses 5,674 24,334 Earnings reinvested in the business 3,583 (1,674) (1,887) Cost of repurchased stock (773,116,613 shares in 2012 and 761,542,032 shares in 2011) (24,969) (24,625) Total stockholders’ equity attributable to Altria Group, Inc. 4,273 3,680 2 3 Noncontrolling interests Total stockholders’ equity 4,275 Total Liabilities and Stockholders’ Equity $ 34,547 See notes to condensed consolidated financi al statements. – 4- 3,683 $ 36,962 Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings (in millions of dollars, except per share data) (Unaudited) For the Six Months Ended June 30, 2012 Net revenues $ 2011 12,134 $ 11,563 Cost of sales 3,878 3,825 Excise taxes on products 3,560 3,618 Gross profit 4,696 4,120 1,130 1,272 Marketing, administration and research costs Asset impairment and exit costs 37 3 Amortization of intangibles 10 11 3,519 2,834 Operating income Interest and other debt expense, net 586 Earnings before income taxes 572 (743) Earnings from equity investment in SABMiller (344) 3,676 Net earnings attributable to noncontrolling interests 1,224 2,421 Net earnings 2,606 1,255 Provision for income taxes 1,382 (1 ) Net earnings attributable to Altria Group, Inc. You read "Hertz Corporation" in category "Essay examples" (1) $ ,420 $ 1,381 Basic earnings per share attributable to Altria Group, Inc. $ 1. 19 $ 0. 66 Diluted earnings per share attributable to Altria Group, Inc. $ 1. 19 $ 0. 66 $ 0. 82 $ 0. 76 Per share data: Dividends declared See notes to condensed consolidated financial statements. – 5- Altria Group, Inc. and Subsidiaries Condensed Conso lidated Statements of Earnings (in millions of dollars, except per share data) (Unaudited) For the Three Months Ended June 30, 2012 Net revenues $ 2011 6,487 $ 5,920 Cost of sales 2,086 2,030 Excise taxes on products 1,907 1,918 Gross profit 2,494 1,972 596 671 16 1 Marketing, administration and research costs Asset impairment and exit costs Amortization of intangibles 5 Earnings from equity investment in SABMiller 1,295 293 Interest and other debt expense, net 5 1,877 Operating income 294 (223) Earnings before income taxes (155) 1,807 581 Net earnings 712 1,226 Provision for income taxes 1,156 444 Net earnings attributable to noncontrolling interests (1 ) Net earnings attributable to Altria Group, Inc. — $ 1,225 $ 444 Basic earnings per share attributable to Altria Group, Inc. $ 0. 60 $ 0. 21 Diluted earnings per share attributable to Altria Group, Inc. $ 0. 60 $ 0. 21 0. 41 $ 0. 38 Per share data: Dividends declared See notes to condensed consolidated financial statements. – 6- Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Earnings (in millions of dollars) (Unaudited) For the Six Months Ended June 30, 2012 Net earnings $ 2,421 2011 $ 1,382 Other comprehensive earnings, ne t of deferred income taxes: Currency translation adjustments — 1 61 64 154 135 Benefit plans: Amounts reclassified to net earnings SABMiller: Ownership share of SABMiller’s other comprehensive earnings before reclassifications to net earnings Amounts reclassified to net earnings (2 ) 5 152 205 2,634 Comprehensive earnings Comprehensive earnings attributable to noncontrolling interests 140 213 Other comprehensive earnings, net of deferred income taxes 1,587 (1) Comprehensive earnings attributable to Altria Group, Inc. See notes to condensed consolidated financial statements. – 7- $ 2,633 (1) $ 1,586 Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Earnings (in millions of dollars) (Unaudited) For the Three Months Ended June 30, 2012 Net earnings $ 2011 1,226 $ 444 Other comprehensive earnings, net of deferred income taxes: Currency translation adjustments — 1 39 32 (23) 78 (5) 1 Benefit plans: Amounts reclassified to net earnings SABMiller: Ownership share of SABMiller’s other comprehensive (losses) earnings before reclassifications to net earnings Amounts reclassified to net earnings (28) 112 1,237 Comprehensive earnings Comprehensive earnings attributable to noncontrolling interests 79 11 Other comprehensive earnings, net of deferred income taxes 556 (1) Comprehensive earnings attributable to Altria Group, Inc. See notes to condensed consolidated financial statements. 8- $ 1,236 — $ 556 Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Statements of Stockholders’ Equity for the Year Ended December 31, 2011 and the Six Months Ended June 30, 2012 (in millions of dollars, except per share data) (Unaudited) Attributable to Altria Group, Inc. Common Stock (1) Earnings Reinvested in the Busine ss Accumulated Other Comprehensive Losses Cost of Repurchased Stock Non-controlling Interests Total Stockholders’ Equity $ 935 Balances, December 31, 2010 Additional Paid-in Capital $ 5,751 $ 23,459 $ $ (23,469) $ $ (1,484) 3 5,195 — — 3,390 — — 1 Other comprehensive losses, net of deferred income tax benefit — — — (403) — — (403) Exercise of stock options and other stock award activity — (77) — — 171 — 94 Cash dividends declared ($1. 58 per share) — — — — (3,266) Repurchases of common stock — — — — — (1,327) Other — — — — Net earnings Balances, December 31, 2011 (3,266) — — (1) 935 5,674 23,583 3 3,683 — — 2,420 — — — 2,420 Other comprehensive earnings, net of deferred income taxes — — — 213 — — 213 Exercise of stock options and other stock award activity — (27) — — 16 — (11) Cash dividends declared ($0. 82 per share) — — — — — (1,669) Repurchases of common stock — — (360) — (360) Balances, June 30, 2012 (1) ( 1,669) — — — — $ 935 $ 5,647 $ 24,334 — $ (1,674) (24,625) (1) Net earnings (1) Other (1,887) (1,327) 3,391 — $ (24,969) (1) $ 2 (1) $ 4,275 Net earnings attributable to noncontrolling interests for the six months ended June 30, 2012 and for the year ended December 31, 2011 exclude $1 million and $2 million, respectively, due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars, which is reported in the mezzanine equity section in the condensed consolidated balance sheets at June 30, 2012 and December 31, 2011 , respectively. See Note 11. See notes to condensed consolidated financial statements. – 9- Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions of dollars) (Unaudited) For the Six Months Ended June 30, 2012 2011 Cash Provided by (Used In) Operating Activities Net earnings (loss) – Consumer products $ 2,311 – Financial services 110 Net earnings $ 1,962 (580) 2,421 1,382 Depreciation and amortization 113 121 Deferred income tax provision 299 132 (743) (344) (34) (24) (456) — Adjustments to reconcile net earnings to operating cash flows: Consumer products Earnings from equity investment in SABMiller Asset impairment and exit costs, net of cash paid IRS payment related to LILO and SILO transactions Cash effects of changes: Receivables, net 2 Inventories (12) 95 Accrued liabilities and other current assets (94) (251) Income taxes 130 (64) Accounts payable 5 58 Accrued settlement charges 58 (1,329) (1,398) Pension plan contributions (514) (209) Pension provisions and postretirement, net 85 122 Other 90 121 Financial services Deferred income tax benefit (1,270) PMCC leveraged lease charges 7 Decrease to allowance for losses 10) Other liabilities (income taxes) 1,437 Other (529) 490 — 505 (21) See notes to condensed consolidated financial statements. Continued – 10- 23 (85) Net cash (used in) provided by operating activities 479 Table of Contents Altria Group, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Continued) (in millions of dollars) (Unaudited) For the Six Months Ended June 30, 2012 2011 Cash Provided by (Used In) Investing Activities Consumer products Capital expenditures $ Other (39) $ (3) (40) 1 Financial services Proceeds from finance assets 552 129 510 0 — Net cash provided by investing activities 1,494 Cash Provided by (Used In) Financing Activities Consumer products Long-term debt issued Repurchases of common stock (360) (575) (1,674) Dividends paid on common stock (1,589) Issuances of common stock — 29 Financing fees and debt issuance costs — (23) (133) (155) (2,167) (819) Other Net cash used in financing activities Cash and cash equivalents: Decrease (1,742) Balance at beginning of period (250) 3,270 Balance at end of period $ 1,528 See notes to condensed consolidated financial statements. – 11 – 2,314 $ 2,064 Table of Contents Note 1. Background and Basis of Presentation: Background At June 30, 2012, Altria Group, Inc. ‘s direct and indirect wholly-owned subsidiaries included Philip Morris USA Inc. (â€Å"PM USA†), which is engaged in the manufacture and sale of cigarettes and certain smokeless products in the United States; John Middleton Co. (â€Å"Middleton†), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco, and is a wholly-owned subsidiary of PM USA; and UST LLC (â€Å"UST†), which through its direct and indirect wholly-owned subsidiaries including U. S. Smokeless Tobacco Company LLC (â€Å"USSTC†) and Ste. Michelle Wine Estates Ltd. (â€Å"Ste. Michelle†), is engaged in the manufacture and sale of smokeless products and wine. Philip Morris Capital Corporation (â€Å"PMCC†), another wholly-owned subsidiary of Altria Group, Inc. , maintains a portfolio of leveraged and direct finance leases. In addition, Altria Group, Inc. held an approximate 27. 0% economic and voting interest in SABMiller plc (â€Å"SABMiller†) at June 30, 2012, which is accounted for under the equity method of accounting. Altria Group, Inc. s access to the operating cash flows of its wholly-owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries. In addition, Altria Group, Inc. receives cash dividends on its interest in SABMiller if and when SABMiller pays such dividends. At June 30, 2012, Altria Group, Inc. ‘s principal w holly-owned subsidiaries were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their common stock. Share Repurchases In October 2011, Altria Group, Inc. ‘s Board of Directors authorized a $1. 0 billion share repurchase program, which Altria Group, Inc. intends to complete by the end of 2012 . During the six and three months ended June 30, 2012, Altria Group, Inc. repurchased 11. 9 million shares (aggregate cost of approximately $360 million , and $30. 16 average price per share) and 2. 0 million shares (aggregate cost of approximately $66 million , and $32. 37 average price per share), respectively. As of June 30, 2012 , Altria Group, Inc. had repurchased a total of 23. million shares of its common stock under this program at an aggregate cost of approximately $688 million , and an average price of $29. 01 per share. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of Altria Group, Inc. ‘s Board of Directors. Basis of Presentation The interim condensed consolidate d financial statements of Altria Group, Inc. are unaudited. It is the opinion of Altria Group, Inc. ‘s management that all adjustments necessary for a fair statement of the interim results presented have been reflected therein. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year. These statements should be read in conjunction with the consolidated financial statements and related notes, which appear in Altria Group, Inc. ‘s Annual Report to Shareholders and which are incorporated by reference into Altria Group, Inc. ‘s Annual Report on Form 10-K for the year ended December 31, 2011. Balance sheet accounts are segregated by two broad types of businesses. Consumer products assets and liabilities are classified as either current or noncurrent, whereas financial services assets and liabilities are unclassified, in accordance with respective industry practices. During the second quarter of 2012, Altria Group, Inc. determined that it had not recorded in its financial statements for the three months ended March 31, 2012, its share of non-cash gains from its equity investment in SABMiller, relating to SABMiller’s strategic alliance transactions with Anadolu Efes and Castel that were closed during the first quarter of 2012. Because Altria Group, Inc. did not record these gains, it understated by $342 million, $222 million and $0. 11 earnings from equity investment in SABMiller, net earnings/comprehensive earnings, and diluted earnings per share attributable to Altria Group, Inc. , respectively, for the three months ended March 31, 2012. Additionally, Altria Group, Inc. understated its investment in SABMiller, long-term liability for deferred income taxes and total stockholders’ equity by $342 million, $120 million and $222 million, respectively, at March 31, 2012. There was no impact on net cash flows from operating, investing or financing activities for the three months ended March 31, 2012. Altria Group, Inc. assessed the materiality of – 12- Table of Contents Altria Group, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) these understatements in accordance with the Securities and Exchange Commission’s (â€Å"SEC†) Staff Accounting Bulletin No. 99 â€Å"Materiality† and determined that the impact was not material to Altria Group, Inc. ‘s financial statements as of and for the three months ended March 31, 2012. Accordingly, Altria Group, Inc. has determined that it is appropriate to revise its first quarter 2012 financial statements and has reflected this revision in the financial statements as of and for the six months ended June 30, 2012. Financial results for the three months ended March 31, 2012 reported in future filings will reflect this revision. Altria Group, Inc. ‘s chief operating decision maker has been evaluating the operating results of the former cigarettes and cigars segments as a single smokeable products segment since January 1, 2012. The combination of these two formerly separate segments is related to the restructuring associated with the cost reduction program announced in October 2011 (the â€Å"2011 Cost Reduction Program†). Also, in connection with the 2011 Cost Reduction Program, effective January 1, 2012, Middleton became a wholly-owned subsidiary of PM USA, reflecting management’s goal to achieve efficiencies in the management of these businesses. Effective with the first quarter of 2012, Altria Group, Inc. ‘s reportable segments are smokeable products, smokeless products, wine and financial services. For further discussion on the 2011 Cost Reduction Program, see Note 2. Asset Impairment, Exit, Implementation and Integration Costs. Effective January 1, 2012, Altria Group, Inc. adopted new authoritative guidance that eliminated the option of presenting components of other comprehensive earnings as part of the statement of stockholders’ equity. With the adoption of this guidance, Altria Group, Inc. is reporting other comprehensive earnings in separate statements immediately following the statements of earnings. Note 2. Asset Impairment, Exit, Implementation and Integration Costs: Pre-tax asset impairment, exit and implementation costs for the six and three months ended June 30, 2012 consisted of the following: For The Six Months Ended June 30, 2012 Asset Impairment and Exit Costs For The Three Months Ended June 30, 2012 Implementation (Gain) Costs Total Asset Impairment and Exit Costs Implementation Costs Total (in millions) Smokeable products $ 23 $ (12) $ 11 $ 16 $ 9 $ 25 Smokeless products 14 5 19 — — — General corporate — (1) (1 ) — — — Total $ 37 How to cite Hertz Corporation, Essay examples

Capacity Management for Freight Industry -Free Samples

Question: Describe about the Capacity Mangement for Freight Industry. Answer: 1. The costs which are relevant for Overland Trucking for adding two additional loads per week will be Fuel, Insurance Oil lubricants Tolls Parts and Small Tools Hourly Wages: drivers Trailer Pool Expense These costs are relevant because the company will have to bear additional costs if the additional loads were added to existing fleet. The costs which are relevant for Overland Trucking for adding two additional loads per week will be Fixed Insurance cost Security cost Salaries: Garage and office Accounting Fees Supplies and Computer maintenance. These costs are not relevant because the company will bear these costs even if the additional loads were not added. Adding these two loads will not make any change in these costs and hence they are irrelevant costs. 2. Given, Revenue: FHP offered revenue per mile including FSC and miscellaneous = $2.15 Expenses: Insurance = 0.06 Fuel = 0.78 Oil Lubricants = 0.01 Tolls = 0.01 Parts and Small Tools = 0.07 Hourly wages: Drivers = 0.44 Trailer Pool Expense = 0.02 Total Variable Expense = 1.39 Thus, Contribution per mile = Revenue Variable expense = $0.76 Total Contribution = no. of loads* miles per week* no. of weeks* Contribution per mile = 2* 1500* 52* 1.24 = 118560 Increase in contribution margin = 118560/ 15638480 *100% = 0.758% Thus if the fixed cost does not increase by a greater than the contribution margin then it makes sense to add the additional loads to the fleet. 3. The implications of expanding the fleet size are The company will have to raise debt to fund the additional loads and the current economic conditions are not favorable to raise debt. The routes suggested by FHP will be in new and unfamiliar environment for the Overland which can face issue with the terrain and new markets increasing unexpected costs. The Overland management might become inefficient with the sudden increase in the fleet size and newer routes and hence may not be able to handle the existing system as efficiently as it used to. Thus all the above factors are the risks involved in the expansion of Overland. 4. Given, Increase in fixed costs = 50000 Revenue from FHP per mile = 2.20 Contribution Margin = Revenue Variable cost = 2.20 - 1.39 = 0.81 Thus break even = Fixed Costs/ Contribution Margin = 50000/ 0.81 = 61728.39 miles The company needs to sign 5-year contract with FHP. Miles per year to be travelled = no. of weeks * miles per week = 52* 1500 = 78000 Total additional miles the company needs to travel = No. of years* miles per year= 5* 78000 = 390000 Additional income in 5 years = Contribution per mile * number of miles fixed costs = 0.81* 390000 -50000 = 265900 Additional income per year = 265900/5 = 53180 Increase in profitability = 53180/ 3681810* 100% = 1.444% 5. Given, Wage to independent contractor per mile = 1.65 Increase in fixed costs = 20000 Revenue from FHP per mile = 2.20 Contribution Margin = Revenue Variable cost = 2.20 - 1.65 = 0.55 Thus break even = Fixed Costs/ Contribution Margin = 20000/ 0.55 = 36363.63 miles The company needs to sign 5-year contract with FHP. Miles per year to be travelled = no. of weeks * miles per week = 52* 1500 = 78000 Total additional miles the company needs to travel = No. of years* miles per year= 5* 78000 = 390000 Additional income in 5 years = Contribution per mile * number of miles fixed costs = 0.55* 390000 -20000 = 194500 Additional income due to outsourcing per year = Contribution per mile * number of miles in one year fixed costs = 0.55* 78000 -20000 = 22900 Increase in profitability from FHP contract= 22900/ 3681810* 100% = 0.622% Thus, if the company is willing to add the loads for FHP contract it should use own trucks instead of independent contractors. 6 a. Over-land might choose independent contractors even if the variable cost is high because the company needs to invest additional amount in the purchase of the vehicles. The current economic conditions are not very favorable to incur a debt which will add burden to the balance sheet of the company. Also the current management feels that it is working to its full capacity and will not be able to manage the additional load ad it can affect the efficiency of the company. Thus in these cases they may want to choose independent contractors to take advantages of the contract and not affect the existing system. 6 b. The management will be indifferent between choosing independent contractors or owning it themselves if the net additional income from both the cases are equal. Over-land will incur a cost of 50000 if it purchases additional equipment for the contract. If the company also has to bear costs apart from the cost of procuring the equipment which reduces its net income from the contract from 53180 to 22900 then they will be indifferent to both options. Also if Over-land finds the indirect costs which have affected the overall net income of the company due to purchase and management of the new rigs and the net income after purchasing the rigs is same as the net income with independent contractors, it will be indifferent to both the alternatives. 7. The Landstar trucking Company uses independent contractors and hence the major expense incurred by the company is in renting the transport from the independent contractors J B Hunt Transportation Services on the other hand uses its own rigs and company drivers. Thus the major expenses for the company are purchasing the rigs and payment to the drivers. In case the economic demand is high, J B Hunt will produce higher profits as the contribution margin for the company is higher than the Landstar trucking Company. This is because the company owns the vehicle and can reduce the various expenses it incurs in running the vehicle whereas in case of independent contractors, the same is not possible as they have already fixed the rates and hence no economies of scale can be applied to it. The cost structure of Landstar trucking Company is less risky than the J B Hunt Transportation Services if the economic conditions are poor. This is because the company does not own any rigs and hence will not incur fixed costs when there is a low demand. Whereas J B Hunt Transportation Services owns the rigs and thus the fixed costs due to depreciation costs, employee wages, etc. will be high even if the demand is low. Thus it is riskier compared to The Landstar trucking Company. 8. Capacity of a firm is defined as the highest sustainable output rate. Thus for Over-land, the capacity is the maximum number of miles a rig can travel without drop in efficiency and incurring additional costs. The challenges Overlands management faces while defining and managing capacity are Mismatch of supply and demand: The company needs to estimate the number of rigs it requires to cater to the demand accurately as more number of rigs will lead to additional costs to the company whereas less number of rigs can affect the service level provided by the company. Linking capacity to decision making: Over-land management team should be able to closely link the existing capacity of the company to the various strategies and must consider the impact of capacity utilization in taking decision for future expansions. Expansion challenges of capacity: The management needs to decide when the company should increase its capacity. The company should take into account the various factors as increase in demand, cost of procuring new equipment, cost of debt, cost of choosing independent contractors, other alternatives and other challenges while deciding expansion. The capacity of the Over-land is the potential miles it can travel in a given time period. The company owns 90 trucks. In the year 2013, the number of miles travelled by all the Over-land trucks combined = 11250000. Thus each truck travelled mile per year = 11250000/ 90 = 125000 Actual capacity per week = 125000/ 52 = 2403.82 miles The company utilizes only 85 % of the potential miles per year. Thus the potential number of miles per year = 125000/ 0.85 = 147058.82. In one week, potential number of miles that can be travelled = 147058.82/ 52 = 2828.05 miles. Thus for one driver per rig the theoretical capacity will be 2828.05 miles Practical capacity = 0.85* 2828.05 = 2403.84 miles. References Capacity Mangement. (n.d.). Retrived from https://www.investopedia.com/terms/c/capacity-management.asp?layout=infiniv=5Eorig=1adtest=5E Capacity issues among challenges facing the freight industry. (n.d.). Retrived from https://www.cts.umn.edu/Publications/catalyst/2014/february/freightindustry J.B. HUNT TRANSPORT SERVICES, INC. (n.d.). Retrieved from https://www.sec.gov/Archives/edgar/data/728535/000143774914002605/jbht20131231_10k.htm