London Stock Market and Capital Budgeting Essay

London Stock Market and Capital Budgeting - Essay Example Winning in business is characterised by net profits. There are two ways of generating funds. They are borrowing and investing. The best place to invest funds is visiting the London Stock Exchange. The following paragraphs explains clearly why investing in capital assets is a risk that can be tailored to generate profits and not left to chance (Datta, and Jones 1999, 21). The above computation shows that sales for the first year is 7,000,000. The direct materials and variable operating expenses amount is 2,500,000. The direct labor amount is 2,000,000. The factory overhead is arrived at by multiplying the direct labor amount by fifty percent. The amount arrived at is 1,000,000. The annual depreciation of 675,000 is arrived at by dividing the investment cost of the equipment amount of 3,375,000 by five years. The net profit result is 825,000.The cash inflow is arrived at by adding back the annual depreciation expense to the net income because there is no actual cash outflow generated by the depreciation expense. The net cash inflow computed for the first year is 1,500,000. This generates a first year present value using the net present value discount table for varying annual cash inflows is 1,485,000(Dayananda et al. 2002, 5). The above computation shows that sales for the second year is 7,700,000. ... The net profit result is 975,000.The cash inflow is arrived at by adding back the annual depreciation expense to the net income because there is no actual cash outflow generated by the depreciation expense. The net cash inflow computed for the second year is 1,650,000. This generates a first year present value using the net present value discount table for varying annual cash inflows is 1,617,000. The above computation shows that sales for the third year is 8,400,000. The direct materials and variable operating expenses amount is 3,000,000. The direct labor amount is 2,400,000. The factory overhead is arrived at by multiplying the direct labor amount by fifty percent. The amount arrived at is 1,200,000. The annual depreciation of 675,000 is arrived at by dividing the investment cost of the equipment amount of 3,375,000 by five years. The net profit result is 1,125,000.The cash inflow is arrived at by adding back the annual depreciation expense to the net income because there is no actual cash outflow generated by the depreciation expense. The net cash inflow computed for the second year is 1,800,000. This generates a first year present value using the net present value discount table for varying annual cash inflows is 1,747,000. The above computation shows that sales for the fourth year is 6,300,000. The direct materials and variable operating expenses amount is 2,250,000. The direct labor amount is 1,800,000. The factory overhead is arrived at by multiplying the direct labor amount by fifty percent. The amount arrived at is 900,000. The annual depreciation of 675,000 is arrived at by dividing the investment cost

Product Market Analysis Essay Example for Free

Product Market Analysis Essay In 1873, Adolph Coors and Jacob Schueler, both German immigrants established Golden, Colorado brewery. In 1880, Coors bought out his partner and became the sole owner of Coors Brewing Company. Today Molson Coors Brewing Company is the third largest brewing company in the United States (Molson Coors, 2013). In 1990, Coors Brewing introduced Coors Rocky Mountain Spring Water. The product was short lived and was taken off the market in 1992 after only two years. There are a few problems with the marketing and advertising of this product. To remarket this product I would start with the use of various types of media communication. Television, radio, magazine, and other social media outlets would be take advantage of. Television and radio commercials will be broadcast during sporting event on the major sports networks. The focus on the sports and outdoor community will be the main target. The Coors Company did not target these markets with their product. Magazines advertisements will be added to outdoor and sporting magazines. The product will be advertised on social Medias such as Facebook and Twitter. Facebook also gives the option of paying for more advertisement. This can triple the products reach more than 1000 different views a day. The advertisement for this product was limited to television and magazines. The problem with the television is that Coors was tried to target their beer drinking customer. The times the commercials were aired were during the same times that beer commercials. The customer base that they were reaching limited the exposure. That consumer base is not interested in the Rocky Mountain Spring Water unless is has the rest of the ingredients in it. The big issue that this product has is in the name. Coors Rocky Mountain Spring Water makes you think of the alcoholic beverages that they are known for. This alone discouraged those who do not drink or those too young to drink. In 1987, the average person would consume 4.5 gallons of bottled water per year. That grew in 1997 to 12.7 gallons per person. There an no reason why with that much increase in the consumption of bottled water this product did  not take off (Natural Resource Defense Council, 2013). This product has a simple fix. First, it is important that we change the name of the product. At the least drop the Coors of the name, Rocky Mountain Spring Water. This will still bring in the loyal customers to the Coors product. Any true fan on Coors will remember that Coors is made by Rocky Mountain Spring Water. This will also disassociate the product from the alcoholic beverages. The original product was bottled in glass bottles. This could also hinder the sales of the product. The glass bottles are heavy and harder to store. Change the glass bottles into plastic bottles. This will cut down on the price of the product and make it easier to carrier. The next step would be to us media to get the product out to the public. We need to bring more advertisements to television and radio during sporting events. Advertising online can be done in many different ways. There are ways to reach online customer by e-mail or online advertisements. Facebook, Netflix, and a podcasts offer advertisements during interaction with their services. Online magazines and newspapers also offer advertisements while on the websites. Facebook has more than one billion people who us its services monthly. People spend an average of six hours and 35 minutes a month. Because of the way Facebook works it has a 94% targeting accuracy. This is highly effective when trying to reach the target market (Facebook, 2013). Internet radio is a great way to reach people. Internet radio accounts for 23% of the average weekly listening time among consumer between the ages of 13 and 35. 49% of US consumers listen to Internet radio 30 minutes prior to going into a store and the average online listener will listen almost 12 hours a week (Factbrowser, 2013). All these things I have listed will help to increase the public awareness for the product. The more the public is aware of the product, the more attention it will receive. In 2012 9.67 billion gallons of bottled water was consumed in the U.S. That was up from the 9.1 billion gallons that was consumed in 2011. Despite the efforts of some activist people are still turning to bottled water, and it is showing in the marketplace. References Facebook. (2013, Summer). The Power of Facebook Advertising. Retrieved from https://www.facebook.com/business/power-of-advertising Factbrowser. (2013, Fall). Research discovery engine. Retrieved from http://www.factbrowser.com/tags/radio/?page=2 Molson Coors. (2013, November). MolsonCoors. Retrieved from http://www.molsoncoors.com/en/Index.aspx Natural Resource Defense Council. (2013, July 15). Bottled Water. Retrieved from http://www.nrdc.org/water/drinking/bw/chap2.asp

Business health check in hospitality industry

Business health check in hospitality industry 1.0 Introduction 1.1 Aim of the assignment   Ã‚  Ã‚  Ã‚  Ã‚  This report is all about business health check in hospitality industry and finding the gaps of the organisation. After finding the gaps giving the appropriate recommendation and giving the action plan as well as time spam. After that how much it will cost to your organisation to implement that action plan.   Ã‚  Ã‚  Ã‚  Ã‚  As presently I am not working any hospitality related industry therefore I chose to do business health check in Kohinoor continental where I completed my training. 1.2 Organisational introduction The Kohinoor Continental is located at Andheri (East), at a stones throw from Mumbais International Airport and in the midst of the newly developing Business District. It is indeed rare that there exists a business hotel, which enjoys a distinguished patronage such as ours. Therefore during our period of renovation, much as we would have liked to, we could not offer you our hospitality. But now youll agree that the new Kohinoor Continental was well worth the wait. From the moment you enter, youll see that we have spared no expense in order to make your stay as comfortable as possible, with the finest materials imported from all over the world and many aesthetic nuances, which adorn the hotel like jewellery. Accommodation: The ambience and hospitality at Kohinoor Continental match international standards. Each and every one of our 120 rooms is equipped with state-of-the-art lighting and furnishings. The well being of our guests is our main concern. So if theres anything you need at any hour, well get in for you. Be it access to the Internet or a bowl of fresh fruit, no desire of yours is too big or too small. Restaurant: A royal feast awaits your taste buds at Solitaire, the multi-cuisine restaurant at the Kohinoor Continental. Conference and Banquet facilities: With the unique mood lighting in our banquet hall, were sure your parties and conferences here will be evenings to remember. Indeed we had been closed for long but now you might be tempted to stay a little longer in the Kohinoor Continental. We look forward to seeing you soon. Recreation: If you want to unwind after a tiring day, then just melt in our pool or savor a Daiquiri at our bar. Health Fitness Centre: In case you want to work up an appetite then the Health Club and the sauna are just the places for you. The hotel incorporates environmentally friendly measures such as medium density fibre wood for construction materials, and plumbing, electrical, and mechanical systems that conserve water and energy This hotel offers 92 guestrooms and 14 suites in a six-story building. Air-conditioned rooms also come with ceiling fans. Among the amenities are coffee/tea makers, refrigerators, and wireless Internet access. Furnishings are made from environmentally friendly materials. 1.3 What is quality? â€Å"Quality itself has been defined as fundamentally relational: ‘Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs.'(Richard e. and Daniel k, 1996) As per the ISO quality is providing excellent products and services that all about meeting customer requirements. Its all about meeting the needs and expectations of customers. So a quality product orservice is one that meets the needsandexpectations ofcustomers. (Anon, 1994) Quality defined by as, conformance to the requirements which is the company itself has established for its product based directly on its customers need. (Crosby p,1979) 1.4 What is Quality audit? It has been a long established practice for major industries and sector to carry out on site evaluation of their most important and sub contractors. The quality audit undoubtedly began with customer inspection. These have been typically intended to : To prove technical capability of the establishment the product or service To check that establishment have capacity or not to cope the customer demand To confirm the commercial stability of establishment. To form an opinion as to whether this is the type of establishment that we would like to do business with. 1.5 Why is it necessary? It is a management tool covering services, products, equipment and financial aspect of a property. Most guests have no time to give feedback, or give only negative comments on one aspect of their experience. It measures and ensures service standard consistency within a chain/group. It identifies staff training needs and rewards. It identifies cost cutting efficiencies. Used for long term benchmarking data. 2.0 Quality audit for Kohinoor continental How you conduct the quality audit? Presently I am not working in hospitality industry therefore I chose Kohinoor continental for my quality audit. As I completed my training from there, so its easy to me to do the quality audit of Kohinoor Continental. In Kohinoor I worked most in bar therefore I chose bar section. Name of the bar Baryl club No of covers- 44   Ã‚  Ã‚  Ã‚  Ã‚  For quality audit purpose I have called to Bar manager and bar tender and asked several question regarding quality audit. 3.0 The gaps in Bar of Kohinoor Continental Lack of upselling The service personnel dont have any knowledge about upselling. Product out of stock- Sometime due negligence of steward, bar tender forgot to order the items which are low in stock. Therefore sometime we have to tell to our guest stock out of stock. No proper crowd management- Actually Baryl club offering heavy discount to there customer therefore there was very rush in the evening time. and its has only capacity of 40 cover at a time therefore crowd just roaming in the lobby and there is no one to handle that crowd from bar. Also there is no one for advanced booking. No proper storage area and very small pantry- In Baryl club pantry itself in the bar where we stored snacks (peanuts, wafers) some bottles of wine, beer, whisky etc. Also in pantry there is account department for bar section so its very congested to work. The pantry area is so small only two person can stand properly therefore its very difficult to work in peak hours. Less staff in bar- Although Baryl club has capacity for 40 covers only 2 peoples were there to serve them. Also there is no one to take the advanced bookings. Its difficult for staff to take the order and place the order and also take care the new guest. Also kitchen area is very far from bar section therefore if one bar personnel was busy to pick up the order from kitchen its very difficult for other to mange in the bar. I completed my training in bar therefore I observed these gaps during my training period. 4.0 Recommendation I am planning to fill the above gaps with PDSA model which is commonly used in hospitality industry. (Wiseman B. 2005) PLAN- it is the test how you are going to work. DO-how you are going to carry out the plan STUDY-look what are the result, what can you improve, what are your mistake. ACT- It is the designs time what are you going to do. 4.1 Recommendations on above gaps: Upselling- Recommendation for this to give your staff proper training for upselling. So they can also know what benefit of upselling is and also help them to earn some tips. Bar manager can also show some upselling practically so they can understand easily. Product out of stock-Recommendation for this is Bar manager have to keep eye on stock list so they can also order for stock without intimation of steward. Also Bar manager can check stock list in every 15 days so he is also aware about the stock in bar. Crowd management- Recommendation for this management H.R department have to hire a service personnel or public relation officer for bar so he/she can handle the crowd properly and also take the bookings on phone. Also management can keep separate area in lobby for those people who are waiting for table inn the bar. So they can wait in that area without disturbing front office staff. Storage area- Recommendation for this will be management can shift account department in the restaurant (where they already have account dept for restaurant) from bar and keep the that area fully utilised for bar purpose so that more stock can stacked properly and also no complaint about the lack of stock. After that during the billing we can give all KOTs to cashier in the restaurant and he can give us the proper bill and at the end of the shift we can handover the cash and all bills to cashier. Less staff in bar-Its very difficult to handle bar with only 2 staff therefore recommendation for this is management can recruit 1 or 2 more staff so its very easy to handle during the rush hours. 4.2 Action plan as per the recommendation and time spam Upselling-For upselling management can give proper training to food and beverage staff. The bar manager or the senior person can give proper training because of there experience. The training can held in the afternoon time when there is less rush or in the morning time when there is no guest in the bar. The manager have to show the upselling tactics practically so that they can understand it very easily and the will also try do upsellings. The training is for only once or twice in a week for a month. The one month period is enough to learn the upselling. Product of out of stock- Actually this is bar tenders duty to keep eye on the stock list. But due to negligence of bar tender some time products are of of stock. The solution for this is bar manager can check the stock list once in a fifteen days and he can also give the intimation to bartender about the stock. Another plan is they can save the stock list in computer and check the stock whenever the want and order as per the convenient. Crowd management-To fill this gap the H.R department have to appoint a public relation officer (P.R) for bar who can take the advance booking for bar and also control the crowd during the rush hours in bar. To appoint the P.R 15-20 days are enough after giving advertisement in newspaper or in job searching site. The P.R will also help in the bar to fill the tent cards asking the guest about the service and other things also like quality of food etc. Storage area- To fulfil this gap management have to shift the account dept of bar in the restaurant where they will see the accounts of restaurant as well as bar. The restaurant already have accounts therefore it doesnt take time for shifting purpose. But it will take 1 week to settle down there. After that in bar management have to make some storage shelves and proper area to stack the all items therefore this also take 1week time. Less staff in bar- For this gap H.R department have to recruit a steward or one more bar tender who will help service personnel from the bar. This will also take 15-20 days to recruit. One more option for H.R is they can hire the steward on temporary basis during the rush hours of the bar instead of hiring a permanent staff. For example they can hire a student form a hotel management college to work in the evening time. so it will save the cost as compare to hiring the a permanent staff. 4.3 Cost factor Upselling- As bar manager is giving the training during his duty hours so it doesnt cost to organisation. Product out of stock- This is covered in duty activity therefore this also doesnt cost anything. Crowd management- This will cost for organisation to pay the P.R staff. Storage area- This will cost only less amount to make proper shelves in storage area. Less staff in bar- This will cost as hiring of new personnel. 5.0 Bibliography Richard E. and Daniel K.(1996). Organisational orientation. Reference to: http://www.qualitydigest.com/html/qualitydef.html. (Accessed on 22 June 2008) Crosby P.(1979). Mini tutorial quality functional deployment. Reference to: http://66.102.9.104/search?q=cache:cxe5V4NPKRcJ:www.freequality.org/sites/www_freequality_org/Documents/knowledge/QFD.pdf+quality+definition+by+diffrent+authorhl=enct=clnkcd=1gl=in.. (Accessed on 22 June 2008) Reference to:http//www.praxiom.com/iso-definition.htm#Quality. (Accessed on 22 June, 2008)

Narrativity, Modernity, and Tragedy: How Pragmatism Educates Humanity :: Argumentative Persuasive Philosophy Essays

Narrativity, Modernity, and Tragedy: How Pragmatism Educates Humanity ABSTRACT: I argue that the modernist notion of a human self (or subject) cannot easily be post-modernistically rejected because the need to view an individual life as a unified 'narrative' with a beginning and an end (death) is a condition for asking humanly important questions about its meaningfulness (or meaninglessness). Such questions are central to philosophical anthropology. However, not only modern ways of making sense of life, such as linear narration in literature, but also premodern ones such as tragedy, ought to be taken seriously in reflecting on these questions. The tradition of pragmatism has tolerated this plurality of the frameworks in terms of which we can interpret or 'structure' the world and our lives as parts of it. It is argued that pragmatism is potentially able to accommodate both the plurality of such interpretive frameworks-premodern, modern, postmodern — and the need to evaluate those frameworks normatively. We cannot allow any premodern source of hu man meaningfulness whatsoever (say, astrology) to be taken seriously. Avoiding relativism is, then, a most important challenge for the pragmatist. 1. The idea that "grand metanarratives" are dead is usually regarded as the key to the cultural phenomenon known as postmodernism. We have been taught to think that the Enlightenment notions of reason, rationality, knowledge, truth, objectivity, and self have become too old-fashioned to be taken seriously any longer. There is no privileged "God's-Eye-View" available for telling big, important stories about these notions. The cultural hegemony of science and systematic philosophy, in particular, is over. Nevertheless, as even some postmodern thinkers themselves keep on insisting, we still have to be committed to the grand narrative of our individual life. (1) We cannot really dispense with the modernist notion of self, and the one who says we can forgets who she or he is. From the point of view of our own life, no postmodern death of the subject can take place. On the contrary, my death transcends my life; it is not an experienceable event of my life — as Wittgenstein also famously pointed out at Tractatus 6.4311. Most (perhaps all) of us feel that one's own death is hardly even conceivable from within one's life. On the other hand, somewhat paradoxically, death must be postulated as the imaginary end point, the final event, of the story of my life. If there were no death (i.e., the annihilation of my self) to be expected, I could not even realize that I am leading a specific, spatio-temporally restricted human life.

Trumans Domestic Policy :: American America History

Truman's Domestic Policy Despite strong opposition from a Republican congress, Truman attempted to extend Roosevelt's New Deal policies by strengthening social security, conservation, implementing rent controls, and providing housing to low-income families. At times, however, Truman was inconsistent with his own party's beliefs and the ideal of the New Deal in order to suit the immediate situation and retain public support. Furthermore, Truman supported civil rights actions and for the first time, increased the political status of African American citizens. Truman's various other reforms were much like the proposals of Roosevelt, but the mood of the nation due to its affluence and that of Congress opposed his efforts and the changing times proved that Truman's Fair Deal was not as necessary as FDR's New Deal. Truman's organized policy to elaborate on the New Deal was termed the Fair Deal and aimed to improve social conditions like Roosevelt's plan had done previously. His immediate goals were full employment and an improved economy, as well as to provide for the common good. The Fair Labor Standards Act increased the minimum wage from 40 cents to 75 cents and the Social Security Act increased benefits to the elderly by 77.5%. Also, to the advantage of those who lived in rented homes and apartments, Truman lengthened rent controls to March 1951, and in addition, the Housing Act vowed to eliminate slums and established 810,000 low-income houses, thus providing a good amount of citizens with affordable housing. The president also implemented the Employment Act in 1946 to help stabilize the postwar economy. The act created a three member council of economic advisors and a joint committee to study and propose stabilization measures. Moreover, Truman attempted to establish a Missouri Valley Aut hority while extending the power of the Tennessee Valley authority, but was unsuccessful. However, the president did obtain increases in hydroelectric, water control, and irrigation projects in the west. Like Roosevelt, Truman was concerned about the welfare of farmers and encouraged the Brennan Plan to maintain farm income standards through price supports, loans, and storage of nonperishable commodities. Although the plan failed , the Agriculture Act of October, 1949 continued price supports at 90% parity through 1950 and then at 75-90% afterwards. This act was consistent with New Deal farm policy. Truman made other New Dealish attempts, like National Health Insurance and federal aid to education, but both were defeated with the help of protests by interest groups, namely the American Medical Association and the Roman Catholic Church.

Animalistic Characters In Medieval Times :: essays research papers

The many temptations of life bring people to act differently through personality changes. The characters in Sir Gawain the Green Knight change their personalities through temptation. Through the Christmas time, Bertilak, king of the castle, decides to go hunting. While he is hunting, his wife is hunting or seducing Gawain. Men tempted with sex by women often act with certain animalistic instincts; in Sir Gawain and the Green Knight by the Pearl Poet, the seduction scene leads Gawain to act upon his animal instincts, which mimic the behaviors of the beasts of Bertilaks' hunt.The temptation in the first seduction scene and the first hunt scene of the deer relates in both shy and timid ways. When the lady approaches Gawain, he acts shy "laid his head low again in likeness of sleep" (25). Gawain, confused at the directness of the lady, pretends to be asleep. She throws her body at him, which startles Gawain to act ignorant. At the end of the first seduction scene, Gawain says, "I shall kiss at your command" (28). The deer, which at first is shy, but at the end of the hunt is killed, relates to Gawains' shy behavior, but at the end of the seduction scene is caught and kissed. Although the deer is the shyest of animals, the boar is caught with more use of power and strength. The next seduction and hunt scene revolves around the behavior of the boar. The boar is a quick and aggressive animal. It has a "bloodthirsty heart to quell" (31). Gawain, when approached by the lady in the second seduction scene, acts less ignorant to his position, but temptation draws him to be aggressive. "My aim is to please," (33) said Gawain. The lady tempts Gawain to such an extent that he tries to resist her by exchanging two kisses with her, instead of sleeping with her. The hunt of the boar caught at last with more strength then the deer, is parallel to the lady attempting to pursue Gawain. He is more tempted to her and finally is caught by power. The temptation of the third seduction scene and the hunt of the fox are the most forceful.Gawain is tempted to the extreme during the hunt of the fox. The fox has a sly and deceiving personality. "He thought through his wiles to have thrown off the hounds" (36). The fox tries to sneak away from the dogs, which happens to be the most outgoing personality characteristic.

American Home Products Corporation Essay

American Home Product Corporation (AHP), a highly growing American company, has four business lines: prescription drugs, packaged drugs, food products, house wares and household products. Its policies include: -A tight financial control and maintained an aggressive capital structure policy. – Make money for its stockholders and to maximize profits by minimizing cost. – It has been able to finance internally its growth while paying a very high portion of its earning to its shareholders (60%). Currently, AHP seems to have no business risk but may face a certain risk in the long run. Based on the ratios shown on the attached sheet, AHP should not worry about business risk since its working capital is very healthy ($1472.8 million) and cash excess $233 million. The high ROA, high profit margin, low current-to-asset ratio and 49.71 collection days show that AHP can generate cash quickly, thus it can maintain current high growth rate. However, it’s decreasing annual sales growth from 14.1% in 1978 to 8.8% in 1981 (exhibit 1) shows that it faces future risk of losing market shares in all its business lines if it does not foresee competition and continues to focus on increasing stockholders’ value. AHP’s current financial performance is very good since it has high ROE (30.3), high quick ratio (42.68), low debt-to-equity ratio (0.09) and low debt-to-asset ratio (0.01). However, an analysis of different debt ratios shows that if AHP increases debt ratio, it will face a financial risk of increased debt-to-equity and debt-to-asset ratios. In other words, it will face solvency problems in long terms. AHP also face liquidity problems since the quick ratios decrease when the debt ratios increase. 2 The proposed mechanism follows a dual mechanism of leveraging:- (a) Increase the Debt Equity Ratio. (b) Buy back the shares. This also results in the following:- (i) Improves EPS as the amount gets shared by lesser number of shares. (ii)Improves Price / earnings ratio (iii) The excess capital gets utilized. (iv)Sends a +ve signal to the market and share prices likely to increase. (v) Improves Return on Equity ratio. The calculations enclosed indicate that the best option in accordance with the company stated policy would be to have Debt-Equity Ratio of 70%. Shareholders’ value increases when debt ratios increase. EPS increases from $3.18 to $3.49. The dividend payout ratio also increases from 0.597 to 0.602. Similarly, the dividend yield from 0.063 to 0.070. It means that the company can increase shareholders’ value by increasing debt ratios. However the following needs to be considered:- (i) The valued net worth of the firm which decreases may not convey the correct picture to the investor and thus negating the positive signals of buy back of shares. (ii) The firm has no strategy related to R&D in new products and focuses on me-too products thus constituting a large business risk. (iii) The firm would reduce the cash to debt ratio substantially exposing itself to financial risk. The closest competitor has Debt – Equity Ratio of 30% which if taken as a benchmark gives a conservative method of deciding the proposed leveraging, however this does not maximize the shareholder value, but is in line with the strong conservatism philosophy of the firm. It also gives a better Return on Assets ratio and has a safer Debt to Cash ratio. Even though AHP has a very good current financial performance, it should change the financial policy to increase debt ratio at a certain level. To meet the goal of increasing shareholders’ value, AHP should not use its excess cash flow to repurchase its stocks because this is only a temporary solution and may generate serious financial problems in the long run. Instead, AHP should use this excess cash to invest in profitable projects to improve its current products and launch new products that meet current market demands. By doing so, AHP can minimize the business risk, prepare itself for competition and increase sales growth. On the other hands, AHP should increase debt ratio to a certain level that is suitable for its  business to increase shareholders’ value. Also it should continue to exercise tight monetary policies as earlier to pay off the debt in a disciplined manner This solution does not bring financial risk to AHP but enable it to minimize business risk. If AHP remains only concerned about how to increase shareholders’ value and ignores market threats, it might lose its business to its competitors.