Shareholder value analysis of carphone warehouse - Free Essay Example

Sample details Pages: 7 Words: 2115 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The chosen company for our shareholder value analysis is Carphone Warehouse Group Plc. The company has outstanding growth and has a dominant market position. It is the largest independent mobile retailer in Europe. After reviewing the latest Annual reports between 2000 2009, the model is used to calculate the shareholder value minus the estimate of total corporation value. Here are the 10 steps used to calculate the Shareholder value analysis for Carphone Warehouse Group Plc. Step 1: Calculate weighted average Cost of Capital Weighted Average cost of capital (WACC) = Ke * We + Kd * Wd Where, Ke stand for cost of equity Kd stands for cost of debt We stand for weight of equity proportion to total capital structure Wd stands for weight of debt proportion to total capital structure The figure below shows the WACC in detail. Don’t waste time! Our writers will create an original "Shareholder value analysis of carphone warehouse" essay for you Create order step 1 calculate WACC  wacc = ke *we+kd*wd risk free rate = 3.50% FTSE return = 9% beta = 101%  ke = 3.5%(101%*9%-3.5%))  gross debt = 5% tax adjustment = (1-28)  kd = 5%*0.72% =  debt to equity ratio = 20:80  we = 80%  wd = 20%  WACC = (9.6%*80%)+(3.6%*20%) = 8.4% Step 2: Calculate Future Turnover Total turnover for the year = Turnover for the last year + increase (turnover of the last year * growth rate) The assumption of the growth rate was calculated using the previous annual records for the company. This is given in the SVA model and shows to be 24.37% This was then used to calculate an estimated forecast of turnover for the next 7 years. Step 3: Calculate Operating Profit We calculated the average profit margin using the previous 10 years of data; hence using the change in percentage from previous year we used the average of that as our rate of profit margin which is 2.18%. We then used the forecasted turnover from step 2 and multiplied this to the profit margin to calculate the forecasted profits for the next 7 years pre tax. Step 4: Calculate After-Tax Inflow This step was used to calculate the post tax of estimated profits. We got our results by multiplying the pretax profits with the tax rate of 28%; we then subtracted the tax worked out from the post tax profit to get the post tax inflow. Step 5: Calculate Incremental Investment Needs We first calculated the working capital investment rate, we did this by dividing the turnover with working capital per year from 2000 2009 as a percentage and then we used the average percentage as our working capital rate. This was then used to used to work out the capital required, we did by multiplying the turnover per forecasted year by the working capital rate (6.2%). Step 6: Calculate Free Cash Flow (FCF) FCF = After-tax inflow [fixed investment cash outflow + working capital Investment cash outflow] Free cash flow measures how much money a company generates after deducting maintenance. FCF is important as it allows the company to pursue opportunities that will enhance the shareholders value. Step 7: Calculate Present value of future cash flow in seven years Discount the future cash flow based on weighted average cost of capital PV of FCF for each year= FCF *Discount Factor Total Present value of Future cash flow for seven years = FCF year 1 / ( 1+WACC) + FCF year 2 1/(1 +WACC)^2 + FCF year 3 1/(1 +WACC)^3+ FCF year 4 1/(1 +WACC)^4+ FCF year 5 1/(1 +WACC)^5+ FCF year 6 1/ (1 +WACC)^6 = 2677003479.09 Step 8: Calculate Business Value First calculate PV of RV which equals to after tax inflow divided by WACC (calculate from step 1) then the result to be multiplied by the discount factor. Present value of Residual value can be calculated as the form of perpetuity. There is assumption made that the cash flow after seven years would be constant amount and forever, which the definition of perpetuity is and it can be calculated using formula. Business Value = Cumulative PV of FCF + PV of RV Therefore, total Business Value = 26770034791 + 69502852504= £ 96272887295 Step 9: Calculate Corporate Value The total corporate value is the sum of Business value and the Marketable securities like equities offered by the corporation. Marketable security is used as of year 2009  £ 872000000.00 Corporate Value = Business Value + Marketable Securities (investments)  £ 96272887295 +  £ 872000000.00 Therefore, Corporate value =  £97144887294.68 Step 10: Calculate Shareholder Value Shareholder Value = Corporate Value -Total Debt Total Debt = Long term + Short term Total Debt = 425000000 + 33000000 = 458000000 Corporate Value=  £97144887294.68 458000000 Total Shareholder Value =  £ 96686887295 Part A (2) ÃÆ' ¢-  The growth rate This was calculated based on the previous 9 years of annual revenue of the company. The annual Growth rate was worked out using the average percentage of change between 2 financial years, i.e. 2001-2000. The growth rate is 24.37% The growth rate is moderately high and that is largely to the fact that the company has expanded with its venture with Best Buy in the United States. We thought about not including the 2009 annual figures within our model but then decided using our judgment that it would be best to use them. The assumption here is that the mobile phone industry is expanding globally which are good future prospects for the sales of independent retailers of mobile phones and electronics. ÃÆ' ¢-  profit margin (pre tax) : We used the the profit margins from the annual reports dating back to 2000, and worked out the average of 2.18%. In my opinion this rate is a more realistic value even though the comp any is showing high sales growth. ÃÆ' ¢-  tax rate Here, is the assumption made that Taxes is depend on the Revenue and it is assumed that tax rate will be constant for the seven year period but the total amount of tax paid each year will vary based on the growth of revenue. we have assumed that the tax rate in countries other than UK averages 28% as well. This is because of lack of information on the international operations and taxation of  CWG  and because the majority of the business of  CWG  after the joint venture in the States is now in UK. Therefore we have not included any other taxes regarding taxation. ÃÆ' ¢-  fixed capital investment rate To calculate the fixed capital investment forecast the fixed capital in terms of plants , machinery fixed assets will be used for seven year time period. The expected future growth rate is calculated similarly from compounded annual growth rate in which annual growth is assum ed to constant but it can vary with in the year period. The assumption is that the organization fixed assets requirement will be similar in the past. ÃÆ' ¢-  Investment in working capital rate Here, is the assumption made that working capital requirement will depend on the Revenue and it is assumed that growth rate will be constant for seven year period but the total amount of investment in working capital each year will be varied based on the growth of revenue. Thus, to calculate the investment in working capital the growth rate used is the sales growth rate. Part A(3) Report to the director This report will be outlining the main constraints of the valuation model and how risk and uncertainty could be incorporated into the valuation process. The valuation module indicates that Carphone warehouse will be succeeding in the foreseeable future. However the future results are assumptions that we have calculated using formulas. Many factors can influence changes that are out of our control such as environmental, political, economical and technical factors. Risks may arise from any of those factors listed above. The awareness on shareholder value does not take into account societal needs. Shareholder value financially benefits only the owner of t he corporation; it does not provide a clear measure of social factors such as employment, environmental issues, or ethical business practices. As a result, a management decision can exploit shareholder value while adversely affecting third parties, including other companies. Shareholder value is a term that suggests that the decisive measure of a companys success is how well it enriches its shareholders. Shareholder Value Analysis is one of a number of techniques used as substitutes for traditional business measurements In May 2008 Carphone Warehouse merged into two commercial agreements with Best Buy, a leading US consumer electronics retailer, also launching Best Buy Mobile an independent retail format in the US. They also invested in a launch of a Geek Squad, a home technology support business, in the UK, to assist customers with their increasingly complex home technology needs. The key component of the valuation module is the estimation of future cash flows, it can be extremely difficult to complete accurately, and the risk of this can lead to incorrect or misleading figures forming the basis for strategic decisions. When calculating the figures we found difficulty as a group finding data as well as understanding the formulas to calculate the organizations shareholder values. It can be extrem ely difficult to estimate future cash flows accurately. The limitations we faced was dependent heavily on two key drivers, cost of capital and planning horizon as well as non cash measures such as operating profit margin due to the difficulties of finding information and the importance of having the information in the method to enable us to complete the formulas and accomplish affective results. We understood the importance when planning is to adopt the shareholder value as a significant financial objective and the implications and best approach for our chosen business Carphone Warehouse. Part B THE VALUATION METHODS NAV Long Term Liabilities  Long Term Debt -425 Group Loans (long t.) 0 Director Loans (long t.) 0 Hire Purch. Leas. (long t.) 0 Hire Purchase (long t.)  Leasing (long t.)  Other Long Term Loans -425 Total Other Long Term Liab.  Accruals Def. Inc. (l. t.)  Other Long Term Liab.  Provisions for Other Liab.  Deferred Tax  Other Provisions  Pension Liabilities  Balance sheet Minorities  Long Term Liabilities -425   Total Assets less Liabilities 1,116 Shareholders Funds  Issued Capital 1 Ordinary Shares  Preference Shares  Other Shares  Total Reserves 1,115 Share Premium Account 476 Revaluation Reserves 0 Profit (Loss) Account 690 Other Reserves -51 Shareholders Funds 1,116 Taking Carphone Warehouse 2009 accounts the NAV per share is: 1116/914108246= 1.22p per share Net asset value is a term used to describe the value of an entitys assets less the value of its liabilities. In the case of no-load funds Carphone Warehouses NAV, market price, and offering price are the entire matching figure, which the public pays to buy shares, offer prices are quoted after adding the sales charge to the net asset value. NAV is calculated by most funds after the close of the exchanges each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, and then dividing the result by the total number of shares outstanding. The number of shares outstanding can vary each day depending on the number of purchases and redemptions. This is not very successful and commonly used approach as it has many drawbacks and limitation. It does not take into account of time value of money. It also not concerned about the capital structure of firm has. Price earnings ratio P/E Ratio = Market Price EPS P/E ratio = 194.40p/ 347million/914108246= 194.40/0.3796= 512.11 times The P/E ratio of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. The P/E is usually based on earnings from the last four quarters; the P/E is more than a measure of Carphone Warehouses past performance. It also takes into account market expectations for  a companys  growth. Carphone warehouse stock prices reflect what investors think a company will be worth. Future growth is already accounted for in the stock price. As a result, a better way of interpreting the P/E ratio is as a reflection of the markets optimism concerning a companys growth prospects. If a company has a P/E higher than the market or industry average, this means that the market is expecting big things over the next few months or years. A company with a high P/E ratio will eventually have to live up to the high ra ting by considerably increasing its earnings, or the stock price will need to fall. Discounted Cash Flow Basis Free cash flows: Revenues less operating costs plus depreciation less investment expenditure Revenue =347 million operating costs= -771million depreciation= 54 million investment expenditure= 872 million 347m 771m + 54m 872m = 7560000 P/E is short for the ratio of a companys share price to its per-share earnings. As the name implies, to calculate the P/E, you simply take the current stock price of a company and divide by its earnings per share Discounted Cash Flow is a cash flow summary  adjusted to reflect the time value of money.  DCF is an important factor to Carphone Warehouse when  evaluating or comparing investments, proposed actions,  or purchases, Other things being equal, especially in 2009 when Carphone Warehouse emerged with a company called best way in America. The  action or investment with the larger DCF is the better decision. When  discounted cash flow events in a cash flow stream are added together, the result is called the Net Present Value.

Camel Facts Habitat, Behavior, Diet

Camels are mammals known for their distinctive humped backs. Bactrian camels (Camelus bactrianus) have two humps, while dromedary camels (Camelus dromedarius) have one. These creatures humps store fat deposits that they use as sustenance when external food and water sources are scarce. Their ability to metabolize stored food for prolonged periods of time makes them good pack animals. Fast Facts: Camel Scientific Name: CamelusCommon Name: CamelBasic Animal Group: MammalsSize: 6–7 feet in heightWeight: 800–2,300 poundsLife Span: 15–50 yearsDiet: HerbivoreHabitat: Deserts in Central Asia (Bactrian) and North Africa and the Middle East (Dromedary)Population: 2 million domesticated Bactrian camels, 15 million domesticated dromedary camels, and less than 1,000 wild Bactrian camelsConservation Status: The wild Bactrian camel is classified as Critically Endangered. Other camel species are not considered endangered. Description Camels are well-known for their distinctive humps, but they also have other distinctive characteristics that make them well-suited for living in desert conditions. Importantly, camels have the ability to close their nostrils to prevent sand infiltration. They also have two rows of long lashes and a third eyelid. Both structures help to protect their eyes in harsh environments such as sandstorms. They also have thick hair that helps to protect them from the intense sunshine in their environment as well as padded feet to help withstand the hot temperatures of the desert floor. They are even-toed ungulates (hoofed mammals). Two-humped Camel.   Elena Kholopova/EyeEm/Getty Images Camels are usually between 6 and 7 feet in height and 9 to 11 feet in length. They can weigh up to 2,300 pounds. Other physical characteristics of camels include long legs, long necks, and a protruding snout with big lips. Habitat and Distribution Bactrian camels live in Central Asia, while dromedary camels live in North Africa and the Middle East. Wild bactrian camels live in south Mongolia and northern China. They are all typically found in desert regions, although they may also live in other similar environments like prairies. While we associate camels with extremely hot temperature environments, their habitat can also include extremely low temperature environments. They form a protective coat in the winter to help with the cold and shed the coat in the summer months. Diet and Behavior Camels are diurnal creatures, which means they are active during the day. They subsist on vegetation like low-lying grasses and other thorny and salty plants. To reach such low-lying plants and grasses, camels have developed a split upper lip structure so that each half of their upper lip can move independently, which helps them eat low-lying plants and grasses. Similar to cows, camels regurgitate food from their stomach back up to their mouths so they can chew it again. Camels can hydrate themselves faster than other mammals. They have been purported to drink approximately 30 gallons of water in a little over 10 minutes. Reproduction and Offspring Camels travel in herds made up of one dominant male and a number of females. A male bulls peak fertility, called rut, occurs at various times during the year based on species. Bactrians fertility peak occurs from November through May, while dromedaries can peak throughout the year. Males will usually mate with half a dozen or so females, although some males can mate with over 50 females in one season. Female camels have a gestation period of 12 to 14 months. When it is time to give birth, the expectant mother typically separates from the main herd. Newborn calves can walk shortly after birth, and after a period of a few weeks alone, the mother and calf rejoin the larger herd. Single births are most common, but twin camel births have been reported. Threats The wild Bactrian camel is threatened mainly by illegal hunting and poaching. Predator attacks as well as mating with domesticated Bactrian camels are also threats to the wild Bactrian camel population. Conservation Status Wild Bactrian camels (Camelus ferus) are designated as critically endangered by the IUCN. Fewer than 1,000 animals are left in the wild with a decreasing population. By comparison, there are an estimated 2 million domesticated Bactrian camels. Species There are two main species of camel: Camelus bactrianus and Camelus dromedarius. C. bactrianus have two humps, while C. dromedarius have one. A third species, Camelus ferus, is closely related to C. bactrianus but lives in the wild. Camels and Humans Humans and camels have a long history together. Camels have been used as pack animals for centuries and were likely domesticated in the Arabian peninsula between 3000 and 2500 BC. Due to their unique features that allow them to withstand desert travel, camels helped to facilitate trade. Sources â€Å"Camel.† San Diego Zoo Global Animals and Plants, animals.sandiegozoo.org/animals/camel.â€Å"Camel Breeding.† Breeding Camels, camelhillvineyard.com/camel-breeding.htm.

Poor National Integration in Pakistan, Causes , Effects ,...

Poor National Integration In Pakistan, Causes ,Effects ,Remedies. There is a crisis of national integration in Pakistan since its birth. It is the victim of poor national integration. Lack of integration in Pakistan is fundamental problem and it has been subjected to comment by intellectuals in the country. This has been hitting the head lines of the newspaper. Due to lack of national integration in the country, Pakistan has been pushed to a vicious circle. It has made Pakistan a sorry state of affairs, and a pivot of terrorists activities. That has deepened the state of instability and vulnerability to a total break down of state apparatus. This was not the case at first. This nation was the consequence of unity and integrity and its†¦show more content†¦Top of all, the EAST PAKISTAN had seceded from this Pakistan during the military government. Therefore, the concept of military regime became worse in the nation. The military government could not provide common bond of national integration between the farmer and the now Pakistan. In this wise, lack of judicial freedom had been allowed the military rule wholeheartedly. Various particular decisions had been done out of parliament. Bygone parliament reduced to only rubber stamp. It justified the military regime on the doctrine of necessity. On the sequel, law of jungle was prevailed. All of that has been inherited. Therefore, the word national integration has been thrown out of national dictionary. Furthermore, political instability has widened the gulf between the ruler and the ruled in Pakistan. It has confused the picture of Pakistan and made it retrogressive in all spheres. Political instability has challenged the national unity in the country. To conclude, water dispute has all along existed between the provinces. It has given a great bite and played a deuce with national integration. 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My Gallery An Allegory Of The Tudor Succession - 1331 Words

My gallery will feature portraitures throughout history. Portraits have been around since the beginning of art. History affects every aspect of our lives including art; artist changed the style of portraitures depending on what was going on in the world at that time. At first portraits were only painted of the wealthy or someone who was deemed important. In these times, it was usually kings, queens, or religious figures that they believed were worth painting. The first picture I choose to feature in my gallery is a piece titles An Allegory of the Tudor Succession: The Family of Henry VIII. The artist of this painting is unknown but is believed that is was created around ca. 1590. This painting is an oil on panel that pictures Henry VIII sitting on his throne with his family surrounding him. This is a perfect example of what a family portrait would have looked like many years ago. Whoever the artist was created an exquisite painting capturing every detail of the subjects clothing, the tapestry hanging behind the king, the rug, and the outline of the city featured in the background. The painting has a lot of maroon and gold colors throughout that give it a very rich look. I think this picture fits into my gallery because it shows just what painters were asked to do in this period which was focus their talents on capturing the important people in history; in this case, it was Henry VIII and his family. The next picture I choose to include in my gallery is that of King Phillip

Neo Pir Personality Traits And Assess Normal Adult...

NEO PIR Evaluation Paper The NEO PIR is a test to identify important personality traits and assess normal adult personality. The test is centered on a five factor model or the big five, of personality. The five factor model or the five personality domains are the main test categories (Costa McCrae, 2015). The test is widely used in clinical psychology, behavioral medicine, psychiatric, vocation counseling and professional settings to assess personality. The test consists of 240 questions and takes approximately 35 minutes to complete and requires a sixth grade reading level (Costa McCrae, 2015). The NEO PIR has undergone many updates since the original publication in the 1970’s. The NEO PIR is primarily used to assed adult personality not intended to assess mental health issues. The NEO PIR is an internationally recognized and reputable standard for personality assessment. NEO PIR Scales The NEO PIR adult personality test is used to test for five primary personality factors or domains; commonly named the big five. The five primary scales or domains are neuroticism, extraversion, and openness to experience, agreeableness, and conscientiousness (Costa McCrae, 2015). The five domain are further subdivided into six part scales. The first domain is neuroticism and consists of subscales anxiety, angry hostility, depression, self-consciousness, impulsiveness, and vulnerability (Costa McCrae, 2015). The second domain is extraversion and compromised of subscales warmth,

Gambiling Australia Economic Perspectives â€Myassignmenthelp.Com

Question: Discuss About The Gambiling Australia Economic Perspectives? Answer: Introduction The study highlights on the economic analysis of the over consumption of gambling. Gambling takes in various forms that include lotteries, table games, poker machines and scratchies (Bilancini and D'Alessandro, 2012). Recent statistic reflects that Australians has participated in theses different forms of gambling in the previous year. It has been noted that electronic gambling machines are considered as the superseding source of revenue from gambling. In the year 2009, it has been estimated that there were more than 198,300 gaming machines in this nation and the revenue earned from them was near about $59,700. In addition, duties of gambling and taxes are an important funding source to the Australias government and hence directly employs for about 35,000 people (Delfabbro and King, 2012). The economic as well as social cost of gambling in Australia is discussed in this report. It also reflects on the gambling effects on economic efficiency. The study also focuses on the three polici es that aids in reducing gambling in relation with the use of poker machines. Economic and social cost of gambling in Australia Gambling is recreational pursuit for the people of this nation. The stakeholders of this industry argue that gambling provides social benefits to the Australians (Gainsbury et al., 2014). They also squabble that gambling offers indirect range or intangible advantage to the local communities. These advantages include improving life quality for elderly, securing environments a high social cohesion. Social cost refers to the section of internal benefits as well as cost that the person does take into account while undertaking this activity. It relates to the externalities that influence the activity that are inflicted involuntarily on the society. The social and economic cost of gambling fall into nine categories that includes: Crime cost in relation to police, apprehension and incarceration spending. The direct as well as indirect cost may amount to 152 million and 174 million respectively. Business as well as employment cost that includes lost job productivity, work time and employer cost in relation to unemployment. Social service cost relating to job loss and treatment that seeks in minimizing gambling behavioral problems. The indirect cost relating to this might amount to 174 million. Bankruptcy also inflicts society cost in legal form and other expended resources. Direct regulatory cost that relates with oversight of Australian oversight on gambling and its industry Cost related to family such as domestic violence and separation Abused dollars that are obtained in improper way but is not considered as crime. Industry lobbying cost refers to the opportunity cost and utilization of resources in more productive manner. Suicide cases of youth owing to gambling Gambling has adverse consequences to every aspects of society. From societal perspective, the main issue of gambling is stemming from poverty, poor condition of individuals health, low social as well as human capital and rundown of community resources. The economic policy solution regarding this issue is inserting caps on the machine numbers in area of highest socioeconomic disadvantage. Another sol;ution is ban on advertisement on gambling machines. Effects of gambling on economic efficiency Addiction of gambling relates to pathological gambling consumption. It develops into addiction when this leads to obsession and adversely affects the life of the individual. Overconsumption of gambling invests much time as well as money of the Australians (Becchetti et al., 2016). It also loses social contract with self-esteem and self confidence. The above case study shows that around 1.4 million Australians are directly affected by gambling. Overexpansion of gambling leads to deterioration in Australias terms of trade that adversely affects the real income of the economy. The gambling dominant nation directs to balanced growth path and hence it becomes less vulnerable to nations business cycles. Gambling affects the Australian economy in direct as well as indirect way. The direct impact of gambling expenditures represents net addition to the resources of the community. For example, casino directly or indirectly affects on the Australians income as well as their jobs. The direct impact of casino is on the nations income as well as employment that is associated with offering of commodities to its patrons. On the contrary, casino indirectly affects on the communities as employees expend their paychecks in their community and thus leading to more employment (M et al., 2014). Input-output model are used to estimate indirect effects of gambling. These models help in evaluating the effects of gambling on economic development and efficiency of Australia. It also helps in recognizing one industry output that are used as inputs in another industry. Thus, variation in one industrys activities affects both the suppliers as well as customers associated with gambling. Moreover, these mode ls also work through multipliers development that helps in concluding ripple effects on the economy. However, this model aids in explaining negative externalities that result in overconsumption of gambling and inefficient equilibrium above the socially optimum equilibrium (Arifo?lu et al., 2012). Thus, it throws spillover effect on other individuals as marginal private benefit (MPB) exceeds marginal social benefit (MSB). This is shown with the help of the diagram given below: Figure 1: Negative Externality of Gambling Source: (Authors creation) As it is an addictive commodity, the demand becomes inelastic. Thus, taxation does not reduce the demand for quantity enough for MPB=MSB. It can also lead to gambling under black market and adds risk of violence, thus making inefficient solution. The above figure shows that MPB MSB. Australian government has introduced wagering tax for directing fund to gambling rehabilitation centre and offer service to the Australians. Tax reforms the externality as it intends to make both the consumers as well as producers pay social cost of products. However, this helps in reducing bad consumption and creates socially efficient outcome. If tax is not implemented then it leads to overconsumption or addition of gambling. Three effective policies for reducing gambling The three effective policies that facilitates in reducing gambling in relation to use of poker machines are: Pigouvian tax- Pigouvian tax refers to the tax levied on the activity of the market that creates negative externality. This tax is proposed in order to correct outcome of inefficient market and is set equivalent to social cost of negative externalities (Philander, 2012). Pigouvian tax is imposed on activities of gambling in order to attenuate its external cost. It also helps in mitigating unbalanced growth biased by gaming via resource reallocation. Therefore, sin tax is noted for rising economic welfare of Australia. Australian government creates deadweight loss in order to restrict gambling supply in the market. Figure 2: Pigouvian tax on poker machine (Source: As created by author) The SACOSS MODEL This model helps in promoting gambling tax regime that includes gambling taxes imposed for covering the costs associated with it and problem gambling in specific differential rate of tax and concessions that is used to provide incentives for minimization of measures; the remaining taxes directed into wealth fund in which the earnings of that fund move to merged revenue as well as in current expenditure. Quota on poker machines- Poker machines relates to games of chance that requires no skill in playing (Williams et al., 2012). Poker machines of Australia have return to player (RTP) by about 90%. Recent reports of productivity commission reflect that the people of Australia lose $12 billion each year with the help of poker machines. In essence, this poker machines has been introduced for replacing income constraint in respect of time constraint. Non-price policy-The non price policies imposed by the Australian government for reducing gambling includes: Strategizes of family intervention- Strategies are implemented in such a way that the members of family have the capacity in initiating third party gambler (Ross et al., 2012). Education as well as awareness program adopted by the government of Australia The program adopted by the government includes- dispelling myths about gambling and educating Australians Establishing Research of National Gambling- This program is funded by the all state program in order to reduce national gambling. Staff intervention strategies- Australian government as well as industry collaborates for introducing senior staff for identifying problems with patrons. Conclusion It can be concluded from the above report that gambling consequence in negative health effect of the Australians. As Australians are considered as the productive gamblers in the globe, it is necessary to develop national strategy in order to recognize and reduce gambling problem. Problem gambling is noteworthy public health problems in this nation that affects Australians, medical practitioners and governments. Gambling activities in Australia have increased and diversified in recent years. Increase in gambling behavior increases prevalence of gambling problem as well as entrenched dependence of government upon its taxation. Therefore, as overconsumption of gambling causes negative externalities, Australian government adopts effective policies in order to curb gambling from the nation. References Arifo?lu, K., Deo, S., Iravani, S. M. (2012). Consumption externality and yield uncertainty in the influenza vaccine supply chain: Interventions in demand and supply sides.Management Science,58(6), 1072-1091. Becchetti, L., Solferino, N., Tessitore, M. E. (2016). A dynamic model of Gambling addiction with social costs: theory and policy solutions. Bilancini, E., D'Alessandro, S. (2012). Long-run welfare under externalities in consumption, leisure, and production: A case for happy degrowth vs. unhappy growth.Ecological Economics,84, 194-205. Delfabbro, P., King, D. (2012). Gambling in Australia: Experiences, problems, research and policy.Addiction,107(9), 1556-1561. Gainsbury, S. M., Russell, A., Hing, N., Wood, R., Lubman, D. I., Blaszczynski, A. (2014). The prevalence and determinants of problem gambling in Australia: assessing the impact of interactive gambling and new technologies.Psychology of Addictive Behaviors,28(3), 769. Gainsbury, S., Sadeque, S., Mizerski, D., Blaszczynski, A. (2012). Wagering in Australia: A retrospective behavioural analysis of betting patterns based on player account data.Journal of Gambling Business Economics,6(2). Gainsbury, S., Hing, N., Delfabbro, P. H., King, D. L. (2014). A taxonomy of gambling and casino games via social media and online technologies.International Gambling Studies,14(2), 196-213. Philander, K. S. (2013). A normative analysis of gambling tax policy.UNLV Gaming Research Review Journal,17(2), 2. Ross, D., Sharp, C., Vuchinich, R. E., Spurrett, D. (2012).Midbrain mutiny: The picoeconomics and neuroeconomics of disordered gambling: Economic theory and cognitive science. MIT press. Williams, R. J., West, B. L., Simpson, R. I. (2012).Prevention of problem gambling: A comprehensive review of the evidence and identified best practices. Ontario Problem Gambling Research Centre and the Ontario Ministry of Health and Long Term Care.

Project Execution Planning and Management †MyAssignmenthelp.com

Question: Discuss about the Project Execution Planning and Management. Answer: Project Delivery Method The project delivery method is defined as an efficient process or procedure utilized in any construction project for developing the design, scope, consultants and design sequence for completing the project. Therefore, each project differs in characteristic with the other based on the delivery method used for completion of the project. Currently, in the public funded project, the three major project delivery methods are followed including CM @ risk, Design build and design bid build. The selection of the appropriate project delivery method needs to be considered based on the alignment of the project requirement with the characteristics of the method. The various characteristics of the method of the three project delivery method are illustrated in the section below: Design-Bid Build: The process of Design Bid Build is considered as one of the traditional process used for design and construction. In this process the design of the project is completed before the bidding process, and the construction part of the project is provided for construction project. In this type of delivery method, the errors regarding the design of the construction project becomes the responsibility of the project owner. Design Build: In the project delivery method of Design build, both the design and construction module of the project are being procured. This type of project is being characterized by the contract from one single entity. Usually the process of RFP (Request for Proposals) and RFQ (Request for Qualifications) are being employed in the project. CM @ Risk: This type of project delivery method is characterized with different construction and design procurement for completing the construction. The contract between the construction manager and the construction agency is at risks determining the final time and cost required for the construction project. Based on the characteristics of the three delivery methods, CM @ Risk, Design Build and Design-Bid Build methods has been provided the score in the evaluation matrix. In the project delivery method evaluation matrix, it has been identified that application of design build method would be most appropriate for selecting the appropriate project delivery method for the project for widening the existing highway for the Sydney motorway network. From the case study for the project of widening of the Sydney Motorway Network it has been identified that the working capacity and complexity in widening of the road are the significant factor that needs to be considered while selecting the project delivery method. The M5 motorway has been predicted to have an increase in the traffic of 24 % in the weekdays. Therefore, the construction for widening of the motorway needs to be carried out with utmost care and safety without risking the daily life of thousands of individuals. Therefore, in the evaluation matrix, design complexity has been provided with maximum weightier. In addition to that, the inability or failure to manage the organizational structure associate d with the widening of the motorway carries the potential for slipping out vital activities in the project. Therefore, risk assessment and management in the project is the second most significant factor having the maximum weight. Further, the project has been scheduled to be completed within 2023. Failure to complete the project within set deadline will in turn increase the complexity and budget for construction. Therefore, schedule delivery has been allocated as the second highest weight for the project. Cost allocated and the owner experience has been provided with the thirst highest weight as AUD 16.8 billion has been contracted for the project. Goals/ Criteria Criteria Weight Project Delivery Method Design-Bid Build Design-Build CM @ Risk Score Weighted Score Score Weighted Score Score Weighted Score Schedule Delivery 15 4 60 10 150 8 120 Innovation of the Construction 5 4 20 9 45 10 50 Design Complexity 20 3 60 9 180 8 160 Risk Assessment 20 4 80 10 200 8 160 Experience of the Owner 10 10 100 8 80 3 30 Experience of the staffs 5 10 50 8 40 4 20 Contractor Experience 8 4 32 10 80 10 80 Cost 10 3 30 10 100 8 80 level of control 7 9 63 8 56 10 70 total 100 495 931 770 Based on the evaluation matrix, Design-Build has been identified as the appropriate project delivery method that can be employed in the widening of the motorway project. Financial Contract Type The project for the widening of the motor way required the creating four lanes from the exiting two lanes in order o improve the transportation facilities. The financial contact for the construction projects provides a legal agreement binding the contractor and the owner of the project. The contract further provides the detailed information about the type and amount of compensation provided to the contractors and designers for completing the project within the allocated amount of time. In the construction project, there are three major types of contract followed for binding the contractor on the basis of financial amount. Lump Sum Contract: The contract for the lump sum is characterized by the fixed financial amount provided for the completion of the project. Completing the project before the schedule would help in increasing the benefits and profits from the lump sum provided in the beginning. The lump sum is applicable when the scope and objective of the project are mentioned by the project owner. Application of lump sum contract helps in eliminating any risks associated with the contractor. Cost Plus Contract: In the cost plus contract the total budget provided by the owner is based on the actual price required by the activities that have been followed during the construction project. The cost plus contract provides the contractor with the ability to negotiate the financial amount required for the construction project. During the determination of the prince, all the direct and indirect cost are taken into consideration. Guaranteed Maximum Price Contract: The financial contract of Guaranteed Maximum Price Contract are distributed among the contractors based o the total price provided based on the activities and construction module pre-define din the design of the project. in this type of contract, the financial budget can only be increased after formal approval from the owner. The project for the development of the widening of the motor way network needs to be carried out on the lump sum of AUD 16.8 billion provided to the West LINK for completing the entire project. Therefore, the fixed cost criteria have been allocated with maximum weight along with the risks and quality factor for constructing and completing e entre project. Furthermore, the project needs to be completed within the allocated deadline with 2023. Therefore, schedule has been provided with second highest weight for the construction project. Similarly, all the other criteria has been evaluated and judged based in the requirement as mentioned in the construction project. Goals/ Criteria Criteria Weight Financial Contract Type Lump sum contract Guaranteed Maximum Price Contract Cost plus Fixed Fee Contract Score Weighted Score Score Weighted Score Score Weighted Score Fixed cost for construction 20 10 200 8 160 7 140 Schedule project 15 10 150 7 105 10 150 increased performance and production 5 8 40 4 20 5 25 bidding analysis 5 9 45 2 10 4 20 risk 20 7 140 5 100 9 180 design 5 4 20 2 10 8 40 higher cost for unforeseen condition 10 8 80 4 40 8 80 quality 20 8 160 4 80 7 140 total 100 835 525 775 Based on the evaluation matrix, lump sum financial contract should be utilized for the construction of widening the motorway of the project. Procurement Method The selection of appropriate procurement methods in the construction project helps in ensuring the project success and client satisfaction. The application of appropriate procurement process helps in improving the quality and standard of the construction project. Based on the construction project criteria, three main types of procurement methods are followed namely best value procurement, negotiated procurement and competitive procurement. Competitive procurement methods: The competitive procurement process allowed the all contractors with the process for judging the contractors in the basis of various characteristics of the contractors on the basis of technical quality of the contractors. The competitive procurement methods evaluated the capability, experience and financial cost of the contractor. Further the experience and technical capability of the contractor are judged before selecting the appropriate contractor. Negotiated procurement methods: In the negotiation procurement process, the contractor can discuss and negotiate the budget with the owner. The profit margin and risk factor associated with the project are considered before selecting the appropriated contractors. This type of procurement methods includes huge amount of financial budget by the contractors. Best Value procurement methods: In the method for best value procurement process, the contractor with the least amount of bid is chosen for the construction project. This process is associated with less risks and future consequences of the construction. Further, the application of the best value procurement process eliminates the assessment of the contractor based on the quality and technical process employed for the construction project. In this project for the widening the new freeway, a fixed amount has been provide by the government and deadline for completion has been set. Therefore, the cost for the procurement has been provided with the highest priority in the methods followed by the schedule. The construction would help in improving the quality and safety of the people using the pathway. In addition to that, mission out of any parts or activities in the construction would increase the risks associated with the project. Therefore, the risks have been allocated to next highest weight in the evaluation matrix. Goals/ Criteria Criteria Weight Procurement Method Competitive Negotiated Best Value Score Weighted Score Score Weighted Score Score Weighted Score Cost 20 10 200 4 80 3 60 quality 10 8 80 10 100 10 100 Schedule 10 8 80 6 60 7 70 risk 13 9 117 7 91 4 52 public accountability 5 5 25 1 5 6 30 project size 5 7 35 5 25 8 40 experience of the contractor 15 10 150 8 120 3 45 government policy 5 5 25 3 15 4 20 Decision of the owner 2 3 6 10 20 5 10 expertise of the contractor 15 10 150 8 120 6 90 total 100 868 636 517 Based on the evaluation matrix, competitive procurement method has been selected as the appropriate method for selecting the procurement for the construction project. Therefore the application of the competitive procurement could help in improving the quality and standard of the project. Bibliography Asher, M. G., Sharma, T., Sheikh, S. (2015). Public Procurement Legislation Essential for Improving Public Financial Management in India. da Silva Barboza, L., Gilberto Filho, A. D. A., de Souza, R. A. (2014, August). Towards a legal compliance verification approach on the procurement process of IT solutions for the Brazilian Federal Public Administration. InRequirements Engineering and Law (RELAW), 2014 IEEE 7th International Workshop on(pp. 39-40). IEEE. Gruenen, J., Bode, C., Hoehle, H. (2017, May). Predictive Procurement Insights: B2B Business Network Contribution to Predictive Insights in the Procurement Process Following a Design Science Research Approach. InInternational Conference on Design Science Research in Information Systems(pp. 267-281). Springer, Cham. Hawkins, T. G., Gravier, M. J., Berkowitz, D., Muir, W. A. (2015). Improving services supply management in the defense sector: How the procurement process affects B2B service quality.Journal of Purchasing and Supply Management,21(2), 81-94. Hayden, M. A. (2016).Engaging Users through the Application of Value Stream Mapping to Streamline the Procurement Process for Office Equipment(Doctoral dissertation, Ohio University). Jans, M., Alles, M. G., Vasarhelyi, M. A. (2014). A field study on the use of process mining of event logs as an analytical procedure in auditing.The Accounting Review,89(5), 1751-1773. Lawal, S. O. (2016). Procurement Process Design. Lima, F. S., Gonalves, M. B., Samed, M. M. A., Hellingrath, B. (2015, June). Integration of a Mathematical Model Within Reference Task Model at the Procurement Process Using BPMN for Disasters Events. InInternational Conference in Swarm Intelligence(pp. 440-452). Springer International Publishing. Lippman, E., McMahon, M. (2017). Professionalism and Politics in the Procurement Process: United States Civil War Early Years.Accounting Historians Journal,44(1), 63-76. Lozano, R., Witjes, I. S., van Geet, C., Willems, M. (2016). Collaboration for Circular Economy: Linking sustainable public procurement and business models. Mishra, A. N., Devaraj, S., Vaidyanathan, G. (2013). Capability hierarchy in electronic procurement and procurement process performance: An empirical analysis.Journal of Operations Management,31(6), 376-390. O'mahony, B., Noone, D., Prihodova, L. (2015). Survey of coagulation factor concentrates tender and procurement procedures in 38 European Countries.Haemophilia,21(4), 436-443. Wedin Hansson, L., Johansson, S. (2017). Institutional Incentives for Sustainable Public Procurement: a Case Study of Sustainability Considerations in the Swedish Construction Sector.The Public Procurement Law Review,26(5), 220-235. Witjes, S., Lozano, R. (2015, July). Developing a holistic framework to understand the contribution of sustainable public procurement to the development of more sustainable business models. Project Execution Planning and Management – Myassignmenthelp.Com Question: Discuss About The Project Execution Planning And Management? Answer: Introducation Design-Bid-Build the design-bid build consists of three different phases where the designing phase, bidding phase and the building phase. The designing phase consists of steps, which corresponds to the creation of the project plan and architectural design of the project (Park Kwak, 2017).. The owner hires an architect who is given the task of creating the architectural design of the project. If the owner of the project the architect goes on to approves the design produce the bid document that will be the basis on which, the bidding from the contractor will be happening. The requirements of the design has to be met by the architecture to fulfill the criteria of the project objectives (Ramsey, El Asmar Gibson, 2015). After the bid document is created the document is analyzed and the bidding phase starts. Different contractors come for the bidding auction of the project. They place their bidding for them to buy the tender for the project. After the completion of the bidding the owner along with the architect can either select one of the bidders based on the criteria he had put forward, reject all the bidders or start a new bidding process at a later date. After the complete selection of the contractor the project is assigned to them to work on (Park Kwak, 2017).. The contractor has to then start collecting all the permits that are required for the completion of the project. The contractor then produces a detailed timeline for the working of the project and delivers it to the owner for successful authorization. The architect hired by the owner works as a representative of the owner and looks after the working of the project timeline and the quality of the project (Ramsey, El Asmar Gibson, 2015). Design-Build In this process, the owner has to hire a general contractor who would look after the working of the project and an architect who would be in charge of the designing and implementing project in a correct manner (Minchin et al., 2013). This project delivery method lacks the process of bidding procedure, which selects the contractor who would be working on the project tender. These type of projects are mainly the act of joint venture or are completed in partnership with the owner and the architecture or the contractor who is given the contract (Minchin et al., 2013). CM @ Risk the constructor is provided with a project report during the designing phase or when the design has been completed (Fehling et al., 2014). The constructor is then selected based on the past working experience and the lowest bid set forward by the constructors. The company is then assigned and has to complete the whole project from there forward. The project is approved based on the risks taken by the contractor manager (Fehling et al., 2014). The three processes has been critically evaluated and the case study has been studied with care. Upon successful evaluation, it has been found that the best project delivery system to select for the given case study would be the design build process. As the construction time line for the case study is 7 years so the design build would be the best method to be used by the construction company. The tender has many risks and has to be completely evaluated by the contractor who has taken the job. The marking score provided in the table above has been provided based on the case study. Financial Contract Type Lump sum contract the contract is of a stipulated amount that is confirmed between the owners of the project and the contractor who has agreed to work on the project (Minchin et l., 2014). The major risks, which will be considered during the execution of the project, will be left for the contractor to resolve. The payment is paid in full with the consideration of over head costs, profit margin and the labor costs. Guaranteed Maximum Price Contract this contract is evaluated based on the actual cost compensation of the contractor with the addition of the profit margin of the contractor being added to it (Lee Rao, 2015). The contractor is responsible for the expenditures that will be applicable for the project completion. If there is a shortage in the funds provided then the owner has to evaluate the project again and then provide the money required for the task (Burr, 2016). Cost plus Fixed Fee Contract the contractor is paid an amount of money and a separate nominal amount for tasks provided by the contractor (Chen et l., 2015). This in turn provides a margin of profit for the contractor to earn an extra amount of money. The expenses which will be calculated based on the work which will be provided by the contractor. The tender is settled only when both the parties agree on the said statement (Chen et l., 2015). The best recommendation for the case study will be to follow the lump sum contract. As the project is of large deadline the owner will be paying the contractor a handful amount of money and will be done with it. The contractor will then have to go on with the project execution plan. The contractor has to work on all the working procedures and complete the task with the best quality. Higher the marking given to a criteria the higher involvement it has in the project execution. Procurement Method Competitive the use of fair and ethical method of bidding provided by the contractor who are willing to take up the project (Fong, Avetisyan Cui, 2014). The process provides a platform for all the different contractors to provide a bid on the tender and acquire it. The process is targeted to provide an equal shareable platform for all contractor to come and get the tender (Fong, Avetisyan Cui, 2014). This process is helpful for the owner of the project to acquire the best kind of contractors for the work. The interested contractor fill out the form and then places a bid on the tender. The contractor is chosen based on the evaluation of the form-filled out by them and the amount of money quoted by them (Bajari, Houghton Tadelis, 2014). After the successful evaluation, the owner selects the contractor and is provided with the tender contract. The owner can be of price oriented or can be or best quality oriented. Based on these properties the contactor is chosen. The owner also eval uates the past experience and project delivery before giving the tender (Bajari, Houghton Tadelis, 2014). Negotiated the owner chooses a contractor chooses a specific contractor based on their relation of past working experience on based on the reputation of the contractor (Miller, 2014). The cost to be paid out to the contractor is discussed and if the contractor agrees of the quotation of money then the tender is given to the contractor. The contractor then starts working on the project. If the quotation is not agreeable for the owners then a new contractor is called. This method has been avoided for much reason such as huge amount quotations (Yaqub et al., 2014). Best Value the factor of the lowest bidding is not the only criteria that is evaluated by the owner but also the experience of the contractor in working with similar projects (Ballesteros-Prez et al., 2016). The quality of the work needs to be of high specification and the owner would not settle for less. The selection is made prior to the architectural design of the project. The values of the contractor is to be taken up and evaluated before accepting thee working tender. Due to the following of the procedure the owners has less risk involved in the project completion method. Many working owners for their project have used the system (Ballesteros-Prez et al., 2016). This has been chosen due to the fact that there are minimum amount of risks to be considered when the work is being done. There is less amount of decision making to be done by the worker and the owners. There is a certain amount of money quotation from the previous experience then the contractor can quote the amount of money (Tran Molenaar Gransberg, 2016). This would highly eliminate the process of bidding by the contractors for the tender acquisition. The method has been followed by many government agencies who wants to eliminate process of bidding on the project plans. Goals/ Criteria Criteria Weight Procurement Method Procurement Method Procurement Method Competitive Negotiated Best Value Score Weighted Score Score Weighted Score Score Weighted Score Bidding 30 7 210 8 240 3 90 Decision of the owner is final 35 7 245 2 70 7 245 Negotiation 15 2 30 8 120 2 30 Risk taken 25 5 125 8 200 3 75 Total 105 610 630 440 The recommended procedure to follow for the case study would be the best value method. The recommendation has been provided based on the evaluation of the case study. The quality of work to be provided by the contractor is very high for this project. The price of the project make it to be of cost effective type. The marks has been provided to the criteria based on the case study. The higher the marks provided the more involved the criteria is in the project. References Bajari, P., Houghton, S., Tadelis, S. (2014). Bidding for incomplete contracts: An empirical analysis of adaptation costs. The American economic review, 104(4), 1288-1319. Ballesteros-Prez, P., Skitmore, M., Pellicer, E., Zhang, X. (2016). Scoring rules and competitive behavior in best-value construction auctions. Journal of Construction Engineering and Management, 142(9), 04016035. Burr, A. (Ed.). (2016). Delay and disruption in construction contracts. CRC Press. Chen, Q., Xia, B., Jin, Z., Wu, P., Hu, Y. (2015). Choosing appropriate contract methods for design-build projects. Journal of Management in Engineering, 32(1), 04015029. Fehling, C., Leymann, F., Retter, R., Schupeck, W., Arbitter, P. (2014). Cloud computing patterns: fundamentals to design, build, and manage cloud applications. Springer Science Business Media. Fong, C. K., Avetisyan, H. G., Cui, Q. (2014). Understanding the Sustainable Outcome of Project Delivery Methods in the Built Environment. Organization, Technology Management in Construction, 6(3). Lee, H., Rao, S. (2015). Nevada Demonstration Project: Construction Manager at Risk Contracting for Rehabilitation of I-80 Carlin Tunnels in Elko County, NV. Miller, D. P. (2014). Subcontracting and competitive bidding on incomplete procurement contracts. The RAND Journal of Economics, 45(4), 705-746. Minchin Jr, R. E., Li, X., Issa, R. R., Vargas, G. G. (2013). Comparison of cost and time performance of design-build and design-bid-build delivery systems in Florida. Journal of Construction Engineering and Management, 139(10), 04013007. Minchin, E., Ptschelinzew, L., Migliaccio, G. C., Gatti, U., Atkins, K., Warne, T., ... Asiamah, S. (2014). Guide for design management on design-build and construction manager/general contractor projects (No. Project 15-46). Park, J., Kwak, Y. H. (2017). Design-Bid-Build (DBB) vs. Design-Build (DB) in the US public transportation projects: The choice and consequences. International Journal of Project Management, 35(3), 280-295. Ramsey, D., El Asmar, M., Gibson Jr, G. E. (2015). Benchmarking the Procurement Performance of Single-Step Design-Build. Tran, D., Molenaar, K. R., Gransberg, D. D. (2016). Implementing Best-Value Procurement for DesignBidBuild Highway Projects. Transportation Research Record: Journal of the Transportation Research Board, (2573), 26-33. Yaqub, E., Yahyapour, R., Wieder, P., Kotsokalis, C., Lu, K., Jehangiri, A. I. (2014, June). Optimal negotiation of service level agreements for cloud-based services through autonomous agents. In Services Computing (SCC), 2014 IEEE International Conference on (pp. 59-66). IEEE.