Antibiotics

After suffering a lot of devastating epidemic attacks and mass deaths, humanity invented antibiotics and started applying them against known bacterial diseases. Using antibiotics for the last 6 decades, we are now facing the results of the process caused by genetic changes and mutations in bacteria. This can be explained by one of the basic principles of evolution: natural selection, which suggests that the fittest and the strongest survive, and the weakest disappear. Bacteria are one-celled organisms, which are very vulnerable to mutations. It is known that the most of the mutations affect the organisms. But certainly, there are some chances of positive outcomes of mutations as well. Mitosis of bacteria is a very fast process, which brings to rapid growth of the population. Having such huge number of bacteria, the chances of positive mutation are higher, therefore, more and more bacteria can become resistant to antibiotics treatment. Nowadays, different types of pathogen bacteria can already survive the existing antibiotics, and using an excessive amount of antibiotics we dramatically fastened the process of natural selection in bacteria evolution. This situation threatens the effectiveness of traditional treatment methods to bacterial diseases. That is why world scientists are facing the necessity of searching for new antibiotics, either modifying the known ones or looking for something absolutely different. According to the research of the Harvard School of Public Health, in 2005 â€Å"..more than 40% of Streptococcus pneumoniae strains in the United States could resist both penicillin and erythromycin† (Powledge, 2004). The other researches, based on mathematical modeling, show that in the nearest future more and more species of bacteria will be able to resist old antibiotics. Therefore, if no new antibiotics are available, we’ll become totally unprotected against hard diseases, like tuberculosis, etc. Bibliography: Powledge, T. M. (2004, February 17). New Antibiotics—Resistance Is Futile. PLoS Biol 2(2): e53

International Security: Saudi-Iraq Border Dispute Essay

When the Saudi Arabian government began to experience the uprising of social movements in the 1960s, one of the first suspects of origin was Baghdad. The tension that had been going on between the two countries quickly degenerated to a point where it became volatile. Since forces in Baghdad had been suspecting of having a role to play in movements similar to the one in Saudi Arabia around the same time, it was natural for Saudi Arabia to develop relations towards Baghdad that were all the more strained in nature. This paper shall provide an introduction to the relationship between Saudi Arabia and Iraq and shall attempt to begin by establishing an understanding of the evolution of their relationship over time in order to attain a clearer picture of attain a clear picture and a complete understanding of the actual nature of relationship that exists between the two countries. The paper shall begin by providing a brief introduction to the relationship between the two countries and shall then proceed to delve into the scenario that exists with respect to the volatility of the Saudi-Iraq border. The paper shall give special attention to areas that pertain to the terrorist threat posed because of the scenario that exists on the border of Saudi Arabia and Iraq. The paper will highlight the problem of the terrorist movement across the Saudi-Iraq border and shall elaborate upon the numerous aspects that pertain to the terrorist movement across the Saudi-Iraq border and how it serves to put both the countries at a risk in the process. In the latter paragraphs, the paper shall also elaborate upon the ethnic problems that exist in Iraq in order to highlight the volatile nature of the current Iraqi situation. Special consideration will be given to the aspect of migration that exists across the two regions and in the area of illegal migration with respect to situations such as the Saudi-Iraq border in general. As a result of the deteriorating relations with Iraq and the close proximity with the same that Saudi Arabia was faced with, it was only natural that Saudi Arabia began to attempt to strengthen its relationship with other neighboring countries and allies such as Iran, Kuwait, Syria and the United States. It is not too hard a task to note that Saudi Arabia was particular in improving relationships with countries that held a similar loathing towards the Iraqi government. The 1970s saw an improvement in the relations between Saudi Arabia and Iraq, fundamentally because of the fact that both countries were in fear of the implications of the Iranian Islamic Revolution spilling over into their territories. In the 1980s, Saudi Arabia actually served to assist Iraq during the Iran-Iraq war through numerous loans that were designed upon generous return terms (Tollitz, Prados and Blanchard). However, this ripening of the relationship between the two countries did not last long when Iraqi forces took hold of Kuwait. In retaliation, Saudi Arabia took action against Iraq and also sought assistance from the United States in confronting Iraqi forces. The United States responded by sending its troops to Saudi Arabia upon the invitation of the threatened country and using the coalition that they held in the opposition of Iraq, the United States forces were given complete permission to make use of Saudi Arabia’s military facilities. The United States did not merely assist the Saudi Arabia government in the war against Iraq but also served as an integral spearhead in the war. The United States forces were took part in ground assaults as well as areal assaults against Iraqi forces. The fact that the Iraqi forces chose to launch Scud-B missiles at numerous towns in the Saudi Arabia served to hit the nail on the head with regard to the deterioration of the relations between both countries. The damage to Saudi Arabia as a result of the missiles was predominantly that of civilian life and property. By this time, the relations between Iraq and Saudi Arabia damaged to a point where next to nothing could possibly be done to repair them since the people of the two countries had grown to loathe each other as the war raged on. As time went by after the war, every foreign policy that Saudi Arabia formulated was designed to ensure that it addressed any all threats that Iraq could pose towards Saudi Arabia. Elements such as these were areas of Saudi Arabia’s foreign policy which dictated that Saudi Arabia would support forces in Iraq that opposed the government and desired to remove Saddam Hussein’s reign (Al-Rasheed). The Saudi Arabia proceeded with this stance for a few years without making it too public, but as time went by and the 1990s approached, the desire to topple Saddam’s government became all the more dominant and prominent in Saudi Arabia’s foreign policy. When Saddam Hussein’s reign finally ended, Saudi Arabia was relieved of one issue with regard to Iraq, but was immediately visited by another. Over the years, the Saudi and the Iraqi border had been a much disputed region. Neutral zones had been established along the perimeter as a result of prolonged discussions and negotiations between the two countries. When the United States forces invaded Iraq, the influx of terrorists into Iraq and the out flux of refugees, both became functional in a manner such that the Iraq-Saudi Arabia border was incorporated (Tripp). It is essential to highlight at this point that in the latter half of 2006, it was reported that Al-Qaida operatives had begun to move from bases located and operational in the Pak-Afghan region, to Iraq where Al-Qaida has apparently decided to channel its man power for the coming period. It was speculated that there is a chance that Al-Qaida operatives may choose to enter Saudi Arabia and then gain access to Iraq through the border connecting Saudi Arabia and Iraq. It would not be unjustified to concur that Iraq is playing out the role of a magnet of sorts for hostile elements such as Al-Qaida and regions that fall around Iraq are therefore falling into the line of fire (Regan). As Al-Qaida operatives move from around the world towards the Middle East, Saudi Arabia is faced with a security threat that makes it not only vulnerable to terrorist threats, but by serving as a pathway for terrorist elements to cross through into Iraq, also puts Saudi Arabia in a compromising position with regard to its role in preserving international peace. The scenario for Saudi Arabia is quite similar to that which exists for the United States with regard to Mexico and for Israel with regard to Palestinian areas. Much like the United States, Saudi Arabia is also considering establishing a barrier along its borders. The Saudi Arabia is considering serious plans to establish a penetration proof barrier along its border with Iraq in order to keep out any violent and hostile elements. Not only are political extremists an issue, but the supplementing threat of drug smugglers does not come as any improvement in the scenario because this serves to open routes for other unwanted parties such as weapons dealers and human smugglers. The involvement of elements such as these causes the further degradation of the scenario and puts Saudi Arabia at a high security risk level. The threat to Saudi Arabia has only increased with the recent war in Iraq that has caused countless Iraqis to opt to flee across the Iraq-Saudi Arabia border. Along with the few refugees that have attempted to do so, hostile elements have also attempted to take advantage of the chaotic situation and have tried to gain access to Saudi Arabia. Saudi Arabia faces a highly vulnerable standing because of its border disputes with Iraq because of the fact that the Shia minorities of the country are located in the most significant oil producing regions of the country (The Associated Press ). However, the border is not causing problems merely for Saudi Arabia, but is also causing problems on the other side of the fence. This is because of the fact that as the war in Iraq rages on, hostile elements from Saudi Arabia are choosing to cross the border and join terrorists groups in Iraq that are operating against the coalition forces. The situation worsens further with the fact that this puts Saudi Arabia in a position where it may possibly serve as a gateway for terrorists into Iraqi territory. It has become almost natural for the neighboring countries of Iraq to fear that the force with which coalition forces are carrying out operations in Iraq may cause hostile elements to opt for using Iraq’s neighboring countries as their bases of operations or as safe houses for refuge (Saudi-US Relations Information Service). It is for the same reason that Saudi Arabia has decided to undertake security projects along its borders with Iraq that ensure that there will be almost no possibility of any infiltration from any of the two sides of the border. Measures such as these are because of the fact that the frequent illegal movement of hostile elements and illegal immigrants across the border tends to encourage such elements to attempt to transport equipment across the border as well. In the case of terrorist elements, this aspect is nothing less than alarming considering the damage that terrorists groups can cause to Saudi Arabia and Iraq both if they managed to establish a pathway to transport heavy weapons to and from the two countries. Because of the presence of such multilateral threats, both the Saudi Arabia and the Iraqi government have attempted to reconcile on disputes that they previously did not choose to bring up (Saudi-US Relations Information Service). Another adverse implication of the existence of the cross-border movement dispute between the two countries is the fact that there is a possibility that the excessive movement of hostile elements from Iraq may encourage elements to move across the border that could instigate the Shia minority into getting carried away with their emotions and working against the coalition forces (The Associated Press ). Iraq has been plagues with ethnic problems for years now. The conflicts between Sunnis and Shiite Arabs have turned Iraq into an increasingly volatile battle ground. Under the dictatorship of Saddam Hussein, the Shiites grew exponentially powerful and reached a point in the Iraqi society where they constituted sixty percent of the Iraqi society and were still denied their fundamental political and religious rights. Under Saddam Hussein’s regime, the Sunnis gained more power and reached a point where they formed the bulk of Saddam’s administration. A fact that serves to irk the Sunni population of Iraq is the presence of the political ties with Iran. This serves to anger not only the Sunnis of Iraq but also the Arab countries that are United States allies. The fear of Iranian influences intervening in the already increasingly volatile Iraqi scenario is an aspect that serves to increase doubts about the prospective Iraqi scenario. However, it is essential to mention that Kurds also play a significant role in the Iraqi scenario since they comprise of nearly twenty percent of the total Iraqi population. This puts them in a position where they are a minority that can have a significant influence upon the series of events that Iraq undergoes. The Kurds have their own distinct language, culture, history and traditions and are generally concentrated in and around the northern areas of Iraq. The Kurds have been struggling for their rights in the regions of northern Iraq, eastern Turkey, northeastern Syria, northern Iran and southern Georgia. Incidents where the Kurds have chosen to initiate a movement and have been faced with vicious oppression from the resident society. However, since the gulf war in 1991, the Kurds have found a considerable degree of independence in the regions in and around northern Iraq and have entered into Iraqi politics as well. However, even though the Kurds have gained a significant degree of recognition in Iraq, their desire to gain independence still exists with the same vigor as it held several decades ago. Fundamentally, the Kurds are a part of the Sunni Muslim population of Iraq, but the aspect of secular nationalism is quite strong in them. Another fact which serves to make the Kurds a highly crucial element in the Iraqi scenario is that they are concentrated in the northern regions of Iraq where oil is found quite commonly (Karon). This puts the Kurds in a position where they can choose to keep revenues with themselves instead of handing them over to the state, hence enabling them to establish an autonomous government that they can protect it from an external intrusion. However, the Kurds are faced with opposition from not only the powers of the state but also from the Turkmen minority that also has the same intentions. There has been a vast amount of migration in the Arabic gulf countries and specially the United Arab Emirates and if one was to consider the aspect of the migration that is caused as a result of disputes such as the Saudi-Iraq border issue, there are a number of natures of immigrants that can move about. The first and most dangerous are the terrorist elements that more than often choose to move around when disputes such as the Iraq-United States war erupt. When terrorist elements move around, they tend to establish a base of operations in any region they can during their stay there. Their movement causes the exercising of terrorist elements that may otherwise have become stationary and of no threat to the region where they are concealing themselves. As a result of the movement of active terrorist elements, these otherwise stationary terrorist elements become an active threat to the immediate region and the exchanging of information amongst these elements serves to increase the danger of the execution of a terrorist activity exponentially. This is also associated with the fact that the continuous movements of terrorists across different regions causes them to form safe houses in these regions that can later turn into their base of operations. Therefore, a country that is housing an active terrorism element may be actually serving as a base of operations for a terrorist activity in another country. The presence of scenarios such as these serves to cause deterioration of the relationship amongst allies because of the fact that evidence found at a terrorist attack which directs towards the involvement of an ally country serves to decrease the degree of trust that the victim region has on its ally and also simultaneously serves to show the inability of the region in keeping terrorist elements out or handling them once they have gained access, causing a deterioration in overall international relations. The second form of immigrants in a scenario such as this include refugees who choose to leave behind their native land and attempt to establish a refuge in a region that is not their native region by birth. In cases such as these, the region to which they migrate in order to seek refuge more than often has to face an imbalance of sorts because of the adjustment of an unexpected influx of refugees into the region. In cases where the region is already suffering through an economic imbalance, the influx of refugees causes a further deterioration of the economic scenario.

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

Multicultural Matrix paper - Essay Example Due to the globalizing trend of economy in particular and of the world in general, people of different races and cultures move dramatically from one place to another in the global scale. As a consequence, a nation-state -- especially the advanced or developed countries such the North America and the Great Britain -- in the present time-period is inhabited or populated by many and various races and cultures. Perhaps this diaspora of people from different land and time, at certain rate, is a welcome to particular nation-states. It is arguable that industrialized nations widely receive the migration of people of different colors mainly because of the latter’s worth or value in the economic sense. For one, colored people are beneficial and helpful to the country’s progress and development. That is, they become part and parcel of the labor force from their host country. For a particular nation-state, people from multicultural backgrounds are greatly advantageous or â€Å"he lpful† for the reason that they are industrious and submissive. Du Bois, Yavno, and Stanford (2001) note that multicultural groups such as Mexican Americans have â€Å"histories of low-paying manual labor† (p. 78). People from different colors and cultures are more submissive to their host country to the extent that they allow themselves to be exploited.

Eastern Massasauga Essay Example | Topics and Well Written Essays - 500 words

Eastern Massasauga - Essay Example Eastern Massasauga is a rattlesnake, tail tipped by grey-yellow horny rattles and with several dark brown rings. An adult Massasauga is 18 to 30 inches in length (US fish and wildlife service web). Eastern Massasaugas inhabit wet areas. During spring, Massasauga use open shallow wetlands or shrub swamps. During summer, they move upward to drier areas where they can be found the sunning in open fields. In the northern part of the US, Eastern Massasauga live in Canada, Ontario, around Georgia bay, Northern Indiana, and Northern and Central Ohio. In addition, they live in Lower Peninsula of Michigan although they are declining due to human activities. Its protection in Michigan as an endangered species is due to destruction of its habitats. Eastern Massasauga is classified in the Eukarya domain, Animalia kingdom, Chordata Phylum, and reptilian class. The botanical name of Eastern Massasauga is Sistrurus Catenatus. The word â€Å"Massasauga† translates to â€Å"great river mouth,† in the Chippewa language describing wet areas surrounding a river where snakes can be found. Other names given to Eastern Massasauga are black Massasauga rattlers, Massasauga rattlers, Michigan rattlers and swamp rattlers (Eastern Massasauga rattlesnake web). An Eastern Massasauga is a slow moving snake that often strikes if disturbed. In New York, it is the smallest of the three venomous snakes. They employ camouflage where they hide in areas that bear the same colour as themselves. Massasaugas take advantage of their different adaptations to survive in the wet areas. For instance they have to detect prey from a distance through its organs. It uses Vomero-nasal organ also known as Jacobson’s organ that is located at the roof of the mouth with nerve endings in to the brain to detect prey. They take their tongue out to pick some air and place it on to the surface of Vomero for detection. In addition, this organ detects mates, geographical regions, and predators (John

Enterprise Project Management Assignment Example | Topics and Well Written Essays - 250 words

Enterprise Project Management - Assignment Example At such a point, the PMOs opt to use Scrum itself to sprint the PMO. Planning monthly and conducting daily scrums like all the other teams. The community of practice is that group that involves the like-skilled individuals who have the ability to build the high performance work groups .Such groups are based on the collaboration and facilitation that best apply in the project management. One of the most significant things that the PMO should do is to help in support the formation of such communities and then promote them. For that reason, communities of practice help in spreading Scrum throughout the organization. These groups also help in spreading all the good ideas from one team to the other (Pries & Quigley, 2012). Most PMOs are not fully implemented or even fail to get configured after sometime. In the process of changing the environment, the organization needs to see the results fast before starting a long term investment in a new PMO. When one starts reconfiguring the PMO, the set standards helps in planning and scheduling the progress and deviations of the projects. The tools necessary for enabling the PMO and other significant managers in the project environment helps to examine capabilities and potentialities as well as supervise the available resources and implement the operational planning and support activities such as training program management applications (Pries & Quigley, 2012). 2(b) The PMO is committed to the pursuit of excellence in all the project management practices. While ensuring that the project performance contributes to improving business performance, this will be carried out as the component of the PMO charter that requires to be clearly confirmed. For that reason, if the business intention of the PMO is not clearly stated, the PMO is viewed as the ad hoc attempt in fixing a temporary situation in the project

My Experiences during Last Years Summertime Vacation in Puerto Rico Essay - 3

My Experiences during Last Years Summertime Vacation in Puerto Rico - Essay Example This essay describes my experiences during last year’s summertime vacation in Puerto Rico. The beaches I visited during my stay in El Conquistador are the most beautiful beaches I have ever seen. During my second day on the island, I took a field trip to a beach in the southwestern part of the island called La Jungla. I felt like Leonardo Decaprio when he first saw the beauty of the forbidden beach resort in the movie The Beach. It was all nature; one could see the crabs in sand and fishes in the clear crystal water. Five minutes from this incredible beach there was a little village with several bars and restaurants. I ate in a place where they served me a classic Puerto Rican dish called â€Å"Mofongo con Carne Frita y Caldo de Pescado.† The plate is fried plantain with fried meat and fish stock. It was delicious and only cost like six bucks; exquisite taste at the price of a burger combo. The reason I chose El Conquistador as my preferred hotel apart from its reputation of provided great service which proved to be true is that it was located eight minutes away from El Yunque National Forest. El Yunque is the only tropical rain forest in the U.S. National Forest System. This is a mystical region that is out of this world. There was wildlife all around us as I walk through the moist roads within El Yunque’s territory. I reached a river and as I walked around a huge rock I suddenly saw a 30 feet waterfall. I could hear the singing of the Coquis. Coquis are a rare amphibian creature that can only survive in Puerto Rico’s system. Scientist in the past have tried relocating Coquis, but before reaching a foreign-located the Coqui dies. My summer trip to Puerto Rico in 2008 was a tremendous adventure.

Assignment on Lung Cancer Example | Topics and Well Written Essays - 750 words

On Lung Cancer - Assignment Example These research findings are very important since they negate the long-held perception that nicotine is fundamentally the cause of lung cancer. The specialty of these research works is that they have separately found the effect of years of smoking and that if genetic variants on an individual’s risk of getting lung cancer. Knowledge of the results obtained from these studies may be utilized in the development of more effective drugs and treatment options for the smokers. â€Å"We are all impatient for drugs that can cure cancer no matter when and where we find it† (Phelps, 2012). Findings of the research done by the team in Iceland also found that have specific gene variants even increases the addiction for nicotine in some smokers, which increases their susceptibility to getting lung cancer. ... â€Å"It is imperative that government agencies, the research and funding community, health systems and insurers, community leaders, schools and families all take steps now to cut tobacco’s rural roots [since more rural than urban population falls prey to it]† (â€Å"Cutting Tobacco’s Roots†). For those who continue taking the risk, drugs blocking nicotine might prove useful as nicotine is what triggers their chances of acquiring lung cancer. Nicotine in cigarettes increases the susceptibility of smokers with predisposition to lungs cancer to risk of this disease. I hate smoking and I have objective reasons for doing so. I totally agree with (Park) when she says, â€Å"we already know the best way to prevent [lung cancer] - by not smoking in the first place† (Park). Nothing comparable to that†¦ We were 8 family members in total including my mother, my father, my sister Lisa, my sister Mary, my eldest brother George, second to him was Martin, th en I, and in the last my brother Red. I have lost my mother and both sisters at the ages that are not very suitable and a bit too early considering the average age of death for women in our country. When my mother died, she was 52 years old. My sister Mary died and 40 whereas Lisa died at the age of 36 years. She was not even married and was heading towards her marriage. On the other hand, my father, George, Martin, I, and Red are aged 70, 56, 52, 49, and 45 respectively, and we are all not only alive but also in perfect health. One thing that was common among my sisters and mother was that they were smokers and surprisingly, one thing that is common among my father, George, Martin, I, and Red is that none of us smokes. My mother, my sisters, my father, my brothers and I all have been living

YES Is todays China a communist country Essay Example | Topics and Well Written Essays - 1250 words

YES Is todays China a communist country - Essay Example This was to contend the existence of inequality in the distribution of means of production and the oppression of the working class. He explained the important role played by the state and religion in placing people in classes. The main issue is to determine whether communism is practiced in China up to date. According to Books LLC communism was introduced in China in 1949 under the leadership of Mao Zedong and spread in the country and enjoyed the support of the majority (130). Communism affects all sectors in a country including the legal system, the social life of the citizens and the political system as explained by Mortimer (46). The country has been under the leadership of a single party since the introduction of communism. Mao Zedong introduced the system and remained in leadership till death. After this the leadership style began to change as power was not vested on one person. China practices violation of human rights for example the death penalty is still exercised, police brutality and discrimination against women (Mortimer 49). The issue can be addressed by application of socialism and effecting major changes in the governance of the country. The government should not interfere with the judiciary to ensure that justice is practiced. The government should respect the rights of the minority and major reforms should be implemented in this sector. The violation of human rights remains systematic and is highly practiced in the People’s Republic of China (PRC). According to Ding the violation of human rights involves the control on expression and association, ill treatment of prisoners and death penalty (59). The government continues to maintain political influence over the legislature resulting to an abusive and arbitrary judicial regime. There is a problem when it comes to the fundamental human rights in the country. There is evidence of police brutality as the citizens are beaten by

Victim’s responsibility Essay Example for Free

Victim’s responsibility Essay According to Karmen (2007), the question of â€Å"victim’s responsibility† can be reduced to six, listed from least to most guilty. The first is 100% guilt free victim, a victim that might be the victim of a random crime. After this, there is victim proneness, the specific kind of victim I have chosen for the first example used. Proneness is actually the adaption of a risky lifestyle that leaves one open to criminal mischief without actually precipitating it in any way. The next stage if victim facilitation, where certain ingredients for a crime are left in the vision of the criminal, such as wearing gold rings in a crime-ridden part of town. Then there is victim precipitation, where the victim has goaded the criminal in some way, leading to a crime. After this is the worst, victim provocation, where the victim has attacked or otherwise abused the criminal to such an extent that the criminal becomes such involuntarily. Lastly, the 100% guilty victim, the victim creating a crime for various motives, getting attention, etc. For this project I have chosen two murder cases: the first, the murder of Lana Clarkson by famed music producer Phil Spector in 2003, and the more recent murder of Meredith Kirchner by Amanda Cox (et al) in 2007. Given the evidence of the two cases thus far it is likely that both perpetrators are guilty. Cox has confessed to the murder of Kirchner, and, while the jury is still out on the Spector case, it does not look good. This essay will, for the sake of the course, assume that both Cox and Spector are guilty. The first case happened in February of 2003. The victim, a long time actress in secondary roles, was working part time in a local, trendy nightclub in Los Angeles. She met Phil Spector, and, only after a few hours, was in his mansion, where she was murdered. Spector says that she killed herself and was complaining of being â€Å"down† (Guardian, 2003). But the question of victimology is given in a (2003) op-ed piece by Wesley Strick, who chides the victim for getting into a limo with a stranger, or, barring that, that Mr. Spector was no strange, and had a reputation for violence and bizarre behavior (Strick, 2003). Hence, this case seems to flirt between victim proneness and Mr. Strick’s clear statement of victim felicitation. While it is true that working as an attractive hostess in a trendy bar is itself risky, the fact that she would have no qualms about getting into Spector’s limo with only a brief amount of time together may well bleed into victim felicitation. The second case I chose was the more recent murder of British college student in Italy, Meredith Kerchner. As of this writing, Amanda Cox, one of her murderers, has been convicted in Italy after a confession (Owen, 2007a). But Owen (2007b) holds that there was a certain level of victim felicitation. The reports of this case show that Miss Cox was mentally unstable, and that some of her roommates were very interested in vampirism and violent images (comics, etc). The reports on this case all suggest that violent sex games were planned Holoween night, and that Miss herchner was killed for refusing to play them. But it also is clear that the victim knew of these propensities, though not of their extent (Owen, 2007a) It seems that staying in this company goes a bit beyond victim proneness (thought this can be argued) and their Halloween antics might show a greater tilt towards victim felicitation, similar to the above case. Regardless, in both cases, the minimum one can claim is that both victims were prone to crime and were living risky lifestyles. At the same time, the decision to get into the car with Spector is parallel with the decision to stay with roommates and friends who had already shown some inclination to bizarre behavior. Hence, one can hold that both victims facilitated the crimes they became the victims of. At the same time, neither of the two victims mentioned above can be convicted of any of the more extreme forms of victim guilt, that of precipitation or provocation, at least with the evidence so far uncovered. If, for example, Miss Kerchner was involved in the sex games, and then withdrew, then one could make the claim that she was precipitating the crime. References: For the Lana Clarkson case: na (2003, 4 February). B-Movie Actress Named as Shooting Victim. Guardian.Strick, Leslie (2007, 18 April) Lana Clarkson’s Fade to Black. Los Angeles Times For the Meredith Kerchner case: Owen, Richard. (2007a, 7 November) Meredith Kerchner Killed After Refusing Orgy. The Times Online (http://www. timesonline. co. uk/tol/news/world/europe/article2821154. ece) . (2007b, 9 November) Meredith Killed for Refusing Violent Sex. Times Online. (http://www. timesonline. co. uk/tol/news/world/europe/article2841412. ece) For the victims typology: Karmen, A (2007) Crime Victims: An Introduction to Victimology. Thompson-Wadsworth.

Unstructured interviews to investigate violent crime Essay Example for Free

Unstructured interviews to investigate violent crime Essay Assess the strengths and weaknesses of using unstructured interviews to investigate violent crime. (15 marks) Violent crime is difficult to study in the context where it occurs; this is because by their nature, violent crimes are often swift and unexpected. It is very difficult, if not impossible, for a researcher to know when and where a violent crime is likely to be committed. Unstructured interviews are a research method which entails a sociologist asking participants a series of open-ended questions in an unstructured format. This method has both strengths and weaknesses, but is overall preferred by interpretivists as it provided qualitative data and is highly valid. This method is highly valid as it uses open-ended questions which allow for follow up questions to be asked. There aren’t any pre-set questions on the topic; the participant’s answer to a question determines what is asked next. This means that participants are more likely to answer questions about violent crime and they will be more inclined to give in depth answers which can be used to paint a true to life picture. However, unstructured interviews lack reliability, this is because they aren’t standardised. As the questions are created based on previous answers, no two people will have the same interview; they also cannot be repeated as it is unlikely that someone will provide the same answers on separate occasions. Also victims of violent crime are likely to answer differently to perpetrators as they have different experiences, for example, in cases of domestic violence. Another issue is representativeness as unstructured interviews are very time consuming, sociologists can only focus on small groups of people. Also as they are so personalised, they may not be representative of all who have a connection with violent crime. A factor in unstructured interviews is the interviewee’s view; participants can speak freely about themselves due to the fact that there are not set questions. The greater freedom allows the participant to bring in new ideas about themselves and what they have experienced within violent crime. One problem found with using interviews to study violent crime, is that victims are less likely to agree to participate, especially if the violence was recent (Crawford et al, 1990). Aldo investigating the perpetrators of violent crime after the event raises problems of cooperati on, memory and ethics. Unstructured interviews allow for the interviewer to form a rapport with the person being studied.

Assessing the decline of the pub industry

Assessing the decline of the pub industry The Leisure Industry is one of the major part of UK economy and has many branches. The key components of UK leisure industry includes pubs, bars, restaurants, cinemas, sport and physical recreation, arts and entertainment, countryside recreation, home based leisure and activity based leisure. Pub industry plays a vital role in community cohesion and social life in Britain and attracts millions of tourists every year. Pubs are frequently remaining few places where communities come together to socialize. Mintel Report states that in 2008 the pub sector experienced some of the toughest trading conditions because of the reasons like smoking ban, licensing laws, credit crunch, changing dining habits and cheap supermarket booze. Despite facing the tough conditions it is still on top of the UK leisure industry holding maximum share. The following report will show changing trends in UK Pub industry along with analyses articles written on Pub industry and showing data taken from Mintel UK lei sure industry review report and then exploring the Pub industry information to possible events to be included within the portfolio. Smoking Ban Since the smoking ban was introduced there has been a marked decline in number of pubs in UK. There was an expectation that smoking ban would become more appealing to a wider consumer base such as women and families. The ban has shown the rise in the food business, however the loss of frustrates smokers has not been matched by the influx of new pub goers. Between 2004 and 2007 all of the four United Kingdom legislatures voted to introduce a ban on smoking in most enclosed public places and workplaces. The bans came after considerable debate centered around the risks of exposure to environmental tobacco smoke and especially on the likely impact of a ban on the hospitality industry and particularly Britains pubs. (Paraphrase It and give PUB Visiting Mintel referencing -According to an Office for National Statistics report (2008/09) on visiting pubs since smoking restrictions were introduced, by smoking status; one in four smokers went to the pub more often before the smoking ban, compa red to one in five non-smokers who go more often nowadays. Mintel Pub Visiting Report (2010) shows that while a third of consumers (32%) agree drinking outside the home is more enjoyable since the smoking ban, there are mixed reports as to whether the smoke-free laws have achieved the health benefits expected. A report by NHS Information in September 2009 stated that men over the age of 35 smoke fewer cigarettes than before the ban, but younger men have started smoking more since it was introduced. Positive findings from the report were that a third of smokers now stay at home to smoke instead of going out, resulting in adults being exposed to less second-hand smoke than before the ban. Credit Crunch, Changing Dining Habits, Higher Taxes and Cheap alcohol selling by supermarkets White (2009) states that the UK Pub industry is facing perfect storm and finding it hard to compete with cheap alcohol sold at supermarkets, a trend increasing amid the credit crunch. Mintel Report shows that pub sales declined after the increase in taxes with their new licensing laws done by government and recession which led in increase of alcohol sold at supermarkets resulting in people changing dining habits. In 2007 Pub industry earned 26000 million pounds however in 2009 UK Pub industry earning has been gone down to 24000 million pounds resulting in loss of 2000 million pounds. According to Pratten (2003) the reason for falling trade is the major changes in pattern of leisure. Home entertainment became increasingly popular with an increase in rented videos and television. When combining the greater varieties of take away food and the lower prices of alcohol at the off licenses and supermarkets, a night at home become more attractive to people and the use of licensed retail prem ises fell. Moreover people are more willing to save for foreign holidays. As shown in Figure 2.2, the value of market was showing an increase until 2007; however it dropped by 3.08 percent in 2008 and 4.76 percent in 2009. Muir (2009) states that the changing consumer taste in alcoholic beverages in one of the factor of long term decline. Beer is the mainstay of pub incomes and yet beer consumption has fallen significantly in the last thirty years as show in Figure 2. 3. The Pub Industry is also facing tough competition from alternative leisure pursuits. The relative affluence of the last decade saw a significant rise in the number of people eating out in restaurants and there was a threefold increase in the rate of new restaurant openings between 1992 and 2007. (BBC News Online 2007). According to Mintel Report (2009) there has been a sharp increase in number of live sports event attendees from 2004 to 2009. In Addition, there has also been a significant rise in cinema attendees in recent years, which reached a 38 year high in the summer of 2007(The Independent 2007). According to the figures published in BBPA Statistical handbook 2010, there was a sharp, 6% decline in total alcohol consumption in 2009, making it the fourth annual decline in five years. UK drinkers are now consuming 13% less alcohol than in 2004. UK consumption remains below the average for the EU The UK Pub licensees are also facing rising cost. Increased materials and utilities prices have been passed on by the brewers in the higher wholesale price of beer. A shortage of malting barley and rising demand for bio-fuels has seen barley prices increase faster than inflation. Packaging costs have also been driven up by rising energy prices (BBPA 2008b). Licensees have seen their own operating costs increase. For example licensees have had to spend increasing amounts on entertainment to stay competitive. A recent survey by the ALMR found that their members third largest cost was entertainment. The 2003 Licensing Act abolished the two in a bar rule which had meant that no licence was r equired for putting on two live performers. In addition many pubs rely on live football to bring people through the door and Sky television fees have continued to increase. These are calculated on the rateable value of the pub and this can be disproportionately expensive for small pubs in higher rated rural areas.(APPBG 2008). Why Pubs matter The UK Pubs act as hubs for the development of social network between local people. As per data shown in figure 3.1 by CAMRA Omnibus survey (January 2009) 36 percent of the people said that pubs were important for get together compared with local cafes and restaurants showing 20 percent and 15 percent for local shops. According to APPBG (2008) the pub industry amounts to 2 percent of national GDP and community pubs provide 350,000 full or part time jobs. Mintel (2010) latest report on Pub visiting shows that 34 pubs were closed per week which were drink led and 5 pubs were closed which were food-led between July to December 2009. According to CGA, the pub closure rate has slowed to 29 per week for the first six months of 2010. At it worse, the pub closure rate was 52 pubs per week.( Morning Advertiser 2010). In addition, government has unveiled measures to protect british pubs which include 3.3 million pounds to be spent on business support to make pubs more successful and to help communities buy into struggling premises to keep them open. Pubs will be allowed to extend into ventures including restaurants, gift shops and book shops without planning permission. (BBC News) In addition to this benefit, pubs add a great deal to UK economy and hold a highest share in UK leisure industry. As per data shown in graph below, Pub industry holds 35 % share of total leisure industry by earning 24000 million pounds in 2009 According to news published in Guardian the government would be consulting on the introduction of banning low cost alcohol sales. Report suggested that supermarkets will be banned from selling wine, beer and spirits below a national minimum price. Conclusion The UK Pub industry is more than retail business which act as a local institution for encouraging people to mix with others from different background. In recent years the pub industry has been hit hard with thousands of pubs closed due to recession, smoking ban, high rents. But in any downturn there are opportunities which are investing in an independent or managed Pub located in central place offering good variety of food and drinks along with warm and friendly environment. While the pubs remain biased towards men, pub needs to sell wine and ciders to attract women market. In addition, the steps taken by government to save pubs are a good option to invest in pub industry.

Thomas Young :: biographies bio physics physicist

Thomas Young (1773-1829) Thomas Young was a brilliant man throughout his life. At a young age of fourteen, he was familiar with Latin, Greek, French, Italian, Hebrew, Arabic, and Persian. He was so educated in a variety of areas that his peers called him Phenomena Young. This Englishman found interest in languages, medicine, nature, and light. He did his studies in London, Edinburgh, and Gà ¶ttingen, and practiced medicine in London. With his strong interest in sense perception, he was able to make many realizations and discoveries about the eye. For example, he was the first to realize the eye focuses by changing the shape of the lens, he discovered the cause of astigmatism, and he and Helmoltz initiated the three color theory of perception. In 1801, regardless of the uncertainty from other scientists, his double-slit experiment established that light was a wave motion, making his famous. Over the years, he gained new interests. He started studying Egyptology, and while he was one Napoleon’s expedit ions he started studying the texts of Rosetta Stone. This in time helped to decipher the ancient Egyptian hieroglyphic writing. Some other interests that Young acquired over the years, leading him to more discoveries are surface tension, elasticity and energy. He even worked as a professor at schools, including the Royal Institution and Cambridge University. Thomas Young was a smart, well educated English physician and physicist. His love for his work and interests allowed him to make discoveries that help us to this day, and to be remembered and acknowledged as â€Å"†¦a man alike eminent in almost every department of human learning.† Lifelong Accomplishments 1773 -Thomas Young is born 1792 -Young decided on a career in medicine. 1793 -Presented a paper before the Royal Society in which he attributed the accommodation of the eye to its muscular structure 1794 -Elected to membership of the Royal Society -After completing his medical studies at Edinburgh and Gà ¶ttingen, he returned to London to practice but continued his scholarly studies at Emmanuel College, Cambridge -His uncle died, making him financially independent, allowing him to pursue his real interests 1798 -Some investigations on sound and light formed the starting point for his theory of interference 1799 -Began his medical practice in London -While attending medical school, he discovered how the lens of the human eye changes shape to focus on objects at different distances 1800 -Published his experiments on Sound and Light in the Philosophical Transactions of the Royal Society 1801 -Discovered the cause of astigmatism -Young and Helmholtz initiated the three color theory of perception.

How Mary Shelley Influences the Readers Reaction to the Creature :: Mary Shelley Frankenstein Essays

How Mary Shelley Influences the Readers Reaction to the Creature When Mary Shelley wrote Frankenstein in 1816, it was the birth of a new genre – the creation of a being, sci-fi at its earliest. Frankenstein’s creature, the concept way ahead of its time but a terrifying thought to its first audiences. In the following pages I will be discussing how Mary Shelley influences the readers reaction to the creature, I will be viewing the context of her writing, the way she portrays her view of what it means to be human, the anticipation of the creature’s coming to life, and the language Walton and Frankenstein use to describe the creature. In Walton’s first letter, after he sees the creature, he describes it as ‘the shape of a man†¦ but of apparently gigantic stature’ At first Walton doesn’t know what he saw but thinks the creature is a local and the crew is intrigued that there, out in the ice deserts, man has strayed. Through Waltons enquiring nature, Shelley encourages curiosity in the reader, and Waltons encounter with the creature ‘excites our unqualified wonder’. When Frankenstein first describes the creature, he describes it not as a mother would her newborn baby, but with horror and disgust, he describes its waking moments and its appearance, with and abhorrent attitude, and as soon as the creature awoke, Frankenstein, with a mixture of fright and disgust ran to his bedroom. When Shelley first describes the creatures coming to life, it gives the reader a feeling of both anticipation and anxiety, the detailed and emotive language of the description draws the reader in and captures their imagination. Frankenstein’s first description of the creature, â€Å"†¦ His yellow skin scarcely covered the work of muscles and arteries beneath; his hair was a lustrous black and flowing, †¦ but these luxuriance’s only formed a more horrid contrast with his watery eyes that seemed almost of the same colour as the dun white socket in which they were set† The adjectives Shelley uses to describe the creature are visual allowing the reader to visualise the creature as Shelley portrays. The use of rich, textural language animates the creature in the readers mind, such as ‘his yellow skin scarcely covered the work of muscles and arteries beneath’, and ‘his hair was of lustrous black, and flowing’. Shelley’s use of the words â€Å"horrible contrast† give the reader the opinion that the creature is too ‘horrible’ and thus Shelley imposes an opinion on the reader. Before the creature awakes, Shelley has already created an anticipation in the readers, when Frankenstein goes grave hunting and when he is first up in his room where he assembles the creature,

Pure and Impure Matter

Skills: Planning and Design Topic: Pure and Impure Matter Date: January 13, 2012 Problem: Troy was told that the presence of an impurity raises the boiling point of water. Troy wanted to carry out an experiment with salt water and distilled water to determine which would have a higher boiling point. Suggest a plan and design for this lab. Hypothesis: The salt water will have a higher boiling point than the distilled water. Variables: Controlled: the amount of distilled water and salt. Manipulated: The temperature of the distilled water.Responding: temperature of the salt water and temperature of the distilled water. Apparatus: beakers, bunsen burners, tripod stands, measuring cylinders, glass rod, electrical balance. Materials: distilled water, salt. Method: 1) get two beakers 2) Label them each, one salt solution and the other distilled water. 3) Measure 50cm3 of water into a measuring cylinder and pour into the beaker labeled salt solution. 4) Add 0. 8g of NaCl into the beaker labe led salt solution. 5) Stir until the NaCl is completely dissolved. 6) Place a thermometer into the beaker and apply heat. ) Record the temperature of the solution as soon as it starts to boil. 8) Repeat steps 3, 6 and 7 using distilled water. 9) Make observations. Expected results: the boiling point of the salt solution will be higher than the boiling point of the distilled water because sodium chloride is a non- volatile substance and an impurity when added to water. Therefore the substance does not change to vapour under normal heat conditions, because the bonds in the substances are stronger so a lot of heat must be applies and this will cause an increase in the boiling point.

Events of WWII Meless

On the morning of August 19, 1942 -? a convoy Of 237 ships reached Dipped and the German ships opened fire and woke the German soldiers. When the troops reached land the Germans were ready with a crossfire of bullets and artillery shells. 901 Canadians were killed, 2000 were captured, and only 221 1 soldiers made it back to England. Who German troops, Allied Troops (US, Britain, Canada and Russia) Why – British commanders who planned the raid had little or no experience. The sea battle took away the surprise attack, and the German troops were ready and waiting y the time the allied troops reached land.Relevance -? Learning experience for the Allied commanders, Allies learned that the Nazi's were well -prepped for future attacks on the French occupied coast and that any future attacks would have to be massive and well-organized. The failure of Dipped will help the planning of successful D-day. D-Day When – June 6, 1944 Where – Normandy France (Operation Overlord) Who – Germans, Americans, British and Canadians and American General Dwight D. Eisenhower What – Fought German troops, landing place had been pet secret and the Germans did not expect the attack.Invading troops had the massive support and protection. Landing was successful and within one month, more than one million allied Troops Were steadily pushing German armies out of France. Germans faced ;o major fronts and the Allied demanded Germany's unconditional surrender. In the end, Hitler shot himself and Mussolini and his wife ended up getting caught by the Italians underground resistance fighters and were later killed. Hitler committed suicide by shooting himself and finally the Europeans celebrated.This lead to V-E day (Victory in Europe Day) Relevance – Highly successful and well- planning battle, Germans were bombed and had to surrender – Ultimately this began the end for the European front of the War, leading to V-E day. Japan continues the Fight (A-bo mb) Where – Pacific (Hiroshima and Nagasaki, Japan) What -? Americans continued to fight the Japanese (who had never surrender policy, Kamikaze fighter pilots). Eventually, the Americans detonated the American bombs on Nagasaki and Hiroshima When – August 6, 1945 in Hiroshima and soon after in Nagasaki.Japan officially surrendered on August 14, 1945. Who – President Truman (USA), The US Military, Japan and Japanese Civilians (90 000 people died from the a-bomb in Hiroshima) Why – Americans wanted to shorten the war as it was still going on despite the German defeat. By dropping the A-bombs, Americans the first to use nuclear weapons in a war. Relevance -? Use of A-bombs helped the Americans defeat the Asian but at a high civilian cost. Ended WI. Revolutionized modern warfare and it was the foundation of Cubism (fear of nuclear weapons in General).

Porter’s 5 Force Analysis

The Industry Handbook http://www. investopedia. com/features/industryhandbook/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www. investopedia. com/contact. spx Table of Contents 1) The Industry Handbook: Introduction 2) The Industry Handbook: Porter's 5 Forces Analysis 3) The Industry Handbook: The Airline Industry 4) The Industry Handbook: The Oil Services Industry 5) The Industry Handbook: Precious Metals 6) The Industry Handbook: Automobiles 7) The Industry Handbook: The Retailing Industry 8) The Industry Handbook: The Banking Industry 9) The Industry Handbook: Biotechnology 10) The Industry Handbook: The Semiconductor Industry 11) The Industry Handbook: The Insurance Industry 12) The Industry Handbook: The Telecommunications Industry 13) The Industry Handbook: The Utilities Industry 14) The Industry Handbook: The Internet Industry IntroductionIndustry analysis is a type of investment research th at begins by focusing on the status of an industry or an industrial sector. Why is this important? Each industry is different, and using one cookie-cutter approach to analysis is sure to create problems. Imagine, for example, comparing the P/E ratio of a tech company to that of a utility. Because you are, in effect, comparing apples to oranges, the analysis is next to useless. In each section we'll take an in-depth look at the different valuation techniques and buzz words used in a particular industry, complete a 5-forces analysis on the state of the market and point you in the direction of industry-specific resources. Page 1 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. Porter's 5 Forces Analysis If you are not familiar with the five competitive forces model, here is a brief background on who developed it, and why it is useful. The model originated from Michael E. Por ter's 1980 book â€Å"Competitive Strategy: Techniques for Analyzing Industries and Competitors. † Since then, it has become a frequently used tool for analyzing a company's industry structure and its corporate strategy. In his book, Porter identified five competitive forces that shape every single industry and market.These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry. Figure 1 shows the relationship between the different competitive forces. Figure 1: Porter's five competitive forces This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 2 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. 1. Threat of New Entrants – The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: o o o o o oExisting loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources High costs of switching companies Government restrictions or legislation 2. Power of Suppliers – This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power: o o o There are very few suppliers of a particular product There are no substitutes Switching to another (competitive) product is very costly The product is extremely important to buyers – can't do without it The supplying industry has a higher profitability than the buying industry o o . Power of Buyers – This is how much pressure customers can place on a business. If one customer has a large enough impact to affect a company's margins and volumes, then the customer hold substantial power. Here are a few reasons that customers might have power: o o o o Small number of buyers Purchases large volumes Switching to another (competitive) product is simple The product is not extremely important to buyers; they can do without the product for a period of time This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 3 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. om – the resource for investing and personal finance education. o Customers are price sensitive 4. Availability of Substitutes – What is the likelihood that someone will switch to a competitive product or service? If the cost of switching is low, then this poses a serious threat. Here are a few factors that can affect the threat of substitutes: o o The main issue is the similarity of substitutes. For example, if the price of coffee r ises substantially, a coffee drinker may switch over to a beverage like tea. If substitutes are similar, it can be viewed in the same light as a new entrant. 5. Competitive Rivalry – This describes the intensity of competition between existing firms in an industry.Highly competitive industries generally earn low returns because the cost of competition is high. A highly competitive market might result from: o o o Many players of about the same size; there is no dominant firm Little differentiation between competitors products and services A mature industry with very little growth; companies can only grow by stealing customers away from competitors The Airline Industry Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction.Following the World War II, the first commercial airplane routes we re set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has also altered the way in which people live and conduct This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 4 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote. For more on the airline industry, read Is That Airline Ready For Lift-Off? ) The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the air line industry was at least partly government owned. This is still true in many countries, but in the U. S. all major airlines have come to be privately held. The airline industry can be separated into four categories by the U. S. Department of Transportation (DOT): ? ? ? ? International – 130+ seat planes that have the ability to take passengers just about anywhere in the world.Companies in this category typically have annual revenue of $1 billion or more. National – Usually these airlines seat 100-150 people and have revenues between $100 million and $1 billion. Regional – Companies with revenues less than $100 million that focus on short-haul flights. Cargo – These are airlines generally transport goods. Airport capacity, route structures, technology and costs to lease or buy the physical aircraft are significant in the airline industry. Other large issues are: ? ? ? Weather – Weather is variable and unpredictable. Extreme heat, cold, fog and sno w can shut down airports and cancel flights, which costs an airline money.Fuel Cost – According to the Air Transportation Association (ATA), fuel is an airline's second largest expense. Fuel makes up a significant portion of an airline's total costs, although efficiency among different carriers can vary widely. Short haul airlines typically get lower fuel efficiency because take-offs and landings consume high amounts of jet fuel. Labor – According to the ATA, labor is the an airline's No. 1 cost; airlines must pay pilots, flight attendants, baggage handlers, dispatchers, customer service and others. Key Ratios/Terms Available Seat Mile = (total # of seats available for transporting passengers) X (# of miles flown during period) This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 5 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. Revenue Passenger Mile = flown during the period) (# of revenue-paying passengers) X (# of mile Revenue Per Available Seat Mile = (Revenue) (# of seats available) Air Traffic Liability (ATL): An estimate of the amount of money already received for passenger ticket sales and cargo transportation that is yet to be provided. It is important to find out this figure so you can remove it from quoted revenue figures (unless they specifically state that ATL was excluded).Load Factor: This indicator, compiled monthly by the Air Transport Association (ATA), measures the percentage of available seating capacity that is filled with passengers. Analysts state that once the airline load factor exceeds its breakeven point, then more and more revenue will trickle down to the bottom line. Keep in mind that during holidays and summer vacations load factor can be significantly higher, therefore, it is important to compare the figures against the same period from the previous year. Analyst Insight Airlines also earn revenue from transporting cargo, selling frequent flier miles to other companies and up-selling in flight services. But the largest proportion of revenue is derived from regular and business passengers.For this reason, it is important that you take consumer and business confidence into account on top of the regular factors that one should consider like earnings growth and debt load. (For more about the consumer confidence survey, see Economic Indicators: Consumer Confidence Index. ) Business travelers are important to airlines because they are more likely to travel several times throughout the year and they tend to purchase the upgraded services that have higher margins for the airline. On the other hand, leisure travelers are less likely to purchase these premium services and are typically very price sensitive. In times of economic uncertainty or sharp decline in consumer confidence, you can expect the number of leisure travelers to decline.It is also imp ortant to look at the geographic areas that an airline targets. Obviously, more market share is better for a particular market, but it is also important to stay diversified. Try to find out the destination to which the majority of an airline's flights are traveling. For example, an airline that sends a high number of flights to the Caribbean might see a dramatic drop in profits if the outlook for leisure travelers looks poor. A final key area to keep a close eye on is costs. The airline industry is extremely sensitive to costs such as fuel, labor and borrowing costs. If you notice a trend of This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 6 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. rising fuel costs, you should factor that into your analysis of a company. Fuel prices tend to fluctuate on a monthly basis, so paying close attention to these costs is crucial. Porter's 5 Forces Analysis 1. Threat of New Entrants. At first glance, you might think that the airline industry is pretty tough to break into, but don't be fooled. You'll need to look at whether there are substantial costs to access bank loans and credit. If borrowing is cheap, then the likelihood of more airliners entering the industry is higher.The more new airlines that enter the market, the more saturated it becomes for everyone. Brand name recognition and frequent fliers point also play a role in the airline industry. An airline with a strong brand name and incentives can often lure a customer even if its prices are higher. 2. Power of Suppliers. The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn't very likely. In other words, you probably won't see suppliers starting to offer flight s ervice on top of building airlines. 3. Power of Buyers.The bargaining power of buyers in the airline industry is quite low. Obviously, there are high costs involved with switching airplanes, but also take a look at the ability to compete on service. Is the seat in one airline more comfortable than another? Probably not unless you are analyzing a luxury liner like the Concord Jet. 4. Availability of Substitutes. What is the likelihood that someone will drive or take a train to his or her destination? For regional airlines, the threat might be a little higher than international carriers. When determining this you should consider time, money, personal preference and convenience in the air travel industry. 5. Competitive Rivalry.Highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when times get tough in the economy. Key Links ? ? ? Federal Aviation Administration – Get the latest regulation news, airport delays , etc. AviationNow. com – Information and news on the airline/aerospace industry. AirWise. com – Airport and aviation news This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 7 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. The Oil Services Industry There is no doubt that the oil/energy industry is extremely large.According to the Department of Energy (DOE), fossil fuels (including coal, oil and natural gas) makes up more than 85% of the energy consumed in the U. S. as of 2008. Oil supplies 40% of U. S. energy needs. (Visit the U. S. Department of Energy's Energy Sources information page for more insight. ) Before petroleum can be used, it is sent to a refinery where it is physically, thermally and chemically separated into fractions and then converted into finished products. About 90% of these products are fuels s uch as gasoline, aviation fuels, distillate and residual oil, liquefied petroleum gas (LPG), coke (not the refreshment) and kerosene. Refineries also produce non-fuel products, including petrochemicals, asphalt, road oil, lubricants, solvents and wax.Petrochemicals (ethylene, propylene, benzene and others) are shipped to chemical plants, where they are used to manufacture chemicals and plastics. (For more insight, read Oil And Gas Industry Primer. ) There are two major sectors within the oil industry, upstream and downstream. For the purposes of this tutorial we will focus on upstream, which is the process of extracting the oil and refining it. Downstream is the commercial side of the business, such as gas stations or the delivery of oil for heat. Oil Drilling and Services Oil drilling and services is broken into two major areas: drilling and oilfield services. ? Drilling – Drilling companies physically drill and pump oil out of the ground. The drilling industry has always be en classified as highly skilled.The people with the skills and expertise to operate drilling equipment are in high demand, which means that for an oil company to have these people on staff all the time can cost a lot. For this reason, most drilling companies are simply contractors who are hired by oil and gas producers for a specified period of time. (For related reading, see Unearth Profits In Oil Exploration And Production. ) In the drilling industry, there are several different types of rigs, each with a specialized purpose. Some of these include: o Land Rigs – Drilling depths ranges from 5,000 to 30,000 feet. o Submersible Rigs – Used for ocean, lake and swamp drilling.The bottom part of these rigs are submerged to the sea's floor and the platform is on top of the water. o Jack-ups – this type of rig has three legs and a triangular platform which is jacked-up above the highest anticipated waves. This tutorial can be found at: http://www. investopedia. com/fe atures/industryhandbook/ (Page 8 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. o Drill Ships – These look like tankers/ships, but they travel the oceans in search of oil in extremely deep water. (For more information on the drilling industry, check out on the Rigzone website. ) ? Oilfield Services – Oilfield service companies assist the drilling companies n setting up oil and gas wells. In general these companies manufacture, repair and maintain equipment used in oil extraction and transport. More specifically, these services can include: o Seismic Testing – This involves mapping the geological structure beneath the surface. o Transport Services – Both land and water rigs need to be moved around at some point in time. o Directional Services – Believe it or not, all oil wells are not drilled straight down, some oil services companies s pecialize in drilling angled or horizontal holes. The energy industry is not any different than most commodity-based industries as it faces long periods of boom and bust.Drilling and other service firms are highly dependent on the price and demand for petroleum. These firms are some of the first to feel the effects of increased or decreased spending. If oil prices rise, it takes time for petroleum companies to size up land, setup rigs, take out the oil, transport it and refine it before the oil company sees any profit. On the other hand, oil services and drilling companies are the first on the scene when companies decide to start exploring. Oil Refining The refining business is not quite as fragmented as the drilling and services industry. This sector is dominated by a small handful of large players. In fact, much of the energy industry is ruled by large, integrated oil companies.Integrated refers to the fact that many of these companies look after all factors of production, refinin g and marketing. For the most part, refining is a slow and stable business. The large amounts of capital investment means that very few companies can afford to enter this business. This handbook will try to focus more on oil equipment and services such as drilling and support services. Key Ratios/Terms BTUs: Short for â€Å"British Thermal Units. † This is the amount of heat required to increase the temperature of one pound of water by one degree Fahrenheit. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 9 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. om – the resource for investing and personal finance education. Different fuels have different heating values; by quoting the price per BTU it is easier to compare different types of energy. Dayrates: Oil and gas drillers usually charge oil producers on a daily work rate. These rates vary depending on the location, the type of rig a nd the market conditions. There are plenty of research firms that publish this information. Higher dayrates are great for drilling companies, but for refiners and distribution companies this means lower margins unless energy prices are rising at the same rate. Meterage: Another type of contract that differs from dayrates is one based on how deep the rig drills.These are called meterage, or footage, contracts. These are less desirable because the depth of the oil deposits are unpredictable; it's really a gamble on the driller's part. Downstream: Refers to oil and gas operations after the production phase and through to the point of sale, whether at the gas pump or the home heating oil truck Upstream: The grass roots of the oil business, upstream refers to the exploration and production of oil and gas. Many analysts look at upstream expenditures from previous quarters to estimate future industry trends. For example, a decline in upstream expenditures usually trickles down to other are as such as transportation and marketing.OPEC: The Organization of Petroleum Exporting Countries is an intergovernmental organization dedicated to the stability and prosperity of the petroleum market. OPEC membership is open to any country that is a substantial exporter of oil and that shares the ideals of the organization. OPEC has 11 member countries. Output quotas placed by OPEC can send huge shocks throughout the energy markets. Below is a chart of the world's top exporters of petroleum. OPEC members are denoted by â€Å"*†. Indonesia and Qatar are also members, but they don't make the top twelve. Top World Oil Net Exporters, 2006 Country 1) Saudi Arabia* 2) Russia Net Exports (million barrels per day) 8. 65 6. 57 This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 10 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. 3) No rway 4) Iran* 5) United Arab Emirates* 2. 54 2. 52 2. 52 2. 20 2. 15 2. 15 1. 85 1. 68 1. 52 6) Venezuela* 7) Kuwait* 8) Nigeria* 9) Algeria* 10) Mexico 11) Libya* 12) Iraq* 1. 43 Source: Energy Information Administration Analyst Insight Analysts and investors often disagree on specific investment decisions, but one thing that they do agree on is their approach to analyzing energy companies. A top down investment approach is almost always the best strategy. We will go through the top down steps below. For more insight, read A Top-Down Approach To Investing. ) Economics/Politics The oil industry is easily influenced by economic and political conditions. If a country is in a recession, fewer products are being manufactured, not as many people drive to work, take vacations, etc. All of these variables factor into less energy use. The best time to invest in an oil company is when the economy is firing on all cylinders and oil companies are making so much money that using excessive amoun ts of energy themselves has little effect on their bottom line. Some analysts believe that rather than analyzing energy companies, you should just predict the trend in energy prices.While more analysis is needed for a prudent investment than simply looking at price trends in oil, it's true that there is a strong correlation between the performance of energy companies and the commodity price for energy. Supply and Demand Oil and gas prices fluctuate on a minute by minute basis, taking a look at the historical price range is the first place you should look. Many factors determine the price of oil, but it really all comes down to supply and demand. Demand typically does not fluctuate too much (except in the case of recession), but supply shocks can occur for a number of reasons. When OPEC meets to determine oil supply for the coming months, the price of oil can fluctuate wildly.Day-to-day This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 11 o f 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. fluctuations should not influence your investment decision in a particular energy company, but long-term trends should be followed more closely. You can find the latest energy supply/demand statistics at the Energy Information Administration. Rig Utilization Rates Another factor that determines supply is the rig utilization rates; its close relationship to oil prices is not a coincidence. Higher utilization rates mean more revenue and profits.For drilling companies, it is important to take a close look at the company's rig fleet, because older rigs lack the ability to drill in remote locations or to bore deep holes. Some other factors to consider are the depth of water that the offshore rigs can drill in, hole depth and horsepower. Higher quality rigs will have higher utilization rates, especially during weak periods. This w ill lead to higher revenue growth. Sometimes this is a double-edged sword; while higher utilization is better, a company that is at its capacity will have difficulty increasing revenues further. Contracts The contracts through which an oil services company is paid also play a large role in supply. Pay close attention to the dayrates, as falling dayrates can dramatically decrease revenues.The opposite is true should dayrates rise. This is because many of the drillers' costs are fixed. Financial Statements After these wide scale factors have been considered, it's time to get down to the nitty gritty – the financials. And when it comes to the financials, the same old rules apply to oil services companies. Ideally, revenues and profits will be growing consistently, just as they do in any quality company. It's worth digging deeper to see if there are any one-time events that have dramatically increased revenues. Also, the P/E ratio and PEG ratios should be comparable to others wit hin the industry. On the balance sheet, investors should keep an eye on debt levels.High debt puts a strain on credit ratings, weakening their ability to purchase new equipment or finance other capital expenditures. Poor credit ratings also make it difficult to acquire new business. If customers have the choice of going with a company that is strong versus one that is having debt problems, which do you think they will choose? To do a test for financial leverage, take a look at the debt/equity ratio. The working capital also tells us whether the company has enough liquid assets to cover short term liabilities. Rating agencies like Moody's and S&P say 50% is a prudent debt/equity ratio. Companies in more stable markets can afford slightly higher debt/equity ratios.If profits are of the utmost importance, then the statement of cash flow is a close second. Oil companies are notorious for reporting non cash line items in the This tutorial can be found at: http://www. investopedia. com/fe atures/industryhandbook/ (Page 12 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. income statement. For this reason, you should try to decipher the cash EPS. By stripping away all the non-cash entities you will get a truer number because cash flow cannot be manipulated as easily as net income can. (For further reading, see Advanced Financial Statement Analysis. ) Porter's 5 Forces Analysis 1. Threat of New Entrants.There are thousands of oil and oil services companies throughout the world, but the barriers to enter this industry are enough to scare away all but the serious companies. Barriers can vary depending on the area of the market in which the company is situated. For example, some types of pumping trucks needed at well sites cost more than $1 million each. Other areas of the oil business require highly specialized workers to operate the equipment and to make key d rilling decisions. Companies in industries such as these have higher barriers to entry than ones that are simply offering drilling services or support services. Having ample cash is another barrier – a company had better have deep pockets to take on the existing oil companies. 2. Power of Suppliers.While there are plenty of oil companies in the world, much of the oil and gas business is dominated by a small handful of powerful companies. The large amounts of capital investment tend to weed out a lot of the suppliers of rigs, pipeline, refining, etc. There isn't a lot of cut-throat competition between them, but they do have significant power over smaller drilling and support companies. 3. Power of Buyers. The balance of power is shifting toward buyers. Oil is a commodity and one company's oil or oil drilling services are not that much different from another's. This leads buyers to seek lower prices and better contract terms. 4. Availability of Substitutes.Substitutes for the o il industry in general include alternative fuels such as coal, gas, solar power, wind power, hydroelectricity and even nuclear energy. Remember, oil is used for more than just running our vehicles, it is also used in plastics and other materials. When analyzing an energy company it is extremely important to take a close look at the specific area in which the company is operating. Also, companies offering more obscure or specialized services such as seismic drilling or directional drilling tools are much more likely to withstand the threat of substitutes. (For more on oil substitutes, see The Biofuels Debate Heats Up. ) 5. Competitive Rivalry. Slow industry growth rates and high exit barriers are a particularly troublesome situation facing some firms.Until quite recently, oil refineries were a particularly good example. For a period of almost 20 years, no new refineries were built in the U. S. Refinery capacity exceeded the product demands as a result of conservation efforts followin g the oil shocks of the 1970s. At the same time, exit barriers in the This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 13 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. refinery business are quite high. Besides the scrap value of the equipment, a refinery that does not operate has no value-adding capability.Almost every refinery can do one thing – produce the refined products they have been designed for. Key Links ? ? ? Department of Energy – Get the latest regulation news and statistics. You name it, this site has it. ODS-Petrodata – Both free and fee-based data on rig counts and other key figures in the oil services industry. Rigzone. com – News and statistics on the oil and gas industry. Precious Metals The precious metals industry is very capital intensive. Constructing mines and building produ ction facilities requires huge sums of capital. Long-term survival requires heavy expenditures to finance production and exploration. Technology has played a big role in the computer and internet industry, but t has also greatly changed the mining industry. Gold is the most popular precious metal for investors. As you may know, gold is a commodity, and, as such, the price for gold fluctuates on a daily basis in the commodity markets. While there is a lot of overlap between the basics of mining gold and silver, the primary focus of here is on the gold market. Silver is less valuable than gold, and, as such, it is usually discovered either by accident or as a byproduct of gold/lead/copper mining. Gold prices are influenced by numerous variables that include fabricator demand, expected inflation, return on assets and central bank demand. Gold is strongly pegged to supply-and-demand patterns.In general, low prices result in low production, and high prices result in high production. Mark et forces determine price. A company's attempt to control costs is critical to maintaining financial health and production levels in the face of declining gold prices. (For related reading, see Does It Still Pay To Invest In Gold? ) The metals industry is not vertically integrated like other industries such as oil and energy. In the metals industry, the companies that mine the gold typically do This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 14 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. ot refine it, and refiners rarely sell it directly to the public. The industry encompasses three types of firms: 1. Exploration. These companies have very little in the way of assets. They explore and prove that gold exists in a particular area. The only major assets owned by exploration firms are the rights to drill and a small amount of capital, which is needed to conduct drilling and trenching operations. 2. Development. Once a gold deposit is discovered by exploration companies, they either try to become development firms, or they sell their gold find to development firms. Development firms are those operating on explored areas that have prove to be mines.The only real difference between development and exploration is that, for development firms, their area has proved to be a gold deposit. 3. Production. Producer firms are full-fledged mining companies that extract and produce gold from existing mines; this production can range from a hundred thousand ounces to several million ounces of gold production per year. Each operator in the supply chain has its own strengths and weaknesses. Some companies do well at extracting the metal from the earth, some refine, while others smelt and transform the commodity into a finished product. Most gold that is mined today is used for jewelry, perhaps because of its beauty, or perhaps because it doesn't rust or corrode.Other uses for gold include tooth filings, electronics manufacturing and collectibles, but these make up a very small portion of overall demand. Unlike other industries, companies in the mining industry come in all shapes and sizes. Much of the production is done by large blue chip companies, but the exploration side of the industry is full of junior companies looking to hit a home run with a large gold find. The mining industry has plenty of opportunities for speculators and others for income investors. (To learn more, read Getting Into The Gold Market. ) Key Ratios/Terms Mine Production Rates: Serious gold investors follow the Gold Survey very closely, published by Gold Fields Mineral Services. Each year, it lists the worldwide mine production statistics.Increasing production rates means more supply, which ultimately means a lower price for gold – if demand remains stable. Scrap Recovery: Another statistic published in the Gold Sur vey, scrap This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 15 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. recovery refers to the worldwide supply of gold from sources other than mine production. This includes recovered old jewelry, industrial byproducts, etc. Throughout the 1990s, more than 15% of the world's gold supply came from scrap recovery. Futures Sales by Producers As you probably know, gold trades in the futures markets.Gold producers are constantly monitoring the prices in the futures markets because it determines the price at which they can sell their gold. The Gold Survey lists statistics on producer sales. If producers are selling an increasing amount in the futures market, it could mean that prices will fall very soon. By purchasing futures contracts the producer â€Å"locks-in† a price. Therefore, if the price of gold falls in future months, it won't affect the producer's bottom line. Conversely, if prices continue to rise after the producer locks in, they won't be able to capitalize on the higher prices. Bullion: This denotes gold and silver that is refined and officially recognized as high quality (at least 99. 5% pure). It is usually in the form of bars rather than coins.When you hear of investors or central banks holding gold reserves, it is usually in the form of bullion. Ore: This refers to mineralized rock that contains metal. Gold producers mine gold ore and then extract the gold from it using either chemicals, extreme heat, or some other method. There are different types of ores, of which the most common are oxide ores and sulphide ores. Analyst Insight The price of gold fluctuates on a minute-by-minute basis, so taking a look at the historical price range is the first place you should look. Many factors determine the price of gold, but it really all comes down to supp ly and demand. Demand typically does not fluctuate too much, but supply shocks can send prices either soaring or into the doldrums.The difference between production costs and the futures price for gold equals the gross profit margins for mining companies. Therefore, the second place you want to look is the cost of production. The main factors to look at are the following: ? ? Location – Where is the gold being mined? Political unrest in developing nations has ruined more than one mining company. Developing nations might have cheaper labor and mining costs, but the political risks are huge. If you are risk averse, then look for companies with mines in relatively stable areas of the world. The costs might be higher, but at least the company knows what it's getting into. Ore Quality – Ore is mineralized rock that contains metal.Higher quality ore will contain more gold, which is usually reported as ounces This tutorial can be found at: http://www. investopedia. com/featur es/industryhandbook/ (Page 16 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. ? of gold per ton of ore. Generally speaking, oxide ores are better because the rock is more porous, making it easier to remove the gold. Mine Type – The type of mine a company uses is a big factor in production costs. Most underground mines are more expensive than open pit mines. Cost of Production The cost of production is probably the most widely followed measure for analyzing a gold producer.The lower the costs, the greater the operating leverage, which means that earnings are more stable and less volatile to changes in the price of gold. For example, a company that has a cash cost around $175/ounce is, for obvious reasons, in a much better position than one whose cost is $275/ounce. The low-cost producer has much more staying power than the marginal producer. In fact, if the price o f gold declines below $275/ounce, the higher-cost producer would have to stop producing until the price goes back up. Producers usually publish their cost of production in their annual report; this cost includes everything from site preparation to milling and refining.It doesn't include exploration costs, financing, or any other administrative expenses the company might incur. Aside from looking at costs, investors should carefully look over revenue growth. Revenue is output times the selling price for gold, so it may fluctuate from year to year. Well-run companies will attempt to hedge against fluctuating gold prices through the futures markets. Take a look at the revenue fluctuations over the past several years. Ideally, the revenue growth should be smooth. Companies with revenues that fluctuate widely from year to year are very hard to analyze and aren't where the smart money goes. Debt Levels Investors should keep an eye on debt levels, which are on the balance sheet.High debt p uts a strain on credit ratings, weakening the company's ability to purchase new equipment or finance other capital expenditures. Poor credit ratings also make it difficult to acquire new businesses. (For related reading, see Debt Reckoning. ) P/E As a final caveat (beware), never analyze a precious-metals company based on the price-to-earnings ratio. In general, a high P/E means high projected earnings in the future, but all gold stocks have high P/E ratios. The P/E ratio for a gold stock doesn't really tell us anything because precious metals companies need to be compared by assets, not earnings. Unlike buildings and machinery, gold companies have large amounts of gold in their vaults and in mines throughout the world.Gold on the balance sheet is unlike other capital assets; gold is seen This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 17 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com â€⠀œ the resource for investing and personal finance education. as currency of last resort. Investors are therefore willing to pay more for a gold company because it is the next best thing to physically holding the gold themselves. There are a few valuation techniques that analysts use when comparing various precious metal companies. The most popular and widely used ratio is market capitalization per ounce of reserves (market cap divided by reserves).This indicates to investors what they are paying for each ounce of reserves. Obviously, a lower price is better. Porter's 5 Forces Analysis 1. Threat of New Entrants. Financing is a principal barrier to entry in the precious-metals industry, which is heavily capital intensive. Constructing mines, production facilities, exploration and development and mining equipment all require large sums of capital. This capital is required before the mine is in production. Therefore, favorable financing terms are extremely important. In short, long-ter m survival in the precious-metal market requires significant capital. 2. Power of Suppliers. The only supply-side issues that miners face deal with government regulations and rules.The supply of land is plentiful, but gaining approval and permits to mine the land can be difficult, especially if environmental risks are high. 3. Power of Buyers. Gold is a commodity-based business, so the gold from one company is not that much different from another's. This translates into buyers seeking lower prices and better contract terms. 4. Availability of Substitutes. Substitutes for the precious metals industry include other precious metals such as diamonds, silver, platinum, etc. These are worthy substitutes for gold, but they are not as widely accepted as gold. Gold has the advantage of being standard for a world currency, so a gold bar in the U. S. s worth the same as it is in Ecuador. As other forms of precious metals such as diamonds gain popularity, they may also become more threatening a s substitutes. 5. Competitive Rivalry. Gold companies don't compete on price, mainly because the prices are determined by market forces. But gold companies do compete for land. The backbone of a precious metals company is its reserves, and the only way to beef up reserves is to explore for good mining areas. Companies go to great lengths to discover gold deposits, and the discovery is on a first-come-first-serve basis. Key Links ? InfoMine. com – Get the latest news and statistics on mining companies. Mining USA – Here is more data and information on mining. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 18 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. ? Mining Glossary – When you are analyzing a mining company you are bound to come across industry-specific terms you don't understand Automobiles Simila r to the invention of the airplane, the emergence of automobiles has had a profound effect on our everyday lives. The auto manufacturing industry is considered to be highly capital and labor intensive.The major osts for producing and selling automobiles include: ? ? ? Labor – While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labor costs in designing and engineering automobiles. Materials – Everything from steel, aluminum, dashboards, seats, tires, etc. are purchased from suppliers. Advertising – Each year automakers spend billions on print and broadcast advertising; furthermore, they spent large amounts of money on market research to anticipate consumer trends and preferences. The auto market is thought to be made primarily of automakers, but auto parts makes up another lucrative sector of the market.The major areas of auto parts manufacturing are: ? ? ? Original Equipment Manufacturers (OEMs) – Th e big auto manufacturers do produce some of their own parts, but they can't produce every part and component that goes into a new vehicle. Companies in this industry manufacture everything from door handles to seats. Replacement Parts Production and Distribution – These are the parts that are replaced after the purchase of a vehicle. Air filters, oil filers and replacement lights are examples of products from this area of the sector. Rubber Fabrication – This includes everything from tires, hoses, belts, etc. In the auto industry, a large proportion of revenue comes from selling automobiles.The parts market, however, is even more lucrative. For example, a new car might cost $18,000 to buy, but if you bought, from the automaker, all the parts needed to construct that car, it would cost 300-400% more. Over and above the labor and material costs we mentioned above, there are other developments in the automobile industry that you must consider when analyzing an automobile company. Globalization, the tendency of world investment and businesses to move from national and domestic markets to a This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 19 of 65) Copyright  © 2010, Investopedia. com – All rights reserved.Investopedia. com – the resource for investing and personal finance education. worldwide environment, is a huge factor affecting the auto market. More than ever, it is becoming easier for foreign automakers to enter the North American market. (To read more about this issue, see The Globalization Debate. ) Competition is the other factor that takes its toll on the auto industry; we will discuss this in more detail below under the Porter's 5 forces analysis Key Players In North America, the automobile production market is dominated by what's known as the Big Three: ? ? ? General Motors – Produces Chevrolet, Pontiac, Buick and Cadillac, among others.Chrysler – Chrysler, Jeep and Dodge. Ford Motor Co – Ford, Lincoln and Volvo. Two of the largest foreign car manufacturers are: ? ? Toyota Motor Co Honda Motor Co Key Ratios/Terms Fleet Sales: Traditionally, these are high-volume sales designated to come from large companies and government agencies. These sales are almost always at discount prices. In the past several years, auto makers have been extending fleet sales to small businesses and other associations. Seasonally Adjusted Annual Rate of Sales (SAAR): Most auto makers experience increased sales during the second quarter (April to June), and sales tend to be sluggish between November and January.For this reason, it is important to compare sales figures to the same period of the previous year. The adjustment factors are released each year by the U. S. Bureau of Economic Analysis. Sales Reports: Many of the large auto makers release their preliminary sales figures from the previous month on a monthly basis. This can give you an indication of the cur rent trends in the industry. Day Sales Inventory = Average Inventory Average Daily Sales The sales reports (discussed above) are released monthly. Most automakers try to make dealerships hold 60 days worth of inventory on their lots. Watch out This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 20 of 65) Copyright  © 2010, Investopedia. om – All rights reserved. Investopedia. com – the resource for investing and personal finance education. if sales inventory climbs significantly above 60 days worth. Sales fluctuate month-to-month, but you shouldn't see sustained periods of high inventory. Analyst Insight Automobiles depend heavily on consumer trends and tastes. While car companies do sell a large proportion of vehicles to businesses and car rental companies (fleet sales), consumer sales is the largest source of revenue. For this reason, taking consumer and business confidence into account should be a higher priority than cons idering the regular factors like earnings growth and debt load. For more about the Consumer Confidence Survey, see Economic Indicators: Consumer Confidence Index. ) Another caveat of analyzing an automaker is taking a look at whether a company is planning makeovers or complete redesigns. Every year, car companies update their cars. This is a part of normal operations, but there can be a problem when a company decides to significantly change the design of a car. These changes can cause massive delays and glitches, which result in increased costs and slower revenue growth. While a new design may pay off significantly in the long run, it's always a risky proposition. For parts suppliers, the life span of an automobile is very important.The longer a car stays operational, the greater the need for replacement parts. On the other hand, new parts are lasting longer, which is great for consumers, but is not such good news for parts makers. When, for example, most car makers moved from using rolled steel to stainless steel, the change extended the life of parts by several years. A significant portion of an automaker's revenue comes from the services it offers with the new vehicle. Offering lower financial rates than financial institutions, the car company makes a profit on financing. Extended warranties also factor into the bottom line. (To read more about this, see Extended Warranties: Should You Take The Bait? Greater emphasis on leasing has also helped increase revenues. The advantage of leasing is that it eases consumer fears about resale value, and it makes the car sound more affordable. From a maker's perspective, leasing is a great way to hide the true price of the vehicle through financing costs. Car companies, then, are able to push more cars through. Unfortunately, profiting on leasing is not as easy as it sounds. Leasing requires the automakers to accurately judge the value of their vehicles at the end of the lease, otherwise they may actually lose money. If you think about it, the automaker will lose money on the lease if they give the car a high salvage value.A car with a low salvage value at the end of the lease will simply be bought by the consumer and flipped for a profit. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 21 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. Porter's 5 Forces Analysis 1. Threat of New Entrants. It's true that the average person can't come along and start manufacturing automobiles. Historically, it was thought that the American automobile industry and the Big Three were safe. But this did not hold true when Honda Motor Co. opened its first plant in Ohio.The emergence of foreign competitors with the capital, required technologies and management skills began to undermine the market share of North American companies. 2. Power of Suppliers. The autom obile supply business is quite fragmented (there are many firms). Many suppliers rely on one or two automakers to buy a majority of their products. If an automaker decided to switch suppliers, it could be devastating to the previous supplier's business. As a result, suppliers are extremely susceptible to the demands and requirements of the automobile manufacturer and hold very little power. 3. Power of Buyers. Historically, the bargaining power of automakers went unchallenged.The American consumer, however, became disenchanted with many of the products being offered by certain automakers and began looking for alternatives, namely foreign cars. On the other hand, while consumers are very price sensitive, they don't have much buying power as they never purchase huge volumes of cars. 4. Availability of Substitutes. Be careful and thorough when analyzing this factor: we are not just talking about the threat of someone buying a different car. You need to also look at the likelihood of pe ople taking the bus, train or airplane to their destination. The higher the cost of operating a vehicle, the more likely people will seek alternative transportation options.The price of gasoline has a large effect on consumers' decisions to buy vehicles. Trucks and sport utility vehicles have higher profit margins, but they also guzzle gas compared to smaller sedans and light trucks. When determining the availability of substitutes you should also consider time, money, personal preference and convenience in the auto travel industry. Then decide if one car maker poses a big threat as a substitute. 5. Competitive Rivalry. Highly competitive industries generally earn low returns because the cost of competition is high. The auto industry is considered to be an oligopoly, which helps to minimize the effects of pricebased competition.The automakers understand that price-based competition does not necessarily lead to increases in the size of the marketplace; historically they have tried to avoid price-based competition, but more recently the competition has intensified – rebates, preferred financing and long-term warranties have helped to lure in customers, but they also put pressure on the profit margins for vehicle sales. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 22 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. (For further reading, check out Analyzing Auto Stocks. ) Key Links ? ? ? ? Ward's Automotive Reports – A popular publisher of automotive data.The Alliance of Automobile Manufacturers – Get the latest industry facts, developments, and technological innovations. Automotive Industries – A magazine covering several areas of the auto industry. US Council for Automobile Research – The umbrella organization of Daimler Chrysler, Ford and General Motors created to str engthen the technology base of the domestic auto industry. The Retailing Industry All businesses that sell goods and services to consumers fall under the umbrella of retailing, but there are several directions we can take from here. For starters, there are department stores, discount stores, specialty stores and even seasonal retailers.Each of these might have their own little quirks; however, for the most part the analysis overlaps to all areas of retailing. This section of the industry handbook will try to focus more on general retailers and department stores. (For background reading, see Analyzing Retail Stocks. ) Over the past couple decades, there have been sweeping changes in the general retailing business. What was once strictly a made-to-order market for clothing has changed to a ready-to-wear market. Flipping through a catalog, picking the color, size and type of clothing a person wanted to purchase and then waiting to have it sewn and shipped was standard practice. At the turn of the century some retailers would have a storefront where people could browse.Meanwhile, new pieces were being sewn or customized in the back rooms. In some parts of the world, the retail business is dominated by smaller family-run or regionally-targeted stores, but this market is increasingly being taken over by billion-dollar multinational conglomerates like Wal-Mart and Sears. The larger retailers have managed to set up huge supply/distribution chains, inventory management systems, financing pacts and wide scale marketing plans. Without getting into specific product categories within the retailing industry, the overall segments can be divided into two categories: ? Hard – These types of goods include appliances, electronics, furniture, sporting goods, etc.Sometimes referred to as â€Å"hardline retailers. † This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 23 of 65) Copyright  © 2010, Investopedia. com – Al l rights reserved. Investopedia. com – the resource for investing and personal finance education. ? Soft – This category includes clothing, apparel, and other fabrics. Each retailer tries to differentiate itself from the competition, but the strategy that the company uses to sell its products is the most important factor. Here are some different types of retailers: ? ? ? Department Stores – Very large stores offering a huge assortment of goods and services.Discounters – These also tend to offer a wide array of products and services, but they compete mainly on price. Demographic – These are retailers that aim at one particular segment. High-end retailers focusing on wealthy individuals would be a good example. Each of these has its own distinct advantages, but it's important to know how these advantages play out. For example, during tough economic times, the discount retailers tend to outperform the others. The opposite is true when the economy is t hriving. The more successful retailers attempt to combine the characteristics of more than one type of retailer to differentiate themselves from the competition. Key Ratios/Terms Same Store Sales: Used when analyzing individual retailers.It compares sales in stores that have been open for a year or more. This allows investors to compare what proportion of new sales have come from sales growth compared to the opening of new stores. This is important because although new stores are good, there eventually comes a saturation point at which future sales growth comes at the expense of losses at other locations. Same store sales are also commonly referred to as â€Å"comps. † Sales per Square Foot: Sales Square Footage Store space is considered to be a productive asset and the key to profitability. Successful companies generate as much sales volume as possible out of each square foot of store space.More recently, analysts have created modifications of this concept by looking at a re tailers' gross margin per square foot. Inventory Turnover: This ratio shows how many times the inventory of a firm is This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 24 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. sold and replaced over a specific period. Generally calculated as: Sales Inventory Cost of Goods Sold Average Inventory But, may also be calculated as: Although the first calculation is more frequently used, COGS may be substituted because sales are recorded at market value while inventories are usually recorded at cost.Also, average inventory may be used instead of the ending inventory to help minimize seasonal factors. This ratio should be compared against similar retail companies or the industry average. A low turnover might imply poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying from suppliers. (For related reading, see Consumer Confidence: The Consumer Confidence Index (CCI) is put out by the Consumer Confidence Board around the middle of each month. The Consumer Confidence Survey is based on a sample of 5,000 U. S. households and is considered to be one of the most accurate indicators of confidence. Increasing confidence means more spending and borrowing for consumers – a positive for retailers. To learn more about this measure, see Economic Indicators To Know: Consumer Confidence Index. ) Personal Income & Disposable Income: Every quarter, the Bureau of Economic Analysis releases the latest income data for U. S. citizens. There is a high correlation between retail sales data and the changes in personal income. (For more insight, see Economic Indicators: Personal Income and Outlays. ) Analyst Insight As we mentioned earlier, the store type and the strategy that retailers use plays a big role in how well the company perfo rms. The first thing to take a look at is what segment of the retail industry the company is situated in. Is the company a discounter? Department store? Specialty retailer?The retail category to which the company belongs also helps determine the following details about the company: ? Competitors – The number and size of direct competitors is important. Ideally, you want the company to have as little competition as possible, but this rarely happens. Determine who the direct competitors are and how they are all positioned in the market. A smaller regional discount store might find it tough to compete with new Wal-mart stores opening up every month. Take a look at the big picture, find out what differentiates the company from its competitors. Do they have better prices, service, or offer This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 25 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com â₠¬â€œ the resource for investing and personal finance education. ? ? higher quality goods than their competition? Grocery stores might find it hard to differentiate themselves from competitors: after all, an apple is an apple. Higher-end retailers, however, may have an easier time as they try to compete on service or quality. Size of the Market – Determining the overall size of the market gives us an indication of the potential for the market. If you had the choice between a company with a 25% share of a $10 million market or a 25% share of a $1 billion market, which one would you chose?Other Factors – Some analysts even go as far as evaluating the retail strategy that the companies use. For example, does the company have a fresh look? Are their stores clean, bright and fun to shop in? Swedish retailer Ikea has done an excellent job of designing their stores for visual appeal, and quite possibly it has equated to very strong sales. Also, what are the store demographics? Does the retailer appeal more to younger people (who don't have the money), or does it appeal to the parents (who do have the money). The performance of the economy as a whole obviously has a great impact on the retailing industry. Retailer profits have a close correlation with the overall performance of the economy.Looking at the trends for growth in gross domestic product (GDP), inflation, consumer confidence, personal income and interest rates are extremely important when thinking about investing in the retail industry. You might not think that your shopping habits are sensitive to interest rate fluctuations, but they are. While a 50-basis-point drop in interest rates might not give you the sudden inkling to go drop $1,000 at Macy's, for the economy as a whole, it has a big effect on spending patterns. (For more insight on this effect, see How Interest Rates Affe