Applying Value Added Intellectual Coefficientness to Businesses - Free Essay Example

Sample details Pages: 4 Words: 1065 Downloads: 7 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? For the purposes of this study, Intellectual Capital is defined as the sum of all intellectual material, knowledge, information, intellectual property, and experience that can be put in by a company to create wealth (Pulic). As such, this definition attempts to encapsulate all aspects of the term intangible assets, a fact that would be made further clear when the individual components of VAIC (Value Added Intellectual Coefficient) are analysed. Developed by Pulic in 1998, VAIC is a developing tool used as a performance measure for comparison of companies and also as a predictor of company performance. Don’t waste time! Our writers will create an original "Applying Value Added Intellectual Coefficientness to Businesses" essay for you Create order According to Pulics method, VAIC is modelled as the sum of the following three efficiency terms: Human Capital Efficiency (HCE) Structural Capital Efficiency (SCE) Capital Employed Efficiency (CEE) Each companys own knowledge, skills, values, and solutions can be tangibalized into value in the market, which in turn affects the competitive advantage, and increases the productivity and market value (Pulic, 2002) These intangible assets together form the intellectual capital (Yalama and Coskun, 2007) Intellectual capital is an intellectual material, knowledge, information, intellectual property, and experience that can be put to create wealth(Stewart, 1997). Leadbeater (1999) mentioned that only about 7 percent of Microsofts stock market Value was accounted by tangible assets, whereas, the remaining 93% of the companys value was created by intangible assets. Kamath(2007) has analyzed the Intellectual and Physical capital value creating ability of the Indian banki ng sector by using VAIC for the 5-year period, and has then discussed the effect of intellectual and physical capital performance on value-based performance Kamath(2008) has studied the relationship between intellectual capital components and traditional performance measures, such as, pro ¬Ãƒâ€šÃ‚ tability, productivity, and market valuation between 1996 and 2006, in the drug and pharmaceutical industry in India. Intellectual Capital Measurement Methods Several methods have been developed to measure Intellectual capital, such as, Market Capitalization Approach, Direct Intellectual Capital Measurement Approach, Scorecard Approach, Economic Value Added Approach VAIC Approach Methodology A 2 step process was followed in this project Calculation of the intellectual capital performances of the IT companies using VAIC Effects of VAIC and its components on the organizational performance were analyzed using multiple regression analyses The first step: Calculating Value Added VA: Prior to computing the three efficiencies, it is necessary to calculate the value addition capability of a company ith a given amount of financial and intellectual capital. Chang (2007) gives the formula for VA as follows: VA = Gross Margin Sales Administrative Expenses + Labour Expenses As evident from the formula, employees are viewed not as expenses but as investments that drive future growth. This philosophy is consistent with the modern treatment of human capital. Human Capital Efficiency: This component of VAIC attempts to capture how much VA created by a unit of money is spent on employees. HCE = VA/HC where HC = total salary and wage expenditure for the company Capital Employed Efficiency: This term captures the VA created by a unit of money spent on capital expenditures CEE = VA/CE Where CE = book value of net assets for the company Structural Capital Efficiency: Structural Capital is a construct designed to include proprietary software systems, distribution networks, supply chains, brand, organization management process, and customer loyalty. It is the difference between a companys total value added and its human capital. SC = VA HC and SCE = SC/VA After calculating the three efficiency terms, VAIC is calculated as VAIC = HCE + CEE + SCE Dependent Variables The dependent variables in the regression analysis are the tradition measures of company competence. A list of these measures and their associated definitions is provided below: Market valuation Market Valuation is the ratio of market capitalization to book value of common stocks(Chan,2009) Pro ¬Ãƒâ€šÃ‚ tability Pro ¬Ãƒâ€šÃ‚ tability is the ratio of operating income-to-book value of total assets (Chan, 2009) Productivity Productivity is the ratio of total revenue to book value of total assets (Chan, 2009) Return on equity Return on equity is the ratio of net income to total shareholders equity (Chan, 2009) Control variables: Firm leverage and  ¬Ãƒâ€šÃ‚ rm size were used as control variables in this project, to remove the effects they might produce on the dependent variables in the regression models Firm Leverage It is calculated as the ratio of total debt to book value of total assets Firm Size It is calculated as the natural logarithm of market capitalization, are designated as control variables in order to remove their effects on the dependent variables in the regression models. A composite view of the model is presented in the diagram: Data Collected (collated view presented in attached excel file) The following companies were chosen from the IT sector. The financial data from Capitaline database for the last 5 years for each of these companies was used to construct a panel data-set: Wipro HCL Mphasis Tech Mahindra Patni Satyam Infosys Polaris TCS Oracle Regression Results The linear OLS multiple regression was conducted on the software R. The dependent variables were Profitability, Productivity, Market Value and Return on Equity. The independent variables were VAIC, HCE, SCE, CEE with Firm Size and Firm Leverage as Control Variables. Two models were evaluated for each dependent variable, one in which the independent variables (apart from the control variables) were HCE, SCE and CEE and another in which the independent variable was VAIC. Below we present the results of the regression. Regression of Productivity CEE is the only significant parameter while HCE, SCE, size and leverage have p values greater than 0.05 and hence insignificant. The coefficient of determination is 45% and CEE explains 34% of the variability in productivity. When we use VAIC as the independent variable, the percentage explanation is just 23%. Regression of Profitability CEE, HCE and SCE are all significant in the regression of profitability. The model explains 91.1% of the variability in profitability with CEE explaining 61.4% and SCE explaining 14.2% of the variability. . When we use VAIC as the independent variable, the percentage explanation is just 80%. Regression of Market Value Firm size is the only significant predictor of market value. The coefficient of determination is 38.8% of which firm size determines 26% of the variability. When using VAIC, the model has an explanation rate of 37.3% Regression of Return on Equity The coefficient of determination for the regression of Return on Equity is 91.4%. CEE, HCE, SCE and firm leverage are all significant estimators. CEE explains 61.2% of the variability while HCE explains 5.5% and SCE explains 15.6% of Return on Equity. When using VAIC, the coefficient of determination is 75%. Conclusion Uses Limitations

Physics of Semiconductors Essay - 842 Words

Semiconductors were being studied in laboratories as early as the 1830s. The materials were usually poor conductors if heated and often carried photoelectric properties. (Electrical production by shining light on the material.) Soon, this property of changing conductivity would become of vital importance to the world of electronics and communications. (Micron) Common semiconductors include silicon, zinc and germanium; however, silicon is by far the most widely implemented due to its abundance. Also, its reasonable speed, simple processing, and useful temperature range make it a good choice among other semiconductors. (Wikipedia - Semiconductor Device) This element has been used to make cast iron, bricks, and pottery, and glass, but it†¦show more content†¦In atoms, electrons are divided into energy levels which tend to form bands. The highest, filled energy level at which electrons occupy is called the valence band and the first level above the valence band is known as the c onduction band. The valence electrons do not participate in conduction. In metals, the valence and conduction bands overlap and allow free electrons to participate in conduction, however, insulators have an energy gap that is far greater than the thermal energy of the electron. Semiconductors are somewhere between these two extremes, having an energy gap around 1 eV. (Britneys Guide) Semiconductors can be elements such as Germanium, Zinc, and Silicon, or compounds. Also, some semiconductor materials can be intrinsic (pure semiconductors) or extrinsic. An intrinsic semiconductor is normally used in conjunction with thermal or optical excitement to raise electrons from the valence band to the conduction band. An extrinsic semiconductor is formed by doping the intrinsic semiconductor material with a VERY small number of impurity atoms. 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Ethnography of the city Essay Example For Students

Ethnography of the city Essay Cities exist for many reasons and the diversity of urban form and function can be traced to the complex roles that cities perform. Cities serve as centers of storage, commerce, and industry. The agricultural surplus from the surrounding country hinterland is processed and distributed within the city. Urban areas have also developed around marketplaces, where imported goods from distant places could be exchanged for the local products. Throughout history, cities have been founded at the intersections of transportation routes, or at points where market goods must shift from one mode of transportation to another such as river or ocean ports as well as railways. Cities are also sites of enormous religious and cultural significance not to mention being the center of administrative action. (Johnson, Earle) Cities have always existed in the mind as well as in physical structure. For many poor and disenfranchised a particular city can be assumed to be a utopia of possibility in which there will be economic wealth, job security, political refuge, and religious sanctity. Thomas Mores Utopia envisioned a city in which no one was exploited or impoverished, because all worked. This has never been made a terrestrial reality. With the rise of the industrial city and the onset of mass media, the city can has its dystopian features as well. Urban areas are plagued by enormous and widespread poverty intermingled with prodigious wealth. The plight of the poor within the city has not been a facet of traditional anthropological inquiry until the prevalence of urban anthropology and studies that evolved in the late twentieth century. Violence is a pervasive presence in the lives of young people in urban communities in the United States. Despite recent declines in murder rates, homicide is a leading cause of death and injury among young people, especially those in urban areas. A recent study showed that in New York City, one in four adolescent girls in the United States has been sexually or physically abused or forced to have sex against her will. National surveys show that almost one-fifth (18%) of high school students have carried a weapon to school at least one day in the last month and that 37% had engaged in a physical fight in the last year. (Freusenberg: 1999) This violence is particularly prevalent in areas of urban poverty and discontent. Other characteristics of such activity is the flagrant and widespread use of heavily addictive and illegal substances such as crack or heroin. Studies show the rise in physical exposure to violence among children and adolescents, particularly within urban neighborhoods. In 1985, Phillippe Bourgois, his wife, and young son moved into a tenement apartment in East Harlem of New York City known to residents as El Barrio. They spent the next three-and-a-half years living among the harsh realities of the ghetto streets. The purpose of this was to gain entrance to a network of Puerto Rican crack dealers as well as their network of relatives and acquaintances. Bourgois eventually found his way to a storefront called the Game Room where video games provided a cover for the sale of crack cocaine. It was the manager of this establishment, Primo, who became Bourgoiss friend and primary informant about life in El Barrio. Through this intimacy, Bourgois seeks to tell us some things about the symbols and symptoms of urban ghetto life, the Achilles heel of the richest industrialized nation in the world by documenting how it imposes racial segregation and economic marginalization on so many of its Latino/a and African-American citizens. (Bourgois: 1995a; 14) Bourgois painstakingly records and analyzes the exploits of these elements of Puerto Rican diaspora. The culmination of such fieldwork is collected in ethnography about the urban underground economy and social marginalization entitled In Search of Respect: Selling Crack in El Barrio. The book is now a best-selling classic of urban anthropology that covers issues of inner city life, kinship tie s, ethnic relations, and work in the informal economy. .ua21092de870665d02e2e5a8f730438a1 , .ua21092de870665d02e2e5a8f730438a1 .postImageUrl , .ua21092de870665d02e2e5a8f730438a1 .centered-text-area { min-height: 80px; position: relative; } .ua21092de870665d02e2e5a8f730438a1 , .ua21092de870665d02e2e5a8f730438a1:hover , .ua21092de870665d02e2e5a8f730438a1:visited , .ua21092de870665d02e2e5a8f730438a1:active { border:0!important; } .ua21092de870665d02e2e5a8f730438a1 .clearfix:after { content: ""; display: table; clear: both; } .ua21092de870665d02e2e5a8f730438a1 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ua21092de870665d02e2e5a8f730438a1:active , .ua21092de870665d02e2e5a8f730438a1:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ua21092de870665d02e2e5a8f730438a1 .centered-text-area { width: 100%; position: relative ; } .ua21092de870665d02e2e5a8f730438a1 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ua21092de870665d02e2e5a8f730438a1 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ua21092de870665d02e2e5a8f730438a1 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ua21092de870665d02e2e5a8f730438a1:hover .ctaButton { background-color: #34495E!important; } .ua21092de870665d02e2e5a8f730438a1 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ua21092de870665d02e2e5a8f730438a1 .ua21092de870665d02e2e5a8f730438a1-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ua21092de870665d02e2e5a8f730438a1:after { content: ""; display: block; clear: both; } READ: Wheel Invention Essay Like pioneering Polish anthropologist Bronislaw Malinowski, Bourgoiss method of ethnographic research is that of participant observation, which he believes to be better suited than exclusively quantitative methodologies for documenting the lives of people who live on the margins of a society that is hostile to them. .

Marketing as the Most Important Function of Management

Introduction There are different functions of business management. The functions of business include controlling, leading, organizing and marketing among others. These functions are essential in successful operation of the respective business entity. The management functions should be effectively coordinated to achieve goals and objectives of a company or organization.Advertising We will write a custom essay sample on Marketing as the Most Important Function of Management specifically for you for only $16.05 $11/page Learn More Each function plays an important role in the development and success of the respective business. However, marketing is considered among the most important functions of management because it is concurrent through the management process of an organization. Marketing involves searching of market for the products of an organization and determination of the customers’ preferences and appropriate product to produce in the market. It also involves informing the public of new products of a company, how to use the respective product, close competitors and how to compete fairly and effectively in the respective market, and any other change that has been made on respective products. There are different tools that can be used for marketing, for instance, events. This paper highlights how events can be used as a marketing tool. There are different categories of events that companies or organizations may participate in; they include, leisure events, organizational events, personal and cultural events. Choice of an event to use as a marketing tool wholly depends with the respective product that a company intends to market and the expected target group or consumers. Generally, most companies use product launch as a marketing strategy because it is the most common form of organizational event organized by all companies irrespective of size or nature of products produced. Basically, events are categorized with referenc e to their objective and purpose (Bowdin ‘et al’ 56). However, organizations and companies may use different events as a marketing tool irrespective of their objective or purpose provided the company achieves its goal and the event also achieves its objective and purpose (Goldblatt 79). Consumers’ tastes and preferences are dynamic and therefore require organizations to closely monitor the market and adapt to respective changes that may affect their survival and operation in the respective industry. To effectively operate and compete in an industry and meet needs and demands of consumers, companies need to establish an effective strategic marketing tool.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The tool should also be considered an effective communication tool, for instance, events. Events are considered one of the most effective communication and marketing tool t hat are from launching of a product to organizing of press conferences (Goldblatt 84). Basically, promotional events are created by companies to enable them effectively communicate with both the potential clients and existing customers of the company or organization (Bowdin ‘et al’ 64). Consumers are evenly distributed and reaching them at once may be difficult and tricky. However, use of events as a strategic marketing tool may enable easy reach to consumers from different geographical areas. Though organized promotional events may not be attended by all consumers or customers, they can be reached through Medias such as radios, magazines and television among others. These medias can be accessed by different people hence enable easy reach to different consumers (Bowdin ‘et al’ 71). Furthermore, these Medias enable reach to thousands and millions of people and from different geographical areas. Similarly, companies or organizations may organize events and in vite target audience to the actual event, but this might not be effective in reaching a large number of the target group (Goldblatt 93). Though most companies and organizations rely on organizational events for marketing, this cannot be effective in reaching large number of people especially potential consumers; therefore, use of other events such as personal, leisure and cultural events may be effective in reaching different groups of people, for instance, leisure events such as sports and music may be effective in marketing a product and reaching a large number of people leading to profit increment. Companies especially beverage and alcohol producing companies are at a better position in using leisure events in marketing because the products are mainly used during leisure periods or occasions (Bowdin ‘et al’ 83). A company producing energy drink, alcoholic or beverages may decide to sponsor a sporting or music auditions event. Sponsorship is the main method how compan ies use leisure events such as music and sporting activities in marketing their products and increasing their market share. During such events, companies are able to expose different people attending the events to both their existing and new products, it also gives the company an opportunity to personally interact with both the existing and potential customers hence maintain the existing clients while win over potential customers.Advertising We will write a custom essay sample on Marketing as the Most Important Function of Management specifically for you for only $16.05 $11/page Learn More Leisure events are effective in marketing products because organizations or companies have the opportunity to teach clients how to use their products, inform them of changes made on the product give both existing and potential clients opportunity to use their products at no cost. Moreover, such events enable a company to understand demands of different consumers, expe cted changes they ought to make to their products to effectively compete in the market with other products (Goldblatt 112). Choice of event to use as a marketing tool wholly depends with the type of product produced by a company or organization. Event to use in marketing also may determine the outcome of the marketing process with reference to the product the respective company or organization produces (Goldblatt 121). There are different categories of events that can be used by different companies or organizations, for instance, cake and flower producing companies or organizations may use personal events such as weddings, anniversaries and birthdays in marketing their products. Such events may also expose potential clients to the products of the company because such products are mostly used in such events, for instance, anniversary of the 9/11 bomb blast victims among others. Furthermore, such companies may also participate in sponsorship of cultural events such as art, heritage an d ceremonial among others (Bowdin ‘et al’ 89). Conclusion Marketing involves boost of sales, informing of consumers how to use products of a company, changes made on a product, new products produced by a company, discount on prices and improvement on respective products. There are different marketing tools that can be used by companies; however, events are among the best tools that can be used by companies in producing different products. Events can be used by different companies and organizations producing different products as marketing tool because it can be used in reaching large number o people and at a reasonable cost. Therefore, event can be considered one of the universal and best marketing tools that can be used by any organization irrespective of the products it produces or group it targets. Works Cited Bowdin, Glenn; Johnny Allen, William O’Toole, Rob Harris, Ian McDonnell. â€Å"Marketing tools.† New York: Springer, 2009. Print.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Goldblatt, Joe. â€Å"Marketing tools: Event Management.† Cambridge: Cambridge UP, 2010. Print. This essay on Marketing as the Most Important Function of Management was written and submitted by user BlackCrow to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.