Press release assignment Essay Example | Topics and Well Written Essays - 750 words

Press release assignment - Essay Example That is a key element in a successful press release. Another key element is to talk up why both companies are good for one another, how do the two companies complement each other? You need to indicate the similarities they have but also how is each the missing piece of the puzzle for the other. The final element is to tell shareholders how this will effect their bottomline. The reason people invest money in companies is because they want a return on their profit. Shareholders want to know how much money will they make from this? If all of this can be done, the deal will probably be approved. It is important to remember that how the deal is reflected in the press can have a direct influence on the price of the companies shares. Most investors get much of their information from reading business journals and newspapers. They care what reporters and analysts think. The key message from such press releases is to be very positive. Examples: Dow Jones- New Corp. http://www.scribd.com/doc/219699/Official-Dow-JonesNews-Corp-Merger-Press-Release HP – Compaq http://www.hp.com/hpinfo/newsroom/press/2001/010904a.html Avaya – Silver Lake http://www.avaya.com/gcm/master-usa/en-us/corporate/pressroom/pressreleases/2007/pr-070604a.htm Intel – McAfee http://newsroom.intel.com/community/intel_newsroom/blog/2010/08/19/intel-to-acquire-mcafee Question 2 Write the press release. 350 words. Press Release For immediate Release: 12th January 2011 BHP Billiton to acquire Anadarko Petroleum for $10 billion. BHP Billiton and Anadarko Petroleum today announced that they have entered into a clear and unambigious agreement under which BHP Billiton will purchase Anadarko Petroleum shares at a price of $55.90 per share of Anadarko Petroleum common stock in cash. The transaction has been approved by both BHP and Anadarko Petroleum boards of directors. It will be a boon to investors. The combination of BHP’s global scale and financial strength with Anadarko Petroleum excellent management and oil fields will certainly enh ance BHP’s ability to participate more aggressively in the oil and gas markets. Anadarko Petroleum's natural gas fields are particularly appealing as this is a fast growing sector of the energy market. This is truly a great deal. Anadarko Petroleum is one of the finest companies out there. â€Å"Anadarko Petroleum's innovative gas-capturing technology is ideal to expand BHP’s profit in this sector,† said Joe Davids, CEO of BHP Billiton. â€Å"This is going to be an excellent deal for everyone involved. Throughout the negotiations we have had the best interests of shareholders in mind.† The merger will happen soon, he said, and much of Anadarko's staff will join BHP. The new head office will be BHP's current office. The new company will be called BHP Billiton. Most of Anadarko's management will be kept on. The new company will work quickly to develop new plans and seize on new opportunities. â€Å"BHP is a world leader in so many sectors,† said J.D. McDade, CEO of Anadarko Petroleum. â€Å"It is a true pleasure to join them on this remarkable adventure. We are happy to join the BHP family. The best is yet to come.† Under the terms of the acquisition, Anadarko Petroleum stockholders will receive $55.90 in cash for each share of Anadarko Petroleum common stock that they hold at the closing of the deal. The acquisition is subject to customary closing conditions, including and not limited to the receipt of domestic and foreign regulatory approvals and the approval of Anadarko Petroleum's stockholders. There are a number of pro forma regulatory conditions which must be met. Due diligence must be completed. The transaction is expected to close during BHP’

Radio as a Medium of Mass Communication

Radio as a Medium of Mass Communication LESSON 1 RADIO AS A MEDIUM OF MASS COMMUNICATION IN TODAY’S CONTEXT Introduction Communicators use several media to transmit a message (a thought, idea, opinion, and attitude) to the readers, listeners and or viewers. These media: film, print, broadcasting, are used differently by people for various purposes. Each mass medium has its own distinct nature and characteristics. For example, print medium (newspapers, magazines, etc.) provide detailed information which can be kept for a longer period; accessed whenever needed and used by many persons at a convenient time. Films can be watched and enjoyed at one single place (cinema hall) by many people in large or small groups, or at homes through television sets. Broadcasting on radio and television can bring voices and pictures to a large number of listeners and viewers from long distance. Thus, we see every medium of mass communication works in its own unique way and carries the message far and wide. Each medium has its advantages and limitations in the areas of operation, influence and impact. For instance, print depends on the ability to read. For communicating a message to a child or an illiterate person, television, film or radio would be effective while the print medium will not be relevant. Every medium uses its strengths to provide information, education and entertainment to the public. 1.2 Meaning and Definition In order to appreciate the role of radio as a medium of mass communication, we need to understand what is the concept of communication, what are the various functions and types of communication. The word Communication is derived from the Latin word cornmunis, which means, to make common or to share. There are numerous definitions of communication, and there is yet no agreement on any single definition. Some of the more functional definitions of communication describe it as the transfer or conveying of meaning (Oxford dictionary), transrnission of stimuli (Colin Cherry), one mind affecting another (Claude Shannon); one system influences another (Charles E. Osgood), the mechanism through which human relations exist and develop, or sharing of experience on the basis of commonness (Wilbur Schramm). â€Å"Thus, communication is, a process of sharing or exchange of ideas, information, knowledge, attitude or feeling among two or more persons through certain signs and symbols†. 1.3 Functions of Communication Communication is vital for human existence, and for the progress of humanity. No person, group or society can exist without interaction with others. Think for a moment what would happen to us if we did not talk with anyone at home; didnt listen to lectures at School or college; didnt speak to friends and co-workers; or didnt play games or watch TV or films? Essentially, the primary function of communication is to inform, instruct/educate, entertain influence and persuade people to make them function smoothly and effectively. Besides, communication has a secondary function to perform as well: through debate and discussion it promotes cultural integration, it fosters consensus, creativity, and understanding among people, groups and societies enabling them to live in peace and harmony. 1.4 Types of Communication Human beings are engaged in a variety of communication acts. Although each type of Communication appears-to have distinctive features, they are all much alike in the senses that are enters into a meaningful relationship with one or more persons by means of signs and symbols. These are: Intrapersonal Communication Interpersonal Communication Group Communication Mass Communication. 1.4.1 Intrapersonal Communication refers to communication that leaks inside a person; and this happens all the time. It is like conversation to oneself, listening to oneself and linking with oneself. It is important in anticipating, abstracting and communicating our thoughts or ideas before we actually treat in open communication. 1.4.2 Interpersonal Communication is the world-wide form of communication that takes place between two people. In interpersonal communication, there is face-to-face interaction between two persons, that is, both are sending and receiving messages. This is an ideal and effective communication situation because you can elucidate and highlight many points through your expressions, nods and voice can get instant feedback. 1.4.3 Group Communication is an addition of interpersonal communication where more than two individuals are involved in discussion of ideas. Communication in a group helps many goals including collective decision making, self-expression, increasing ones effect, uplifting ones status, and relaxation. Group communication provides a chance for direct interface among the members of the group; it helps in bringing about changes in attitudes and opinions. 1.4.4 Mass Communication outside the realm of interpersonal communication exists another form of communication which involves communication with mass audiences and hence the nomenclature mass communication. The channels through which this kind of communication takes place are referred to as mass media. Mass communication and mass media, are generally considered synonymous. Mass communication is unique and different from interpersonal communication as is evident from the following definition: Any mechanical device that multiplies messages and takes them to a large number of people simultaneously is called mass communication. The media through which messages are being transmitted include: radio, TV, newspapers, magazines, films, records, tape recorders, video cassette recorders, etc., and require large organizations and electronic devices to put across the messages. Radio as a Mass Medium Radio is the transmission of signals by modulation of electromagnetic waves with frequencies below those of visible light. In electronics, modulation is the process of varying one or more properties of high frequency periodic waveform, called the carrier signal, with respect to a modulating signal. This is done in a similar fashion as a musician may modulate the tone from a musical instrument by varying its volume, timing and pitch. The three key parameters of a periodic waveform are its amplitude (volume), its phase (timing) and its frequency (pitch), all of which can be modified in accordance with a low frequency signal to obtain the modulated signal. During the 1930s, radio was considered an intimate and credible medium. The public used it as a news source and expected it to provide factual information. Radio was the first truly mass medium of communication, reaching millions of people instantly and altering social attitudes, family relationships, and how people related to their environment. Radio is an attractive medium among the various mass communication media because of its special characteristics. It continues to be as relevant and potent as it was in the early years despite the emergence of more glamorous media. It is a truism that in the first phase of broadcasting spanning three decades from the early twenties, radio reigned alone or was the dominant player. However, over a period of time, the media scene has changed drastically. Television with its inherent strength of audio-visual component has captured the imagination of the people. The advent of satellite television, the Internet and the convergence of technology have added further dimensions in media utilization patterns. However, despite the presence of a plethora of media, there is room and scope for each medium. Experience has revealed that new technologies add things on but they dont replace. One medium is not displaced by another each medium reinvents itself in the context of changes in the communicati on environment. In the changed media scenario, radio is reorienting itself with more innovative programmes and formats.

Who was Napoleon Essay -- essays research papers

Napoleon was born in Ajaccio, Corsica, on 15 August 1769, the second of Carlo and Letizia Bonaparte's eight children. In 1778, Napoleon began his education at Autun and later attended school in Brienne, excelling in mathematics and science. Following a year's study at the Ecole Militaire in Paris, he was commissioned in the artillery in 1785. The year 1789 saw the outbreak of the French revolution, which created an atmosphere of opportunity that would not have existed under the Bourbons, and Napoleon was to make the most of it. The first opportunity came in 1793, when Bonaparte was promoted to brigadier general for the decisive part he played in the siege of Toulon, which ousted the British from mainland France. After the coup de Thermidor in 1794, Napoleon fell out of favor and was imprisoned. After his release he ended up preserving the new government from the Parisian Mob with artillery fire, an event that has become known as the 'Whiff of Grapeshot.' A grateful government later appointed Napoleon to command of the Army of Italy. Before his departure, Napoleon married Josephine de Beauharnais on 9 March 1796. Campaigning in Italy in 1796 and 1797, he inspired the impoverished army with the promise of "honor, glory, and riches," and enjoyed a succession of victories, which resulted in Austria signing the Peace of Campo Formio. His display of bravery, intelligence, and leadership proved an inspiration to the common soldier and formed an enduring bond. Returning to France, he was given charge of an expedition to Egypt, control of which would threaten English possessions in India. The victory at the Battle of the Pyramids gave French control of Cairo, but the naval defeat at Aboukir Bay isolated the expedition from France. After some unsuccessful campaigning in Syria, he departed by ship with a small group of friends and sailed to France, abandoning his Army. In 1799, public sentiment had swung against the government, and following the coup d'etat de Brumaire, Napoleon became the defacto ruler of France. The country was still at war however, and after a dramatic crossing of the Alps, Napoleon defeated the Austrians at the battle of Marengo on 14 June 1800. This victory solidified his reputation of invincibility, and combined with other successes, led to a general peace. After a decade of war, a grateful France made Napoleon Consul for Life and ... ...as soon forced to retreat. The 'scorched earth' policy employed by the Russians combined with extreme weather caused the Grand Armà ©e to disintegrate and the campaign ended in disaster. The defeat in Russia prompted Prussia, Sweden, and Austria to declare war on France. Napoleon raised another army but was decisively defeated at the great Battle of Nations. Napoleon fought a last brilliant campaign in France to defend Paris, but in April 1814 abdicated and went into exile on the island of Elba. The Bourbon king was restored to the French throne. While the Allies debated a realignment of the map of Europe in Vienna, Napoleon planned his return, and in March 1815, he landed in France and regained his throne in a bloodless coup. Rather than await another invasion, Napoleon surprised Allied forces in Belgium. After initial success, Napoleon fought the Duke of Wellington leading an Anglo/Allied army at Waterloo, and was decisively defeated on 18 June 1815. Napoleon was exiled to the island of St. Helena situated in the South Atlantic Ocean, where he resided until his death on 5 May 1821. His remains were removed from St. Helena in 1840 and his body now rests at les Invalides in Paris. Who was Napoleon Essay -- essays research papers Napoleon was born in Ajaccio, Corsica, on 15 August 1769, the second of Carlo and Letizia Bonaparte's eight children. In 1778, Napoleon began his education at Autun and later attended school in Brienne, excelling in mathematics and science. Following a year's study at the Ecole Militaire in Paris, he was commissioned in the artillery in 1785. The year 1789 saw the outbreak of the French revolution, which created an atmosphere of opportunity that would not have existed under the Bourbons, and Napoleon was to make the most of it. The first opportunity came in 1793, when Bonaparte was promoted to brigadier general for the decisive part he played in the siege of Toulon, which ousted the British from mainland France. After the coup de Thermidor in 1794, Napoleon fell out of favor and was imprisoned. After his release he ended up preserving the new government from the Parisian Mob with artillery fire, an event that has become known as the 'Whiff of Grapeshot.' A grateful government later appointed Napoleon to command of the Army of Italy. Before his departure, Napoleon married Josephine de Beauharnais on 9 March 1796. Campaigning in Italy in 1796 and 1797, he inspired the impoverished army with the promise of "honor, glory, and riches," and enjoyed a succession of victories, which resulted in Austria signing the Peace of Campo Formio. His display of bravery, intelligence, and leadership proved an inspiration to the common soldier and formed an enduring bond. Returning to France, he was given charge of an expedition to Egypt, control of which would threaten English possessions in India. The victory at the Battle of the Pyramids gave French control of Cairo, but the naval defeat at Aboukir Bay isolated the expedition from France. After some unsuccessful campaigning in Syria, he departed by ship with a small group of friends and sailed to France, abandoning his Army. In 1799, public sentiment had swung against the government, and following the coup d'etat de Brumaire, Napoleon became the defacto ruler of France. The country was still at war however, and after a dramatic crossing of the Alps, Napoleon defeated the Austrians at the battle of Marengo on 14 June 1800. This victory solidified his reputation of invincibility, and combined with other successes, led to a general peace. After a decade of war, a grateful France made Napoleon Consul for Life and ... ...as soon forced to retreat. The 'scorched earth' policy employed by the Russians combined with extreme weather caused the Grand Armà ©e to disintegrate and the campaign ended in disaster. The defeat in Russia prompted Prussia, Sweden, and Austria to declare war on France. Napoleon raised another army but was decisively defeated at the great Battle of Nations. Napoleon fought a last brilliant campaign in France to defend Paris, but in April 1814 abdicated and went into exile on the island of Elba. The Bourbon king was restored to the French throne. While the Allies debated a realignment of the map of Europe in Vienna, Napoleon planned his return, and in March 1815, he landed in France and regained his throne in a bloodless coup. Rather than await another invasion, Napoleon surprised Allied forces in Belgium. After initial success, Napoleon fought the Duke of Wellington leading an Anglo/Allied army at Waterloo, and was decisively defeated on 18 June 1815. Napoleon was exiled to the island of St. Helena situated in the South Atlantic Ocean, where he resided until his death on 5 May 1821. His remains were removed from St. Helena in 1840 and his body now rests at les Invalides in Paris.

Proctor and Gamble – Strategic Management Case Study

EXECUTIVE SUMMARY Proctor and Gamble (P&G) over its journey of about 175 years has become one of the world’s largest consumer goods Company with sales of nearly $80 billion and a net profit of about $10 billion. P&G has a presence in more than 180 countries with brands that accumulate to in excess of $25 billion. The company has achieved success by creating high quality brand recognized products that are sold on multinational level.It enjoys one of the largest brand names in household products like Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head  &  Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always and segments like household care, beauty, grooming, and personal health care. Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. Consumer Goods industry where P&G operates has matured reaching the consolidation stage and competition amongst rivals is intense.P&G has many strategic options create competitive advantage over its rivals such as further market penetrations by rebranding its current line of products and selling them at a lower price. Another option for P&G is to expand in the emerging markets by collaboration or alliances with local businesses in various geographical regions. Lastly, P&G can specialize in skin care/beauty segment of consumer industry. P&G can provide consumers with products that are made with natural ingredients as trend in health and wellness is growing along with providing specialized products for men.INTRODUCTION P&G is a part of a competitive industry, and as such faces very stiff and fierce competition from its rivals. The competition faced by the company is virtually on every front like, market share, product line up, innovation of new products, R&D for new and existing products. It has witnessed a drop in market share and revenue from the developed market and but sustained appreciable performance in the developing markets.Th is report provides a thorough internal as well as external analysis of P&G, identifies its mandate, along with certain strategies that would help it increase its profitability, profit growth and sustain its competitive advantage in both developed and developing markets. The limitations of this report are due to the fact that it primarily relies on the information and facts as presented in Case 27, Proctor & Gamble: The Beauty/Feminine Care Segment of the Consumer Goods Industry.External references were also used and information was sought from the Proctor & Gamble Company 2012 Annual Report and the Proctor & Gamble website. COMPANY OVERVIEW Procter & Gamble was founded in 1837, by William Procter and James Gamble, who laid the foundation of P&G by initially making and selling soap and candles. By 1879, founders of P&G developed Ivory soap and established their own laboratory, and by 1935 the company established another factory in the Philippines after its acquisition of the British soap manufacturer, Thomas Hedley & Sons.In January 2005, P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. At present, Procter & Gamble sells more than 300 leading brands, such as Pampers, Tide, Pringles, Ariel, Downy, Pantene, Head  &  Shoulders, Olay, Cover Girl, Pantene, Crest, Duracell, Secret, Folgers, Hugo Boss, Mr. Clean, Oral-B, Old Spice, Clairol and Zest. The company markets its products through mass merchandisers, grocery stores, membership club stores, drug stores, high-frequency stores, department stores, perfumeries, pharmacies, salons, and e-commerce.It markets its products to over 160 countries, and operates a total of 115 plants in more than 80 countries all over the world. Procter & Gamble’s headquarters are located in Cincinnati, Ohio and it employs more than 98,000 employees worldwide. Off late, the company’s performance has dwindled as the company has been shuffling its strategy and has not been able to keep competitors at bay (Chung, 2012). Recently the company’s Board has unanimously accepted CEO McDonald, who had joined in July 2009, as the one who would plan and head the company’s turnaround of performance (Chung, Jul 2012).As such the company has adopted a multi-fold strategy to cut costs by a big chunk and bring up new and innovative products to shore up sales and profits. Example being the fact that â€Å"the company will launch at least nine new products in the next four months, many of them priced at a premium to generate higher profit margins† (Monk, 2012). MANDATE The mission of the company is to â€Å"provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come†.And this would automatically generate value for all its stakeholders in form of higher sales and returns. The vision of the company is to be recognized as à ¢â‚¬Å"the best consumer products and services company in the world†. P&G has kept is vision powerful and yet pretty clear. This vision of the company is simple enough be easily comprehended by all its stakeholders. The core values of the company rotate around the consumers, its brands and its employees. These values are leadership, ownership, integrity, passion for winning and trust.The company, through all its core values, has tried to address the fact that they seek to work and deliver a trust to their consumers with the help of their employees, who are expected to work with leadership and ownership and must have a passion for winning so that they can together work to strive to achieve the vision of the company. Just like the vision of the company, the core values also are very clear and straight forward that define the reason for the existence of the company. P&G’s stakeholders are its customers, shareholders, employees, uppliers and communities in which it operates. P&G’s customers are the ones who ultimately use the products and given the fact that the industry is highly customer oriented and demand driven. The shareholders invest in P&G’s shares providing the company with capital and the company rewards them by consistently creating and increasing the shareholder value. Proctor and gamble employees worldwide are considered its most important asset who are the back bone of this giant corporation, they expect ethical treatment along with fair wages and good working conditions.Another important stakeholder of P&G is its suppliers whose organizations heavily rely on the business agreements with P&G, and the businesses who sell and distribute P&G products. Also, different communities all over the world from Cincinnati, Ohio to the many communities around the world who are provided with jobs, employee education, stability and who pay taxes because of Procter & Gamble. EXTERNAL ANALYSIS 1. Competitive Rivalry: The industry that P&G op erates in is highly competitive and it has emerged as one of the leaders in the industry.This industry has five major competitors and has reached the stage of consolidation. Due to industry consolidation, changes made by one company forces other competitors to react and follow suit. This increases rivalry and might lead to price wars. The demand for beauty and personal hygiene products is on the rise due to many factors such as; the growth in the economies of developing world has improved the standard of living of people in those regions; men are becoming more interested in beauty and skin care; and also due to the growing demand for products made with natural ingredients and raw materials.This increase in demand and potential for growth has provided stability in the industry. 2. Threat of New Entrants: Five major competitors in this industry have captured most of the market share through economies of scale and brand loyalty. The wide range of products in major competitor’s p ortfolio makes it extremely difficult for the new entrants to compete and gain any significant market share. Potential entrant would require an enormous amount of capital for manufacturing alongside a huge budget for marketing activities, R&D, supply/sales channel in order to compete at the same level as major competitors.This creates a very high barrier to entry in the industry that makes the threat of new entrants, very low for the industry. The patents held by the company on various products also act as barriers to entry. 3. Bargaining Power of the Buyers: Businesses in this industry rely heavily on its buyers to generate a considerable portion of revenue. Buyers of this industry are mainly distributors like Walmart, Macy’s, Target etc. These distributors buy in large quantities which increases their buying power allowing them to bargain lower prices.As a result, over exposure of sales to any single buyer could pose a serious threat to this industry if competitors do not h ave their own customized distribution network. 4. Bargaining Power of Suppliers: There are almost no substitutes for raw materials being used in products manufactured by this industry which is a cause of concern. Suppliers seem to enjoy high bargaining power but the sheer size and quantities purchased by major competitors in this industry tends to scale back the supplier power as competitors can move towards vertical integration.Hence, the buying power of suppliers is medium. 5. Threat of Substitutes: There are no known substitutes for this industry which places the threat of substitutes at a very low level. Macro Environment The raw materials used to manufacture products in various segments of Fast Moving Consumer Goods (FMCG) industry are regulated by governments in many countries. There is a risk that currently used raw materials may be considered potentially dangerous and therefore restricted in their use due to the increase in health consciousness especially in western markets. Product testing can take months even years before getting an approval for consumption and during this time regulations can change preventing a product from ever being introduced to the market resulting in large R&D expenses which may never be recovered. Social forces can have an effect on this industry such as the desire for organic products as consumers become concerned that chemicals currently being used can cause long-term health ailments like cancer and skin diseases.Men are also fast becoming more interested in beauty and hygiene products and populations in developing countries are also turning towards beauty and personal hygiene products as their living standards improve. The future for this industry is bright with potential for growth but for some companies this can be a threat if they fail at product innovation and strategizing their business as per the changing trends. Technological changes such as exponential growth in internet and ecommerce provides a great platform to th is industry to market its products directly to target demographics and also to raise awareness of personal hygiene.On the internet, there is a massive potential to target consumers based on their web searches, previous online purchases, etc. Advancement in technology can also help this industry’s distribution systems such as emergence of real-time inventory systems allows inventory levels to be replenished on time and prevent excessive inventory on-hand in factories or warehouses. The reduced barriers to international trade give companies in the industry the opportunity to expand into various regions of the world. Many regions like China, India, and South America are opening up to the world providing an excellent opportunity for expansion.However, the reduced barriers to international trade can also be considered a threat if international companies expand into home bases such as Europe and North America which will in turn give rise to the local competition. INTERNAL ANALYSIS P&G is the industry leader because of its ability to maintain a competitive advantage over its rivals resulting in higher than average profitability. P&G has many resources that contribute towards gaining and maintaining competitive advantage over the rival. One ofP&G’s main strength is its strong financial position which allows it to acquire other companies. P&G has acquired Gillette boosting its competitive advantage over its rivals as Gillette mainly caters to Men which is growing market. Strong financial position also allows P&G to incur high R&D costs i. e. in excess of 2. 2 billion dollars. P&G is constantly investing in product innovation and improving its current line of products. The company over the past many years has successfully launched and managed new products.As such, P&G has the ability to push for innovation and ensure faster commercialization than any of its competitor in the industry. This investment in improving brands and innovation also promotes brand l oyalty. P&G operates in various segments of FMCG industry such as Personal hygiene, Household care, and Beauty. This variety of products offerings from P&G caters to almost all demographics; throughout different ages, genders, countries and cultures. P&G operates in various regions across the globe and has successfully managed to establish itself as a leader in these markets across many segments.This diverse range of product offerings along with its operation in various geographic regions allows P&G to reel through the recessions in the economy and maintain its profitability. Any slowdown in the economy of anyone region or segment is countered by growing economy and segments in other regions. Also, type of products offered by P&G are considered to be recession proof as they considered to necessity such as soaps, shampoos, personal health products etc. P&G derives its strengths from its various capabilities. First of all is that P&G has the marketing of its products in the industry.T his enables P&G to convince its consumers to buy products and also keeps them up to date with new products as well as about any improvements in the current line of products. P&G also has an efficient distribution system which allows it to distribute its products in various region of the globe at a lower cost than its competitors. P&G also collaborates with distributors like Wal-Mart, Target etc. to keep supply chain functioning efficiently. This allows restocking of shelves at distributors much easier as it provides real time data to P&G as stock levels deplete.This allows P&G to save costs associated with huge inventories and warehouses. Also, P&G owns and operates almost 115 manufacturing facilities across 80 countries around the globe. This is a great asset of the company which provides it with the capability of saving on cost of shipping products from one region to another. All these sets of co-related resources and capabilities allow P&G to save on costs and provide high qualit y products at a reasonable people which in turn has generated above average profits in the industry making P&G the industry leader.Along with strengths, P&G also has certain weaknesses and threats that can offset its competitive advantage and affect its profitability. In the current global down turn commodity prices across the globe are increasing due to transportation costs associated with higher oil prices. This will force P&G to raise prices on many of their products which might affect market share because some consumers may switch to cheaper low quality products. This is further exacerbated by the fact that switching costs for consumer are quite low between the competitors in many segments of this industry.While P&G has great collaboration with Wal-Mart, which allows it to maintain an efficient supply chain management but this is also one of the weaknesses of P&G as Wal-Mart is its number one buyer as considerable amount of P&G sales are accounted to Wal-Mart and followed by oth er major retailers like Target, Zellers, etc. This provides buyers with immense buying power and any decrease of sales at any of the top customers can affect P&G effecting its revenues and subsequent profitability.P&G is also exposed heavily towards the matured markets of Europe and North America. STRATEGIC OPTIONS Further Market Penetration – In this strategy, P&G should increase market penetration its current skin care and personal hygiene segments. P&G should look towards in its customer base and specifically targeting low income consumers in mature markets. P&G can achieve economies of scale in its current product mix by rebranding such as packaging or size/volume of the product. This way P&G will be altering its existing products at a low fixed cost.By harbouring this strategy, P&G will be able sell its products at a cheaper price and increase its revenue and subsequent profits. This is low risk strategy because P&G has managed to achieve strong brand recognition and cus tomer loyalty so P&G does not have to incur huge marketing costs in order to introduce its products to the market. P&G already and effective supply chain management and it has good relationship with mega distributors like Wal-Mart, Target etc. so it will be much easier for P&G to introduce these rebranded products to consumers.Furthermore, P&G has a strong financial position which is essential in case the strategy fails to garner expected results. Further Market Penetration| Arena| All markets where P&G currently has a presence| Differentiator| Price, Quality| Vehicles| Rebranding, marketing| Staging| Rebrand products in different packaging with less volume quantities| Economic Model| Sell rebranded products at lower price to the low income consumers| Pros| Enhances existing capabilities and resources Low Risk| Cons| Short to medium term solutionBrand loyalty is scarce in consumers looking for lower priced products| Table 1There are some drawbacks in this strategy which must be cons idered such as the lack brand loyalty in low income consumers. Low income consumers tend to prefer products that are competitively priced so if another competitor implements the same strategy they can take away P&G’s market share. Hence, this strategy is only viable from short to medium term. Global Expansion in Emerging Markets – P&G derive most of its revenues from matured market of North America and Europe where market has reached the saturation point and revenue growth is stagnant.Unlike the mature markets, emerging or growth markets have a lot of potential for growth and there is a lot of market share up for grabs. As P&G looks to gain greater share in the developing countries, it needs to adjust its planning according to the demographics of such country i. e. ethnic groups with different skins, hair types etc. As P&G already has a strong set of products, it must be relatively easier for P&G to penetrate into emerging markets especially in terms of brand recogniti on, mass market presence, and brand loyalty.P&G can avail this opportunity by introducing quality products based on the specific needs of the local population or by acquisition of businesses who produce such products. This strategy would help P&G in the long run as it would allow P&G in keep its revenues up during the economic downturns in mature markets as sales in emerging markets will offset the recessions in the mature markets. Rules and regulations vary country to country so some countries can have stringent rules for Multi-national Corporation to protect its local businesses.Global Strategic Alliance or collaborations with local businesses will enable P&G to expand in to the local market in areas such as China, India or South America. The extensive knowledge of consumers, market trends, laws and regulations that Partner Company brings to the table can be considered an excellent distinctive competency. Global Expansion in to emerging Markets| Arena| Emerging Markets| Differenti ator| Price, Quality| Vehicles| Collaborations (Global strategic alliances), Acquisitions,| Staging| Collaboration with local businesses and then move towards acquisition of the same. Economic Model| Provide quality product at reasonable price to consumers in the emerging markets| Pros| Great long term potentialDiversification through operations in various regions which provides an opportunity to keep revenues up during recession in one region| Cons| High risk involved in collaboration/acquisitions along with the instability of economic growth in emerging marketsCompany can lag behind in innovation| Table 2 P&G should select it partner carefully in emerging markets keeping in mind the risks associated such as rules, regulations etc.P&G must form a structure where the share, responsibilities of each party is clearly defined along with contingency plans to mitigate various risks involved. P&G should protect its trade secrets and product formulas so manufacturing facilities must have s eparate units, and PG should also get all its patents recognized in the region where it will operate. Some of the cons of this strategy are embedded with the collaborations with local businesses and the instability in the emerging markets.Also, P&G will essentially be rebranding most of the products it sells in mature markets along with selling some products of its partners which means there will be less spending on R&D and company might lag behind in innovation of new revolutionary products. Differentiation in Beauty/Skin Care Segment – In this strategy, P&G will offer unique and innovative products that address special needs of various market segments and demographics such as products with natural/organic ingredients, products for certain demographics such as men, ethnic groups etc.Beauty/skin care segment of consumer goods industry is growing as consumers are more interested in grooming themselves with better products and growing trends in health/wellness. P&G can create a competetive advantage by specializing in products made for men and products made with natural/organic ingredients. This strategy will require acquisition of products or spending in R&D to innovate such products in house. This will also require aggressive marketing and branding of such products to introduce them to the consumer.These products must be priced at a premium price based on the advertising costs, acquisitions and R&D spending. Many features of the products along with quality will offset and justify the higher price for such products. With continuous R&D spending over time, advancement in technologies and increasing competition, prices will eventually reduce. If P&G is able to acquire or create new line of specialized products which caters to certain market segments or demographics, it will be a competitive advantage for P&G over its rivals.Differentiation in Beauty/Skin Care Segment| Arena| Mature Markets first and move into growth/emerging markets| Differentiator| Select ion, Quality| Vehicles| Acquisitions, Signalling| Staging| Acquisitions of major business involved in organic and men beauty/personal hygiene segments| Economic Model| Sell specialized products targeting certain customers with premium prices i. e. organic products| Pros| Leverages existing resources and capabilitiesLong Term potential| Cons| High Risk with acquisitionsHigh costs associated with R&D spending| Table 3This strategy has some disadvantages as well such as it requires a lot of capital investment either for acquisition or R&D to create new products. REFERENCES Mockler, R. J. (2007). â€Å"Procter & Gamble: The Beauty/Feminine Care Segment of the Consumer Goods Industry† In C. W. L. Hill & G. R. Jones, Strategic Management: An Integrated Approach, 6th Edition. Boston: Houghton Mifflin Chung, J. (2012). â€Å"P&G's Board ‘Unanimously Supports' CEO McDonald† Retrieved from http://online. wsj. com/article/SB10000872396390444464304577534930564069566. tm l Mo nk, D. ( 2012) â€Å"Procter ; Gamble planning nine new product launches† Retrieved from http://www. bizjournals. com/cincinnati/blog/2012/09/procter-gamble-planning-nine-new. html Annual Report (2012) Retrieved from http://annualreport. pg. com/annualreport2012/files/PG_2012_AnnualReport. pdf P;G History (2012) Retrieved from http://www. pg. com/translations/history_pdf/english_history. pdf P;G Purpose, Vision and Principles. (2012) Retrieved from http://www. pg. com/translations/pvp_pdf/english_PVP. pdf

Hnc Accounts †Business Law Outcome Essay

There are two institutions in the UK that have the power to make statutory legislation in Scotland. The first of these institutions is Westminster (London) where elected individuals serve in the House of Commons. These members are known as MP’s (Members of Parliament). Parliament is responsible for passing new laws (legislation). In the late nineties the House of Commons allowed the passing of devolved powers to the newly created Scottish Parliament. Only certain powers were transferred to Holyrood and Westminster still control the laws that govern Tax, National Security and many others. Westminster is still regarded as Primary Legislation. This means that any law made by Westminster in reserved matters of policy must be adhered to by the Scottish Parliament. The second of these institutions is Holyrood (Edinburgh) where 129 elected individuals serve in the Scottish Parliament. These members are known as MSP’s (Members of Scottish Parliament). The Scottish Parliament was created on the 11th Sept 1997. The voters in Scotland took part in a referendum where they voted on a Devolved Scottish Parliament. This meant that Westminster would allow this devolved parliament to create laws in certain areas of policy. The Scottish people voted for a devolved parliament and the devolved powers were transferred from Westminster to The Scottish Parliament on the 1st July 1999. Westminster reserved certain powers that still govern many areas of Scotland today but the devolved powers allow Scotland to pass laws and regulate in areas such as Agriculture, Health and Housing to name a few. The process of making primary legislation in the UK follows a very strict procedure of three distinct stages. An MP, Lord or a member of the public can raise a bill to suggest a change of law (legislation). The first stage  of the process involves a parliamentary committee of members. They will review the bill and decide whether it moves to the second stage. The second stage allows amendments to the bill and allows the bill to be scrutinized by the committee and member. If the bill passes this stage then the third stage involves a member vote. If a majority of the members vote for the bill then the bill will be passed and presented to the Queen to receive a Royal Assent. The bill is now law. Common Law has a major role in Scots law today and it draws on four separate elements. Common Law is often referred to as the ‘Unwritten Law’ or ‘Historical Law’. This unwritten law has developed over centuries and draws from different sources. 1. Common law is based on Equity. Equity is the process of allowing judges to apply fairness or justice when there is no legislation to refer to. They must base these decisions on fairness and equality for all. When the judge follows this process of Equity he/she is actually making the law. This is called Precedent and we will talk about this in more detail in point 4. 2. Common law is also based on Institutional Writing. Centuries ago men of a higher class would finish their schooling in the various cities of Europe. These men would learn the laws of other countries and on their return to their estates in the UK would write about these laws and use them to govern their own estates. Institutional Writings no longer hold the authority as days gone by as Government Legislation and Judicial Precedent are supreme and overrule Institutional writings if they are based on similar cases. 3. Common Law is also based on Custom. Custom is when over a long period of time a particular habit is recognized by the people or social grouping. An example of this would be ‘common law husband’ where the couple are not in fact married but have lived as such so therefore the man would be entitled to the same rights as a legal husband. 4. The most important piece of common law in the courts today is Judicial Precedent. Judicial Precedent is where a judge or jury has no other legislation or act of parliament to decide a particular dispute and any decision they make will be followed in the future for any other similar disputes. A precedent can only be superseded by a higher court, government legislation or act of  parliament. Judicial Precedent tries to keep the law stable. Consistency through the court system is vital when trying to uphold the virtues of Fairness and Equality. The four key institutions of the European Union are the Council of Ministers, European Parliament, European Court of Justice and the European Commission. Each of these institutions has a representative from each member nation to allow a voice from each of the member states. The European Commission along with the Council of Ministers can change and amend laws within the European states. The Commission, unlike The Council of Ministers, has the power to change Regulations and issue Directives (these are orders passed by the European Commission or The Council of Ministers to ensure legislation is implemented within all the member states). If a state, company or persons break or do not comply with European law then it is the European Commission who will raise a court action against those who are not complying. The Council of Ministers is the legislative body of the EU. They are head of decision making and law/regulation introduction in the EU. They are the most powerful of all the institutions in Europe. Although the Council has the highest power there are still areas of legislation that the Council cannot pass with the advisory input of the European Parliament. The European Parliament is to advise and make recommendations to the Council of Ministers in various areas of legislation. They will review any piece of legislation or directive and give their opinions on the matter. If the Commission does not implement the recommendations of the Parliament then they must advise why they have not done so. The Parliament cannot change, implement or make European law and are there solely as an advisory Parliament. The European Court of Justice is the highest court within the European states on Community law (laws that have been issued by the Commission or Council of Ministers). If a state, company or persons fail to abide by the regulations  and directives issued by the Commission then it is the Court of Justice responsibility to ensure the law is observed. The Commission will initiate the proceedings and allow the member state an opportunity to defend itself against the complaint. If that process does not result in the breach being rectified the action will then go to the Courts of Justice. There are two main types of European Legislation. They are Directive & Regulation. 1. Directive legislation allows the European Commission to give a timescale for a piece to legislation to be introduced. Directives are issued to ensure that law is common throughout the European Countries. They keep the peoples equality to fairness and equality protected throughout the member states. If a country does not adhere to these directives sanctions can be issued. 2. Regulation Legislation is required in an emergency situation or crisis. They must be acted upon immediately by the state that the order is against. An example of this would be the BSE crisis in the 90’s when an immediate ban was put on the importing and exporting of beef from the UK. All member states had to adhere to this regulation to ensure that British beef stocks did not contaminate the other member states beef stock.

Correlation and Dependence and Disposable Income Essay Example

Correlation and Dependence and Disposable Income Essay Example Correlation and Dependence and Disposable Income Paper Correlation and Dependence and Disposable Income Paper Question no. 01 Should average disposable income be used to predict sales based on the sample of 14 sunflowers stores? Answer to the question no. 01 ? Average disposanble income should be used to predict sales. ? John Meynard Keynes, â€Å"The higher the income the higher the consumption is†. ? Consumption has a positive relation with disposable income. ? From the scatter diagram made by the given data, it is noted that as the disposable income increases the annual sales also increases. [pic] ? Again, We know that the coefficient correlation is, r = [pic][pic] Here, r = [pic] = [pic] = 0. 70 Therefore, there is a strong positive correlation between the disposable income and the annual sales. ? The regression coefficient is 0. 193. That means sales will increase by $0. 193 if disposable income increase by $1. 00. â€Å"Based on these points we can conclude that, the average disposable income should be used to predict sales based on the sample of 14 sunflowers stores. † Question no. 02 Should the management of Sunflowers accept the claims of Triangle’s leasing agents? Why or why not? Answer to the question no. 02 The management should accept the claims of Triangle leasing agents. The reasons are: ? There is a strong positive correlation between disposable income and sales, so it is easily predictable that there is a direct relationship between these two variables. ? Value of the coefficient of correlation is 0. 70 and it is near to 1. 00. That is if one variable, the disposal income increases, another variable, the annual sales will also increase. ? The regression coefficient is 0. 193. Which means that, if the average disposable income increases by $1, annual sales will increase by $0. 193. Question no. 03 Is it possible that the average disposable income of the surrounding area is not an important factor in leasing new locations? Explain. Answer to the question no. 03 ? The average disposable income is very important sign for a business to operate in a particular area. ? But not the average disposable income is the only factor in consideration in making business decision. ? The term Average is relative. It does not represent the actual income to be considered of the total population. It is better to use weighted average. ? Also the demand of the local area is a prime consideration for the business firm to make leasing decision. Question no. 04 Are there any other factors not mentioned by the leasing agents that might be relevant to the store leasing decision? Ans the question no. 4: Factors other than income that influence business decision are as follows: ? Standard of Living. How much do people usually spend? ? Consumption Tendency. How much do they consume; more or less? ? Saving Tendency. What percent of their income do they save? ? The Lifestyle of the People. How luxurious do the people live? ? Willingness to buy. Should they buy my product? ? Demand of the products. How much is their demand for my product?

Private School Application Essay Tips

Private School Application Essay Tips Applying to private school means completing an application, a process with many components. There are short answer questions, forms to fill out, teacher recommendations to collect, standardized tests to take, interviews that need to be scheduled, and an application essay that needs to be written. The essay, for some applicants, can be one of the most stressful parts of the application process. These eight private school application essay tips just might help you produce the best essay youve ever written, which could increase your chances of getting accepted at your dream school.   1. Read the directions. This seems obvious, but hear me out. Reading the directions carefully can help ensure that you accomplish the task at hand. While most directions will be straightforward, you never know if the school is going to ask you to address specific questions on the given topic. Some schools also require that you write more than one essay, and if you just assume you get to pick from the three options when you were actually supposed to write three short essays, well  that is certainly a problem. Pay attention to word counts that might be given, too. 2. Be thoughtful in your writing sample. Leading off from that last sentence of bullet one, pay attention to the requested word count, you need to be thoughtful in how you approach the assignment. Word counts are there for a reason. One, to make sure that you give enough detail to actually say something meaningful. Dont cram in a bunch of unnecessary words just to make it longer.   Consider this essay prompt: Who is someone you admire and why?  If you simply say, I admire my mom because she is great, what does that tell your reader? Nothing useful! Sure, you answered the question, but what thought went into the response? A minimum word count is going to make you actually put some more effort into the details. Make sure that as you write to reach the word count that you arent just putting random words down that dont add to your essay. You need to actually put some effort into writing a good story - yes, youre telling a story in your essay. It should be interesting to read.   Also, remember that writing to a specific word count doesnt mean that you should just stop when you hit the required 250 words either. Few schools will penalize you for going over or under a word count slightly  but dont obliterate the word count. Schools provide these as guidelines to get you to put in some effort to your work, but also prevent you from going overboard. No admission officer wants to read your 30-page memoir as part of your application, no matter how interesting it may be; honestly, they dont have the time. But, they do want a brief story that helps them get to know you as an applicant.   3.   Write about something that matters to you. Most private schools give you an option of essay writing prompts. Dont choose the one that you think you should choose; instead, opt for the writing prompt that most interests you. If youre invested in the topic, passionate about it even, then that will show through in your writing sample. This is your chance to show who you are as a person, share a meaningful experience, memory, dream or hobby, which can set you apart from the other applicants, and thats important.   Admission committee members are going to read hundreds, if not thousands, of essays from prospective students. Put yourself in their shoes. Would you want to read the same type of essay over and over? Or would you hope to find an essay from a student thats a little different and tells a great story? The more interested you are in the topic, the more interesting your final product will be for the admission committee to read.    4. Write Well. This should be obvious, but it must be stated that this essay should be written well, using proper grammar, punctuation, capitalization, and spelling. Know the difference between your and youre; its and its; and there, their, and theyre. Dont use slang, acronyms, or text-speak.   5. Write. Edit/Revise. Read it Out Loud. Repeat.   Dont settle on  the first words you put down on paper (or type on your screen). Read your admission essay carefully, review it, think about it.  Is it interesting? Does it flow well? Does it address the writing prompt and answer any questions that were asked? If you need to, make a checklist of things you need to accomplish with your essay and make sure when you review it that youre actually meeting each requirement. To ensure that your essay flows well, a great trick is to read it out loud, even to yourself. If you stumble while reading it out loud or struggle with what youre trying to get across, thats a sign that you need to revise. When you recite the essay, you should easily move from word to word, sentence to sentence, paragraph to paragraph.   6. Get a Second Opinion. Ask a friend, parent or teacher to read your essay and give an opinion. Ask them if it reflects you as a person accurately and if you truly completed the requirements on your checklist. Did you address the writing prompt and answer any questions that were asked?   Also get a second opinion on the writing style and tone. Does it sound like you? The essay is your chance to showcase your own unique writing style, tone of voice, personality, and interests. If you write a stock essay that feels cookie cutter and overly formal in nature, the admission committee isnt going to get a clear idea of who you are as an applicant. Make sure the essay you write is genuine.   7. Make sure the work is truly yours.   Taking the lead from the last bullet, make sure your  essay is genuine. This is extremely important. Teachers, parents, admission consultants, secondary school counselors, and friends can all weigh in on it, but the writing needs to be 100% yours. Advice, editing, and proofreading are all fine, but if someone else is crafting your sentences and thoughts for you, youre misleading the admission committee. Believe it or not, if your application doesnt accurately reflect you as an individual, you can jeopardize your future at the school. If you apply using an essay you didnt write (and makes your writing skills look better than they actually are), the school will eventually find out. How? Because its school, and youre eventually going to have to write an essay for your classes. Your teachers will quickly assess your writing abilities and if they dont line up with what you presented in your application, there will be an issue. The private school youve been accepted to may even dismiss you as a student if youre deemed to be dishonest and not capable of managing the academic expectations.   Basically, applying under false pretenses and passing off someone elses work as yours is a major problem. Using someone elses writing  is not only  misleading but can also be considered plagiarism. Dont google sample admission essays  and copy what someone else has done. Schools take plagiarism seriously, and starting off your application like this  isnt going to help.   8. Proofread. Last but not least, proofread, proofread, proofread. Then have someone else proofread. The last thing you want to do is spend all this time and effort to create an awesome private school application essay and then discover that you misspelled a bunch of words or left out a word somewhere and ruin what could have been an awesome essay with some accidental mistakes. Dont just rely on spellcheck either. The computer recognizes both that and than as properly spelled words, but they certainly arent interchangeable.   Good luck!

My Dads - Sample Common Application Essay - Option #1

My Dads - Sample Common Application Essay - Option #1 The essay prompt for option #1 of the 2018-19  Common Application allows students a lot of breadth: Some students have a background, identity, interest, or talent that is so meaningful they believe their application would be incomplete without it. If this sounds like you, then please share your story. The prompt allows students to write about just about anything they find extremely important in their lives. Charlie chose this option because his atypical family situation was a defining part of his identity. Here is his essay: Charlie's Common Application Essay My Dads I have two dads. They met in the early 80s, became partners soon after, and adopted me in 2000. I think I’ve always know that we were a little different from most families, but that’s never really bothered me. My story, that which defines me, is not that I have two dads. I’m not automatically a better person, or smarter, or more talented, or better looking because I am the child of a same-sex couple. I’m not defined by the number of fathers I have (or the lack of mothers). Having two dads is inherent to my person not because of the novelty; it’s inherent because it has afforded me a completely unique life perspective. I’m very fortunate to have grown up in a loving and safe environment- with caring friends, family, and neighbors. I know for my dads, that was not always the case. Living on a farm in Kansas, my dad Jeff struggled internally with his identity for years. My dad Charley was luckier; born and raised in New York City, he was always supported by his parents and the community there. He only has a few stories of being harassed on the street or the subway. Dad Jeff, though, has a web of scarring on his right arm, from the time he was jumped leaving a bar; one of the men pulled a knife on him. When I was little, he used to make up stories about these scars; it wasn’t until I was fifteen that he told me the truth. I know how to be afraid. My dads know how to be afraid- for me, for themselves, for the life they’ve created. When I was six, a man threw a brick through our front window. I don’t remember much about that night save for a few images: the police arriving, my aunt Joyce helping to clean up the glass, my dads hugging, how they let me sleep in their bed that night. This night wasn’t a turning point for me, a realization that the world is an ugly, nasty place. We carried on as usual, and nothing like that ever happened again. I guess, in retrospect, my dads were just used to living slightly afraid. But it never stopped them from going out in public, being seen together, being seen with me. Through their bravery, their unwillingness to give in, they taught me the virtue of courage more concretely and lasting than a thousand parables or Bible verses ever could. I also know how to respect people. Growing up in a â€Å"different† family dynamic has led me to appreciate and understand others who are labeled as â€Å"different.† I know how they feel. I know where they’re coming from. My dads know what it is like to be spat on, looked down on, yelled at, and belittled. Not only do they want to keep me from being bullied; they want to keep me from bullying. They have taught me, through their actions, beliefs, and habits, always to strive to be the best person I can. And I know countless other people have learned the same things from their own parents. But my story is different. I wish having same-sex parents wasn’t the novelty it is. I’m not a charity case, or a miracle, or a role model because I have two dads. But I am who I am because of them. Because of all they’ve lived through, dealt with, suffered, and tolerated. And from that, they’ve taught me how to help others, how to care about the world, how to make a difference- in a thousand small ways. I am not just the â€Å"boy with two dads;† I’m the boy with two dads who taught him how to be a decent, caring, courageous, and loving human being. A Critique of Charlie's Common Application Essay Overall, Charlie has written a strong essay. This critique looks at the features of the  essay that make it shine as well as a few areas that could use a little improvement. The Essay Title Charlies title is short and simple, but it is also effective. Most college applicants have a single dad, so the mention of plural dads is likely to pique the interest of the reader. Good titles dont need to be funny, punny, or clever, and Charlie has clearly gone for a straight-forward but effective approach. There are, of course, many strategies for writing a good essay title, but Charlie has done a good job on this front.    The Essay Length For the 2018-19 academic year, the Common Application essay has a word limit of 650 and a minimum length of 250 words. At 630 words, Charlies essay is on the long side of the range. Youll see advice from many college counselors stating that you are better off keeping your essay short, but that advice is controversial. Sure, you dont want to have wordiness, fluff, digressions, vague language, or redundancy in your essay (Charlie is not guilty of any of these sins). But a well-crafted, tight, 650-word essay can provide the admissions folks with a more detailed portrait of you than a 300-word essay. The fact that the college is asking for an essay means that it has  holistic admissions, and the admissions folks want to learn about you as an individual. Use the space youve been given to do so. Again, there are many theories about the ideal essay length, but you can obviously do a more thorough job introducing yourself to the college with an essay that takes advantage of the space youve been given. The Essay Topic Charlie steers clear of some of the obvious bad essay topics, and he has certainly focused on a topic that the admissions folks wont see very frequently. His topic is an excellent choice for Common Application option #1 for his domestic situation has clearly played a defining role in who he is. There are, of course, a few conservative colleges with religious affiliations that would not look favorably upon this essay, but thats not an issue here since those are schools that would not be a good match for Charlie. The essay topic is also a good choice in that it illustrates how Charlie will contribute to the diversity of the college campus. Colleges want to enroll a diverse college class, for we all learn from interacting with people who are different than us. Charlie contributes to diversity not through race, ethnicity, or sexual orientation, but by having an upbringing that is different from the great majority of people.   Weaknesses of the Essay For the most part, Charlie has written an excellent essay. The prose in the essay is clear and fluid, and aside from an incorrect  punctuation mark and a vague pronoun reference, the writing is pleasing free of errors. Although Charlies essay isnt likely to create any significant concerns from readers, the tone of the conclusion could use a little reworking. The last sentence, in which he calls himself a decent, caring, courageous, and loving human being, comes across as a little strong with the self-praise. In fact, that last paragraph would be stronger if Charlie simply cut the final sentence. Hes already made the point in that sentence without the problem of tone we encounter at the very end. This is a classic case of show, dont tell. Charlie has shown that he is a decent person, so he doesnt need to spoon feed that information to his reader. The Overall Impression Charlies essay has much that is excellent, and the admissions folks are likely to respond positively to how understated most of it is. For example, when Charlie narrates the scene of the brick flying through the window, he says, this night wasnt a turning point for me. This is not an essay about sudden life-changing epiphanies; rather, it is about the life-long lessons in bravery, perseverance, and love that have made Charlie into the person that he is. A couple simple questions you can ask when evaluating an essay are these: 1) Does the essay help us get to know the applicant better? 2) Does the applicant seem like someone who would contribute to a campus community in a positive way? With Charlies essay, the answer to both questions is yes. To see more sample essays and learn strategies for each of the essay options, be sure to read The 2018-19 Common Application Essay Prompts.

Foriegn Intelligence Services Essay Example | Topics and Well Written Essays - 500 words

Foriegn Intelligence Services - Essay Example However, a few occasions of the Mossad spying on the U.S. (Jonathan Pollard and Ben-Ami Kadish) and the Mossad’s policy on abductions and assassinations have threatened the U.S. The Mossad’s threat to the U.S. is overall miniscule, yet when a threatening incident occurs the threat level is high. The Mossad’s mission is to protect Israel and Israeli citizens from any threat worldwide. The uniqueness about the Mossad is their mission also includes all Jews, Israeli or not. In order to accomplish this mission, the Mossad has agents or spies worldwide from Tel Aviv to the U.S. The Mossad’s mission to save Jews in Africa has resulted in several operations. The most famous is Operation Moses. When masses were starving in the Sudan during 1984, the Mossad evacuated six thousand Ethiopian Jews during Operation Moses (Shimron, 204). Not only did the Mossad evacuate these refugees, they paid corrupt Sudan officials millions of dollars, plus picked up the tab of the evacuation (Shimron 203). The goal was to save Jewish lives. Another famous Mossad mission was the capture of the former Nazi Adolf Eichmann in Argentina. In 1957, the Mossad received word that Eichmann, an infamous Nazi, was spotted in Argentina (Thomas, 75). Many Nazis had immigrated to Argentina, because Argentina would not extradite Nazis back to Germany, Israel, or any other European country. The Mossad decided to abduct Eichmann and bring him to Israel for justice. The operation ended in Eichmann being brought to trial in Israel. He received the death penalty; the only death penalty handed down by an Israeli court and carried out in Israeli history. Assassinations are routinely carried out not only by the Mossad, but by the Israeli military. The Israeli military carries out assassinations inside of Israel, Gaza, and the other Occupied Territories. The Mossad carries out assassinations outside of Israel. The most notable was the assassination of terrorists responsible for

History of the development of the Apple Newton Case Study

History of the development of the Apple Newton - Case Study Example It was believed that the invention of Newton would be of great significance to the users. Unlike the traditional desktop, it would be much portable and easier to carry wherever one goes. This would be possible due to the fact that it was to be smaller with a size 8.27† X 11.7†. In other words, it would be the size of a folded A4 sheet which is fairly efficient and can be handled by an individual much easily. Besides, it would be more preferable as it was to be equipped with a special user interface along side a cursive handwriting. These are features that were believed to make Newton be the only gadget of choice for everyone who would be interested in having a taste of personal computer. With enough resources, the management of Apple Inc would support its engineers and programmers to conduct an extensive research as they developed this product. Because of such a support, the development of the product began in a high speed. At first, they introduced a brand called Figaro which was having the size of A4. After its launching, it was valued to be worth $6,000. It was a very admirable product with a large format screen, object-oriented graphics and a well-developed internal memory. Because of such developments, the company managed to realize large volumes of sales and increased profit gins up to the later years. However, as fate would have it, the development of Newton would be discontinued in 1987 when the company realized that it would not be viable at all. Despite realizing a profit of $2 billion between 1987 and 1989, the company did not realize any success thereafter up to 1990. The other reason for the death of this product was the rise of Sakoman and Macintosh Classic, rival commodities which posed a very great challenge to its progress. Moreover, the company faced a stiff competition from other established firms such as Dell, Compaq and Gateway which introduced complementary products

How Pa Chin's novel Family reflects the tensions withtin chinese Term Paper

How Pa Chin's novel Family reflects the tensions withtin chinese society and within the chinese family - Term Paper Example This book will be of interest to all who are interested in the society and history of modern China. Family is the story of the Kao family which consists of four generations. The story takes place in Chengtu, a large city in the province of Szechwan. The novel’s principal characters are the three brothers, Chueh-hsin, Chueh-min and Chueh-hui. The brothers live with their uncles and aunts, cousins and their grandfather, the Venerable Master Kao, in their family estate. It is the Venerable Master Kao who is the autocrat in the family, in control of all family affairs, unable and unwilling to admit that his country and his family are changing with time. Chueh-hsin, the eldest and the meekest of the three brothers, takes over the responsibility of his younger brothers after the death of their father. Chueh-hsin is supposedly responsible for his brothers, but as the novel progresses we come to know how much or rather how little control he has over them. He is married against his wishes to a woman chosen by his family. He is doing a job he hates, this too being chosen by his famil y. He is shown navigating through life using his "compliant bow" philosophy which to him means that he should not oppose the elders of the family under any circumstance. Chueh-min, the second brother, is determined to marry the girl he loves in spite of his familys opposition. The youngest brother, Chueh-hui, hates everything the family represents and is trying hard to break the fetters and live life according to his wishes. Each brother is facing challenges at home, a home characterized by archaic morality and hierarchical dependence that was typical of those days. The brothers are caught in between the old system and their desire for a new system. The book records the daily lives of the Kao family. The situations that are described, unique as they may be to that time, are similar to many circumstances of todays world, such as the

White paper Essay Example | Topics and Well Written Essays - 500 words

White paper - Essay Example The idea here is to gain acceptance and thus every sentence ought to be written with this in mind and carefully. Green infrastructure is now becoming the key and big thing for the achievement of a green world. It turns the concentration of attention to enhancing the management of the spaces and areas between the buildings as contemporary economies put great efforts to develop their performance at everything environmental. This project was draw out of this realization and will endeavor to develop the plan and strategy for the Green Infrastructure Development in West Bronx, 3rd Avenue Commercial Corridor. With rapid rate of urbanization and environmental degradation, going for the green infrastructure is the only option to balance between the two and ensure that none overdoes the other. There is a need to demand and formulate higher and more vigorous mechanisms of ecosystem function. There is need for deeper understanding the vital patterns and significant processes of healthy ecosystems and how this can be utilized to go beyond a fairly passive conservation approach to form a more resilient and regenerative systems of green urban infrastructure. Conserving the environment results to the benefits to the society both economically and socially.

Synthesis Paper Research Example | Topics and Well Written Essays - 2000 words

Synthesis - Research Paper Example When reflecting upon the value of student services, there are many things that need to be taken into account. One is that the student body is diverse, and is more diverse now than perhaps at any time in the history of higher education Included in this diversity are LGBT students (Komives & Woodward, 2003). Additionally, there are many ethical and legal foundations that must be considered (Hamilton, 2002). Civil Rights laws and affirmative action are the legal aspects that must be considered (Sandeen & Barr, 2006). Diversity is a staple on campus, as there are many ethnicities and first generation students, as well as disabled students and LGBT students (American College Personnel Association, 2006).   Also, as a student professional, I must be concerned with the theory of what guides the profession. There are many learning and development theories, and theories of organization. The guiding organizational theory is one that is considered to be collegial, which means that faculty and staff have autonomy, and may participate in decision-making and governance through committee work and hiring (Komives et al.,   2003). Along the same vein is the theory of leadership that states that collaborative leadership, in which everybody in the community is involved in decision-making, is best (Love & Estanek, 2004). Financial aid is becoming more important to students, as there is increasingly a lack of funding combined with higher tuitions. Other challenges include the fact that technology has increased, which means that e-mail and chat has replaced face to face interaction in many cases.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As a student services professional, I must focus upon not just teaching and training, but also advising. Student professionals must be able to understand the problems of the student body, and be able to craft an acceptable solution to these issues. Interpersonal and problem solving skills are essential when advising students, as well as havin g a thorough understanding of developmental and learning theories. Conflict resolution and community building are other skill sets which are necessary for student services personnel.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   To this end, in my role as a student services personnel, I know that I will have to wear multiple hats, while being a part of a collaborative team. The collaboration of the team will be crucial in solving problems which might crop up with our student body. I must not only know all the details about financial aid packages, and be able to advise the students accordingly, but I also must be able to resolve conflicts between students and the faculty, other students or organizations. One of the ways to resolve these conflicts is through mediation, so I must be familiar with the mediation process and be able to listen to both sides and use my mediation skills to help the opposing parties come to some type of acceptable agreement between them. Cognitive and learning theories will come in handy when advising students about the course that they should take to reach their goals outside of college. Some of cognitive theories are that of Piaget. Piaget discovered that there are ways that people think, reason and make meaning from experiences (Komives, 2003). What this means to me is that there must be challenges for the students – they should always be subjected to new and different stimuli, and should be encouraged to seek out ideological positions which are different from what they currently have. This might mean that I will encourage the students to try different coursework that might develop their ideologies, or coursework that would help them look at subjects in

Marketing Communications Essay Example | Topics and Well Written Essays - 2250 words

Marketing Communications - Essay Example IMC campaigns became the business necessity to keep their customers loyal and committed to their products in global competitive environment. This paper deals with the brief case studies of three different organizations from the same industry, on use of IMC campaigns, their selected target markets, campaign ideas, tools, themes and comparison of the three companies. The whole essay clarifies the concept of integrated marketing communication tools and objectives of their use. With a clear concept and implementation success of Integrated Marketing Communication tools, certain recommendations are made for the better future use of integrated marketing campaigns. The whole paper also addressed the challenges of Integrated Marketing Communication approaches. Integrated marketing communication With the advent of globalization in business world, businesses need to survive by following a head to head competition, customer loyalty and retention. There came the concept of using all marketing too ls together to get maximum benefit and an edge over competitors. This marketing technique is known as integrated marketing communication. This is a management concept that puts all the marketing communications under one head. Integrated marketing communication works as a unified force to accomplish all the marketing management goals of organization. This concept creates a link among all the forms of marketing through synergistic effect it provides. Many marketplace trends gave emergence to integrated marketing communication. Customers attitude is changing with increase in number of advertisement messages, media fragmentation, audience fragmentation, mergers of marketing agencies, global marketing, follower products, competition of ad agencies; decrease in costs of database management and maintenance of customer relationship. (Thorson, Moore, 1996) Integrated marketing communication process is not a very old concept but getting popularity in the upcoming trends of business needs of m aintaining competitive edge. In today’s environment integrated marketing communication is leading old techniques of communicating with consumers and customers. In near future, IMC campaigns and tools will become the success factors of businesses and their business need. Different IMC approaches There are five different and common and frequently used tools of IMC; Advertising, Sales promotions, Public relations, direct marketing and Personal selling (Kym Gordon Moore, 2009) Sometimes organizations focus on some of them and integrate with each other to get better results in consistency with the organization’s campaign objectives and organization’s resources. Theses all tools are commonly used for marketing purposes. But under integrated marketing communication, these tools are used as a unified force with bigger impact. Selected IMC approaches case studies Integrated marketing communication is a simple but vast concept of management and communication. Three IMC ca mpaigns are selected for a detailed analysis of efficiency in use, similarities in objectives, difference in approaches, ideas,

Synthesis Paper Research Example | Topics and Well Written Essays - 2000 words

Synthesis - Research Paper Example When reflecting upon the value of student services, there are many things that need to be taken into account. One is that the student body is diverse, and is more diverse now than perhaps at any time in the history of higher education Included in this diversity are LGBT students (Komives & Woodward, 2003). Additionally, there are many ethical and legal foundations that must be considered (Hamilton, 2002). Civil Rights laws and affirmative action are the legal aspects that must be considered (Sandeen & Barr, 2006). Diversity is a staple on campus, as there are many ethnicities and first generation students, as well as disabled students and LGBT students (American College Personnel Association, 2006).   Also, as a student professional, I must be concerned with the theory of what guides the profession. There are many learning and development theories, and theories of organization. The guiding organizational theory is one that is considered to be collegial, which means that faculty and staff have autonomy, and may participate in decision-making and governance through committee work and hiring (Komives et al.,   2003). Along the same vein is the theory of leadership that states that collaborative leadership, in which everybody in the community is involved in decision-making, is best (Love & Estanek, 2004). Financial aid is becoming more important to students, as there is increasingly a lack of funding combined with higher tuitions. Other challenges include the fact that technology has increased, which means that e-mail and chat has replaced face to face interaction in many cases.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As a student services professional, I must focus upon not just teaching and training, but also advising. Student professionals must be able to understand the problems of the student body, and be able to craft an acceptable solution to these issues. Interpersonal and problem solving skills are essential when advising students, as well as havin g a thorough understanding of developmental and learning theories. Conflict resolution and community building are other skill sets which are necessary for student services personnel.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   To this end, in my role as a student services personnel, I know that I will have to wear multiple hats, while being a part of a collaborative team. The collaboration of the team will be crucial in solving problems which might crop up with our student body. I must not only know all the details about financial aid packages, and be able to advise the students accordingly, but I also must be able to resolve conflicts between students and the faculty, other students or organizations. One of the ways to resolve these conflicts is through mediation, so I must be familiar with the mediation process and be able to listen to both sides and use my mediation skills to help the opposing parties come to some type of acceptable agreement between them. Cognitive and learning theories will come in handy when advising students about the course that they should take to reach their goals outside of college. Some of cognitive theories are that of Piaget. Piaget discovered that there are ways that people think, reason and make meaning from experiences (Komives, 2003). What this means to me is that there must be challenges for the students – they should always be subjected to new and different stimuli, and should be encouraged to seek out ideological positions which are different from what they currently have. This might mean that I will encourage the students to try different coursework that might develop their ideologies, or coursework that would help them look at subjects in

What accounted for Japan's rapid economic growth in the post-war era Essay

What accounted for Japan's rapid economic growth in the post-war era - Essay Example policies towards the country, effect of the international market, pre-war industrial capacities, social mobilization and favorable government policies. After the end of WWII, the urge to catch up and level with the western nations coupled with nationalism persisted in japan. Unlike during the war period where the efforts and Japanese energies were focused on military development, post WWII efforts focused on economic development. For instance, the Japanese factories tasked with the production of machine guns were turned into producing sewing machines whereas those tasked with production of optical weapons reverted to the production of binoculars and cameras for the local and international market. This easy conversion of military industries into profitable industries boosted the rapid economic growth of japan (Allen 67). The United States allowed japan to export its products to the USA while simultaneously allowing it to protect its domestic market during the raging on of the cold war. This led to a beneficial trade relationship between japan and the United States of America. Additionally, japan greatly benefited from joining the international markets which offered it low tariffs, the needed raw materials and cheap or lowered prices of oil. Moreover, Japan enacted article 9 of its constitution that forbade it from re arming itself, hence it is protected by the United States. As a consequence, it spends less than one percent of its GDP on its military (Allinson 94). The huge savings propelled the nation to develop rapidly after WWII. Rather than the Japanese possessing a welfare state, a welfare society exists which is defined by the creation of total employment. Small to medium sized cartels of Japanese companies were present to prevent Japanese companies from becoming bankrupt hence maintaining total employment. As a result, the Japanese nation re directed the resources and funds it would have used on welfare to the development of it industries. This led to

Quarterly Earnings Forecasting Decisions by Family Firms

Quarterly Earnings Forecasting Decisions by Family Firms Quarterly Earnings Forecasting Decisions by Family Firms and the Market Reaction to Them Abstract We study the disclosure incentives for family firms by examining the characteristics of their quarterly earnings forecasts and analysts and investors responses to them. Forecasts offered before the fiscal quarter-end (guidance) by SP 500 family firms are generally more specific and timely than those offered by SP 500 non-family firms, particularly when they convey bad news or confirm analysts current expectations. Further, family firm guidance elicits a stronger response from both analysts and investors. While many of these differences largely disappear when the forecasts are offered after the quarter-end but before the earnings announcement itself (preannouncements), family firm preannouncements still tend to be more specific when they contain bad news. These more specific preannouncements also generate a significantly stronger response from analysts. Overall, our results suggest that large, visible family firms use manager-generated earnings forecasts to create a more transparent i nformation environment, and that these forecasts are likely to be most useful in reducing information asymmetry and agency costs when they are issued as guidance. Key Words: Management earnings forecasts, family firms, preannouncements, earnings warnings. Data Availability: Data are available from the sources listed in the text. Introduction. Family firms are generally defined as companies that are significantly influenced by founding family members or their descendants, through large shareholdings and/or operational control.[1] Anderson and Reeb (2003a, 2003b) report that family members hold approximately 18% of the equity of the family firms in the SP 500, on average, and control 45% of the CEO positions. In addition, family members often hold seats on the board of directors or are part of upper-level management in these firms (â€Å"Family Inc.†, Business Week, November 10, 2003). The structure inherent in these family firms gives rise to different agency problems than those in firms with much greater separation of ownership and control. Specifically, the family firm structure significantly limits the agency problems that arise from the separation of ownership and control (often referred to as Type I agency problems) while exacerbating those that arise in the conflict between controlling and non-controlling shareholders (often referred to as Type II agency problems, see Ali et al. 2007, Chen et al. 2007, Wang 2006 and Anderson and Reeb 2003a). It is well known that the second type of agency problem can be partially mitigated by frequent and transparent disclosure. However, it is also possible that reputational concerns may arise from the long-term nature of family members investment in their firm, mitigating this problem and reducing the need for more frequent and transparent disclosure (Wang 2006). The purpose of this paper is to add to our understanding of these competing incentives for differential disclosure by examining the characteristics of quarterly earnings forecasts issued by the management of family firms and the response of sell-side analysts and investors to them. Recent accounting research that examines mandatory financial disclosures by family firms suggests that reputational concerns alone may not be sufficient: Characteristics of family firms mandatory financial reports are consistent with their being used to mitigate the agency problem between controlling and non-controlling shareholders. More specifically, Ali et al. (2007) and Wang (2006) show that large family firms offer higher quality financial reports as evidenced by lower discretionary accruals, greater ability of earnings to predict cash flows and larger earnings response coefficients. In addition, Ali et al. (2007) find that family firms in the SP 500 are more likely to voluntarily issue earnings forec asts during periods of earnings declines. However, they also find that family firms are less forthcoming in their disclosures about corporate governance. In a paper that was written concurrently with ours, Chen et al. (2007) study the frequency of voluntary disclosures (earnings and non-earnings forecasts and conference calls) from a larger sample of firms that includes the SP 500, SP MidCap 400 and SP SmallCap 600 in the five years before the enactment of Regulation Fair Disclosure (Reg FD). They also find that family firms are more likely to issue bad-news earnings warnings but overall make fewer forward-looking disclosures than non-family firms, and conclude that their results are consistent with family owners having a longer investment horizon and better monitoring of management, characteristics that obviate the need for greater disclosure. This paper contributes to the growing literature on the disclosures of family firms by studying one of the most informative and common types of voluntary financial disclosures—the companys own forecasts of its quarterly earnings per share—and sell-side analysts and investors responses to them. More specifically, we examine the characteristics of these disclosures (forecast specificity, surprise and accuracy), and the impact they have on important market indicators—professional analysts earnings estimates and stock prices. Thus, our analysis is designed to provide additional evidence on the relation between ownership structure and the quality of the firms information environment and, in particular, complements the existing empirical evidence on the characteristics and informativenesss of mandatory financial disclosures made by family and non-family firms (Ali et al. 2007 and Wang 2006). As noted above, we focus on a particular type of voluntary disclosure, managements forecasts of quarterly earnings per share, and do so for two reasons. First, prior research indicates that these forecasts are highly value-relevant—and more value-relevant than management forecasts of annual earnings per share (Pownall et al. 1993, Baginski and Hassell 1997). As a result, we believe that the quarterly forecasts are particularly well-suited for examining the different incentives family and non-family firms face in their attempts to control Type I and II agency problems, respectively. For example, higher quality forecasting by family firms (in terms of their forecasts being more specific, timely and accurate) is consistent with such firms creating a more transparent information environment and reducing a potentially severe Type II agency problem. Second, we are able to use a non-stock-price measure of the news in these management forecasts in our empirical work, which allows us t o more effectively analyze the markets perception of the differential information content in the forecasts made by family and non-family firms.[2] We also separate our sample of forecasts into guidance (i.e., forecasts made prior to the end of the quarter) and preannouncements (i.e., forecasts made after the quarter ends but before earnings are released). We do this because the forecast horizon associated with preannouncements is very short, sometimes a matter of two or three weeks, and because much of the uncertainty regarding the forthcoming earnings number is resolved by the fiscal quarter end for most, if not all, firms, regardless of whether or not they are controlled by a family. Thus, the Type II agency problem in family firms, if it dominates the Type I agency problem, is more likely to be mitigated through the provision of guidance than preannouncements. This leads us to hypothesize that the characteristics of guidance, but not preannouncements, are systematically related t o family-firm status, and that analysts and investors will react differently to the guidance, but not to preannouncements, issued by family firms, holding all else constant.[3] We test our hypotheses on the quarterly earnings forecasts made between 1998 and 2006 by the family and non-family firms in the SP 500 index, as identified by Business Week (November 10, 2003) and contained in the First Call Company Issued Guidance (CIG) database. There are two aspects of our sample that should be highlighted. First, our sample firms are among the largest, most stable and most visible in the U.S. As a result, our results may not generalize to smaller, less visible family firms such as those included in Chen et al.s (2007) sample. Second, our sample period spans the implementation of Reg FD. Thus, we provide evidence that complements the pre-Reg-FD evidence in Chen et al. (2007) and the limited post-Reg-FD evidence in Ali et al. (2007). The results of our empirical tests generally indicate that the guidance provided by family firms is of higher quality than that provided by non-family firms. In particular, after controlling for other influencing factors, we find that the family firms in our sample provide significantly more specific guidance (in terms of forecast form and narrowness of forecast range) than non-family firms, especially when conveying bad news or offering confirmatory guidance. We also find that family firms use guidance to make smaller average adjustments to the markets estimate of the upcoming quarterly earnings than non-family firms, especially when conveying bad news. This is consistent with their being more timely in offering corrections to analysts estimates. More importantly, we find some evidence of a stronger and quicker response by analysts (as measured by the number of subsequent earnings estimate revisions and the speed with which they occur) to the guidance issued by family firms, and str ong evidence of a significantly greater investor response (as measured by announcement-period abnormal stock returns) to the guidance issued by family firms. These findings, taken together, indicate that guidance is more informative and more useful to the market when it is issued by a family firm. They are also consistent with family firms using guidance to create a more transparent information environment, which therefore, complements the finding of higher quality financial reporting by family firms in Ali et al (2007) and Wang (2006). Consistent with our expectations, we find little evidence of differences in the characteristics of preannouncements issued by family and non-family firms, although there is some (weak) evidence of family-firm preannouncements being more specific when they contain bad news.[4] Also consistent with our expectations, we find no evidence of a differential stock price response to preannouncements made by family and non-family firms, although we do find that analysts response more strongly to family-firm preannouncements, especially when they contain bad news. These results, when considered with the guidance results discussed above, suggest that family firms produce higher quality earnings forecasts than non-family firms, particularly when they are offered as guidance or contain bad news, and that their guidance is more informative and useful to investors and analysts. Thus, our paper provides evidence of family firms using management-generated earnings forecasts to create a more transpare nt information environment. Our paper contributes to two bodies of research: the growing literature on disclosures by family firms, as noted before, and the established literature on management forecasts. While our paper is most closely related to Ali et al. (2007), Chen et al. (2007) and Wang (2006), who examine the mandatory financial disclosures of family firms and the frequency of their voluntary disclosures, we also complement Anderson et al.s (2006) analysis of other dimensions of disclosure transparency. Anderson et al. (2006) find that family firms are significantly more opaque than non-family firms as measured by a summary statistic that captures the effects of trading volume, the bid-ask spread, analyst following and analyst forecast errors. Taken together, the evidence in Anderson et al. (2006) and our paper suggest that certain types of transparent disclosures appear to be better suited than others to mitigating the agency problem that arises between controlling and non-controlling owners. The literature on management forecasts is more mature and, as a result, guides much of the structure for our analysis. Consequently, we follow prior work by Ajinkya and Gift (1984), Baginski and Hassell (1990, 1997), Bamber and Cheon (1998), Baginski et al. (2002, 2004), Ajinkya et al. (2005) and others, in designing our tests. In a recent paper, Hirst et al. (2007) provide a review of this literature and propose a framework for continued research in this area. They observe that choices concerning the characteristics of management earnings forecasts are not yet well understood and suggest that additional work addressing this issue is needed. Our contribution to the literature on management forecasts is to analyze the differential impact of Type I and Type II agency problems on the characteristics of management earnings forecasts provided by family and non-family firms, including the time of their release, as well as the market and analyst reactions to them. Thus, we add to the initia l evidence on the underlying reasons for providing management forecasts in different forms and with different specificity—and on their impact of the stock prices of family and non-family firms. Finally, our results on confirmatory guidance support and extend the results in Clement et al. (2003). The rest of the paper is organized as follows. In Section 2, we review of the relevant literature and develop hypotheses. In Section 3, we describe our sample and data, and in Section 4, we present the empirical tests. We offer concluding remarks in Section 5. 2. Literature Review and Hypothesis Development Family firms are defined in the academic literature as firms in which founders or their descendants exercise control either because they are significant shareholders or because they are part of top management or the board of directors. Not only are family firms common in Europe and Asia (see, for example, LaPorta et al. 1999, Claessens et al, 2000, Gomez-Mejia et al. 2001 and Faccio and Lang 2002), they comprise approximately one-third of the SP 500 in the U.S. (Anderson and Reeb 2003a).[5] Further, family members ownership stakes are significant: Anderson and Reeb (2003a) report that in the SP 500, family members hold, on average, 18% of the voting shares in their companies. A large literature on family firms has recently developed in accounting and finance, much of it focused on the differences in agency problems that arise in family and non-family firms.[6] Of particular interest to us are the agency problems arising from (1) the separation of ownership and control, and (2) the conflict between controlling and non-controlling shareholders.[7] The papers that examine these conflicts generally argue that (1), referred to as the â€Å"Type I† agency problem in Ali et al. (2007), is less important for family firms because of the unusually close alignment of owners and management in those firms when compared to non-family firms (e.g., Ali et al. 2007, Chen et al. 2007, Wang (2006).[8] They also argue that the tight linkage between some owners and control in family firms exacerbates (2), referred to as the â€Å"Type II† agency problem in Ali et al. (2007), in which family members transfer wealth to themselves to the detriment of other sharehol ders. As is well known, such agency problems can be partially mitigated by frequent and transparent disclosure, suggesting that family firms are more likely to offer a variety of mandatory and voluntary disclosures whose implications are clearer to market participants.[9] In contrast, Wang (2006) suggests that family firms may not face a more severe Type II agency problem if the long-term nature of their investment is well understood by the market. In essence, he argues that long-term investors are less likely to exploit agency problems for short-term gain—thus, family firms may not need to resort to greater frequency or transparency of disclosures. Ali et al. (2007) and Wang (2006) empirically test these competing predictions by comparing aspects of the accounting disclosures made by family and non-family firms. Both find that earnings quality is higher for family firms, especially when a founder CEO is in place. Thus, both provide some evidence consistent with family firms mitigating their Type II agency problems—or responding to the demands of the users of financial statements—with higher quality disclosures. More specifically, Ali et al. (2007) document lower discretionary accruals and greater earnings persistence for SP 500 family firms compared to SP 500 non-family firms. In addition, they find that the association between earnings and stock returns is higher for the family firms. Similarly, Wang (2006) finds that SP 500 founding family firms have lower abnormal accruals, greater earnings informativeness and less persistence in transitory loss components in earnings. He extends this analysis by considering th e effect of the percentage of common stock owned by family members on the magnitude of the Type II agency problem. Interestingly, he finds that the relation is nonlinear: When founding family ownership is above (approximately) 60%, the quality of the earnings reported by non-family firms exceeds that of family firms. Ali et al. (2007) also provide some evidence inconsistent with family firms mitigating their more severe Type II agency problem through the use of disclosures: They observe that family firms are less forthcoming about their corporate governance practices and that when they employ a dual class share structure, earnings quality is lower relative to when they do not have such a structure. Another method for testing whether family firms mitigate the potentially more severe Type II agency costs—or respond to financial statement users demand for high quality accounting information—through greater frequency and transparency of disclosures is to examine the issuance of management earnings forecasts by family and non-family firms. Complicating this is the litigation argument proposed by Skinner (1994) and Kasznik and Lev (1995) which suggests that the use of earnings warnings will vary positively with the litigation risk that the firm faces, and inversely with the severity of the firms Type I agency problem (Ali et al. 2007). However, since the Type II agency problem is expected to be more severe and the Type I agency problem less severe in family firms (Ali et al. 2007), family firms would be expected to provide management forecasts to mitigate both types of agency problems, holding litigation risk constant. The relative severity of the Type II agency problem further suggests that family firms earnings forecasts will be of higher quality (i.e., more specific, timely and accurate), and that market participants (e.g., sell-side analysts and investors) will respond more strongly to them. Ali et al. (2007) provide initial evidence in favor of this hypothesis when they observe that family firms are more likely to provide earnings warnings (i.e., guidance that warns of a forthcoming earnings decline) than non-family firms. In a more recent paper, however, Chen et al. (2007) provide evidence that family firms make fewer voluntary disclosures than non-family firms. They collect ownership and founding family information from several sources to identify family firms in the SP 1500 and find that family firms are (1) 8.1% less likely to provide management forecasts of all kinds (i.e., annual and quarterly earnings, revenues, cash flows, etc.), and (2) less likely to hold conference calls as well. They also find, however, that family firms are more likely than non-family firms to issue bad-news earnings warnings. Chen et al. (2007) conclude that these results, when considered collectively, indicate that family firms owners prefer less disclosure because of their long investmen t horizon and effective monitoring of managers, but that their concern with reducing litigation costs results in an increased likelihood of bad news earnings warnings. In this paper, we hope to add to our understanding of the relative importance of the competing incentives studied in previous work by examining (1) the characteristics of management forecasts of quarterly earnings per share (both guidance, which is offered prior to the end of the quarter, and preannouncements, which are offered after quarter-end but before the actual earnings announcement) of family and non-family firms, and (2) the response of sell-side analysts and investors to those forecasts. In particular, we hope to add to our understanding of the disclosure choices of family firms by determining whether their own earnings forecasts are more specific, timely and accurate, consistent with family firms providing higher quality disclosures—and whether those forecasts are viewed as being of higher quality by market participants as measured by their response to the disclosure. We also separate our forecasts into guidance and preannouncements under the assumption that any fami ly-firm effect will be more likely to be observed in guidance because of the longer horizon over which the forecasts can be made. More specifically, in the case of preannouncements, there is a very short forecast horizon (e.g., a few weeks beyond the end of the quarter) and so we do not expect large differences in timeliness of the preannouncements between family and non-family firms. Further, because much of the uncertainty about the earnings numbers is resolved by quarter-end, differences in the specificity of preannouncements between family and non-family firms, if any, are likely to be small. Finally, motives to provide preannouncements are likely to be dominated by the litigation argument proposed by Skinner (1994) and Kasznik and Lev (1995).[10] If this is the case, differences in characteristics of voluntary earnings forecasts, and in market participants responses to them, are likely to be concentrated in guidance. As in prior research, we recognize that because of competing forces, whether the guidance of family firms is of higher quality is an empirical question. Thus, our formal hypotheses regarding guidance are non-directional, as in Chen et al. (2007) and Wang (2006): H1: The specificity, timeliness and content of earnings guidance is systematically related to whether the firm is classified as a family firm. H2: Sell-side analysts and investors responses to earnings guidance is systematically related to whether the issuing firm is classified as a family firm. 3. Sample and Data. Our sample is comprised of 4,130 management quarterly earnings guidance announcements issued between 1998 and 2006 by the family and non-family firms in the SP 500 as identified by Business Week in its November 10, 2003, issue. Business Week defines a family firm as â€Å"†¦any company where founders or descendants continue to hold positions in top management, on the board, or among the companys shareholders.† To identify family firms, Business Week relies on the methodology developed by Anderson and Reeb (2003a, 2003b) as well as their advice and the help of Spencer Stuart as they â€Å"†¦examined regulatory filings, company Web sites and corporate histories† to ensure significant family involvement in the company. (For details, see â€Å"Defining Family,† Business Week, November 10, 2003, p. 111.) Before proceeding, we want to highlight certain aspects of our sample. First, because the Business Week classification pertains to only SP 500 firms, the fi rms in our sample are among the largest, most stable and most profitable companies in the U.S. As a result, our findings might not extend to mid- or small-cap companies. Second, our reliance on the Business Week classification means that we do not form a new sample of family and non-family firms each year. However, as Ali et al. (2007) note, family firm status is sticky, and thus misclassifications due to changing firm status will most likely bias against our finding significant results. Third, Business Weeks classification scheme is designed to identify firms that are controlled by a family without relying on a single proxy for control, such as ownership share. As a result, it captures features of family firms, beyond simply having large blockholders, that are likely to exacerbate Type II agency problems. Fourth, by using Business Weeks classification, which is based on the â€Å"standard† developed by Anderson and Reeb, our results are more easily compared to many prior res ults. Finally, while we recognize that Business Week might not accurately classify every firm, both types of classification errors (i.e., misclassifying firms without significant family control as family firms, and misclassifying firms with significant family control as non-family firms) limit our ability to detect differences in the forecasts of family and non-family firms and therefore bias against our finding significant results. We form our sample by first gathering all forecasts of quarter-ahead earnings made between 1998 and 2006 by the SP 500 as of June 2003 from the First Call Company Issued Guidance (CIG) database. We lose 1,994 of the original 7,694 observations because of unavailability of (1) necessary Compustat and CRSP data, (2) actual earnings per share and other analyst forecast data from First Call, and (3) observations with multiple actual earnings per share numbers. After deleting stale forecasts (those made before the prior quarters earnings announcement date), we retain all â€Å"guidance† observations (forecasts made at the same time as or after the prior earnings announcement and at or before the quarter end, N = 4,332). We trim the sample to mitigate the effect of outliers as follows. First, we eliminate the top and bottom one-half percent of the management forecast errors in each sample, the top and bottom one-half percent of the forecast surprises in each sample, the top and bott om one-half percent of the three-day cumulative abnormal returns in each sample and finally, the top and bottom one-half percent of return volatility ratios in each sample—and retain the union of the remaining observations. (These variables are defined in the Appendix and will be discussed in detail later.) We then eliminate 62 firm quarter observations whose stock price is less than $5 as of the beginning of the quarter. This results in a final sample of 4,130 guidance announcements. One-hundred-and-forty six of the 177 family firms identified by Business Week (82.5%) provide guidance during our sample period as compared to 240 of the 323 non-family firms in the SP 500 (74.3%). [11] Before turning to the empirical analysis, we note for the reader that the management guidance we gather from the CIG database is not split-adjusted whereas the analysts estimates and reported earnings per share in the main First Call file are (further, they are rounded to the nearest penny). An I/B/E/S unadjusted data file is available but unfortunately, we would lose a significant number of observations if we were to use it. Consequently, to keep the sample size as large as possible and still allow for comparability, we split-adjust the management guidance from the CIG file using the split-adjustment procedures used for the analysts estimates and reported earnings per share in the First Call file.[12] 4. Empirical Analysis. 4.1. Univariate Analysis. We present descriptive statistics for the guidance announcements, firm-specific characteristics and variables relating to analysts and stock returns in Table 1. We also include the results of two-sample t-tests and Wilcoxon signed rank sum tests for each variable. As noted before, we provide a list of variables and their definitions in the Appendix. We begin with forecast characteristic metrics designed to help us understand the differences, if any, in the specificity, timeliness, frequency and content of the earnings forecasts offered by the management of family and non-family firms. We present descriptive statistics first for the form of the forecast (an indicator of specificity) as measured by Forecast Form. As is well known, forecasts in the CIG database take one of several forms, which we code in the following manner: If the forecast is a specific earnings per share number (a point forecast), it is coded as 4; if it is a range of possible earnings per share numbers (a range forecast), it is coded as 3; if it consists of a one-sided directional forecast (either a maximum or minimum forthcoming earnings per share number), it is coded as 2; and if it contains no quantitative information (a qualitative forecast), it is coded as 1.[13] Note that our coding scheme is designed so that a higher value of Forecast Form indicates a mo re specific forecast. To further examine forecast specificity, we focus next on Forecast Width for range forecasts, which measures the difference between the maximum and minimum earnings per share figures offered in the forecast. (A narrower width indicates a more specific forecast.) In later tests, we include point forecasts as forecasts with a width of zero. To examine forecast timeliness, we use Forecast Horizon which is the number of calendar days from the management forecast date until the end of the quarter. More days in the forecast horizon indicate more timely forecasts. Finally, we form Annual Frequency and Quarterly Frequency variables, which measure the number of annual and quarterly management forecasts for each of our sample firms in the CIG database from 1994 through 2006, scaled by the total number of possible forecasting years (for Annual Frequency) or quarters (for Quarterly Frequency) to date. The descriptive statistics and statistical tests for Forecast Form provide initial evidence consistent with family firms issuing significantly more specific guidance than non-family firms. In particular, Forecast Form has slightly higher numerical values, on average, for family firms (p = .028, using the Wilcoxon test).[14] To further explore the potential differences, we examine the frequency distributions of the forms that guidance takes, as presented in Figure 1. As is obvious from the figure, range forecasts are by far the most common form of guidance for both family and non-family firms, making up nearly two-thirds of all guidance in our sample. Further, both family and non-family firms offer approximately 89% of their guidance as point or range forecasts. However, family firms offer relatively more of the more specific point forecasts (28% versus 23% for non-family firms) and relatively fewer of the less specific range forecasts (61% versus 66% for non-family firms).[15] Conver sely, guidance in the form of qualitative statements or minimum/maximum earnings per share numbers is unusual in our sample, regardless of the type of firm examined. The small number of qualitative forecasts in our First Call sample is inconsistent with Hutton et al. (2003) and Miller (2002), who find a substantially larger number of such forecasts when hand-collecting their samples than are included in the First Call database. (Anilowski et al. 2006 also suggest that First Call is more likely to include quantitative forecasts than qualitative ones.) This suggests that our sample is most likely incomplete and most representative when only quantitative forecasts are considered. For these reasons and because many tests require that we restrict attention to point and range forecasts, we will generally focus our discussion on point and range forecasts only. As just noted, range forecasts are the most common type of guidance in our sample. While it is clear from Figure 1 that non-family firms issue more range forecasts as guidance than family firms, Table 1 indicates that those issued by family firms are significantly narrower, as measured by Forecast Width (p = .000 for both the Wilcoxon and the two-sample t tests). This finding, when considered with the preliminary evidence of greater usage of point forecasts by family firms, suggests that guidance issued by family firms is generally more specific than that issued by non-family firms, consistent with H1. The next two forecast c Quarterly Earnings Forecasting Decisions by Family Firms Quarterly Earnings Forecasting Decisions by Family Firms Quarterly Earnings Forecasting Decisions by Family Firms and the Market Reaction to Them Abstract We study the disclosure incentives for family firms by examining the characteristics of their quarterly earnings forecasts and analysts and investors responses to them. Forecasts offered before the fiscal quarter-end (guidance) by SP 500 family firms are generally more specific and timely than those offered by SP 500 non-family firms, particularly when they convey bad news or confirm analysts current expectations. Further, family firm guidance elicits a stronger response from both analysts and investors. While many of these differences largely disappear when the forecasts are offered after the quarter-end but before the earnings announcement itself (preannouncements), family firm preannouncements still tend to be more specific when they contain bad news. These more specific preannouncements also generate a significantly stronger response from analysts. Overall, our results suggest that large, visible family firms use manager-generated earnings forecasts to create a more transparent i nformation environment, and that these forecasts are likely to be most useful in reducing information asymmetry and agency costs when they are issued as guidance. Key Words: Management earnings forecasts, family firms, preannouncements, earnings warnings. Data Availability: Data are available from the sources listed in the text. Introduction. Family firms are generally defined as companies that are significantly influenced by founding family members or their descendants, through large shareholdings and/or operational control.[1] Anderson and Reeb (2003a, 2003b) report that family members hold approximately 18% of the equity of the family firms in the SP 500, on average, and control 45% of the CEO positions. In addition, family members often hold seats on the board of directors or are part of upper-level management in these firms (â€Å"Family Inc.†, Business Week, November 10, 2003). The structure inherent in these family firms gives rise to different agency problems than those in firms with much greater separation of ownership and control. Specifically, the family firm structure significantly limits the agency problems that arise from the separation of ownership and control (often referred to as Type I agency problems) while exacerbating those that arise in the conflict between controlling and non-controlling shareholders (often referred to as Type II agency problems, see Ali et al. 2007, Chen et al. 2007, Wang 2006 and Anderson and Reeb 2003a). It is well known that the second type of agency problem can be partially mitigated by frequent and transparent disclosure. However, it is also possible that reputational concerns may arise from the long-term nature of family members investment in their firm, mitigating this problem and reducing the need for more frequent and transparent disclosure (Wang 2006). The purpose of this paper is to add to our understanding of these competing incentives for differential disclosure by examining the characteristics of quarterly earnings forecasts issued by the management of family firms and the response of sell-side analysts and investors to them. Recent accounting research that examines mandatory financial disclosures by family firms suggests that reputational concerns alone may not be sufficient: Characteristics of family firms mandatory financial reports are consistent with their being used to mitigate the agency problem between controlling and non-controlling shareholders. More specifically, Ali et al. (2007) and Wang (2006) show that large family firms offer higher quality financial reports as evidenced by lower discretionary accruals, greater ability of earnings to predict cash flows and larger earnings response coefficients. In addition, Ali et al. (2007) find that family firms in the SP 500 are more likely to voluntarily issue earnings forec asts during periods of earnings declines. However, they also find that family firms are less forthcoming in their disclosures about corporate governance. In a paper that was written concurrently with ours, Chen et al. (2007) study the frequency of voluntary disclosures (earnings and non-earnings forecasts and conference calls) from a larger sample of firms that includes the SP 500, SP MidCap 400 and SP SmallCap 600 in the five years before the enactment of Regulation Fair Disclosure (Reg FD). They also find that family firms are more likely to issue bad-news earnings warnings but overall make fewer forward-looking disclosures than non-family firms, and conclude that their results are consistent with family owners having a longer investment horizon and better monitoring of management, characteristics that obviate the need for greater disclosure. This paper contributes to the growing literature on the disclosures of family firms by studying one of the most informative and common types of voluntary financial disclosures—the companys own forecasts of its quarterly earnings per share—and sell-side analysts and investors responses to them. More specifically, we examine the characteristics of these disclosures (forecast specificity, surprise and accuracy), and the impact they have on important market indicators—professional analysts earnings estimates and stock prices. Thus, our analysis is designed to provide additional evidence on the relation between ownership structure and the quality of the firms information environment and, in particular, complements the existing empirical evidence on the characteristics and informativenesss of mandatory financial disclosures made by family and non-family firms (Ali et al. 2007 and Wang 2006). As noted above, we focus on a particular type of voluntary disclosure, managements forecasts of quarterly earnings per share, and do so for two reasons. First, prior research indicates that these forecasts are highly value-relevant—and more value-relevant than management forecasts of annual earnings per share (Pownall et al. 1993, Baginski and Hassell 1997). As a result, we believe that the quarterly forecasts are particularly well-suited for examining the different incentives family and non-family firms face in their attempts to control Type I and II agency problems, respectively. For example, higher quality forecasting by family firms (in terms of their forecasts being more specific, timely and accurate) is consistent with such firms creating a more transparent information environment and reducing a potentially severe Type II agency problem. Second, we are able to use a non-stock-price measure of the news in these management forecasts in our empirical work, which allows us t o more effectively analyze the markets perception of the differential information content in the forecasts made by family and non-family firms.[2] We also separate our sample of forecasts into guidance (i.e., forecasts made prior to the end of the quarter) and preannouncements (i.e., forecasts made after the quarter ends but before earnings are released). We do this because the forecast horizon associated with preannouncements is very short, sometimes a matter of two or three weeks, and because much of the uncertainty regarding the forthcoming earnings number is resolved by the fiscal quarter end for most, if not all, firms, regardless of whether or not they are controlled by a family. Thus, the Type II agency problem in family firms, if it dominates the Type I agency problem, is more likely to be mitigated through the provision of guidance than preannouncements. This leads us to hypothesize that the characteristics of guidance, but not preannouncements, are systematically related t o family-firm status, and that analysts and investors will react differently to the guidance, but not to preannouncements, issued by family firms, holding all else constant.[3] We test our hypotheses on the quarterly earnings forecasts made between 1998 and 2006 by the family and non-family firms in the SP 500 index, as identified by Business Week (November 10, 2003) and contained in the First Call Company Issued Guidance (CIG) database. There are two aspects of our sample that should be highlighted. First, our sample firms are among the largest, most stable and most visible in the U.S. As a result, our results may not generalize to smaller, less visible family firms such as those included in Chen et al.s (2007) sample. Second, our sample period spans the implementation of Reg FD. Thus, we provide evidence that complements the pre-Reg-FD evidence in Chen et al. (2007) and the limited post-Reg-FD evidence in Ali et al. (2007). The results of our empirical tests generally indicate that the guidance provided by family firms is of higher quality than that provided by non-family firms. In particular, after controlling for other influencing factors, we find that the family firms in our sample provide significantly more specific guidance (in terms of forecast form and narrowness of forecast range) than non-family firms, especially when conveying bad news or offering confirmatory guidance. We also find that family firms use guidance to make smaller average adjustments to the markets estimate of the upcoming quarterly earnings than non-family firms, especially when conveying bad news. This is consistent with their being more timely in offering corrections to analysts estimates. More importantly, we find some evidence of a stronger and quicker response by analysts (as measured by the number of subsequent earnings estimate revisions and the speed with which they occur) to the guidance issued by family firms, and str ong evidence of a significantly greater investor response (as measured by announcement-period abnormal stock returns) to the guidance issued by family firms. These findings, taken together, indicate that guidance is more informative and more useful to the market when it is issued by a family firm. They are also consistent with family firms using guidance to create a more transparent information environment, which therefore, complements the finding of higher quality financial reporting by family firms in Ali et al (2007) and Wang (2006). Consistent with our expectations, we find little evidence of differences in the characteristics of preannouncements issued by family and non-family firms, although there is some (weak) evidence of family-firm preannouncements being more specific when they contain bad news.[4] Also consistent with our expectations, we find no evidence of a differential stock price response to preannouncements made by family and non-family firms, although we do find that analysts response more strongly to family-firm preannouncements, especially when they contain bad news. These results, when considered with the guidance results discussed above, suggest that family firms produce higher quality earnings forecasts than non-family firms, particularly when they are offered as guidance or contain bad news, and that their guidance is more informative and useful to investors and analysts. Thus, our paper provides evidence of family firms using management-generated earnings forecasts to create a more transpare nt information environment. Our paper contributes to two bodies of research: the growing literature on disclosures by family firms, as noted before, and the established literature on management forecasts. While our paper is most closely related to Ali et al. (2007), Chen et al. (2007) and Wang (2006), who examine the mandatory financial disclosures of family firms and the frequency of their voluntary disclosures, we also complement Anderson et al.s (2006) analysis of other dimensions of disclosure transparency. Anderson et al. (2006) find that family firms are significantly more opaque than non-family firms as measured by a summary statistic that captures the effects of trading volume, the bid-ask spread, analyst following and analyst forecast errors. Taken together, the evidence in Anderson et al. (2006) and our paper suggest that certain types of transparent disclosures appear to be better suited than others to mitigating the agency problem that arises between controlling and non-controlling owners. The literature on management forecasts is more mature and, as a result, guides much of the structure for our analysis. Consequently, we follow prior work by Ajinkya and Gift (1984), Baginski and Hassell (1990, 1997), Bamber and Cheon (1998), Baginski et al. (2002, 2004), Ajinkya et al. (2005) and others, in designing our tests. In a recent paper, Hirst et al. (2007) provide a review of this literature and propose a framework for continued research in this area. They observe that choices concerning the characteristics of management earnings forecasts are not yet well understood and suggest that additional work addressing this issue is needed. Our contribution to the literature on management forecasts is to analyze the differential impact of Type I and Type II agency problems on the characteristics of management earnings forecasts provided by family and non-family firms, including the time of their release, as well as the market and analyst reactions to them. Thus, we add to the initia l evidence on the underlying reasons for providing management forecasts in different forms and with different specificity—and on their impact of the stock prices of family and non-family firms. Finally, our results on confirmatory guidance support and extend the results in Clement et al. (2003). The rest of the paper is organized as follows. In Section 2, we review of the relevant literature and develop hypotheses. In Section 3, we describe our sample and data, and in Section 4, we present the empirical tests. We offer concluding remarks in Section 5. 2. Literature Review and Hypothesis Development Family firms are defined in the academic literature as firms in which founders or their descendants exercise control either because they are significant shareholders or because they are part of top management or the board of directors. Not only are family firms common in Europe and Asia (see, for example, LaPorta et al. 1999, Claessens et al, 2000, Gomez-Mejia et al. 2001 and Faccio and Lang 2002), they comprise approximately one-third of the SP 500 in the U.S. (Anderson and Reeb 2003a).[5] Further, family members ownership stakes are significant: Anderson and Reeb (2003a) report that in the SP 500, family members hold, on average, 18% of the voting shares in their companies. A large literature on family firms has recently developed in accounting and finance, much of it focused on the differences in agency problems that arise in family and non-family firms.[6] Of particular interest to us are the agency problems arising from (1) the separation of ownership and control, and (2) the conflict between controlling and non-controlling shareholders.[7] The papers that examine these conflicts generally argue that (1), referred to as the â€Å"Type I† agency problem in Ali et al. (2007), is less important for family firms because of the unusually close alignment of owners and management in those firms when compared to non-family firms (e.g., Ali et al. 2007, Chen et al. 2007, Wang (2006).[8] They also argue that the tight linkage between some owners and control in family firms exacerbates (2), referred to as the â€Å"Type II† agency problem in Ali et al. (2007), in which family members transfer wealth to themselves to the detriment of other sharehol ders. As is well known, such agency problems can be partially mitigated by frequent and transparent disclosure, suggesting that family firms are more likely to offer a variety of mandatory and voluntary disclosures whose implications are clearer to market participants.[9] In contrast, Wang (2006) suggests that family firms may not face a more severe Type II agency problem if the long-term nature of their investment is well understood by the market. In essence, he argues that long-term investors are less likely to exploit agency problems for short-term gain—thus, family firms may not need to resort to greater frequency or transparency of disclosures. Ali et al. (2007) and Wang (2006) empirically test these competing predictions by comparing aspects of the accounting disclosures made by family and non-family firms. Both find that earnings quality is higher for family firms, especially when a founder CEO is in place. Thus, both provide some evidence consistent with family firms mitigating their Type II agency problems—or responding to the demands of the users of financial statements—with higher quality disclosures. More specifically, Ali et al. (2007) document lower discretionary accruals and greater earnings persistence for SP 500 family firms compared to SP 500 non-family firms. In addition, they find that the association between earnings and stock returns is higher for the family firms. Similarly, Wang (2006) finds that SP 500 founding family firms have lower abnormal accruals, greater earnings informativeness and less persistence in transitory loss components in earnings. He extends this analysis by considering th e effect of the percentage of common stock owned by family members on the magnitude of the Type II agency problem. Interestingly, he finds that the relation is nonlinear: When founding family ownership is above (approximately) 60%, the quality of the earnings reported by non-family firms exceeds that of family firms. Ali et al. (2007) also provide some evidence inconsistent with family firms mitigating their more severe Type II agency problem through the use of disclosures: They observe that family firms are less forthcoming about their corporate governance practices and that when they employ a dual class share structure, earnings quality is lower relative to when they do not have such a structure. Another method for testing whether family firms mitigate the potentially more severe Type II agency costs—or respond to financial statement users demand for high quality accounting information—through greater frequency and transparency of disclosures is to examine the issuance of management earnings forecasts by family and non-family firms. Complicating this is the litigation argument proposed by Skinner (1994) and Kasznik and Lev (1995) which suggests that the use of earnings warnings will vary positively with the litigation risk that the firm faces, and inversely with the severity of the firms Type I agency problem (Ali et al. 2007). However, since the Type II agency problem is expected to be more severe and the Type I agency problem less severe in family firms (Ali et al. 2007), family firms would be expected to provide management forecasts to mitigate both types of agency problems, holding litigation risk constant. The relative severity of the Type II agency problem further suggests that family firms earnings forecasts will be of higher quality (i.e., more specific, timely and accurate), and that market participants (e.g., sell-side analysts and investors) will respond more strongly to them. Ali et al. (2007) provide initial evidence in favor of this hypothesis when they observe that family firms are more likely to provide earnings warnings (i.e., guidance that warns of a forthcoming earnings decline) than non-family firms. In a more recent paper, however, Chen et al. (2007) provide evidence that family firms make fewer voluntary disclosures than non-family firms. They collect ownership and founding family information from several sources to identify family firms in the SP 1500 and find that family firms are (1) 8.1% less likely to provide management forecasts of all kinds (i.e., annual and quarterly earnings, revenues, cash flows, etc.), and (2) less likely to hold conference calls as well. They also find, however, that family firms are more likely than non-family firms to issue bad-news earnings warnings. Chen et al. (2007) conclude that these results, when considered collectively, indicate that family firms owners prefer less disclosure because of their long investmen t horizon and effective monitoring of managers, but that their concern with reducing litigation costs results in an increased likelihood of bad news earnings warnings. In this paper, we hope to add to our understanding of the relative importance of the competing incentives studied in previous work by examining (1) the characteristics of management forecasts of quarterly earnings per share (both guidance, which is offered prior to the end of the quarter, and preannouncements, which are offered after quarter-end but before the actual earnings announcement) of family and non-family firms, and (2) the response of sell-side analysts and investors to those forecasts. In particular, we hope to add to our understanding of the disclosure choices of family firms by determining whether their own earnings forecasts are more specific, timely and accurate, consistent with family firms providing higher quality disclosures—and whether those forecasts are viewed as being of higher quality by market participants as measured by their response to the disclosure. We also separate our forecasts into guidance and preannouncements under the assumption that any fami ly-firm effect will be more likely to be observed in guidance because of the longer horizon over which the forecasts can be made. More specifically, in the case of preannouncements, there is a very short forecast horizon (e.g., a few weeks beyond the end of the quarter) and so we do not expect large differences in timeliness of the preannouncements between family and non-family firms. Further, because much of the uncertainty about the earnings numbers is resolved by quarter-end, differences in the specificity of preannouncements between family and non-family firms, if any, are likely to be small. Finally, motives to provide preannouncements are likely to be dominated by the litigation argument proposed by Skinner (1994) and Kasznik and Lev (1995).[10] If this is the case, differences in characteristics of voluntary earnings forecasts, and in market participants responses to them, are likely to be concentrated in guidance. As in prior research, we recognize that because of competing forces, whether the guidance of family firms is of higher quality is an empirical question. Thus, our formal hypotheses regarding guidance are non-directional, as in Chen et al. (2007) and Wang (2006): H1: The specificity, timeliness and content of earnings guidance is systematically related to whether the firm is classified as a family firm. H2: Sell-side analysts and investors responses to earnings guidance is systematically related to whether the issuing firm is classified as a family firm. 3. Sample and Data. Our sample is comprised of 4,130 management quarterly earnings guidance announcements issued between 1998 and 2006 by the family and non-family firms in the SP 500 as identified by Business Week in its November 10, 2003, issue. Business Week defines a family firm as â€Å"†¦any company where founders or descendants continue to hold positions in top management, on the board, or among the companys shareholders.† To identify family firms, Business Week relies on the methodology developed by Anderson and Reeb (2003a, 2003b) as well as their advice and the help of Spencer Stuart as they â€Å"†¦examined regulatory filings, company Web sites and corporate histories† to ensure significant family involvement in the company. (For details, see â€Å"Defining Family,† Business Week, November 10, 2003, p. 111.) Before proceeding, we want to highlight certain aspects of our sample. First, because the Business Week classification pertains to only SP 500 firms, the fi rms in our sample are among the largest, most stable and most profitable companies in the U.S. As a result, our findings might not extend to mid- or small-cap companies. Second, our reliance on the Business Week classification means that we do not form a new sample of family and non-family firms each year. However, as Ali et al. (2007) note, family firm status is sticky, and thus misclassifications due to changing firm status will most likely bias against our finding significant results. Third, Business Weeks classification scheme is designed to identify firms that are controlled by a family without relying on a single proxy for control, such as ownership share. As a result, it captures features of family firms, beyond simply having large blockholders, that are likely to exacerbate Type II agency problems. Fourth, by using Business Weeks classification, which is based on the â€Å"standard† developed by Anderson and Reeb, our results are more easily compared to many prior res ults. Finally, while we recognize that Business Week might not accurately classify every firm, both types of classification errors (i.e., misclassifying firms without significant family control as family firms, and misclassifying firms with significant family control as non-family firms) limit our ability to detect differences in the forecasts of family and non-family firms and therefore bias against our finding significant results. We form our sample by first gathering all forecasts of quarter-ahead earnings made between 1998 and 2006 by the SP 500 as of June 2003 from the First Call Company Issued Guidance (CIG) database. We lose 1,994 of the original 7,694 observations because of unavailability of (1) necessary Compustat and CRSP data, (2) actual earnings per share and other analyst forecast data from First Call, and (3) observations with multiple actual earnings per share numbers. After deleting stale forecasts (those made before the prior quarters earnings announcement date), we retain all â€Å"guidance† observations (forecasts made at the same time as or after the prior earnings announcement and at or before the quarter end, N = 4,332). We trim the sample to mitigate the effect of outliers as follows. First, we eliminate the top and bottom one-half percent of the management forecast errors in each sample, the top and bottom one-half percent of the forecast surprises in each sample, the top and bott om one-half percent of the three-day cumulative abnormal returns in each sample and finally, the top and bottom one-half percent of return volatility ratios in each sample—and retain the union of the remaining observations. (These variables are defined in the Appendix and will be discussed in detail later.) We then eliminate 62 firm quarter observations whose stock price is less than $5 as of the beginning of the quarter. This results in a final sample of 4,130 guidance announcements. One-hundred-and-forty six of the 177 family firms identified by Business Week (82.5%) provide guidance during our sample period as compared to 240 of the 323 non-family firms in the SP 500 (74.3%). [11] Before turning to the empirical analysis, we note for the reader that the management guidance we gather from the CIG database is not split-adjusted whereas the analysts estimates and reported earnings per share in the main First Call file are (further, they are rounded to the nearest penny). An I/B/E/S unadjusted data file is available but unfortunately, we would lose a significant number of observations if we were to use it. Consequently, to keep the sample size as large as possible and still allow for comparability, we split-adjust the management guidance from the CIG file using the split-adjustment procedures used for the analysts estimates and reported earnings per share in the First Call file.[12] 4. Empirical Analysis. 4.1. Univariate Analysis. We present descriptive statistics for the guidance announcements, firm-specific characteristics and variables relating to analysts and stock returns in Table 1. We also include the results of two-sample t-tests and Wilcoxon signed rank sum tests for each variable. As noted before, we provide a list of variables and their definitions in the Appendix. We begin with forecast characteristic metrics designed to help us understand the differences, if any, in the specificity, timeliness, frequency and content of the earnings forecasts offered by the management of family and non-family firms. We present descriptive statistics first for the form of the forecast (an indicator of specificity) as measured by Forecast Form. As is well known, forecasts in the CIG database take one of several forms, which we code in the following manner: If the forecast is a specific earnings per share number (a point forecast), it is coded as 4; if it is a range of possible earnings per share numbers (a range forecast), it is coded as 3; if it consists of a one-sided directional forecast (either a maximum or minimum forthcoming earnings per share number), it is coded as 2; and if it contains no quantitative information (a qualitative forecast), it is coded as 1.[13] Note that our coding scheme is designed so that a higher value of Forecast Form indicates a mo re specific forecast. To further examine forecast specificity, we focus next on Forecast Width for range forecasts, which measures the difference between the maximum and minimum earnings per share figures offered in the forecast. (A narrower width indicates a more specific forecast.) In later tests, we include point forecasts as forecasts with a width of zero. To examine forecast timeliness, we use Forecast Horizon which is the number of calendar days from the management forecast date until the end of the quarter. More days in the forecast horizon indicate more timely forecasts. Finally, we form Annual Frequency and Quarterly Frequency variables, which measure the number of annual and quarterly management forecasts for each of our sample firms in the CIG database from 1994 through 2006, scaled by the total number of possible forecasting years (for Annual Frequency) or quarters (for Quarterly Frequency) to date. The descriptive statistics and statistical tests for Forecast Form provide initial evidence consistent with family firms issuing significantly more specific guidance than non-family firms. In particular, Forecast Form has slightly higher numerical values, on average, for family firms (p = .028, using the Wilcoxon test).[14] To further explore the potential differences, we examine the frequency distributions of the forms that guidance takes, as presented in Figure 1. As is obvious from the figure, range forecasts are by far the most common form of guidance for both family and non-family firms, making up nearly two-thirds of all guidance in our sample. Further, both family and non-family firms offer approximately 89% of their guidance as point or range forecasts. However, family firms offer relatively more of the more specific point forecasts (28% versus 23% for non-family firms) and relatively fewer of the less specific range forecasts (61% versus 66% for non-family firms).[15] Conver sely, guidance in the form of qualitative statements or minimum/maximum earnings per share numbers is unusual in our sample, regardless of the type of firm examined. The small number of qualitative forecasts in our First Call sample is inconsistent with Hutton et al. (2003) and Miller (2002), who find a substantially larger number of such forecasts when hand-collecting their samples than are included in the First Call database. (Anilowski et al. 2006 also suggest that First Call is more likely to include quantitative forecasts than qualitative ones.) This suggests that our sample is most likely incomplete and most representative when only quantitative forecasts are considered. For these reasons and because many tests require that we restrict attention to point and range forecasts, we will generally focus our discussion on point and range forecasts only. As just noted, range forecasts are the most common type of guidance in our sample. While it is clear from Figure 1 that non-family firms issue more range forecasts as guidance than family firms, Table 1 indicates that those issued by family firms are significantly narrower, as measured by Forecast Width (p = .000 for both the Wilcoxon and the two-sample t tests). This finding, when considered with the preliminary evidence of greater usage of point forecasts by family firms, suggests that guidance issued by family firms is generally more specific than that issued by non-family firms, consistent with H1. The next two forecast c