Causes of Forest Fires

The world has many natural disasters which cause many human and material losses. An example of these disasters are floods, air pollution and forest fires. So, this essay will highlight the main causes of forest fires. The first main cause of forest fires is because of nature. It can be caused by many factors like lightning . When the Lightning strikes a tree, the tree begins to burn with fires which expanded to other trees and unlikely the flames continue non-stop.For instance, the numbers of forest fires which destroying million of hectares of valuable trees are increasing more than 100,000 in USA (rubychacha, Boutique Market Research Agency: online). Forest fires can be caused by earthquakes since it cause a lot of massive fires where it lead to incidence many losses whether human or martial. For example, the greatest destruction which caused by earthquake in San Francisco in 1906, it took only a minute but it caused many worst natural disasters like one of them forest fires.Anothe r disaster, it is in Tokyo in 1923 where it caused a huge forest fires (Arbor Day Foundation: Causes of Forest Fires). They are other factors from nature cause forest fires, such as, high temperature with drought and strong wind ,all this factors lead to fires. Bush-fires in the summer frequently occur in Australia (rubychacha, Boutique Market Research Agency: online). Due to the fact, the nature can cause many wounded on the world like forest fires disasters. The second main cause of forest fires is because human.Clearing land is a good example can cause forest fires which sometimes we cannot control it (buzzle, Bora: online). There are several reasons make them burn trees such as social problems or there is no reason maybe only pyromania and this is known as retardation. Also in the mass demonstrations that the protesters make many crimes like one of them burn the forests. According to the Arbor Day Foundation that human carelessness increasing about more than 80 percent.Smokers a re one of causes of forest fires because they do not make sure that they get rid the cigarette. That what happens in many Arab and western countries because of human being. In conclusion, I think that human should be careful in our lives because one mistake can make a big problem like forest fires. However, dry weather can cause forest fires like what happening in Australia every summer. Therefore, human should be careful when they use petroleum materials.Resources Bora, C. What Cause Forest Fires. [online]. Available at: http://www. buzzle. com/articles/what-causes-forest-fires. html [Accessed on 16 March 2012] Boutique Market Research Agency. What Are The Causes Of Forest Fires. [online]. Available at: www. rubychacha. com [Accessed on 14March 2012] Arbor Day Foundation. Causes of Forest Fires. [online]. Available at: http://www. ehow. com/about_5163647_causes-forest-fires. html [Accessed on 28 March 2012]

My Favorite Music

Stankov 9/18/2012 ESL Writhing Prof. Tom Kane THIS IS MY MUSIC I have always been attracted to trance and house music, because when I was younger I was fascinated by its sound. It was like nothing I had heard before. It was not often played on the radio, and is still not. But whenever I heard it, I knew that was the music that I was born to listen. I feel that I can appreciate different music styles because each one has something new to offer. I always listen to music when I drive, walk to class, or go to the gym.I also listen music at home on the television sometimes. There is not a day that passes by when I do not listen to music. Therefore, I believe that music has an extremely great influence on my thoughts, moods, and behavior. Different types of music can drastically alter my thoughts, moods, and behavior. I am my music. More appropriately, my music represents my eccentric nature. My love for house music is endless. I suppose you can say I am a fan of strange music but for me I `m fan of good music.In my opinion good music is a song that has the capability to create strong feelings. The good music can stimulates excitement, ecstasy or nostalgia, it is one that triggers an emotion. As far back as I can remember I have always loved good music and my ipod has always been my most faithful companion. The eclectic nature of my kind of music has taught me to never judge people superficially but view them in depth. I cannot describe myself very good at this point because of my lack of knowledge in English but what I can tell you that, my passion is house music.You can ask yourself is house music a â€Å"good music† or not. But I cannot wait to meet your ipod and try to define you by your type of music whether you are the ‘romantic' or the ‘realist'. I would like to know if we like similar songs or have conflicting opinions on some and if you are not into music, I could maybe teach you to love and appreciate it and maybe we could stay up late som e night with some food trying to rate and enjoy good music.

Reaction Paper Essay

On-the-job training (OJT) is a form of training taking place in a normal working situation.On-the-job training, sometimes called direct instruction, is one of the earliest forms of training (observational learning is probably the earliest). It is a one-on-one training located at the job site, where someone who knows how to do a task shows another how to perform it. In antiquity, the kind of work that people did was mainly unskilled or semiskilled work that did not require specialized knowledge. Parents or other community members, who knew how to do a job necessary for survival, passed their knowledge on to the children through direct instruction.OJT is still widely in use today. In fact, it is probably the most popular method of training because it requires only a person who knows how to do the task, and the tools the person uses to do the task. It may not be the most effective or the most efficient method at times, but it is normally the easiest to arrange and manage. Because the tr aining takes place on the job, it can be highly realistic and no transfer of learning is required. It is often inexpensive because no special equipment is needed other than what is normally used on the job. The other side is that OJT takes the trainer and materials out of production for the duration of the training time. In addition, due to safety or other production factors, it is prohibitive in some environments. On-the-job training, also known as OJT, is teaching the skills, knowledge, and competencies that are needed to perform a specific job within the workplace and work environment. On-the-job training uses the regular or existing workplace tools, machines, documents, equipment, knowledge and skills necessary for an employee to learn to effectively perform his or her job.It occurs within the normal working environment an employee will experience on the job. It may occur as the employee performs actual work or it may occur elsewhere within the workplace using training rooms, training work stations, or training equipment. On-the-job training is most frequently supplied by another employee who can competently perform the job that he or she is teaching.On-the-job training is occasionally performed by an external provider as in the case of specialized equipment. In another example, a vendor trains a marketing system a group of employees is adapting to their own work procedures.While the goal of OJT is often to teach basic workplace skills, it also instills aspects of the workplace culture and performance expectations in the new employee. OJT is also the approach  organizations use to provide new employee onboarding information.On-the-job training is normally the most effective approach to training employees. Here are your 12 best opportunities and methods for providing on-the-job training to employees. Importance of On the Job Training On the job Training are part of a college curriculum that aims to train and orient students about the work and their future career. OJT is very important not only to teach students their chosen career but to show students the reality about working. On the Job Training is very important and should not be taken for granted, here’s why: Aside from the high evaluation grade that you will receive from the employer, the employer may absorbed or offer you a job after graduation. Your background OJT experience is very important when applying a job. Employers often asked about the OJT experience and how it is related on the job that you are applying for. The OJT experience that you have can land you a great job. Especially in Media related jobs, most employers often asked and require an OJT experience from a media company. For instance, a news writer who is applying in a TV Network has great advantage if he/she has an OJT experience in a Media company like TV, Radio or Publishing. Your superior in the company that you are working for as an OJT may recommend your skills to the company affiliates or to other company that he/she knows. OJT will be your training ground. If you still have no idea on what is meant to be a worker, OJT will give you at least 10% of career realities. The company that you are currently applying in often makes a background check to successful applicants. If you have included your OJT adviser or employer in your character references, the company may contact them to ask information about your skills and knowledge as their student or intern. You can consider your OJT experience as your guide on your first days at work, especially if your OJT and current work are related. You can use your experience and observation as an OJT to your current job if you still have issues on adjustments . Most students have taken their OJT for granted; not realizing the importance it can bring on their future career. Having a good performance during OJT is very important especially now that there’s a tight competition towards job seekers and the high qualification of companies. On the job training or OJT is one method by which students is given achance to apply the theories and computations that  they have learned from theschool. It also helps the students to acquire relevant knowledge and skills byperforming in actual work setting. Colleges and universities require their studentsto undergo such training within a specific number of hours as part of thecurriculum.For the students, an OJT or internship program provides opportunities togo through the actual methodologies of a specific job using the real tools,equipments and documents. In effect, the workplace becomes a developmentvenue for a student trainee to learn more about his chosen field and practicewhat he has learn from academy.On the other hand, an effective OJT program also benefits the companieswho accept trainees. First OJT or intern provides additional manpower for alesser labor cost than a regular employee. Most of them are all eager to learn theropes so chances are high that they will cooperate.Employers can use this internship strategy as a method in recruiting newemployees. Since the trainer or the supervisor can follow the trainees’ progress,he can gauge based on performance, behavior and attitude if the trainee willmake a good recruit after the completion of his OJT’s can bring fresh ideas into the organization. Given the opportunity tospeak their minds freely and without fear, they maybe able to contributesignificantly in brainstorming sessions or research and eventually help improvethe organizations productivity. While training the interns, employers are in factalso teaching their employees to process of guiding the trainees stretches their patience, develops teaching skills and makes them more sensitive to the needsand mind set of the younger generation. The course of supervision also teachesthem how to share what they know and be receptive to questions. Hence, theinternship also becomes an avenue in training for future managers of thecompany.Accommodating on-the-job trainees can truly be beneficial not only to thetrainees but also to the companies that provide opportunities for this type of learning. There is wisdom in the front lines. Such training can be an investmentthat will be valuable to the company later on. This is also why trainees shouldtake their internship seriously as it can become a powerful tool and possibly evena source of recommendation when they take that big lift from being students tocareer professionals.

Select an ancient (Coliseum water supply), pioneer historical (canals, Assignment

Select an ancient (Coliseum water supply), pioneer historical (canals, Carolina rice, London Docks) or exotic (e.g. Sahara Deser - Assignment Example Those reasons will be clear if we analyze the function of the Coliseum. It was an arena for spectators to watch the death of animals, slaves, gladiators, Christians, and other factions of the society that the Romans wanted to exterminate or punish (Colosseum Water and Sewer System). These death games were literally games, with very gruesome acts and bloody ends (Colosseum Water and Sewer System). Water was, therefore, needed to wash away the remains of the animals and humans, and their blood and body parts (Colosseum Water and Sewer System). This drainage became part of the sewer system of the Coliseum, which ultimately ended in the River Tiber (Colosseum Water and Sewer System). It is further discussed with the toilet system of the Coliseum. The Coliseum water supply also catered to the requirements of the toilets, which consisted of two large toilets with rows of open seating holes having a tunnel beneath them through which passed a stream of flowing water (Colosseum Water and Sewe r System). There were four underground tunnels for collecting the drained water, including that from the arena, and connected to these tunnels were four wells 1.3 by 3.8 meters in the foundation of the building (Colosseum Water and Sewer System). ... The main water supply to the Coliseum, and indeed to Rome in general, was through the River Tiber (Colosseum Water and Sewer System). Other smaller streams, some seasonal in nature, were also utilized. The system through which water was conducted to the city and to Coliseum comprised of aqueducts, which were impressive concrete water channels supported by pillars and arches (Colosseum Water and Sewer System). Coliseum was supplied by the Aqua Claudia, commissioned by Emperor Claudius, the first aqueduct to be built, running eleven miles, in the year 312 B. C. (Ancient Roman Aqueducts). The source was the river. The channels were concrete in nature, supplemented by viaducts which were multi-tiered structures to help the water cross low areas (Colosseum Water and Sewer System). The aqueducts led to large covered basins which served as modern-day sedimentation tanks to collect the silt and dirt of the River water before it was supplied to the public (Colosseum Water and Sewer System). O nce cleaned, channels led from these catch basins to storage reservoirs in the city, either in the form of open free-flowing canals, or through led and terra-cotta pipes (Colosseum Water and Sewer System). From the reservoirs, water was supplied to the building through led pipes (Colosseum Water and Sewer System). These pipes were embedded in the walls and floor of the structure of Coliseum during its structure (Colosseum Water and Sewer System). It is estimated that five hundred thousand barrels of water flowed through these channels in twenty-four hours (Ancient Roman Aqueducts). Another method of water provision was through the collection of rain water (Colosseum Water and Sewer System). This was collected by concentric ducts and led through vertical pipes down the walls of Coliseum

Design and critically evaluate an appropriate dissemination strategy Essay

Design and critically evaluate an appropriate dissemination strategy for the research project discussed in Archambault (2012) - Essay Example In order for research to be carried out under this area effectively, the emotions of the children have to be heard from the children themselves. It is by finding out this information from the children that accurate and precise solutions to their problems can be found. Most children of refugees hope that whenever they move to a new place, they will be moving to a better place where they can have their own rooms and the facilities that the Norwegian children enjoy (Archambault, 2012). They keep hoping that they would be moving to a better neighborhood where their friends from school will not be afraid of visiting them. Children are a special category of refugees and they have been ignored or not considered when carrying out research among refugees. They consist of more than a third of all the refugees’ population yet they have never really been studied. Some of the changes that children are required to make are moving to new houses, making new friends, changing schools and changing houses (Archambault, 2012). The parents of the Norwegian refugees have to learn the language first so that they can get jobs and move to where the rest of the citizens live. The frequent moving keeps the hope alive that they will at some point move to the permanent residence. Some of the items they hope to own to consider themselves well off include a washing machine and a decent bathing area. Children in migration are more vulnerable than the rest of the children who do not have to move from one area to another all the time. They are at a risk of getting abused both emotionally and physically. Living in congested areas may make them vulnerable to diseases such as cholera and dysentery. Congestion in the refugee camps makes transmission and outbreaks of diseases very easy. Children are more likely to die from such diseases and therefore they have to be treated with more care. It is necessary that children are taken care of

Hrd Practice Essay Example | Topics and Well Written Essays - 5750 words

Hrd Practice - Essay Example Information was gathered and notes taken through personal discussions with HRD personnel, management and a number of personnel affected by these systems. Data on attrition rates, performance appraisals, and career development was garnered from the meticulous records maintained by the ORTD. This data was allowed to be drawn for study only and not allowed to be used in this report. The main findings included in the following report are that ABC has a clear view of its mission and objectives and HRD strategy is visibly and strongly linked to the overall plans. The two areas studied are well developed and effectively used. This report offers some recommendations to further strengthen these. This report is written at the conclusion of a study of Human Resource Development (HRD) practices in an existing company (ABC, at their request). Theoretical inputs received during class and the thinking of various experts was compared with actual practice, to develop deeper understanding of HRD. HRD embraces a large range of activities aimed at bringing out the best in each individual to meet organizations' objectives this study was limited to two areas, Career Development and Performance Appraisal. ABC adopts a paternalistic approach and shows total involvement in the welfare of the employee both on and away from the workplace. In all dealings with employees the company makes a conscious attempt to integrate feelings, priorities and welfare of the employees' family. ABC also has well thought out medium and long term plans for growth and consolidation and its efforts at career planning and development are fully integrated into them. Manning and skill level requirements of the organisation as it evolves and grows in the next five years are written and HRD responds to this through its activities of recruitment, training and development of in-house human resources. Lateral recruitment at higher levels is rare. 2.0 Industry Studied - Overview 2.1 Background The Organisation selected for study is a large company, employing about 3,600 personnel. The company manufactures fertilizers, PVC and Cement and is essentially chemical technology driven. The company is very successful in its performance as is

Impacts on Liquidity - ECO316 Essay Example | Topics and Well Written Essays - 500 words

Impacts on Liquidity - ECO316 - Essay Example This consequently led to the financial crisis and eventually a shortage of liquidity due to wrong policies. Excessive savings were required to fight the crisis and ensure that no financial institution faced liquidity issues. United States first followed the expansionary policy where it experienced an increase in the monetary base. To avoid excessive liquidity in the market, US implemented contractionary policy to control the rate at which the monetary base was increasing. The financial markets yet had liquidity and were not insolvent. Adding the role of government, the budget deficits have been soaking up the savings. Consequently, this has hindered the growth of the market and economy. The government budget deficits have created solvency issues not only for the government but also for the whole nation. The impact of government spending is less productive as compared to the measures undertaken by the central bank, Fed. Government budget deficits do lead to difficulties in getting investments, and it does cause solvency issues, but that can be fought with a right monetary policy by the central bank, Fed. Falling government budget deficits do support and strengthen the fact that there was too much liquidity in the financial markets. However, it does not mean the government’s declining budget deficits had stronger influence on increasing liquidity. Federal Reserve (Fed) has the strongest ability to influence the monetary base which consequently determines the level of liquidity available in the financial markets. By 2006, Federal Reserve (Fed) had been able to increase liquidity in the financial markets. In fact, there was too much liquidity, and to control the liquidity level, by the fall of 2006, Federal Reserve (Fed) introduced contractionary monetary policy. This is when US budget deficits started declining. The rapidly increasing monetary base and levels of liquidity were consequences of the monetary policy and measures taken by the

Assignment NOTE ) do not type the cites address Essay

Assignment NOTE ) do not type the cites address - Essay Example Human relation training will enable john as a manager to understand people and effectively work with them (Whetten & Cameron 67). The Conceptual training will enable him to think and have the ability to relate and organize the various departments of the organization. Contingency plans ensure continuity and sustainability of the organization’s operation. They help organizations plan in advance for the risks that are likely to occur. It helps organization prevent and mitigate risks that are likely to face the organization. It enables the organization to be future oriented and hence make the right decisions (Whetten & Cameron132). From my experience when the computer system crashed down in the organization because of fire, all the data would have been lost were in not for the company’s contingency plan of backing up the data in the internet. If the company is supplied with good quality raw materials then it definitely produces quality-finished goods. If the suppliers give poor quality materials then the final products will be of poor quality. To enhance productivity of high quality products and ensuring maximization of profits the company has to have good

Improving the Performance of a Team Assignment Example | Topics and Well Written Essays - 1250 words

Improving the Performance of a Team - Assignment Example Technical factors include understanding the mission, spelling out goals, and developing activities critical to success of the goal. To improve the functioning of a particular team, these factors have to be addressed. The following steps go towards improving the performance of a team. A project team is subject to group dynamics because of an assembly of individuals with diverse talents and commitments. The most common problems faced by work teams arise from: Different points of view, role conflicts, implicit power struggles, and groupthink which compromises decisions in favour of unanimity. (Nurick, 2001) There are many other problems that may arise due to behavioural and skill factors. Performance measures need to be devised taking both performance factors and process factors into account. The performance measures would measure the performance/outcome factors which may be: Team cohesion; Improvement orientation like creativity, forward thinking, proactivity; and Team achievements. Team process factors, which also affect the performance of a team includes factors such as: Team relationships, team focus, approach to performance, leadership style, team discipline, team decision making, team confidence, value of contributions, decision focus, social contact, process focus, and lastly, consistency. Team performance is also related to attractiveness of performance, agreement with team goals, team goal level, and willingness to use cross-training, perceived participation, team efficacy, and team commitment. Some factors which also need to be measured are: 1. Team member dispositions - Studies have indicated that employees' need for achievement, need for affiliation, aggressiveness towards other people and the value placed on autonomy affect the team in a lot of ways. 2. Team process skills - process skills include skills like communication, leadership, goal setting, problem solving, and conflict resolution skills. 3. Employee perceptions about the team - This includes perceptions about team efficacy, and perceived participation. 4. Goals and goal commitments - this includes factors like team goal level, goal commitment, agreement with team goal, and performance expectations. 5. Attractiveness of performance and self efficacy. (Scott and Townsend, 1994) Measures that take the above factors into account can help assess how the team would fare in a task and what is to be done to improve its performance. Step 2: Making the Team and Planning Work Activities The second step to enhancing team performance involves the selection and training of the team and planning the work activities for the team. Selection: To ensure team effectiveness one criterion for selection of members of a team is interpersonal skills. Other criteria would include the member disposition, member skill sets, commitment to goals, and other such factors. This can be done by using the performance measures devised in the first step. Training: The next step would involve training the team in product knowledge, time management; interpersonal skills like listening, assertiveness, and conflict management skills; creativity; meeting deadlines; energy and determination; reporting and administration; personal appearance and image; steadiness under pressure, and such other factors. In addition to receiving training in skills they should be empowered to use

Case study Example | Topics and Well Written Essays - 1000 words - 3

Case Study Example Hertz offer fantastic customer experience in providing best cars and comfort as par as the car hire is concern. The combination of great brand value and the potential financial efficiencies made the Hertz one of the most profitable business leaders in the business. Hertz business was matured and profitable enough to be acquired. The initiative from the CD& R financial partners David Wasserman, Micheal Baiarz and Nathan Sleeper on a capital structure which would have lowered the Hertz capital cost was really beneficial for CD&R. The Hertz was a potential investment opportunity as Hertz business was mature and competitive in all the countries where they had their business fleets. The CD&R’s Consortium is well-known as CCM which includes the Carlyle Group and Merrill Lynch Global Private equity; both of them are the most dominating companies in the business scenario. On August 30th the CCM submitted its final bid of five point four billion dollars including a request that Ford make a certain tax election which would step up the tax basis of Hertz asset. However, there were some several companies who had submitted the final bid on the same date and among them one is the private equity consortium, composed of Bain Capital, The Blackstone Group, Thomas H. Lee Partners and Texas pacific

Case study write-up Essay Example | Topics and Well Written Essays - 500 words

Case study write-up - Essay Example The Envirofit team thought the venture was simple and hoped it will help to reduce the pollution in the motorcycle engines. Social and environmental challenges can be tackled through development of technology such as the one developed y the team of the engineering students. The snowmobile technology that was developed for the Yellowstone National Park was aimed to avoid noise and pollution in the park. They used the technology to to fit onto existing machines and placed initially on the emissions event in the clean Snowmobile challenge that reduced hydrocarbons and carbon monoxide emissions by over 99%. Since this was successful, it was subsequently applied in motorcycles. The inventory of the Envirofit was instrumental in ensuring an environmental safe and friendly vehicle. Modification of existing technology is instrumental in promoting and bettering the existing technology. For instance, the snowmobile was to be abandoned from the national park. However, the modification by the team made it relevant for the snowmobile to be used in the park as well as motorcycles as well as other vehicles. While working in the project, the team was engaging with each other as well as other relevant interested people as the NGO and the community. This helped in forming relationships as well as fostering teamwork among the team. Working in a project as big as the Envirofit is challenging and requires perseverance and a lot of patience. The project is time consuming and requires dedication as well as commitment for it to be accomplished successfully. This instils discipline in the participants in the project who get to learn on how meet deadlines and deliver satisfactory results. As the team in Envirofit observed it is beneficial to get local partners to participate in an environment. This would give businesses the concept of credibility; it would make the business more effective and efficient. The real

Ragtime and Blues Essay Example for Free

Ragtime and Blues Essay Ragtime and Blues are the two music styles that give Jazz her name and life. Ragtime and blues, which are generated and rose into popularity at mostly the same time of period, are usually considered as closely connected because of Jazz and yet are very distinctive music styles. They affect Jazz in different perspectives, such as Ragtime in the usage of syncopation, the swing feeling, and Blues in the composition form, the improvisation, and the â€Å"Soul†. Similarity and difference: What both Ragtime and Blues share is their Black regions. They are both a classic and important component of early Black popular music. Almost all commentators expressed their view that the originators of Ragtime were black, and even some believe that it was imported from Africa; and yet Blues was believed to start in slavery which involved with large population of African Americans. As Scott Joplin, one of the most influential Ragtime musician, stated, â€Å" There has been ragtime music in America ever since the Negro race has been here. † and this poetic statement would perfectly apply to Blues as well. Historically, ragtime and blues started and rose into popularity at basically the same time. Ragtime’s huge popularity was abetted with the huge dimension of the print of â€Å"Maple Leaf Rag† by Scott Joplin in 1897. Almost the same time, classic blues like â€Å"St. Louis Blues† and â€Å"Memphis Blues† was composed by W. C. Handy. For a long period of time, specifically from 1890s to 1920s which was the time when Jazz becomes a dominant popular music style, ragtime was the typical popular music form in America. The popularity of Blues and Ragtime at early ages was strongly associated with the popular theater in late 19th and early 20th century. Even though ragtime and blues share the same origin and same historical path, they are indeed very different music styles, which determines their contribution to Jazz and make it a new and yet unique music. The definition of Ragtime is the music that signifying the broken rhythm, especially a sort of syncopation. Indeed, the word â€Å"rag† is a verb describing the syncopation process of the music. Syncopation is such a significant character of ragtime and it somehow defines the music style of ragtime. Part of the reason that helps determine the syncopation of ragtime is that ragtime is an instrumental based music genre. At early times, ragtime is dominated by piano, especially with great pianists like Scott Joplin and Ben Harney. And Blues, a more vocal based music, does not evidently engage with syncopation. Syncopation is the most important character that ragtime affects Jazz and some people believe that Jazz is a more complex form of syncopated music. Blues, often considered as a music that generated from slavery, was characterized with the improvisation. Improvisation is defined as creating music on the spot. Improvisation is not only a distinctive but also a great character because never has any music genre in the history before is based on improvisation. Even ragtime is based on pre-written music. Jazz took on this character and developed into a even more complicated, spicy music on the spot with different instrument arrangement. Jazz took improvisation to another level from this great tradition in blues. As far as the music style goes, ragtime is more affected by European style from the composition to instrument. Scott Joplin, the great ragtime musician mentioned earlier, was a classical trained piano player and the effect of classical music is obvious in his pieces. However, blues is more affected by its African origin. It is believed that one of the first blues was directly imported from African folk song. It is a very simultaneous music style and consists of a lot of elements of real life, such as the call-and-answer structure. It is also necessary to mention that the composition of blues like 12-bar blues and AABA structure greatly affect the composition of Jazz, especially at early ages. A lot of the early Jazz songs are in such structure, like the first Jazz recording ever, â€Å"livery stable blues† by Original Dixieland Jazz Band. Ragtime, characterized with syncopation and strong rhythm and beats, was created for the need of people to dance. However, Blues has very strong and evident emotions in the performance, especially with the great vocalists that convey those emotions through their great vocal performance. Bessie Smith, one of the best Blues vocalists of all time, combined the strong rhythm sense with an extremely sensitive feeling of pitch and thus convey them to the large audience. In a sense, Blues gives Soul to Jazz, with those emotions and tones of struggle. Evidently, ragtime and blues, the Black Music, struggle to make them merge into different classes, not only popular but also respected. From ragtime and blues, this kind of struggle carried on with Jazz and gives Jazz the identity, the structure, the tone and the â€Å"soul†.

Effect of MA Strategy on Shareholder Value

Effect of MA Strategy on Shareholder Value The aim of this project is to examine whether the decision of large UK companies looking to pursue a merger/acquisition strategy will affect shareholder value. The data analyzed in this study will determine if there is a positive or negative correlation in shareholder wealth when a merger/acquisition occurs. The research for this project will be conducted through the analysis of 40 different large UK companies that were merged or acquired by other UK based firms prior to 2002. The data will be obtained from the Bloomberg website. Further research and analysis on the topic will include information obtained from books, journals and reliable internet sources. To test the value of shareholder wealth when a merger/acquisition is pursued, different models will be used which includes Capital Asset Pricing Model, Efficient Capital Markets, Equilibrium Models, and Market Model (Event Studies and Abnormal Returns Methodology). The hypothesis that will be tested in this study is: H0 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will increase. H1 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will remain unchanged or will decrease. The first chapter will give a brief overview of mergers and acquisitions and introduce the reader to recent merger trends in the UK and different types of takeovers. The second chapter will be an in-depth analysis of past research studies which includes: examining different ways a company pays for a bid in a merger, exploring shareholder and managerial wealth perspectives, and analyzing long term post-merger performance of target and bidder firms. Chapter three presents the research methodology used in wealth gain studies and also states the methodology adopted for this dissertation. Chapter four analyzes and discusses the findings in context to wealth gain effects of mergers and acquisitions among the large UK companies chosen for this study. Chapter five concludes this research and highlights possible areas that may require further investigation. EXECUTIVE SUMMARY Mergers and acquisitions have become important events in todays rapidly changing business environment and have been the subject of many research studies. Reasons as to why companies may pursue a merger or acquisition strategy could be to reduce costs to achieve economies of scale or to reduce competition due to increased market power. Mergers and acquisitions have also been known to facilitate entry into new markets or industries and increase the level of effectiveness in a company by eliminating inefficient management. Mergers and acquisitions worldwide have tended to follow a pattern of waves, with there being periods of frantic takeover activity followed by relatively calmer periods. The main objective of financial theory is to maximize shareholder wealth therefore all decisions are taken with the aim of maximizing shareholder value. The purpose of this research is to re-examine the shareholder wealth gain criterion with regards to mergers and acquisitions within the United Kingdom. The objective of this study is to find out if shareholders of large UK companies benefit from the acquisition decisions made by the managers. Past research studies on post-acquisition performance of acquiring and target firms have mixed results. To determine if there is an increase or decrease in shareholder value from corporate takeovers, the Market Model and Event Study Methodology will be used in this study. The hypothesis developed in this study aims to support the argument that mergers and acquisitions are profitable events and lead to an increase in shareholder value. This study however concluded that merger and acquisitions among the large UK organizations chosen did not lead to an increase of shareholder value for both target and bidder firms. These results might not be entirely accurate due to various reasons such as size effects and the firms chosen in this study are from different industries. Other factors such as acquisition financing and acquisition motives also may have an effect on shareholder value however the testing of these factors is outside the scope of the following study. CHAPTER 1: OVERVIEW OF MERGERS AND ACQUISTIONS The following chapter briefly examines the benefits that a merger is expected to generate for both the target firm and the acquiring firm. The historical pattern of takeover activity in the UK from 1964-1992 is discussed to show merger and acquisition (MA) trends and recent MA activity abroad and within the UK will also be highlighted among large UK companies in 2008. In addition, the definition of mergers and acquisitions is provided and the second part of chapter one introduces the reader to different types of mergers used to create value for an organization. 1.1 Benefits to Mergers and Acquisitions Activity The main objective for an acquiring firm is to grow and expand its assets, sales and market shares. Other specific reasons for entering into a merger bid are reflected in the benefits that are expected to be generated which include: Exploiting scale economies Obtain synergy Enter into new markets To restore growth impetus To acquire market power To reduce dependence on existing or perhaps risky activities With the above mentioned benefits to MA activity, it should also be noted that takeovers most likely to succeed are those approached with a strategic focus, incorporating a detailed analysis of the objectives of the takeover, the possible alternatives and how the acquired company can be integrated in the new parent (Pike and Neale). 1.2 Trends in UK Merger Activity There has been an increasing trend of MA activity in the UK over the past few decades, with there being periods of high takeover activity followed by relatively slower periods as can be seen by the graph below. Figure 1.0 History of UK MA Activity Source: National Statistics, 2002 The highest peaks in takeovers are during the period 1984-1989. During this time, the average size of an acquisition had grown significantly from 9.64 million to 20.38 million. As per Sudarsanam (1995) the main reason for this was because the stock market in the UK, along with the harmony with the rest of the world stock markets experienced a strong bull phase which culminated in the October 1987 crash. Furthermore, the 1980s also experienced divestments on a large scale which meant companies would sell off divisions or subsidiaries to other firms of the divested parts in a management buyout. This increase in acquisitions and divestments had shown significant amount of corporate restructuring in the UK and thus led to new organizational innovations such as management buyouts and management buyins, as well as by financial innovations like high-leverage buyouts and mezzanine finance (Sudarsanam, 1995).As can be seen from the graph above, the UK MA market has experienced a relatively le aner period, which has continued till date. The main reasons that can be attributed to this are the various world catastrophes and the overall global economic slowdown. As per the office of National Statistics, the largest significant transaction recorded during the first quarter of 2008 was the acquisition by Imperial Tobacco Group Plc of Altadis S.A. for a press reported value of 9.3 billion. Another significant transaction was the acquisition by Carillion Plc of Alfred McAlpine Plc for a reported value of approximately 0.5 billion. For quarter one in 2008, the number of transactions reported for acquisitions in the UK by UK companies has been the lowest reported since quarter one 2003. Other recent major UK mergers acquisitions (2008) are as follows: Table 1.0 Recent Acquisitions in the UK by UK Companies Company Value in million Carillion Plc acquiring Alfred McAlpine Plc 554 Willmott Dixon Ltd acquiring Inspace Plc 133 easyJet Plc acquiring GB Airways Ltd 104 iimia MitonOptimal Plc acquiring Midas Capital Partners Ltd 100 Source: National Statistics, 2008 Table 2.0 Recent Acquisitions abroad by UK Companies Company Value in million Imperial Tobacco Group Plc acquiring Altadis S.A. 9339 Reckitt Benckiser Group Plc acquiring Adams Respiratory Therapeutics 1100 Scottish and Southern Energy Plc acquiring Airtricity Holdings Ltd 808 SABMiller Plc acquiring Koninklijke Grolsch N.V 606 Ineos Group Ltd acquiring Kerling AS 429 429 Standard Chartered Plc acquiring American Express Bank Ltd 413 Kesa Electricals Plc disposing of BUT SAS 389 Source: National Statistics, 2008 1.3 Definitions and Different Types of Mergers and Acquisitions Although the terms merger, acquisition and takeover are used interchangeably, technical differences do exist. A merger is when corporations come together to combine and share their resources to achieve a common set of objectives (Sudarsanam, 1995). The shareholders of the two combined corporations will continue to be joint owners. An acquisition is when one firm purchases the assets or shares of another firm however the shareholders of the acquired firm continue being owners of that firm. A takeover is the acquisition by one company of the share capital of another in exchange for cash, ordinary shares, loan stock or a combination of these (Pike and Neale). This distinction between the three terms is important in certain contexts however they are used by researchers and authors interchangeably. In the following dissertation, I too will use these three terms interchangeably. There are different types of mergers that exist to create value and are classified into three main categories: horizontal, vertical and conglomerate (Pike and Neale). Horizontal integration: this is when a company takes over the target firm from the same industry and at the same stage of the production process. Vertical integration: where the target is in the same industry as the acquirer however is operating at a different stage in the production process. This can be either close to the source of materials (backward integration) or close to the final customer (forward integration). Conglomerate integration: occurs when the target is in a business that is different to the acquirer. The reasons a firm may undergo a conglomerate merger is to reduce risk through diversification, opportunities for cost reduction and improving internal and external efficiencies. In order to understand whether mergers and acquisitions create or destroy shareholder value, it is important to appreciate and understand few critical aspects of the complex MA theory. The three areas in helping to answer this question with respects to the impact of shareholder value in my opinion are different modes of financing mergers and acquisitions, motives for MA activity and post-merger performance. Various researchers in the finance field have conducted a great amount of research on the above mentioned areas and this dissertation will help put into perspective mergers and acquisitions impact on shareholder value currently in the UK. CHAPTER 2: BACKGROUND OF STUDY Mergers and acquisitions are undertaken as a means of corporate growth and expansion but are also an alternative to growth through internal or organic capital investment. The immediate objective of an acquisition is self-evidently growth and expansion of the acquirers assets, sales and market share (Sudarsanam, 1995). Another objective of acquisitions would be to increase the growth of shareholders wealth aimed at creating a strong competitive advantage for the acquirer. In modern finance theory, shareholder wealth maximization is a strong rational for financing and investment decisions made by management. This leads to the question of wealth gain effects of mergers and acquisitions, specifically among large UK companies. The following chapter introduces various literature regarding wealth gain effects of mergers and acquisitions and highlights the various aspects of mergers and acquisitions which may have an effect on the shareholder value within large UK corporations. 2.1 Modes of Acquisition Financing There are various modes of financing a takeover which includes: cash (preferred method), issuing of ordinary shares and fixed interest securities (loan stock, convertibles, and preference shares). The way in which a merger and acquisition is financed has different benefits to the target shareholders and bidder shareholders. In addition, cash takeovers may be sufficiently different from non-cash acquisitions and failure to distinguish between them may lead to inappropriate generalizations (Carleton et al, 1983). As per Sudarsanam (1995), there are various ways a firm can bid an acquisition, which is shown in Table 3.0. Table 3.0 Bid Financing Bidder Offers Target shareholders receive Cash Cash in exchange for their shares Share Exchange A specified number of bidder s shares for each target share Cash underwritten share offer (vendor placing) Bidders shares, then sell them to a merchant bank for cash Loan stock A loan stock/debenture in exchange for their shares Convertible loan or preferred shares Loan stock or preferred shares convertible into ordinary shares at a predetermined conversion rate over a specified period Deferred payment Part of consideration after a specified period, subject to performance criteria Source: Sudarsanam (1995, p.177) In addition, a bidder making cash offer can finance it from one or more of the following sources (Sudarsanam, 1995): Internal operating cash flow A pre-bid rights issue A cash underwritten offer, e.g. vendor placing or vendor rights A pre-bid loan stock issue Bank Credit A cash offer has two advantages from the point of view to both the target and acquiring shareholders which includes (Pike Neale, 1999): The amount is certain; there is no exposure to the risk of adverse movement in share price during the course of the bid. The targeted shareholder is more easily able to adjust his or her portfolio than if he or she receives shares, which involve dealing costs when sold. Because no new shares are issued, there is no dilution of earnings or change in the balance of control of the bidder. In terms of shares being used as a medium of exchange again there are some advantages to both target as well as acquiring shareholders (Arnold, 2002) which are: For target shareholders use of shares helps avoid capital gains tax. Target shareholders maintain an interest in the combine entity thus helping preserve as well as increase shareholders value. Acquiring shareholders gain from the fact that there is no immediate cash outflow. Nickolaos Travlos (1987) study titled Corporate Takeover Bids, Method of Payment, and Bidding Firms Stock Returns was to examine the role of the method of payment in determining common stock returns of bidding firms at the announcement of takeover bids. The analysis in the study was to show the valuation effects on two common methods of payment which are common stock exchanges and cash offers. The results showed that bidding firms had normal returns in cash offers however experienced significant losses in pure stock exchange acquisitions. Other literature studied by Asquith and Mullins (1986), Kalay and Shimrat (1987), Masulis and Korwar (1986) and Mikkelson and Partch ( 1986) show that common stock issues have negative stock price when there are new common stock offerings. These results were supported by various other studies such as Henri Servaess (1991) study titled Tobins Q and gains from takeovers. Agrawal, Jaffe and Mandelkar (1992) found post-acquisition returns to be lower fo r share-financed acquisitions in comparison to cash-financed acquisitions. They further went on to prove that shareholders of acquiring firms suffered a statistically significant loss of about 10% over the five-year merger period. The bidding firms method of payment provides valuable insight to the market. If the bidding firms managers possess information about the intrinsic value of their firm, independent of the acquisition, which is not fully reflected in the pre-acquisition stock price, they will finance the acquisition in the most profitable way for the existing stockholders (Travlos, 1987). Myers and Majluf (1984) model states that management will prefer cash offerings if they believe their firm is under-valued however a common stock exchange offer will be preferred if they believe their firm is over-valued. In addition, market participants will strongly favor a cash offer as good news while the opposite holds true for a common stock exchange about the bidding firms true value. If such information is important in the market, then the bidding firms stock price change at the proposals announcement will reflect both the gain from the takeover (weighted by the probability that the takeover bid will go throug h) and the information effects (Nickolaos, 1987). Jensen and Ruback (1983) state that most tender offers are financed by cash however merger proposals are financed by the exchange of common stock therefore the information argument states that larger target residuals occur in tender offers rather than in mergers. In their study conducted, they determined that for mergers, the weighted abnormal target firm return is 16.3% over the month before announcement however for tender offers; the weighted target return is 30.9% over the two-month period surrounding the announcement dates. Cash is by far the most widely used form of payment in mergers and acquisitions. There are many reasons as to why there is an increased use of cash in financing mergers. One possible explanation for the increasing use of cash depends on market imperfections and/or agency considerations (Carleton et al, 1983). Another reason for why bidding firms use cash in financing mergers is the increase in the number of hostile mergers. Cash not only signals a high value for the target, but also preempts other firms from bidding (Martin, 1996). These findings were also found in the literature of Eckbo, Giammarino and Heinkel (1990) which include a role for mixed financings in which higher-valued bidders are more likely to use more cash to finance the acquisition. As can be seen from the literature above the mode of payment in an acquisition may be driven by various motives and can have various effects on the bidders and acquirers stock price. This can have a major impact on shareholder value during corporate acquisitions as well as value gain studies. A study by Loughran and Vijh (1997) formed an association between the mode of acquisition (merger and tender offer) and the method of payment (cash or stock). They studied this relationship in the context of wealth gains from acquisitions and concluded that the post-acquisition returns of acquirers are related to both the mode of acquisition as well as form of payment. This was also proved by various other researchers (mentioned above) thus making the method of payment during an acquisition all the more important. Reason being, post-acquisition returns are what tend to effect shareholder value the most therefore the knowledge and distinction of the various modes of financing an acquisition is ve ry relevant and essential. 2.2 Motives for Mergers Acquisitions A Dual Perspective Tender offers allow for an in-depth analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Managers of the target firm are often in conflict of interest between their fiduciary responsibilities to the shareholders and their own personal wealth. For this reason, tender offers allow for the analysis of agency conflicts between shareholders and management of the target firm. According to Sudarsanam (1995) there are two main perspectives for acquisition motives which are: Shareholder wealth maximization perspective Under the shareholder wealth maximization perspective, all firms decisions including acquisitions are made with the objective of maximizing the wealth of the shareholders of the firm. In mergers and acquisitions, management of the target firm will oppose bidding firms to takeover if they believe this action would not be in the best interest of its shareholders. Target managers that oppose a bid defend their reasoning by claiming that the bid price is not adequate enough. Managerial wealth perspective Under the managerial wealth perspective, target managers may face an uneasy choice between obligations to current shareholders and those who aspire to such a position (Walkling and Long, 1984). For many target managers, if they sense a possibility of a loss in compensation from the merger or acquisition, conflict of interest will then increase. If self interest is pursued by target managers, there is a possibility that a bad acquisition may occur and/or a loss of shareholder wealth. According to Sudarsanam (1995), managers may undertake acquisitions for the following reasons: To pursue growth in size of their firm, since their salary, prerequisites, status and power are a function of firm size. (Empire-building syndrome) In order to deploy their currently underused managerial skills. (self-fulfillment motive) To diversify risk and minimize costs of financial distress and bankruptcy. (job security motive) To avoid being taken over. (job security motive) The managerial wealth perspective motive is one of survival. Not only do managers tend to seek motivation from sustained growth but also seek job security. Managers unlike shareholders cannot diversify to spread their risks since they are tied to one company. If that company is acquired, managers have a high probability of losing their jobs. A study conducted by Firth (1991) tests to see if executive reward increases when an acquisition takes place. In a sample of 254 UK takeover offers during 1974-1980 found that the acquisition process leads to an increase in managerial remuneration, and that this is predicated on the increased size of the acquirer and concludes that the evidence is consistent with takeovers being motivated by managers wanting to maximize their own welfare'(Firth, 1991). Agency conflicts arise whenever differing incentives cause managers to take actions that benefit themselves but harm shareholders. In the context of acquisitions, agency conflicts may lead to a reduction in shareholder wealth if managers pursue expansion for nonprofit-maximizing reasons. According to past literature, large target shareholder wealth gains are experienced during the announcement of a takeover and large shareholder wealth losses occur when a takeover bid fails (Jensen and Ruback, 1983). This implies that target management interests are not always achieved by accepting bid offers. In addition, target managers may lose compensation and other perks if they are replaced after a successful bid offer. These findings are also confirmed by Walkling and Long (1984) and Martin and McConnell (1991), all of whom reported above-average managerial turnover after a successful takeover bid. The study findings show that in addition to lost compensation, managerial turnover may also be a ssociated with loss of status. Martin and McConnell (1991) further go on to say that the mergers and acquisitions market plays an important role in controlling the non-value maximizing behavior of managers of large corporations. As shown from the literature above, the shareholder wealth perspective and managerial wealth perspective may conflict with one another. With respects to mergers and acquisitions, the managerial motives and a mangers reaction to a takeover bid may have an impact on the shareholder wealth maximization criterion. The extent to which it would impact shareholder value will be decided by the amount of control managers have within the organization. 2.3 Post Merger Performance Debate (Targets and Bidders) There has been considerable interest in the post merger performance on shareholders returns in the target and bidder firms. Typical findings by researchers show three patterns: (1) target shareholders earn significantly positive abnormal returns from all acquisitions, (2) acquiring shareholders earn little or no abnormal returns from tender offers and (3) acquiring shareholders earn negative abnormal returns from mergers. Overall, the results of post merger performance have been mixed. According to Langetieg (1978) and Asquith (1983), their research concluded that acquired firms experience significantly negative abnormal returns over one to three years after the merger. In the research study conducted by Agrawal, Jaffe and Mandelker (1992) titled The Post-Merger Performance of Acquiring Firms: A Re-examination of an Anomaly found that stockholders of acquiring firms experience a statistically significant wealth loss of approximately 10% over five years after the merger completion date. Research conducted by Franks, Harris and Titman (1991) found that no significant underperformance of stockholders returns exist over a three year period after the acquisition. Franks et al concluded that the previous findings of poor performance post-acquisition were likely to be due to benchmark errors rather than inconsistencies with the Efficient Market Theory (EMH) or mis-pricing at the time of the takeover. Similar results that underperformance of stockholders returns do not exist over a three year period after acquisition is also concluded by Bradley and Jarrell (1988). A few studies have analyzed value gains during merger and acquisitions with respect to various classes of merging firms security holders. A study was carried out by Dennis and McConnell (1986) namely, Corporate Mergers and Security Returns and their results indicated mergers on average to be value creating activities for the acquired and the acquiring company individually. They found by other previous studies that on average common stockholders of acquiring firms earn positive returns but are usually not statistically significant. Their results also indicated that convertible preferred stockholders (of acquiring firm) received positive and statistically significant returns post-merger; however, non-convertible preferred stockholders received positive but not statistically significant returns post-merger. The combination of the above mentioned results lead to an overall increase in the value of the firm therefore presenting us with the reason as to why corporations go ahead with merge rs which do not earn statistically significant returns to common stockholders of the acquiring firms. Research results by Asquith and Kim (1982) also confirm what other investigators found for mergers: abnormal returns to the common stocks of acquired firms are positive and statistically significant; abnormal returns to the common stock of acquiring firms are not significantly different from zero. In the study Do Long-term Shareholders Benefit Corporate Acquisitions? by Loughran and Vijh (1997), found that post acquisition returns of acquirers stock are related to both the form of payment as well as the mode of acquisition. They concluded in the overall sample of 947 cases, acquirers that make merger bids earn, on average, 15.9 percent less than matching firms whereas acquirers that make tender offers earn 43.0 percent more than matching firms during a five-year period after acquisition. In addition, stock acquirers earned 24.2 percent less however cash acquirers earn 18.5 percent more with respects to matching firms. Furthermore, conclusions show that during a five year period following the acquisition, on average, firms t Effect of MA Strategy on Shareholder Value Effect of MA Strategy on Shareholder Value The aim of this project is to examine whether the decision of large UK companies looking to pursue a merger/acquisition strategy will affect shareholder value. The data analyzed in this study will determine if there is a positive or negative correlation in shareholder wealth when a merger/acquisition occurs. The research for this project will be conducted through the analysis of 40 different large UK companies that were merged or acquired by other UK based firms prior to 2002. The data will be obtained from the Bloomberg website. Further research and analysis on the topic will include information obtained from books, journals and reliable internet sources. To test the value of shareholder wealth when a merger/acquisition is pursued, different models will be used which includes Capital Asset Pricing Model, Efficient Capital Markets, Equilibrium Models, and Market Model (Event Studies and Abnormal Returns Methodology). The hypothesis that will be tested in this study is: H0 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will increase. H1 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will remain unchanged or will decrease. The first chapter will give a brief overview of mergers and acquisitions and introduce the reader to recent merger trends in the UK and different types of takeovers. The second chapter will be an in-depth analysis of past research studies which includes: examining different ways a company pays for a bid in a merger, exploring shareholder and managerial wealth perspectives, and analyzing long term post-merger performance of target and bidder firms. Chapter three presents the research methodology used in wealth gain studies and also states the methodology adopted for this dissertation. Chapter four analyzes and discusses the findings in context to wealth gain effects of mergers and acquisitions among the large UK companies chosen for this study. Chapter five concludes this research and highlights possible areas that may require further investigation. EXECUTIVE SUMMARY Mergers and acquisitions have become important events in todays rapidly changing business environment and have been the subject of many research studies. Reasons as to why companies may pursue a merger or acquisition strategy could be to reduce costs to achieve economies of scale or to reduce competition due to increased market power. Mergers and acquisitions have also been known to facilitate entry into new markets or industries and increase the level of effectiveness in a company by eliminating inefficient management. Mergers and acquisitions worldwide have tended to follow a pattern of waves, with there being periods of frantic takeover activity followed by relatively calmer periods. The main objective of financial theory is to maximize shareholder wealth therefore all decisions are taken with the aim of maximizing shareholder value. The purpose of this research is to re-examine the shareholder wealth gain criterion with regards to mergers and acquisitions within the United Kingdom. The objective of this study is to find out if shareholders of large UK companies benefit from the acquisition decisions made by the managers. Past research studies on post-acquisition performance of acquiring and target firms have mixed results. To determine if there is an increase or decrease in shareholder value from corporate takeovers, the Market Model and Event Study Methodology will be used in this study. The hypothesis developed in this study aims to support the argument that mergers and acquisitions are profitable events and lead to an increase in shareholder value. This study however concluded that merger and acquisitions among the large UK organizations chosen did not lead to an increase of shareholder value for both target and bidder firms. These results might not be entirely accurate due to various reasons such as size effects and the firms chosen in this study are from different industries. Other factors such as acquisition financing and acquisition motives also may have an effect on shareholder value however the testing of these factors is outside the scope of the following study. CHAPTER 1: OVERVIEW OF MERGERS AND ACQUISTIONS The following chapter briefly examines the benefits that a merger is expected to generate for both the target firm and the acquiring firm. The historical pattern of takeover activity in the UK from 1964-1992 is discussed to show merger and acquisition (MA) trends and recent MA activity abroad and within the UK will also be highlighted among large UK companies in 2008. In addition, the definition of mergers and acquisitions is provided and the second part of chapter one introduces the reader to different types of mergers used to create value for an organization. 1.1 Benefits to Mergers and Acquisitions Activity The main objective for an acquiring firm is to grow and expand its assets, sales and market shares. Other specific reasons for entering into a merger bid are reflected in the benefits that are expected to be generated which include: Exploiting scale economies Obtain synergy Enter into new markets To restore growth impetus To acquire market power To reduce dependence on existing or perhaps risky activities With the above mentioned benefits to MA activity, it should also be noted that takeovers most likely to succeed are those approached with a strategic focus, incorporating a detailed analysis of the objectives of the takeover, the possible alternatives and how the acquired company can be integrated in the new parent (Pike and Neale). 1.2 Trends in UK Merger Activity There has been an increasing trend of MA activity in the UK over the past few decades, with there being periods of high takeover activity followed by relatively slower periods as can be seen by the graph below. Figure 1.0 History of UK MA Activity Source: National Statistics, 2002 The highest peaks in takeovers are during the period 1984-1989. During this time, the average size of an acquisition had grown significantly from 9.64 million to 20.38 million. As per Sudarsanam (1995) the main reason for this was because the stock market in the UK, along with the harmony with the rest of the world stock markets experienced a strong bull phase which culminated in the October 1987 crash. Furthermore, the 1980s also experienced divestments on a large scale which meant companies would sell off divisions or subsidiaries to other firms of the divested parts in a management buyout. This increase in acquisitions and divestments had shown significant amount of corporate restructuring in the UK and thus led to new organizational innovations such as management buyouts and management buyins, as well as by financial innovations like high-leverage buyouts and mezzanine finance (Sudarsanam, 1995).As can be seen from the graph above, the UK MA market has experienced a relatively le aner period, which has continued till date. The main reasons that can be attributed to this are the various world catastrophes and the overall global economic slowdown. As per the office of National Statistics, the largest significant transaction recorded during the first quarter of 2008 was the acquisition by Imperial Tobacco Group Plc of Altadis S.A. for a press reported value of 9.3 billion. Another significant transaction was the acquisition by Carillion Plc of Alfred McAlpine Plc for a reported value of approximately 0.5 billion. For quarter one in 2008, the number of transactions reported for acquisitions in the UK by UK companies has been the lowest reported since quarter one 2003. Other recent major UK mergers acquisitions (2008) are as follows: Table 1.0 Recent Acquisitions in the UK by UK Companies Company Value in million Carillion Plc acquiring Alfred McAlpine Plc 554 Willmott Dixon Ltd acquiring Inspace Plc 133 easyJet Plc acquiring GB Airways Ltd 104 iimia MitonOptimal Plc acquiring Midas Capital Partners Ltd 100 Source: National Statistics, 2008 Table 2.0 Recent Acquisitions abroad by UK Companies Company Value in million Imperial Tobacco Group Plc acquiring Altadis S.A. 9339 Reckitt Benckiser Group Plc acquiring Adams Respiratory Therapeutics 1100 Scottish and Southern Energy Plc acquiring Airtricity Holdings Ltd 808 SABMiller Plc acquiring Koninklijke Grolsch N.V 606 Ineos Group Ltd acquiring Kerling AS 429 429 Standard Chartered Plc acquiring American Express Bank Ltd 413 Kesa Electricals Plc disposing of BUT SAS 389 Source: National Statistics, 2008 1.3 Definitions and Different Types of Mergers and Acquisitions Although the terms merger, acquisition and takeover are used interchangeably, technical differences do exist. A merger is when corporations come together to combine and share their resources to achieve a common set of objectives (Sudarsanam, 1995). The shareholders of the two combined corporations will continue to be joint owners. An acquisition is when one firm purchases the assets or shares of another firm however the shareholders of the acquired firm continue being owners of that firm. A takeover is the acquisition by one company of the share capital of another in exchange for cash, ordinary shares, loan stock or a combination of these (Pike and Neale). This distinction between the three terms is important in certain contexts however they are used by researchers and authors interchangeably. In the following dissertation, I too will use these three terms interchangeably. There are different types of mergers that exist to create value and are classified into three main categories: horizontal, vertical and conglomerate (Pike and Neale). Horizontal integration: this is when a company takes over the target firm from the same industry and at the same stage of the production process. Vertical integration: where the target is in the same industry as the acquirer however is operating at a different stage in the production process. This can be either close to the source of materials (backward integration) or close to the final customer (forward integration). Conglomerate integration: occurs when the target is in a business that is different to the acquirer. The reasons a firm may undergo a conglomerate merger is to reduce risk through diversification, opportunities for cost reduction and improving internal and external efficiencies. In order to understand whether mergers and acquisitions create or destroy shareholder value, it is important to appreciate and understand few critical aspects of the complex MA theory. The three areas in helping to answer this question with respects to the impact of shareholder value in my opinion are different modes of financing mergers and acquisitions, motives for MA activity and post-merger performance. Various researchers in the finance field have conducted a great amount of research on the above mentioned areas and this dissertation will help put into perspective mergers and acquisitions impact on shareholder value currently in the UK. CHAPTER 2: BACKGROUND OF STUDY Mergers and acquisitions are undertaken as a means of corporate growth and expansion but are also an alternative to growth through internal or organic capital investment. The immediate objective of an acquisition is self-evidently growth and expansion of the acquirers assets, sales and market share (Sudarsanam, 1995). Another objective of acquisitions would be to increase the growth of shareholders wealth aimed at creating a strong competitive advantage for the acquirer. In modern finance theory, shareholder wealth maximization is a strong rational for financing and investment decisions made by management. This leads to the question of wealth gain effects of mergers and acquisitions, specifically among large UK companies. The following chapter introduces various literature regarding wealth gain effects of mergers and acquisitions and highlights the various aspects of mergers and acquisitions which may have an effect on the shareholder value within large UK corporations. 2.1 Modes of Acquisition Financing There are various modes of financing a takeover which includes: cash (preferred method), issuing of ordinary shares and fixed interest securities (loan stock, convertibles, and preference shares). The way in which a merger and acquisition is financed has different benefits to the target shareholders and bidder shareholders. In addition, cash takeovers may be sufficiently different from non-cash acquisitions and failure to distinguish between them may lead to inappropriate generalizations (Carleton et al, 1983). As per Sudarsanam (1995), there are various ways a firm can bid an acquisition, which is shown in Table 3.0. Table 3.0 Bid Financing Bidder Offers Target shareholders receive Cash Cash in exchange for their shares Share Exchange A specified number of bidder s shares for each target share Cash underwritten share offer (vendor placing) Bidders shares, then sell them to a merchant bank for cash Loan stock A loan stock/debenture in exchange for their shares Convertible loan or preferred shares Loan stock or preferred shares convertible into ordinary shares at a predetermined conversion rate over a specified period Deferred payment Part of consideration after a specified period, subject to performance criteria Source: Sudarsanam (1995, p.177) In addition, a bidder making cash offer can finance it from one or more of the following sources (Sudarsanam, 1995): Internal operating cash flow A pre-bid rights issue A cash underwritten offer, e.g. vendor placing or vendor rights A pre-bid loan stock issue Bank Credit A cash offer has two advantages from the point of view to both the target and acquiring shareholders which includes (Pike Neale, 1999): The amount is certain; there is no exposure to the risk of adverse movement in share price during the course of the bid. The targeted shareholder is more easily able to adjust his or her portfolio than if he or she receives shares, which involve dealing costs when sold. Because no new shares are issued, there is no dilution of earnings or change in the balance of control of the bidder. In terms of shares being used as a medium of exchange again there are some advantages to both target as well as acquiring shareholders (Arnold, 2002) which are: For target shareholders use of shares helps avoid capital gains tax. Target shareholders maintain an interest in the combine entity thus helping preserve as well as increase shareholders value. Acquiring shareholders gain from the fact that there is no immediate cash outflow. Nickolaos Travlos (1987) study titled Corporate Takeover Bids, Method of Payment, and Bidding Firms Stock Returns was to examine the role of the method of payment in determining common stock returns of bidding firms at the announcement of takeover bids. The analysis in the study was to show the valuation effects on two common methods of payment which are common stock exchanges and cash offers. The results showed that bidding firms had normal returns in cash offers however experienced significant losses in pure stock exchange acquisitions. Other literature studied by Asquith and Mullins (1986), Kalay and Shimrat (1987), Masulis and Korwar (1986) and Mikkelson and Partch ( 1986) show that common stock issues have negative stock price when there are new common stock offerings. These results were supported by various other studies such as Henri Servaess (1991) study titled Tobins Q and gains from takeovers. Agrawal, Jaffe and Mandelkar (1992) found post-acquisition returns to be lower fo r share-financed acquisitions in comparison to cash-financed acquisitions. They further went on to prove that shareholders of acquiring firms suffered a statistically significant loss of about 10% over the five-year merger period. The bidding firms method of payment provides valuable insight to the market. If the bidding firms managers possess information about the intrinsic value of their firm, independent of the acquisition, which is not fully reflected in the pre-acquisition stock price, they will finance the acquisition in the most profitable way for the existing stockholders (Travlos, 1987). Myers and Majluf (1984) model states that management will prefer cash offerings if they believe their firm is under-valued however a common stock exchange offer will be preferred if they believe their firm is over-valued. In addition, market participants will strongly favor a cash offer as good news while the opposite holds true for a common stock exchange about the bidding firms true value. If such information is important in the market, then the bidding firms stock price change at the proposals announcement will reflect both the gain from the takeover (weighted by the probability that the takeover bid will go throug h) and the information effects (Nickolaos, 1987). Jensen and Ruback (1983) state that most tender offers are financed by cash however merger proposals are financed by the exchange of common stock therefore the information argument states that larger target residuals occur in tender offers rather than in mergers. In their study conducted, they determined that for mergers, the weighted abnormal target firm return is 16.3% over the month before announcement however for tender offers; the weighted target return is 30.9% over the two-month period surrounding the announcement dates. Cash is by far the most widely used form of payment in mergers and acquisitions. There are many reasons as to why there is an increased use of cash in financing mergers. One possible explanation for the increasing use of cash depends on market imperfections and/or agency considerations (Carleton et al, 1983). Another reason for why bidding firms use cash in financing mergers is the increase in the number of hostile mergers. Cash not only signals a high value for the target, but also preempts other firms from bidding (Martin, 1996). These findings were also found in the literature of Eckbo, Giammarino and Heinkel (1990) which include a role for mixed financings in which higher-valued bidders are more likely to use more cash to finance the acquisition. As can be seen from the literature above the mode of payment in an acquisition may be driven by various motives and can have various effects on the bidders and acquirers stock price. This can have a major impact on shareholder value during corporate acquisitions as well as value gain studies. A study by Loughran and Vijh (1997) formed an association between the mode of acquisition (merger and tender offer) and the method of payment (cash or stock). They studied this relationship in the context of wealth gains from acquisitions and concluded that the post-acquisition returns of acquirers are related to both the mode of acquisition as well as form of payment. This was also proved by various other researchers (mentioned above) thus making the method of payment during an acquisition all the more important. Reason being, post-acquisition returns are what tend to effect shareholder value the most therefore the knowledge and distinction of the various modes of financing an acquisition is ve ry relevant and essential. 2.2 Motives for Mergers Acquisitions A Dual Perspective Tender offers allow for an in-depth analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Managers of the target firm are often in conflict of interest between their fiduciary responsibilities to the shareholders and their own personal wealth. For this reason, tender offers allow for the analysis of agency conflicts between shareholders and management of the target firm. According to Sudarsanam (1995) there are two main perspectives for acquisition motives which are: Shareholder wealth maximization perspective Under the shareholder wealth maximization perspective, all firms decisions including acquisitions are made with the objective of maximizing the wealth of the shareholders of the firm. In mergers and acquisitions, management of the target firm will oppose bidding firms to takeover if they believe this action would not be in the best interest of its shareholders. Target managers that oppose a bid defend their reasoning by claiming that the bid price is not adequate enough. Managerial wealth perspective Under the managerial wealth perspective, target managers may face an uneasy choice between obligations to current shareholders and those who aspire to such a position (Walkling and Long, 1984). For many target managers, if they sense a possibility of a loss in compensation from the merger or acquisition, conflict of interest will then increase. If self interest is pursued by target managers, there is a possibility that a bad acquisition may occur and/or a loss of shareholder wealth. According to Sudarsanam (1995), managers may undertake acquisitions for the following reasons: To pursue growth in size of their firm, since their salary, prerequisites, status and power are a function of firm size. (Empire-building syndrome) In order to deploy their currently underused managerial skills. (self-fulfillment motive) To diversify risk and minimize costs of financial distress and bankruptcy. (job security motive) To avoid being taken over. (job security motive) The managerial wealth perspective motive is one of survival. Not only do managers tend to seek motivation from sustained growth but also seek job security. Managers unlike shareholders cannot diversify to spread their risks since they are tied to one company. If that company is acquired, managers have a high probability of losing their jobs. A study conducted by Firth (1991) tests to see if executive reward increases when an acquisition takes place. In a sample of 254 UK takeover offers during 1974-1980 found that the acquisition process leads to an increase in managerial remuneration, and that this is predicated on the increased size of the acquirer and concludes that the evidence is consistent with takeovers being motivated by managers wanting to maximize their own welfare'(Firth, 1991). Agency conflicts arise whenever differing incentives cause managers to take actions that benefit themselves but harm shareholders. In the context of acquisitions, agency conflicts may lead to a reduction in shareholder wealth if managers pursue expansion for nonprofit-maximizing reasons. According to past literature, large target shareholder wealth gains are experienced during the announcement of a takeover and large shareholder wealth losses occur when a takeover bid fails (Jensen and Ruback, 1983). This implies that target management interests are not always achieved by accepting bid offers. In addition, target managers may lose compensation and other perks if they are replaced after a successful bid offer. These findings are also confirmed by Walkling and Long (1984) and Martin and McConnell (1991), all of whom reported above-average managerial turnover after a successful takeover bid. The study findings show that in addition to lost compensation, managerial turnover may also be a ssociated with loss of status. Martin and McConnell (1991) further go on to say that the mergers and acquisitions market plays an important role in controlling the non-value maximizing behavior of managers of large corporations. As shown from the literature above, the shareholder wealth perspective and managerial wealth perspective may conflict with one another. With respects to mergers and acquisitions, the managerial motives and a mangers reaction to a takeover bid may have an impact on the shareholder wealth maximization criterion. The extent to which it would impact shareholder value will be decided by the amount of control managers have within the organization. 2.3 Post Merger Performance Debate (Targets and Bidders) There has been considerable interest in the post merger performance on shareholders returns in the target and bidder firms. Typical findings by researchers show three patterns: (1) target shareholders earn significantly positive abnormal returns from all acquisitions, (2) acquiring shareholders earn little or no abnormal returns from tender offers and (3) acquiring shareholders earn negative abnormal returns from mergers. Overall, the results of post merger performance have been mixed. According to Langetieg (1978) and Asquith (1983), their research concluded that acquired firms experience significantly negative abnormal returns over one to three years after the merger. In the research study conducted by Agrawal, Jaffe and Mandelker (1992) titled The Post-Merger Performance of Acquiring Firms: A Re-examination of an Anomaly found that stockholders of acquiring firms experience a statistically significant wealth loss of approximately 10% over five years after the merger completion date. Research conducted by Franks, Harris and Titman (1991) found that no significant underperformance of stockholders returns exist over a three year period after the acquisition. Franks et al concluded that the previous findings of poor performance post-acquisition were likely to be due to benchmark errors rather than inconsistencies with the Efficient Market Theory (EMH) or mis-pricing at the time of the takeover. Similar results that underperformance of stockholders returns do not exist over a three year period after acquisition is also concluded by Bradley and Jarrell (1988). A few studies have analyzed value gains during merger and acquisitions with respect to various classes of merging firms security holders. A study was carried out by Dennis and McConnell (1986) namely, Corporate Mergers and Security Returns and their results indicated mergers on average to be value creating activities for the acquired and the acquiring company individually. They found by other previous studies that on average common stockholders of acquiring firms earn positive returns but are usually not statistically significant. Their results also indicated that convertible preferred stockholders (of acquiring firm) received positive and statistically significant returns post-merger; however, non-convertible preferred stockholders received positive but not statistically significant returns post-merger. The combination of the above mentioned results lead to an overall increase in the value of the firm therefore presenting us with the reason as to why corporations go ahead with merge rs which do not earn statistically significant returns to common stockholders of the acquiring firms. Research results by Asquith and Kim (1982) also confirm what other investigators found for mergers: abnormal returns to the common stocks of acquired firms are positive and statistically significant; abnormal returns to the common stock of acquiring firms are not significantly different from zero. In the study Do Long-term Shareholders Benefit Corporate Acquisitions? by Loughran and Vijh (1997), found that post acquisition returns of acquirers stock are related to both the form of payment as well as the mode of acquisition. They concluded in the overall sample of 947 cases, acquirers that make merger bids earn, on average, 15.9 percent less than matching firms whereas acquirers that make tender offers earn 43.0 percent more than matching firms during a five-year period after acquisition. In addition, stock acquirers earned 24.2 percent less however cash acquirers earn 18.5 percent more with respects to matching firms. Furthermore, conclusions show that during a five year period following the acquisition, on average, firms t

Lolita: The Etymology of a Nymphet :: Essays Papers

Lolita: The Etymology of a Nymphet The novel Lolita concerns a relationship characterized by obsession by a middle aged man, Humbert, for a prepubescent girl, Lolita. This fictional relationship has been a source of many questions as to what the writer, Vladimir Nabokov, had in mind when he wrote the novel. Thus, the novel has been looked at from different aspects in attempting to come up with what it portrays. Humbert, in his flowery description of Lolita, uses the word "nymphet" to refer not only to her but also to other girls of her age and characteristics. Little girls that came his way before Lolita, he describes as nymphets too. The purpose of this analysis will be to discover what exactly Humbert refers to as a nymphet in the novel Lolita in relation to the type of image today's society sees as a nymphet with the goal of establishing whether or not the novel portrays the influence of a nymphet. It will attempt to find the similarities and differences between the image of a nymphet that Lolita portrays and the real life image of today. The history of the word "nymphet" in English does not go beyond 1955 when the novel Lolita was published because its first use is in the novel. It was introduced into English by Mr. Humbert Humbert himself. Through his unique sexual perception, Humbert describes the behavior or the sexually luring ability of little girls as unnatural or nymphic: "Now I wish to introduce the following idea. Between the age limits of nine and fourteen there occur maidens who, to certain bewitched travelers, twice or many times older than they, reveal their true nature which is not human, but nymphic (that is, demoniac); and these chosen creatures I propose to designate as "nymphets (16)" Nymphic is adjectival for the noun 'nymph' and the Microsoft Encarta Encyclopedia defines nymphs to be, in "Greek and Roman mythology, lesser divinities or spirits of nature, dwelling in groves and fountains, forests, meadows, streams, and the sea, represented as mortal and beautiful creatures that were sometimes love objects to olympian maidens, fond of music and dancing." They could also be "vengeful and destructive", a character that will be shown to work against Humbert, not physically, but emotionally. Humbert's image of a nymphet is enhanced by the thoughts and memories of Annabel that he harbors. He sees Lolita as a reincarnation of Annabel: "It was the same child - the same frail, honey-hued shoulders, the same silky supple bare back, the same chestnut head of hair" (39). Lolita: The Etymology of a Nymphet :: Essays Papers Lolita: The Etymology of a Nymphet The novel Lolita concerns a relationship characterized by obsession by a middle aged man, Humbert, for a prepubescent girl, Lolita. This fictional relationship has been a source of many questions as to what the writer, Vladimir Nabokov, had in mind when he wrote the novel. Thus, the novel has been looked at from different aspects in attempting to come up with what it portrays. Humbert, in his flowery description of Lolita, uses the word "nymphet" to refer not only to her but also to other girls of her age and characteristics. Little girls that came his way before Lolita, he describes as nymphets too. The purpose of this analysis will be to discover what exactly Humbert refers to as a nymphet in the novel Lolita in relation to the type of image today's society sees as a nymphet with the goal of establishing whether or not the novel portrays the influence of a nymphet. It will attempt to find the similarities and differences between the image of a nymphet that Lolita portrays and the real life image of today. The history of the word "nymphet" in English does not go beyond 1955 when the novel Lolita was published because its first use is in the novel. It was introduced into English by Mr. Humbert Humbert himself. Through his unique sexual perception, Humbert describes the behavior or the sexually luring ability of little girls as unnatural or nymphic: "Now I wish to introduce the following idea. Between the age limits of nine and fourteen there occur maidens who, to certain bewitched travelers, twice or many times older than they, reveal their true nature which is not human, but nymphic (that is, demoniac); and these chosen creatures I propose to designate as "nymphets (16)" Nymphic is adjectival for the noun 'nymph' and the Microsoft Encarta Encyclopedia defines nymphs to be, in "Greek and Roman mythology, lesser divinities or spirits of nature, dwelling in groves and fountains, forests, meadows, streams, and the sea, represented as mortal and beautiful creatures that were sometimes love objects to olympian maidens, fond of music and dancing." They could also be "vengeful and destructive", a character that will be shown to work against Humbert, not physically, but emotionally. Humbert's image of a nymphet is enhanced by the thoughts and memories of Annabel that he harbors. He sees Lolita as a reincarnation of Annabel: "It was the same child - the same frail, honey-hued shoulders, the same silky supple bare back, the same chestnut head of hair" (39).

Free Narrative Essays - Trip Through The Soft Soft Sand :: Personal Narrative Essays

Trip Through The Soft Soft Sand It was a warm, dry summers day in the great bowl of Nevada's desert when I made my grave error. We learn from our errors, so in some cases it doesn't hurt to make them provided there is not a permanent repercussion from your mistake. I have a rock that reminds me of this incident and I would like to tell you how this rock resembles my experience. Jamie(my girlfriend) and I were returning on a Sunday afternoon from a very successful and safe caving trip to the Great Basin National Park. The weather was just right for traveling and we were reminiscing about all of the beautiful natural formations we saw underground. Caving is a very exciting sport, upon entering a cave you leave the mundane world behind and enter a wonderful wonderland. From the commonly known stalactites and stalagmites to the lesser known soda straws and cave bacon. After a few days of exploring caves in the park we were ready to head home. With tired muscles and dusty bodies we were ready for warm showers and soft beds. Upon exiting the park and traveling along the long strait path of the highway home we spotted a dark hole in a rock formation along the side of the road. Being true cavers and adventurous types we decided we had to poke our heads in to take a look around. I veered off the road in started heading in the direction of the rock formation. Unfortunately although driving along what seemed to be tracks I was getting myself deeper and deeper into very soft sand. This was my mistake, traveling along a path that was untested and the whereabouts of the destination unknown. "Are you sure you know what you are doing" said Jamie as the tires began to spin more and more in the soft particles of sand. "Sure, don't you see the tracks in the sand? Others have been this way, and hey, if they can do it, why can't we?" I said this half heatedly based on the fact that I was moving slower and slower as we progressed. Seeing that we were close enough to the precipice I stopped the car

A Jury of Her Peers, by Susan Glaspell :: A Jury of Her Peers Essays

Glaspell spent more than forty years working as a journalist, fiction writer, playwright and promoter of various artistic. She is a woman who lived in a male dominated society. She is the author of a short story titled A Jury of Her Peers. She was inspired to write this story when she investigated in the homicide of John Hossack, a prosperous county warren who had been killed in his sleep(1).Such experience in Glaspell’s life stimulated inspiration. The fact that she was the first reporter on scene, explains that she must have found everything still in place, that makes an incredible impression. She feels what Margaret (who is Minnie Wright in the story) had gone through, that is, she has sympathy for her. What will she say about Margaret? Will she portray Margaret as the criminal or the woman who’s life has been taken away? In the short story Minnie Wright was the victim. Based on evidence at the crime scene, it is clear that Minnie has killed her husband; however, the women have several reasons for finding her â€Å"not guilty† of the murder of John Wright. First, When Martha and Mrs. Peters arrive at the scene of the crime, they see that it is a very lonely place off the road. The house is in a hollow, with lone-some looking trees around it(1).Mr. Hale thinks that having a phone to communicate with rest of the world in such place will reduce loneliness although Mr. Wright does not want communication(2). Minnie lives a miserable life in this place. Martha cannot believe that this is what Minnie foster has turned into. She describes her rocker, and says: â€Å" that rocker don’t look in the least like Minnie foster. The Minnie foster of twenty years before†(3). The rocker is a very old rocker with a faded color and few parts of it are missing. Also, Mrs. Hale thinks it is a torture for Minnie to wrestle with the stove year after year because that stove is in a very poor condition(8). These are some few examples that show how miserable Minnie is in such a lonely place.