Report Essay Example | Topics and Well Written Essays - 3000 words - 1

Report - Essay Example Customer service is a process used by the organisations to provide customers with the needs and wants. The travel and tourism industry is one which is very large and there is a high level of direct customer interaction in this industry. Over the years, with the level of disposable income rising in the country, the customers are able and willing to spend more on various services related to travel and tourism and various researches have highlighted that customers are able to spend heavily on their travel and tourism needs. Saying this is also important to understand, that with an increase of the number of people indulging in the travel and tourism, the need for customer service has also grown to a higher extent. The travel industry requires to follow the ABTA rules. The main aim of the ABTA policies is to ensure that all the members of the travel industry and that all the customers and the members of the travel industry are provided with high levels of quality and customer service. All the travel related companies need to follow the rules set down by the ABTA and are obliged to follow the rules and regulations and policies set down by the ABTA. Customer Service is an essential part of Customer relationship management. Customer relationship management, which is widely known as CRM holds an enormous importance in today’s competitive world. This is clear from the several different mission statements and the vision statements that are presented by the companies across the world. An excellent example for the mission statements is, ‘It is the policy of McDonnell & Miller to provide products and services to the market which meet or exceed the reasonable expectations of our customers. Satisfying our customers with the appropriate level of quality is a primary goal and a fundamental element of our business mission’ (Mission Statements, 2010). Various changes have

Slave resistance Essay Example | Topics and Well Written Essays - 750 words - 1

Slave resistance - Essay Example the behaviors exhibited by individuals are observable and does not necessarily require the observation of their mental states in order to explain their behaviors in the environments that they live in (New & Cochran, 2007). However, Watson indicated that observable behaviors are the only ones that can be included in the observation rather than those that include subjective emotions. Drawing on this, this essay will delve into the concept of behaviorism with a focus on learning behavior based on the research findings of Pavlov’s dogs and Skinner’s rats. Essentially, behaviorists deem that people can receive training in order for them to execute various tasks irrespective of their genetic composition or their personalities as long as the conditioning is the right one. In this regard, the two types of conditioning are classical and operant conditioning in which most of the adherents of behaviorism abide by. In essence, operant conditioning is a learning method that involves the inclusion of rewards or punishments depending on the behavior exhibited. On the other hand, classical conditioning is another form of behavioral training method whereby there is a natural response in terms of behavior to the stimulating factor applied (New & Cochran, 2007). The terms used to define the two factors applied in this form of conditioning are conditioned stimulus and response. Based on this school of thought, Russian Psychologist Pavlov applied the conditioned response drawing from the behavior that his dogs portrayed when it came to them salivatin g whether or not their master brought food during his entry into the room that they were in. Through research, Pavlov discovered the salivating behavioral trait that dogs tend to have is not a trainable behavior, meaning that the response is unconditioned indicating food is not the only stimulant that provokes this response. In the course of Pavlov’s research, this psychologist unearthed that dogs salivated or exhibited the same

Icici Bank and Bank of Rajasthan Merger Essay Example for Free

Icici Bank and Bank of Rajasthan Merger Essay Meaning : A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. Basic information of icici bank (Industrial Credit and Investment Corporation of India Bank): ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary in 1994. The parent company was formed in 1955 as a joint-venture of the World Bank, Indias public-sector banks and public-sector insurance companies to provide project financing to Indian industry. [10][11] The bank was initially known as theIndustrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged with the bank. Current information: Based on 2013 information, it is the second largest bank in India by assets and third largest by market capitalisation. It offers a wide range of banking products and financial services to corporate and retail customer through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking. life and non-life insurance, venture capital and asset management. The Bank has a network of 3,350 branches and 10,486 ATMs in India, and has a presence in 19 countries. ICICI Bank is one of the big four banks of India, along with SBI,PNB,CANARA BANK BANK OF RAJASTHAN : It was set up at Udaipur in 1943 with an initial capital of Rs.10.00 lacs. An eminent Industrialist Late Seth Shri Govind Ram Seksaria was the founder chairman. It was classified as the Scheduled Bank in 1948. The Bank also established a rural (Gramin) bank Mewar Anchlik Gramin Bank in Udaipur District in Rajasthan on 26 January 1983. The banks central office is located at Jaipur, although its registered office is in Udaipur. Presently the bank has 463 branches, in 24 states, with 294 of the branches being in Rajasthan. †¢ 1. Merger of ICICI and BoR Submitted †¢ 2. About BoR and Merger private sector lender Bank of Rajasthan on 18 may 2010 agreed to merge with ICICI Bank, Indias second largest private sector lender Bank of Rajasthan has a market value of $296 million The acquisition of Bank of Rajasthan by ICICI bank is the first consolidation of countrys crowded banking sector since 2008.ICICI Bank and Bank of Rajasthan (BoR) boards on Sunday cleared their merger through an all-share deal, valued at about 30.41 billion rupees. †¢ 3. ICICI offered to BoR ICICI offered to pay 188.42 rupees per share, in an all-share deal, for Bank of Rajasthan, a premium of 89 percent to the small lenders closing price on Tuesday, valuing the business at $668 million .ICICI is offering the smaller banks controlling shareholders 25 shares in ICICI for 118 shares of Bank of Rajasthan. †¢ 4. The Big Deal The deal, which will give ICICI a sizeable presence in the northwestern desert state of Rajasthan, values the small bank at about 2.9 times its book value, compared with an Indian banking sector average of 1.84.Bank of Rajasthan has a network of 463 branches and a loan book of 77.81 billion rupees ($1.7 billion). †¢ 5. Why MergerIn March, the Reserve Bank of India appointed consulting firms to conduct a special audit of the books and accounts of Bank of Rajasthan .The government has called for consolidation in the banking sector in order to make lenders more competitive but there has been little activity.RBI had imposed a penalty of Rs 25 lakh on Bank of Rajasthan for various violations. †¢ 6. Totals of BoR F or the nine-month ended December’09, the bank had net loss of Rs 9 crore with total income of Rs 1,086 crore. For the year ended March’09, Bank of Rajasthan had net profit of Rs 117 crore with total income of Rs 1,507 crore .Operating income fell 11% to Rs 373.78 crore in Q3 December 2009 over Q3 December 2008. †¢ 7. Advantage for ICICI and BoR ICICI Bank will gain marginally from the merger as Bank of Rajasthan has a reasonable penetration in its home state. As of March’09, it had 463 branches across the country. The deal will also help ICICI tackle increasing competition by HDFC Bank. the deal values BoR at about 2.9 times its book value, compared with an Indian banking sector average of 1.84. †¢ 8. Comparison OF ICICI and BoRICICI bank added CASA deposits totaling over 210 billion rupees in the year ended March 2010, compared with 41.63 billion rupees of BoR .ICICI recorded a business per branch of 3 billion rupees compared with 47 million rupees of BoR for fiscal 2009.For the quarter ended Dec 09, BoR recorded 1.05 percent of advances as NPA’s, which is far better than 2.1 percent recorded by ICICI Bank. †¢ 9. Why is RBI allowing the merger of this bank? This is very intriguing factor; when RBI claims that there is corporate governance. Finance Minister Pranab Mukherjee claims that there is corporate governance prevailing in SEBI, RBI and Finance Ministry. †¢ 10. Hurdles To protest the Bank of Rajasthans management plan to merge with the ICICI Bank, more than 4200 employees of Bank of Rajasthan went on a two-day countrywide strike .SEBI maintains that Tayals hold 55% in the bank and that would make them owners of nearly 1.87 crore ICICI Bank shares from new dilution by ICICI Bank, amounting to around 1.75% stake in the bank .ICICI Bank found it economic as always to invest in this deal on a 100% stock swap basis. †¢ 11. Impact of the Deal The deal is very expensive The proposed amalgamation would substantially enhance branch network and presence in  northern and western India for ICICIBank of Rajasthan has a network of 463 branches and a loan book of 77.81 billion rupees ($1.7 billion).As on March 2009, BoR had 463 branches and 111 ATMs, total assets of Rs 17,224 crore, deposits of Rs 15,187 crore and advances of Rs 7,781 crore. †¢ 12. ICICI After merger PE ratio22.97 10/06/10EPS (Rs)36.10 Mar, 10Sales (Rs crore)5,826.98 Mar, 10Face Value (Rs)10 Net profit margin (%)9.74 Mar, 09Last dividend (%)120 26/04/10Return on average equity7.58 Mar, 09 1 millions = 10 lakhs 1 billions = 100 crores 1 trillions = 100,000 crores

The Effect Of Conflict On The Gaza Strip Politics Essay

The Effect Of Conflict On The Gaza Strip Politics Essay The small strip of land between Egypt and Israel known as the Gaza Strip has been a combat zone in the ongoing Arab-Israeli Conflict since the 1940s. After the 1st Arab-Israeli War ended in 1949, Egypt annex Gaza. In the 1956 and 1967 wars between Israel and Egypt, Israeli forces under enemy control the crowded urban Gaza area, returning it to Egyptian control after the 1956 war,  but keeping it after the 1967 war. The peace treaty between Egypt and Israel effectively ceded control of Gaza to Israel, but Gaza became a theatre of war in the Palestinian rising against Israel known as The Intifada in the late 1980s. This uprising led to the peace agreement known as the Oslo Accords. Under this treaty, the Palestinian Authority (Palestinian government dominated by the Fatah movement), took over the organizational authority of the Gaza Strip (other than the established Israeli settlements and military areas) in 1994. In the summer of 2005,  Israel unilaterally evacuated its last military outposts in the Gaza Strip, hoping that would simplicity ongoing tensions with the Palestinian forces in Gaza. On June 25, 2006, Palestinian militants crossed from Gaza into Israel, kidnapping an Israeli soldier. Israel responded on June 29 with an invasion of the Gaza Strip. This campaign continued until Nov. 26, 2006, with a cease-fire. Despite the cease-fire, Palestinian rockets have been launched with some regularity into Israel, with Israel often responding with air and missile attacks on Gaza targets. 2007 Palestininian Civil War in Gaza In June of 2007, a short civil war between the two main Palestinian factions, Hamas and Fatah, resulted in the expulsion of Fatah forces from Gaza. Hamas is well thought-out the more militant of the two groups, and Hamas does not recognize Israels right to exist and seeks to reclaim all Palestinian lands from Israel. 2007-2008 Gaza Conflict This stage of the ongoing warfare in Gaza consisted of a series of battles between Palestinian militants and the Israel Defense Forces beginning in Mid-May of 2007. Palestinian forces fired more than 220 home-made Qassem rockets at the Israel town of Sderot and the western Negev region over the span of a week. The Israeli warplanes responded with air-to-ground missiles and bomb, targeting Hamas military and political infrastructure targets. On February 29, Israeli ground forces entered Gaza, killing nearly 100 Hamas militants. Israel also halted the transfer of electricity, fuel, and other supplies into Gaza in an attempt to weaken Hamas. Despite all attempts of controlling the violence, Hamas forces continued to launch missile attacks at Israel. It must be noted that Hamas, like the Hezbollah army in Lebanon, is allied with, and supplied by, Iran, which is a declared enemy of Israel. In June of 2008, Egypt, acting as the go-between, managed to put together a cease-fire between Israe l and Hamas. This cease-fire was broken several times by both sides, but largely brought a measure of peace to the Israel-Gaza border. Israel maintained closed borders with Gaza, hoping to pressure the Hamas regime economically. While Israel indicated a willingness to extend the cease-fire, Hamas began increasing its Qassem rocket attacks on Israel, forcing the Israeli government to make a decision on how to respond. 2008 Gaza War: Airstrikes and Ground Invasion On December 27, 2008, Israeli forces launched a major air attack on Hamas political and military targets in Gaza. Reports indicate that between 200 and 255 Palestinians died on the first day of the attacks. Reports also indicated that Israeli ground forces were moving toward the Gaza border. Hamas forces responded with more Qassem rocket attacks, with some newer, longer-range rockets reaching the Israeli cities of Ashkelon and Ashdod. Mid East analysts view the massive Israeli response as a means of showing its enemies that Israel is still a military force to be reckoning with. After losing the Second Lebanon War in 2006, Israel felt that Hezbollah, Hamas, and their Iranian patrons no longer fear Israel. Ever since independence in 1948, Israel has existed surrounded by enemies and literally has fought nearly continuous wars along its borders ever since. Too many Israelis, appearing fragile, or acting fragile in front of its worldly foes only invites additional attacks. Thus, while the Qassem rocket attacks are a real danger to the quarter-million or so Israelis within range of the Gaza border, these Hamas rockets create no imminent danger to Israels existence. By responding so forcefully, Israel hopes to ward off other enemies whose attacks could be more deadly, in particular, Iran, who is on the rise of nuclear ambition. The timing of Israels attacks is rather interesting, but actually somewhat unsurprising. It is no secret that President George W. Bush is a enthusiastic supporter of Israel, and the Dec. 27 attacks began as President Bush had only 24 more days as President of the United States. Both in the media and in the United Nations, the United States under the Bush Administration has been an firm supporter and ally of Israel, blocking key votes in the UN, which called for a cease-fire. Unsure of how the incoming Obama Administration may perceive an attack on Hamas, Israel likely determined to act to secure its southern border while their good friend George W. Bush was still in office and able to provide proper and diplomatic assistance. As of January 5, United Nations officials, as well as media outlets estimate that the Gaza War has seen 524 Palestinians killed and 2,600 wounded since the Israel began Operation Cast Lead on December 27, the majority of these casualties among members of Hamas security forces, but at least 200 of the dead were civilians. Israel reports one soldier and three civilians killed since December 27, with 30 civilians wounded by Hamas rocket attacks. Israeli artillery joined in the attacks on January 3, 2009. Despite the massive air attacks, Hamas was still able to launch over 400 rockets and missiles into southern Israel. It became apparent that air power alone would not accomplish the affirmed Israeli goal of halting the cross-border attacks by Hamas upon Israels civilian people. On January 3, thousands of Israeli troops, in three brigade-size formations, backed by tanks and attack helicopters, launched the expected ground invasion of the Gaza Strip in what Israel calls the second stage of Operation Cast Lead. The Israeli military reported 30 soldiers received wounds in the opening hours of the offensive, and also reported dozens of cas ualties among the defending Hamas forces. It was also reported that Israeli naval vessels assisted with the invasion, providing fire into the Gaza Strip in support of ground troops. Go here to see Ehud Barak Announcement about the start of the Israeli ground offensive. By the end of the first day of the ground offensive, Israel announced that its forces had bisected the Gaza Strip and surrounded the city of Gaza. Heavy combat war also reported near the northern Gaza towns of Beit Lahiya, Beit Hanun and Jabaliya. On January 6, Israeli forces fired mortar rounds at what they say was a launching area for Hamas rockets. The Israeli mortar shells struck a United Nations-run school at which hundreds of Palestinian civilians had taken shelter. The UN reported approximately 40 dead civilians in this attack. The bombing of the school brought a large amount of criticism on Israel from around the world. Though Israel justified the attack by claiming Hamas launched rockets from that area, Israel took a hit in terms of world public opinion. On January 8, Hezbollah forces launched rockets into Israel from Lebanon, raising the possibility of a second front in the new war. Israeli troops pushed into a heavily populated area of Gaza City from the south on January 11 in hard fighting, in which Israeli and Hamas forces engaged in vicious unconventional asymmetrical warfare house to house, and street by street. On January 17, Israeli announced a unilateral ceasefire, deciding to halt operations without first securing an agreement with Hamas. The next day, January 18, Hamas, Islamic Jihad and other Palestinian militia groups declared they would halt the launching of rockets into Israel for one week, while demanding that Israel withdraw from Gaza within the week. May 31, a deadly predawn Israeli raid on ships off Gaza has sparked international outrage, following the deaths of international activists who say they were trying to transport humanitarian supplies.

Iacocca :: Essays Papers

Iacocca The book Iacocca is an autobiography of Mr. Lee Iacocca. The first couple of sections of his book were about family. Starting with his mother and father, coming over from Italy and his childhood. His father always taught him something that when he was going to do something that he had to be the best. Which is to be believed, where he got his strength in competition later in his business career. Then after his parents came his wife and children, whom he loved. The next few sections were about his job and how it was changed through out the years. Even when his job was still with the same company his position is that company changed many times in his career before he even traded companies. Mr. Iacocca had a very loving and understanding family as told in this book. His parents were always a major part in his life even after he got married and they were a large part of his life up until their deaths. His father was always interested in cars and so in a way Mr. Iacocca grew up around cars and the knowledge of them. His father taught him many valuable lessons about how to deal with himself and others which also may have helped him in his future career in the business world. When he married, his parents were proud but in a small way they were pushed to the side to make room for his new wife, Mary. After Mary and He were married they had some children. These children became his pride and joy. When this family grew, they all grew together in turn and they also grew closer together. This family was extremely close. Even though the family was close, his job did seem to have a slight impact on them. When Mr. Iacocca first started working for Ford, he was a low ranking engineer, fresh out of college like many of his co-workers. He tried the engineering job for a few months until he decided that he didn’t want to work in that department but he wanted to work in the sales department. After this major change in his life, he took control and went to his boss and said â€Å"there is no point in me finishing the training course and that my masters degree from Princeton was equivalent to the second nine-months of training.

Is Caffeine Addictive? Essay -- Biology Essays Research Papers

Is Caffeine Addictive? As exams approach, students everywhere reach for their coffee mugs, their Vivarine and No-Doz. Legions of wide-eyed and shaky young people stay up late into the night, printing out final papers and cramming a year worth of information into their over-burned minds. Falling asleep over books is not acceptable at this time of year. But this is not a new thing; many students have a late-night lifestyle supported by caffeine, getting an average of 5 hours of sleep a night. These young people are a part of the nearly 80% of Americans who depend on caffeine (1). They use it to stay awake when their bodies tell them they need to sleep. Many people use it simply to feel more awake or simply because they like the taste of coffee, sodas or teas which contain the drug. For those who love coffee, the taste is often cited as the reason for the "addiction" and the use of that word does not imply anything like a drug addiction. However, try to take away someone's coffee abruptly and chances are they will experience withdrawal symptoms (2). The body develops a dependence on caffeine which is very obvious; stop drinking coffee for a day after being a regular drinker and get a headache, then drink coffee and it goes away. Some call this an addiction, coining terms such as "caffeinisme" and "caffeine withdrawal syndrome" (4), and classify caffeine as a mind-altering drug (3) (5) (6) (7). Many others protect caffeine, saying it does not compare to a true drug addiction and some even claim it has benefits-that it not only increases alertness but has other healthful properties (2) (8) (9) (10) (11) (12) (13). It is very difficult to find an objective article on the effects of caffeine, for while the information is often c... ...xhaustion. There is great need for more research regarding the properties of caffeine. There is too much contradictory information and studies are not conclusive. A huge number of people around the world consume enough caffeine to be diagnosed as dependent who have not been reassured that it is safe. Nor have they been given a good enough reason to stop their consumption or cut down to safer levels of caffeine intake. It would take a lot of negative findings to dissuade people from using the drug, but a better understanding on all properties could also find more uses for caffeine and could reassure those who are doubtful of the safety of caffeine consumption. Internet Sources: http://www.usa-gymnastics.org/publications/usa-gymnastics/1996/4/body-balance.html http://www.healthy.net/scr/article.asp?ID=800 http://www.healthy.net/scr/article.asp?ID=2046

Boston Beer Analysis

Matthew Schreck Management 511: Financial Decision Making Boston Beer Company April 18, 2013 Amelia Drobile Boston Beer Company History and Financial Position Boston Beer Company (SAM) is a brewery in Massachusetts most commonly known for its Samuel Adams line of â€Å"craft† beers. The Samuel Adams line of beer was introduced in 1985. Since then the company has grown to do over 580 million dollars in revenue each year. 580 million is a very small piece of the food and beverage industry but the amount of shareholder wealth they are providing is impressive.Boston Beer Company has been named one of the top publically traded businesses to watch in 2013 by Forbes. Boston Beer Company is actually part of two markets. In the overall U. S. Beer market they have a mere one percent of the market. However, they own 22% of the craft beer market. In their industry, 66% of those competing in the craft brew market are brewpubs, which generally do not do mass distribution giving Boston Beer Company an edge. (Smith, 2011) Boston Beer Company has one major difference from its competitors. The company has no debt.The entire company runs on cash even though they have a 50 million dollar line of credit available to them, which they have never used. The company purchased Diageo’s Pennsylvania Brewery in June of 2008 for 55 million dollars cash so that they could produce 100% of their product without having to subcontract larger orders out. Boston Beer Company is capitalized with no bonds or preferred stock, only 13. 6 million shares of common stock. (Smith, 2011) Boston Beer Company’s cost of capital is 6. 60% since their weighted cost of equity is 6. 60% and their weighted cost of debt is 0. 00%. Market Grader Inc. , 2013) Price to Revenue Ratio (Price to Sales) Boston Beer Company’s price to revenue ratio (TTM) is 3. 54 The price to revenue ratio is usually applied in place of the price to earnings ratio. This ratio is usually applied to companies with in the same industry, however it excludes debt and expenses so the information the ratio provides is limited. Price to Cash Flow Ratio The current price to cash flow ratio for Boston Beer Company is 25. 76. The price to cash flow ratio is used to evaluate the price of a company’s stock as compared to the amount of cash flow it generates.The price to cash flow ratio is important for one main reason, it allows the comparison of companies from different jurisdictions because it removes depreciation (which may vary by country) and other non-cash factors. Therefore, it would allow an investor to compare Boston Beer Company’s stock to that of AB InBev along similar financial values. Price to Book Ratio (MRQ) The price to book ratio for Boston Beer Company is 8. 34. The price to book ratio measures a company’s market value in comparison to its book value.The price to book ratio indicates whether or not a company’s asset value is comparable to the market price of it’s stock. Because the price to book ratio for Boston Beer Company is well over one it may be an indicator that the stock is overvalued. An over valued stock for Boston Beer Company could imply the rapid decline in stock value in the near future, especially since the stock has climbed almost 25% in the last quarter alone. With the book value ratio as high as it is, a drop in stock price seems likely in the near future. Current Ratio (MRQ) Boston Beer Company’s current ratio is 1. 83.Current ratio is defined by a company’s current assets divided by is current liabilities. A company’s current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations. This ratio also takes into account inventory as current assets, although it may easily be converted into cash quickly. Because Boston Beer Company’s ratio is well over one, it means they have the assets and cash flows available to pay off any immediate debt shoul d it be made due. The company’s amount of inventory provides a great deal of assets that makes the company much more liquid when this formula is used.Quick Ratio (MRQ) The quick ratio for Boston Beer Company is 1. 33. A company’s quick ratio is an indicator of a company’s short-term liquidity. This ratio is a more conservative form of the current ratio because it does not take into account inventory of the company when determining its current assets. Boston Beer Company still has a favorable ratio well above 1. 0. While their current ratio is much better with all the inventory, Boston Beer Company is still a reliable company that can pay off its short term debts if need be. Measuring ReturnsPrimary Stakeholders Boston Beer Company has five primary stakeholders within company, Martin F. Roper (President and CEO), C. James Koch (Founder and Chairman), William F. Urich (CFO and Treasurer), John C. Geist (Vice President of Sales), and Thomas W. Lance (Vice President of Operations). Of the five of them C. James Koch holds more than 34% of the shares and is the sole holder of the class B common stock that gives him the right to appoint five of the eight members that are chosen to be on the board as seen in the following quote from the 2013 Proxy Statement. At the Annual Meeting you will be asked to elect three Class A Directors and cast an advisory vote on executive compensation. As the sole holder of Class B Common Stock, I will elect five Class B Directors and cast a vote to ratify the selection of our independent registered public accounting firm. † (Boston Beer Company, Inc. , 2013) While Koch may have stepped down from CEO in 2001 he has maintained a great interest in his company and has positioned himself to have great control over the Company with his position as Chairman of the Board.His actions and goals are seen laid out in all of the company’s press releases and the company is continuing to be grown and maintained the sam e as it always has been with the exception of Boston Beer Company running its own breweries instead of subcontracting out their orders. Capital Budgeting Boston Beer Company runs just like any cash business. They have no money tied up in debt and any investment they make is paid for in cash. There is an upside and downside to this method of running a company.On the upside, the company is very liquid, meaning they can pay for most investments on the spot without accruing any debt. However, no debt might deter some investors from buying into the company. Having no debt throws off a company’s ratios in comparison with other companies within the industry and can make it difficult for investors to trust in the company. A typical investment for Boston Beer Company would be opening a new brewery or purchasing an existing one to help the company keep up with the demands for their products.The acquisition of the Diageo brewery 60 miles outside of Philadelphia in 2008 was the companyâ €™s most recent investment. Since the purchase, Boston Beer Company has been pouring tens of millions of dollars into the facility that used to employ 220 people to make Smirnoff and now employs 260 people to brew Sam Adams. â€Å"Boston Beer's Breinigsville facility employs 260, up from 220 workers when the plant was purchased from Diageo. † (Richardson, 2012) Boston Beer Company now has three breweries.They are located in Cincinnati, Ohio, Breinigsville, Pennsylvania, and Boston, Massachusetts. Boston Beer Company has been weary to invest in the western half of the U. S. because they believe the craft beer market is oversaturated and they will not have much success, however, some market specialists believe they should do a trial batch with a brewery in the western market and measure real results. The only real measure of value for Boston Beer is the volume being sold. Boston Beer used to lease brewery locations in order to brew according to their demand.Within the last five years the demands for craft beers have grown significantly especially among the younger alcohol consuming demographic that is looking for something more the generic beer taste of the three big beer companies, Anheuser Busch InBev, MillerCoors, and Pabst. Boston Beer Company no longer has the need to lease other breweries after the purchase of the Diageo brewery. Now that they have the capacity to brew their own beer and staff accordingly Boston Beer Company has not only added value to the company, but have positioned them self to expand as the demands for their products continue to increase.The only place that Boston Beer Company seems to be struggling with is the money that they are leaving sit idle. While the company is very profitable and is run as a cash business, some of their cash flows could be invested to generate a better return than they are currently getting. Strategy and Governance The Boston Beer Company is currently governed by a board consisting of eight members. The board consists of C. James Koch, David A. Burwick, Pearson C. Cummin III, Cynthia A. Fisher, Jay Margolis, Martin F. Roper, Gregg A. Tanner, and Jean-Michael Valette.The board has a committee that reviews the current members of the board at least annually and determines what characteristics and skills should be sought in new board members to be elected. Board members for the Boston Beer Company board members are asked to limit the number of boards they are on in order to keep them focused. â€Å"The Chairman of the Board and the Chairman of the Nominating/Governance Committee should be advised in advance of a director’s intention to accept an invitation to serve on another board† (Boston Beer Company, Inc. , 2013) ManagementBoston Beer Company’s executives have deep roots within the company. C. James Koch founded the company in 1984 and was Chief Executive Officer up until 2001 when he stepped down and became Chairman of the Board. Martin F. Roper the Presi dent and Chief Executive Officer replaced C. James Koch as CEO in 2001. Martin F. Roper has been with the company since 1994 when he was hired as Vice President of Operations. In 1997 he became Chief Operating Officer and in 1999 he became the President of Boston Beer Company. William F. Urich is the CFO and Treasurer since 2003. Before joining Boston Beer Company Mr.Urich served as Vice President of Finance and Business Development for United Distilleries & Vinters from 1998 to 2000. From 2001 to 2003 Mr. Urich was Chief Financial Officer for Acirca, Inc. John C. Geist, the Vice President of Sales has been with the company since 1998 when he was first brought on as the National Sales Manager. He was made Vice President of Sales in February of 2007. David L. Grinell has been the Vice President of Brewing since 2008. Prior to that he started working as the Manager of Brewing Operations in 1988 before being promoted to Director of Brewing and Quality in 2001.The Vice president of Oper ations, Thomas W. Lance, joined the company in 2007 after leaving the Executive Vice President of Operations position at Ken’s Foods. A position which he held for five years. Ai-Li Lim is the Vice President of Human Resources. She joined the company in February of 2012 after leaving Vistaprint USA, Inc. as Senior Director of Human Resources. Robert P. Pagano, the Vice President of Brand Development joined the company in 2011. Prior to joining Boston Beer Company Mr. Pagano was the Managing Director at the brand strategy firm, Red Sky Insights, LLC, for five years. Kathleen H.Wade is the Vice President-Legal and Corporate Secretary. She joined the company in 1999 as Corporate Legal Director and Corporate Secretary. She became Secretary of the company in 2010 and was appointed to the vice president position in 2012. Average Ceo Compensation In This Industry Industry Range Salary686. 8K Bonus871. 2K Total Short Term Compensation1. 0M Total Value of Options4. 9M Key Executive Com pensation Boston Beer Company, Inc. SAM Name/Title 20082009201020112012 Key Executive Compensation10,037,7063,868,6674,181,5019,897,5693,718,707 Martin F. Roper/President and Chief Executive Officer ,415,9181,049,3031,094,238933,8181,052,493 William F. Urich/Treasurer and Chief Financial Officer 834,313766,768938,3183,437,998599,363 C. James Koch/Chairman of the Board 589,496546,005836,895754,163817,949 Thomas W. Lance/Vice President, Operations 449,636858,643479,857693,401721,454 John C. Geist/Vice President, Sales 748,343647,948832,1934,078,189527,448 *A publicly-traded company is only required to disclose information concerning the amount and type of compensation paid to its CEO, CFO, and the three other most highly compensated executive officers in a given year.Information about compensation for these individuals may be unavailable in prior years if they were not in their current roles or did not qualify as among the most highly compensated officers at the time. (MorningStar, 20 13) For the most part Boston Beer Company pays below the industry average with the exception of the executive bonuses that certain members of upper management received for reaching certain sales goals. Boston Beer Company is not nearly as large as the other beer conglomerates so it is expected that their executive compensation would be to scale.Corporate Social Responsibility Boston Beer Company’s corporate social responsibility (CSR) is heavily mandated by the government. Because they deal in the alcoholic beverage industry there are numerous amounts of taxes and laws restricting their advertising and sales. â€Å"The alcoholic beverage industry is regulated by federal, state and local governments. These regulations govern the production and distribution of alcoholic beverages, including permitting, licensing, marketing and advertising, distributor relationships, sales, environmental, and occupational health and safety issues.To operate its breweries, the Company must obtai n and maintain numerous permits, licenses and approvals from various governmental agencies, including the Alcohol and Tobacco Tax and Trade Bureau, the Food and Drug Administration, state alcohol regulatory agencies and state and federal environmental agencies. † (Boston Beer Company, Inc. , 2013) Growth and Opportunity Boston Beer Company has grown significantly in the last decade. It has grown organically through increasing sales and demand from their marketing campaigns.It has also grown a great deal through acquiring two more breweries, one in Ohio and one in Pennsylvania in addition to the original Massachusetts brewery. Boston Beer Company is known primarily for its Samuel Adams line of â€Å"craft† beers however they also compete in other segments of the alcoholic beverage industry for those that don’t prefer beer. Boston Beer Company also makes Twisted Tea and Angry Orchard Cider. The concept of making several types of beverages allows Boston Beer Company to be more diversified and attract more sales by appealing to a larger demographic by providing a wider selection of products.Boston Beer Company has what most market analysts would call a â€Å"niche market†, meaning they will never produce a large scale generic beer like the big three beer companies (Anheuser Busch InBev, Miller, and Coors). So the need to diversify is not a necessity for survival or growth for the Boston Beer Company. Of the three major lines of alcoholic beverages the company produces, there are 56 varieties of them combined. Boston Beer Company essentially has it’s own market because 66% of their competitors are brewpubs that do not mass distribute. The only thing limiting Boston Beer Company other than its sales are it’s distribution network.Since the firm operates entirely on cash the value of the company has skyrocketed. Boston Beer Company has plenty of capital to reinvest in itself and increase shareholder wealth all while maintaining a balance sheet with minimal debt. Boston Beer has grown by leaps and bounds over the last decade, which is reflected by their total sales, volume of product produced (measured in barrels), and price per share, which is currently leveling out around $166. 00 per share. While companies like Anheuser Busch InBev have a much larger market cap (157. 93B) compared to Boston Beer Company (2. 1B), Anheuser Busch InBev’s price per share is only $98. 78. The overall value to the shareholders for Boston Beer Company is much greater because of the way the business operates and finances its investments. The company finances everything without debt controlling the company’s resources carefully and allowing rapid growth. Boston Beer Company will be one of the premiere firms to watch over the next decade to see how they will combat the much larger competitors within the industry as they try to compete in the craft beer market. References Smith, B. (2011, August 30). Buffett-Munger S creener Highlight – Boston Beer Company (Sam).Retrieved from Guru Focus website: http://www. gurufocus. com/news/144123/buffettmunger-screener-highlight–boston-beer-company-sam Market Grader Inc. (2013, March 30). Boston Beer Co. , Inc.. Retrieved from Market Grader Inc website: http://www. marketgrader. com/MG. Services/servlet/pdf. PDFServer? ticker=SAM Boston Beer Company, Inc. (2013). Proxy Statement 2013. Retrieved from Boston Beer Company website: http://www. bostonbeer. com/phoenix. zhtml? c=69432&p=irol-overview Richardson, T. (2012, January 27). Boston Beer pouring millions into Lehigh Valley. Retrieved from The Morning Call Website: http://articles. mcall. om/2012-01-27/business/mc-allentown-boston-beer-20120127_1_craft-beers-samuel-adams-beer-yuengling Boston Beer Company, Inc. (2013) Corporate Governance Guidelines. Retrieved from Boston Beer Company website: http://www. bostonbeer. com/phoenix. zhtml? c=69432&p=irol-governance MorningStar. (2013, April 18) . Boston Beer Company, Inc. Class A (SAM). Retrieved from MorningStar website: http://insiders. morningstar. com/trading/executive-compensation. action? t=SAM Boston Beer Company, Inc. (2012) 10-K Annual Report 2012. Retrieved from Boston Beer Company website: http://www. bostonbeer. com/phoenix. zhtml? c=69432&p=irol-overview