Significant Business Risk Factors Essay Example for Free

Significant Business Risk Factors Essay 1. Limited Shelf Life Empirical evidence suggests that retailers must adapt to new product style trends in order to satisfy consumers and other key stakeholders (Ryan, 2011). In respect to Harvey Norman (HVN), failure to adapt will entail lower consumer demand, hindering growth and profitability. It is important to note a limited shelf life of HVN’s products exists due to changing trends. This in turn gives rise to the risk of inventory becoming obsolete and rising excess stock in the warehouse. Therefore, HVN should further emphasise on its inventory management, in order to minimise inventory build up and overall expenses in the entity. 2. Increased Competition from online shopping Studies reveal that Australian consumers have embraced online shopping, recording a 23% growth in 2012 (Irvine, 2013). In order to combat the fierce competition in the online market, HVN introduced its ‘Omni-strategy,’ which focused on the enhancement of its digital store. There is evidence of success from this strategy with the firm recently named as ‘The Best Multichannel Retailer’ in the ORIA 2013 awards (Chanthadavong, 2013). Despite this acclaim, it is of paramount importance that HVN considers enhancing its distribution channels, especially its digital store through better pricing on delivery times for online purchasesand a greater focus on personalised services for internet empowered consumers. This will sustain consumer expectations and ensure the firm captures a greater portion of its target market (Chanthadavong, 2013). 3. Threat from domestic competitors Despite being one of Australia’s retail giants, HVN in recent times has been battling it out in the domestic market due to growing competition. In 2012, HVN was labelled as the most expensive Australian electronic giant recording a severe slump in its pricing position in comparison to its counterparts such as Dick Smith Electronics and JB HI-FI (Jager, 2013). The underlying reason for the slump was predominantly due to the high costs from GST and compliance laws (Morley, 2013). Additionally, three of HVN’s recently acquired subsidiaries failed during the 2011/2012 financial years. This  proved to be a costly investment for the firm reduced its competitive position in the furniture and electrical goods industry (Coyne, 2013). Furthermore, the entity’s poor pricing position detrimentally impacted the electronics giant’s sales (-4.9%) and profitability (-2.38%) (Harvey Norman, 2012). This suggests that HVN may have inventory build-up, excessive discounting and price deflation due to staggering consumer demand. 4. Stagnating growth in the global retail industry Stagnating growth in the global retail industry has resulted in lower consumer demand and expenditure. A study from IBIS reveals that Australian appliance retailing has fallen by nearly two percent (IBISworld, 2013). Additionally, declining consumer demand has influenced a fall in the Australian dollar (AUD), which has negatively impacted sales in HVN Australian and international stores such as New Zealand and Ireland (Harvey Norman, 2012). HVN’s 2012 Annual Report reinforces that the negative growth has inhibited a reduction of HVN’s profitability, revenue and thus increasing the risk of obsolescence of inventory. 5. Natural Disasters affecting Harvey Norman Stores Recent natural disasters have damaged many HVN Australian and New Zealand stores. For instance, a fire in the storage area of Harvey Norman in Porirua New Zealand heavily damaged a HVN store earlier in June 2013 (New Zealand Herald, 2013). This has had detrimental impacts on HVN’s sales revenue in its New Zealand market (Harvey Norman, 2012 p. 10). It is important to note that these disasters increase time wastage spent on rebuilding stores and increases the risk of overstatement of assets, as they may not have been properly removed off premises. 6. Misleading advertising It is of paramount importance that a company doesn’t engage in false and deceptive marketing; especially if the products fail to exist in the warehouse. HVN was recently fined through infringement notices worth $6,600 for advertising stock they did not hold in a bid to mislead customers. According to the ACCC, this act breached the Trade Practices Act in promoting material. Moreover, this has had financial and non-financial impacts for the company, specifically affecting future sales and brand image  on reliability of the company’s stance to deliver with full efficiency. This is also known as operational and compliance risk. 7. Threat of the geographical location of franchises According to the entity’s 2012 annual report, franchising is deemed to be HVN’s predominant source of its revenue. Whilst, HVN has franchise locations globally, its New Zealand stores attract the highest level of sales revenue (Harvey Norman, 2012). Growth in sales have peaked in stores located around the mining districts such as Western Australia, Hunter Valley, but have dropped in performance in the capital cities such Sydney and Melbourne. A financial risk of going on concern can be indicated from here as the need of consumers shift and with competition HVN may not be selling and trading as much in the cities leading to inventory overload and incremented liabilities affecting overall business performance. 8. Currency Fluctuations During the 2012 financial year, the AUD fluctuated a significant amount against the most popular currency for trade (USD) by about $0.9544 to $1.1055 (RBA 2012). A fluctuation of $0.1511combined with trades amounting in millions would potentially lead to a large discrepancy to HVN’s Accounts receivable and payable accounts. Additionally, a lower AUD reflects that HVN would have to increase the retail prices in order to achieve the same profit margin (Campbell Phillips 2013). Empirical evidence reveals that if the dollar drops to around $0.80AUD compared to the USD, Australian consumers can expect an increase in prices of about 25% (Campbell Phillips 2013). This increase can be counteracted through hedging of the currencies, however volatility of the commodity market could potentially reduce HVN’s sales. Specifically, if sales decreases the risk of inventory obsolesces and write downs through idol stock increases.

Presentation of Thesis Statement :: essays papers

Presentation of Thesis Statement For many years the SAT had been considered one of the most important tests that a student can take for the admission process. The SAT is thought to be one of the greatest measurements of academic success is high school and is considered one of the greatest predictors of academic success in college. In the recent years there have been people who have questioned the validity of the SAT, saying that it is an inaccurate measure of academic success and a poor predictor of academic success and does nothing except hinder the application and admission process for prospective students. The purpose of this paper is to present the two sides of the two sides of the argument (support of the test as an accurate measure and the support of the test as an inaccurate measure). Study Report In a report written in 1992, Neil J. Jenkins writes that some colleges in Canada are no longer using the SAT as a predictor of success by post-secondary institutions, and are not really considered in the admissions process either. Study Findings The institutions in Canada feel that the test has many limitations, which among these are: the SAT, in an attempt to free up confounding variables, the test is modified not to accommodate people who can not speak English. Some of the other modifications that the SAT endures are that they have no accommodations for the visually impaired and students with mobility issues. The majority of the students both disabled and not, scored in the similar percentile in the mathematics section of the exam. It was the verbal section that had the majority of the deviations. The finding in this report was also substantiated by Randy Bennett, who also performed studies that concluded with the same findings (Jenkins 1992). Randy Bennett, when speaking about the non-traditional students (non-traditional students is defined by students who suffer from disabilities (both learning and physical, students who have physical disabilities include hearing impairments, visual impairments, and mobility impairm ents), may not be close to the age of traditional students, students who’s first language is not English.), says that: â€Å"Vocabulary items re also reported to be difficult for these students†¦Learning disabled pupils are sad to have particular difficulty with antonyms and with the logical relationships required by verbal analogies.† (Bennett, quote is embedded in the Jenkins report so no year given, page is provided from the Bennett report, page 44)

IP Art Appreciation AIU Online Essay

Among the three artists Rubens, Caravaggio, and Rembrandt there have been many magnificent works of art. There are many different similarities and differences within each Artists works, aesthetic qualities and symbolic significance, as well as the artists’ points of view for each work of art. Rubens, (Peter Paul Rubens) â€Å"was a prolific seventeenth-century Flemish Baroque painter, and a proponent of an exuberant Baroque style that emphasized movement, color, and sensuality. He is well-known for his Counter-Reformation altarpieces, portraits, landscapes, and history paintings of mythological and allegorical subjects.† He began by visiting many famous artists and copying some of their works of art to develop a sort of sense of understanding for this type of art and how it is create. One of his paintings â€Å"Head of Medusa† can be seen by many as very grotesque, yet it is incredibly detailed and realistic. Medusa was known as a Gorgon in Greek mythology, and that was of evil. Many often described her as a winged type creature with head of snakes. Though, she was mortal and Perseus killed Medusa by decapitating her. Medusas death is found in the epic, Argonautica. This painting is most likely depicting the defeat of evil, and intended to be very dramatic, catching the viewers’ attention immediately. (Rubens.org 2013) Caravaggio (Michelangelo Merisi da Caravaggio) â€Å"was an Italian artist active in Rome, Naples, Malta and Sicily between 1593 and 1610. He is commonly placed in the Baroque school, of which he is considered the first great representatives.† He was also one of the many artists that Rubens copied in his times of studying art. â€Å"The intense realism or naturalism, for which Caravaggio is now famous, is used in the majority of his paintings. He preferred to paint his subjects as the eye sees them, with all their natural flaws and defects instead of as idealized creations. This allowed a full display of Caravaggio’s virtuosic talents. He was also widely known as the most famous painter in Rome. His painting of Medusa in a leather jousting shield is very similar in meaning to that of Rubens painting, though  Caravaggio’s depicts that of the incident where the Goddess Athena placed in upon her shield because any who looked upon the head of Medusa would turn to stone. Both Caravaggio’s and Rubens painting are grotesque and dramatic, yet a beautiful display of their own imagery. (Caravaggio.org 2013) A writer named Walter Wallace gives an incredible and justifying description of Rembrandt ( Rembrandt Van Rijn). He states â€Å"In life Rembrandt suffered far more misfortune than falls to the lot of an ordinary man, and he bore it with the utmost nobility†¦. The child of poor, ignorant Dutch peasants, Rembrandt was born with near-miraculous skill in art. As an uneducated young man, he established himself in Amsterdam, married a beautiful, wealthy, sympathetic girl named Saskia, and enjoyed a brief period of prosperity and fame. However, because men of genius are always misunderstood by the public, fate snatched him by the throat†¦. Rembrandt responded with a masterpiece, a fact unfortunately apparent only to him and his wife. Everyone else, from the burghers to the herring-peddlers, thought the painting was dreadful. Rembrandt’s patrons hooted in rage and derision, demanding changes that the artist, secure in the knowledge that posterity would vindicate him, stubbornly refused to make.†(Wallace 1968) Like Caravaggio and Ruben, his works could be just as realistic and gruesome, yet seem to take your breath away at the meaningful imagery that they all portrayed. One of his paintings The Blinding of Samson, he depicts armored men holding down Samson, and taking a knife to his eyes, thus blinding him. This is of course representing the Blinding of Samson that is portrayed in the Holy Bible. This artist captures the viewers attention by the emotion of this moment. It was also very common to see stories of the Bible depicted in artists work during this time period due to The Roman Catholic Church’s stand point at that time. The three artists Ruben, Caravaggio, and Rembrandt all created amazing works of art, with similar interests as well as display of their own imagery. All three works of art depict similarity that suggests they are from the same time period, such as the style, detail of dramatic facial expressions, and that each was of some sort of mythology or theory that they firmly believed on or felt an intense obligation to share. References: Caravaggio, The Complete Works. (2013). Retrieved on September 28, 2013 from: http://www.caravaggio-foundation.org/Medusa,-painted-on-a-leather-jousting-shield,-c.1596-98.html Peter Paul Rubens, The Complete Works. (2013). Retrieved on September 29, 2013 from: http://www.peterpaulrubens.org/biography.html Wallace, Walter. (1968) â€Å"The Legend and the Man,† in The World of Rembrandt: 1606-1669. pp. 17-25.

Company law Essay Example For Free At Magic Help - Free Essay Example

Sample details Pages: 6 Words: 1704 Downloads: 5 Date added: 2017/06/26 Category Law Essay Type Essay any type Did you like this example? THE ULTRA VIRES DOCTRINE OF COMPANY LAW IN ZAMBIA INTRODUCTION This assignment examines the debate on the legal issues surrounding the abolition of the requirement to submit a Memorandum of Association when applying to incorporate a company under the Zambian Companies Act 1994 cap 388 of the Laws of Zambia. This debate has been on the à ¢Ã¢â€š ¬Ã…“Objects Clauseà ¢Ã¢â€š ¬Ã‚  which used to be a requirement under the old Companies Act 1921 and was to remain as part of the Memorandum of Association thereafter until the company ceased to exist. ORIGINS OF THE OBJECTS CLAUSE A company on incorporation under the Companies Act cap 388 gives it a corporate personality which means that it gains the status of a separate legal entity from its shareholders or members.[1] However, as an artificial person, the company cannot make decisions and as such has to rely on humans to make decisions on its behalf. Don’t waste time! Our writers will create an original "Company law Essay Example For Free At Magic Help" essay for you Create order Therefore, the decisions and actions by the company officers, employees or indeed its agents will be taken to be those of the company which shall bear the liability. As such, as the company is to be regarded as an artificial person, the courts developed the view that its legal capacity had to be limited to its objects[2] and on incorporation to include the objects clause in its memorandum of association[3] which formed part of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s constitution. This was with a view of safeguarding the interests of both the shareholders and the creditors by way of the doctrine of ultra vires. In summing up, it can be said that an objects clause is that provision in a companys constitution which provides for the purposes and the power to undertake only the activities for which the company was formed as was the case before the coming into force of the Companies Act cap 388. THE DOCTRINE OF ULTRA VIRES The doctrine of ultra vires[4] refers to those acts or decisions th at a company may undertake which are beyond the scope of powers granted by the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s objects clause in its memorandum of association. Ashbury Carriage Company v Riche (1875) The ACC was an incorporated company under the Companies Act of 1862. Clause 3 of the memorandum that: The objects for which the company is established are to make and sell, or lend on hire, railway carriages and wagons, and all kinds of railway plant, fittings, machinery, and rolling-stock; to carry on the business of mechanical engineers and general contractors; to purchase and sell, as merchants, timber, coal, metals, or other materials; and to buy and sell any such materials on commission, or as agents. The company agreed to provide Richie and his brother with finance for the construction of a railway in Belgium but later repudiated the agreement. Richie sued for damages. Held That the contract was void and that ratification, even if it had taken place, would have bee n wholly ineffective. PRESENT LAW Unlike before, the current Companies Act cap 388, does not have a mandatory requirement for companies incorporated under it to have a memorandum of association which should contain the objects clause. POWERS AND DUTIES OF DIRECTORS The Companies Act Cap. 388 provides under section 215 that: (1) The business of a company shall be managed by the directors, who may pay all expenses incurred in promoting and forming the company, and may exercise all such powers of the company as are not, by this Act or the articles, required to be exercised by the company by resolution. (3) Without limiting the generality of subsection (1), the directors may exercise the powers of the company to borrow money, to charge any property or business of the company or all or any of its uncalled capital and to issue debentures or give any other security for a debt, liability or obligation of the company or of any other person. VALIDITY OF ACTS However, s ection 23 provides that à ¢Ã¢â€š ¬Ã…“No act of a company, including any transfer of property to or by a company, shall be invalid by reason only that the act or transfer is contrary to its articles or this Actà ¢Ã¢â€š ¬Ã‚  seems to be a contradiction to sections 7 and 22. THE ARTICLES OF ASSOCIATION Before the 1994 Act, the articles of association where classed as being inward-looking and having a purpose of setting out the rules governing the running of the company. The articles hence formed an incorporated companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s constitution[5] which may deal with any matters of the company operations. However, the present Act does not, as stated above, make it mandatory for a company to submit a memorandum of association but provides under section 7 as follows: (1) A company may have articles regulating the conduct of the company. (2) The articles may contain restrictions on the business that the company may carry on. This means that there is no need of an objects clause to be included in the articles of association so as to restrict the business operations to conform to the objects and indeed should not specify its general nature of the company business. This assertion can also be inferred from section 7(4) which provides that à ¢Ã¢â€š ¬Ã…“a company on incorporation may adopt the regulations of the Standard Articlesà ¢Ã¢â€š ¬Ã‚  which do not contain a provision for the general nature of the business to be undertaken or indeed any restrictions. Furthermore, section 7(2) provides that à ¢Ã¢â€š ¬Ã‹Å"the articles may contain restrictions on the business that a company may carry onà ¢Ã¢â€š ¬Ã¢â€ž ¢, thus departing from the traditional role of covering mainly issues to do with the internal management of the company for which articles of association are often known for. Therefore, it could be inferred from this section that a company on incorporation may restrict its nature of business to be undertaken as agreed by the shar eholders. This inference is asserted to by section 22(3) of the Act which provides that à ¢Ã¢â€š ¬Ã…“A company shall not carry on any business or exercise any power that it is restricted by its articles from carrying on or exercising, nor exercise any of its powers in a manner contrary to its articles.à ¢Ã¢â€š ¬Ã‚  However, the restrictions that prohibit an incorporated company from carrying on any business in its articles of incorporation are on the preferences of the shareholders and as such the doctrine of ultra-vires whilst not being abolished is not mandatory. Therefore, where a company decides to place some business restrictions in its articles of association then that company is prohibited from carrying on any business or exercising any power that it is restricted by its articles. NOTICE NOT PRESUMED 24. No person dealing with a company shall be affected by, or presumed to have notice or knowledge of, the contents of a document concerning the companyà ¢Ã¢â€š ¬Ã‚ ¦.. This means that the interests of the third party who deals with a company is entitled to assume that it has the power to do anything it wishes are not affected[6] unless he was actually aware (notice or knowledge) of the restrictions. Therefore, section 24 basically abolishes the ultra vires rule against third parties who have no knowledge of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s objects and are meant to assume that the director, agent or company employee they deal with has the power to make decisions. This has been acknowledged in the case of Freshint Ltd Others v Kawambwa Tea Company [2008] ZMSC 26 at (763) where it was held that à ¢Ã¢â€š ¬Ã…“in practice most people dealing with companies rely on the rule in Turquandà ¢Ã¢â€š ¬Ã¢â€ž ¢s case and do not bother to inspect the articles. à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s authorized agents bound the company to comply with the contract and such liability cannot be avoidedà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ . NO DISCLAIMER ALLOWED 25. A company à ¢Ã¢â€š ¬Ã‚ ¦..may not assert against a person dealing with the company or with any person who has acquired rights from the company that- (a) any of the articles of the company has not been complied with; (b) a shareholder agreement has not been complied with; (c) the persons named in the most recent annual return or notice under section two hundred and twenty-six are not the directors of the company; (d) the registered office of the company is not an office of the company; (e) a person held out by a company as a director, an officer or an agent of the company has no authority to exercise the powers and perform the duties that are customary in the business of the company or usual for such a director, officer or agent; (f) a document issued by any director, officer or agent of the company with actual or usual authority to issue the document is not valid or genuine; or APPLICATION FOR INCORPORATION Section 6 2(i) pr ovides that an application for incorporation shall be in the prescribed form and shall specify à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. the nature of its proposed businessà ¢Ã¢â€š ¬Ã‚ ¦.. This means that all the features which could be found in the memorandum of association have now been incorporated into the Articles of Association including but not limited to: (a) The Name Clause; (b) The Objects Clause; (c)Each subscriber confirming their intention to form a company (d)Each member also agrees to take at least one share (e)Physical address of the office to be the registered office CONCLUSION This argument hence concludes that the requirements for the objects clause have actually been retained in through both the articles of association and Companies Form 2 which requires that the applicants specify the general nature of business to include the principal business and any other business (section 2). It could further be concluded that the filing of Form 2 re-enforces the notion that the doctrine of ultra vires has been retained in Zambia through the provision at section 3 that, à ¢Ã¢â€š ¬Ã…“The articles restrict the business that the company may conduct as followsà ¢Ã¢â€š ¬Ã‚  after which part these restriction will be specified. BIBLIOGRAPHY Davies, L. P., Principles of Modern Company Law, 8th Edn, Sweet and Maxwell, 2008 Dignam A. Lowry J., Company Law, 4th Edn, OUP, London, 2006 1 [1] Salomon v Salomon Co [1897] A.C 22, HL, at 51, per Lord Macnaughten [2] Ashbury Carriage Company v Riche (1875) [3] Guinness v Land Corporation of Ireland (1882) [4] Ultra vires is a Latin expression which lawyers and civil servants use to describe acts undertaken beyond (ultra) the legal powers (vires) of those who have purported to undertake them. Davies P.L., Principles of Modern Company Law, at p153. [5] Davies P.L., Principles of Modern Company Law, 8th Edn, Sweet and Maxwell, 2008, at p62 [6] Royal British Bank v Turquand (1856)