Performance comparison of two fast food businesses

Performance comparison of two fast food businesses The purpose of this article is to measure the performance of two companies in the same area of business, which is fast food industry. This study benchmarks two established global fast food sellers who have expanded operations further afield over their illustrious histories, displaying innovation, vision and success in the operation. The companies will be assessed using a range of financial methods such as horizontal, trend, vertical and ratio analyses. This will be done based on the companys financial statements for the last three years. Non-financial performance measures, which are based on evidence of business performance, will also be used. A SWOT analysis will then be done for each company in order to give the reader a concise picture about where both companies are now, and what they can do to improve their position in the market. Each company will then be assessed to see how attractive it is to both investors and employees. The companies chosen for this report are McDonalds and Burger King. They are two of the biggest fast food sellers that dominate the not only the UK but also the world fast food sector. When deciding how to position a product, marketing managers need to understand how product differentiation affects competition. Thus, this paper examines the relationship between product differentiation and prices and profits in the fast food industry. These companies were chosen as they are of interest to the author. The two fast food sellers are similar in nature as although they both have a substantial share of the UK market, either they are all famous the world. Therefore their financial data is relatively comparable. Historical BackgroundNames, addresses and logos of companies: Address McDonalds Plaza Oak Brook IL 60523 USA Address 5505 Blue Lagoon Drive Miami Florida 33126 USA Company History McDonalds Corporation McDonalds Corporation is the worlds largest hamburger fast food restaurants, serving more than 58 million customers every day. McDonalds concentrate on sells hamburgers, chicken products, French fries, breakfast, soft drinks, shakes and deserts. It represents the trends of Western nations. While at the same time, it faces the criticism over the healthiness of its products. McDonalds has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino, California. The site of the McDonald brothers original restaurant is now a museum. With the expansion of McDonalds into many international markets, the company has become a symbol of globalization and the spread of the American way of life. The company operates through five subsidiaries (structured on a geographic basis): McDonalds USA, McDonalds Europe, McDonalds AMEA (Asia, Middle East and Africa), McDonalds Latin America and McDonalds International. An additional subsidiary was created in McDonalds Ventures, which consists of the companys non-McDonalds brand. Burger King Corporation Burger King often abbreviated as BK, is a global chain of hamburger fast food restaurants like McDonalds headquartered in unincorporated Miami-Dade County, Florida, United States. Burger King Corporation banner operates the international business. The company began as a Jacksonville, Florida-based restaurant chain in 1953. After the company ran into financial difficulties in 1955, its two Miami-based franchisees, David Edgerton and James McLamore, purchased the company and rechristened it Burger King. Over the next half century the company would trade hands four times, with its third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking the company public in 2002. The current ownership group, 3G Capital of Brazil, acquired a majority stake in the company in a deal valued at $3.26 billion in late 2010. The companys business is divided into three geographic segments; the US and Canada; Europe, the Middle East, Africa and Asia Pacific (EMEA/APAC); and Latin America. About 7,512 Burger King Stores are located in the US and Canada. Over 2,379 of the companys restaurants are located in Europe, Middle East and Africa (EMEA), 672 restaurants in Asia Pacific (APAC) and 1,002 restaurants in Latin America. Business activities and Product treeMcDonalds Corporation McDonalds operates, franchises, and services a worldwide chain of about 31,000 fast food restaurants in the world. Franchisee, Affiliate and Corporation are three ways, which McDonalds operate the worldwide stores. About 25% of the companys revenues come from franchisee outlets. The company and its franchisees use special method to guarantee uniformity in both services and standards. McDonalds restaurants offer a substantially uniform menu. It also tests a range of new products on an ongoing basis and sells a variety of other products during limited-time promotions. Source: McDonalds website Burger King Corporation Burger King (BKC) is the worlds second largest chain of fast food hamburger restaurants. Burger King operates more than 11,565 restaurants in 71 countries and the US territories, of which 1,360 restaurants are company restaurants and 10,205 are owned by independent franchisees. Among of these, 7,207 restaurants are located in the US and 4,358 are located in international markets. Burger King offers a range of reasonably priced food items, which content burgers, sandwiches, salads and breakfast items. The Whopper sandwich is its largest-selling product. Burger King was the first fast-food chain to introduce drive-through service, which now accounts for a majority of the companys business. But the development of drive-through stores is less than McDonalds. The company generates revenues from three sources: sales at company restaurants, royalties and franchise fees and property income from certain franchise restaurants that lease or sub lease property from the company. Source: Burger King Website Financial AnalysisThe following financial analysis of both companies uses the data provided in the Annual reports of each company from Fame or official website. Horizontal, trend, vertical and ratio analyses will be used as rationale to benchmark performance between the firms. Horizontal Analysis Conducting a horizontal analysis allows us to compare different items in each companys financial statements. This can be done over a period of time so that any changes that have taken place can be noted. Therefore it is a useful tool for comparing the performance of two companies. The data below shows the consolidated income statement of both firms between the years of 2007-2009. However, McDonalds financial report is calculated about in Europe, while Burger King is calculated in UK. Each companys performance will be analyzed and compared and any notable differences will be discussed below. McDonalds: there was an increase from 2008 to 2009 (3.2%) due to the world financial crisis. But there was also a significant decline from 2009 to 2010(11.9%), one reason is that the company is too large to operate. Burger King: with 6.0% growth from 2008 to 2009, Burger Kings performance is better than its competitors. Following with financial crisis end, there was 8.4% growth between 2009 and 2010. Gross Profits: This is worked out by taking the cost of sales figure away from turnover. Both companies even with high increases in operating cost for 2008, they ended up with a small increase in net income. This can be contributed to the exceptional gross profit earnings for the year. McDonalds gross profit for 2008 increased 3.2%, while Burger King only increased 1.3%. This can be attributed to the McDonalds grabbed the opportunity of financial crisis. However, McDonalds and Burger King also suffered a decline in 2009. The main reason is that companies with global operations translate sales and franchise revenue from foreign currencies into dollars. That can boost revenue and profit when the dollar is weaker but hurt results when the U.S. currency is stronger because foreign sales then translate into fewer dollars. Operating income The pattern visible for the operating income over the three-year period is different to the other indicators and causal factors are difficult to establish. It shows a huge increase in 2008, this could be attributed to the considerable increase in gross profit compounded by the operating expenses being trimmed providing a much-improved operating income for the year. In 2008 however, operating income falls, likely due to a combination of a gross profit decrease and an operating expense increase. Net Profit: this is the actual earnings of the company after all expenses and taxes have been paid and are usually referred to as the bottom line. Both companies are experiencing a small rate of organic growth in the year of 2008. This is despite the economies financial difficulty during 2008; people prefer to choose fast food as their daily food. It is likely that during 2008-09, the rise in turnover is partly down to the high price of fuel, caused by high oil. In Europe, two companies performance reflected Europes strategic priorities to upgrade the customer and employee experience, enhance local relevance, and build brand transparency. In addition, McDonalds enhanced customer trust in our brand through communications that emphasized the quality and origin of McDonalds food and our sustainable business practices, while Burger King did much better. Trend Analysis By conducting a trend analysis we can see the ways in which the companies have changed over the last three years. The year 2007 is taken as the base year and set at 100%. Each following year is then expressed as a percentage of the base year using this equation: Gross Profits: Whilst both companies experience similar growth in their turnover, McDonalds experience a decrease in gross profits in 2009-10. Burger King does not have this problem and so they experience almost same level in gross profits over the three-year period. Percentage Change in Gross Profit Operating Profit: Both companies experienced increases in their operating profit. This McDonalds plan is leading to the company becoming more efficient, which is reflected by this increase. Through this, the company has significantly reduced its administration expenses over the three-year period. They have also experienced a rise in other operating income pre operating profit, which has led to the rise in operating profit, despite the fall in gross profit. Percentage Change in Operating Profit Net Profit: Burger King net profit remains consistent for the first two years and then drops during the year 2009-10. This pattern is to be expected due to companies with global operations translate sales and franchise revenue from foreign currencies into dollars, which led to people trying to spend less money. McDonalds Net Profit rocketed in 2008-09, due to the fact that people would like to choose fast food during financial crisis. Percentage Change in Net Profit Vertical Analysis A vertical analysis shows us the relationship between each income statement item to the turnover. In other words, it shows all other figures as a percentage of the turnover or net sales, which is set at 100%. The following equation can be used in order to work this out: Balance Sheet A vertical analysis can also be conducted on the companys balance sheet, representing all items as a percentage of the total assets. In simple terms, this allows us to see where a business spend and receives its money. Fixed Assets: Fixed assets are those with a remaining useful life of over one year. Tangible fixed assets refer to physical assets such as buildings; land etc. and intangible assets refer to items such as goodwill and trademarks. McDonalds is much bigger than Burger King, which means it has more stores in Europe and UK. Current Assets: Current assets are those that are held for less than a year and can be realized quickly. They act as a source of funds for day-to-day activities (Investor Words, 2009). During the world financial crisis, two companies were under its influence in 2008. While in 2009, two companies had made a quick change. So their current assets suffer from a huge increasing. Total Liabilities: This figure is made up of both current liabilities and long-term liabilities. Current liabilities are the debts to creditors and suppliers, which the companies are expected to pay within a year, often in cash. Long-term liabilities are debts that do not need to be repaid within a year. Burger King has a lower share of long-term liabilities than McDonalds does. This suggests that Burger King is in a better financial position when it comes to repaying debt, as the majority of their capital comes from Shareholders funds instead of loans. Ratio Analysis Conducting a ratio analysis allows us to compare the specific items in each companys financial statements over the three years period. There are four classifications of ratio analysis: Profitability, Liquidity, Efficiency and Investment. Conducting a ratio analysis from each of the four classifications should give a good overall picture of each companys performance. Profitability: Gross Profit Margin Gross Profit Margin = Gross Profit x 100 Turnover Gross profit margin allows us to see the proportion of sales that is left over once the costs of sales have been accounted for. This gives us an idea about how much money the company is making on their sales alone, before accounting for other income, administration expenses, interest and tax. This is a particularly relevant measure for this industry as the vertical analysis showed that the cost of sales takes up a huge percentage of the total turnover. Generally, the higher the gross profit margin is the better a company is performing. Liquidity: Current Ratio Curent Ratio = Curent Asset Curent Liabilities The current ratio is used to test the liquidity of company. A high current ratio of over 2 to 1 suggests that a company would easily be able to pay off its debts using its current assets, putting them in a good financial position. Efficiency: Asset Turnover Asset Turnover = Sales (Turnover) Total Assets This ratio measures how efficient a company is at utilizing their assets in order to generate sales. A high ratio indicates that a company is making good use of its assets. McDonalds is using its assets more efficiently than Burger King. Both companies experience improvement in their asset efficiency throughout the two year period which could again be attributed to the improvement programs that they are both currently running. While in 2009, two companies suffered from a small declining. However, McDonalds is much better than Burger King. Investment: Price/Earnings Ratio P/E Ratio = Market Earnings per Share Price per Share This final measure is a clear indication to potential investors, of the earnings they will be receiving. The ratio essentially indicates the price they are paying for a unit of income. If one company has a higher ratio than the other then the relative earnings received is for the price of the share is less than the other company. When comparing two companies they can use as relative prices to determine which one delivers the greatest benefit for their price. In addition, the lower the value, the quicker the investment will be recovered through earnings. Both companies started in a similar position in 2009-10. This ratio does not necessarily mean the investor will receive less because the fluctuations in share prices paid by each investor may differ greatly, especially in this three year period where the decline was drastic in 2008. However, upon analysis by a potential investor, it may indicate that at the end of 2008s financial year, Burger King looks to provide slightly better earnings per share relative to the price paid. However this is not rigid, prices fluctuate by the hour and do not always resemble financial performance. Non-Financial Analysis It is also important to factor in a variety of non-financial measures of performance in order to help us to assess the position of these companies. This may help to explain why one company is experiencing success over another. The fast food industry in the world is extremely competitive and so a number of different performance measures ¼Ã…’ which are thought to be relative to the industry have been used. Global operations McDonalds concentrate on globalization, sometimes referred to as the McDonaldization of society. The Economist newspaper uses the Big Mac index to describe the McDonalds globalization. McDonalds was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. McDonalds wants to open a large number of drive-through stores in the world. McDonalds make a deal with the French fine arts museum, the Louvre, to open a McDonalds restaurant and McCafà © on its premises, in November 2009. Burger King was successful in the US and then it brought Chicken burger to Europe. Consumers are urged to cheat on beef, with the message that Burger King announces can offer more than just beef burgers. The creative marketing is likely to engage consumers, while chicken may appeal to more health to customers. To assist in its global expansion, Burger King has established several subsidiaries to develop partnerships and alliances to expand into new areas. In Europe, Burger Kings subsidiary Burger King Europe GmbH is responsible for the licensing and development of BK franchises in the that market. At the end of 2010 year, Burger King is the second largest hamburger fast food company, which the first one is McDonalds (32,400 locations) and the fourth largest fast food restaurant chain overall after Yum!(37,000 locations), McDonalds and Subway (32,000 locations). Success of Branding and Advertising im lovin it is an McDonalds Corporations slogan. It was created by Heye Partner. The English part of the campaign was launched in the UK in 2003. With the music of Tom Batoy and Franco Tortora (Mona Davis Music) and vocals by Justin Timberlake is famous all over the world. In Spring 2008, McDonalds published their new image and slogan: What were made of. This was to promote how McDonalds products are made. Packaging was tweaked a little to feature this new slogan. In Fall 2008, McDonalds started new packaging, eliminating the previous design stated above with inspirational messages, the im lovin it slogan. McDonalds also updated their menu boards with darker, yet warmer colors, more realistic photos of the products featured on plates and the drinks in glasses. In 2009, McDonalds expects to have all of this nationwide. As to Burger King, Golden Age of Burger King advertising was during the 1970s when it introduced its Magical Burger King. And then several well-known and parodied slogans appear. In 2003, Burger King published new advertising with the hiring of the Miami-based advertising agency of Crispin Porter + Bogusky (CP+B). They have reorganized Burger Kings advertising with a series of new factors. It centered on a redesigned Magical Burger King character accompanied with a new online presence. A Burger King advertising running in recent weeks declares the Kings gone crazy. It shows the burger chains royal mascot running through a building and crashing through a plate glass window before being tackled to the ground by men in white coats. The advertising is supposed to trumpet Burger Kings new Burger King Steakhouse XT burger: The kings insane for offerings so much beef for $3.99, said the advertising. Success of Menus McDonalds decision to display nutritional information, including calorie and fat content and also on its product packaging well help restore faith in the brand by empowering customers menu choices. However, the move does not represent a fundamental change to the companys overriding mission. It just provides cheap, flavorsome food, served quickly. McDonalds clearly wants this increased disclosure will restore trust in its products. Indeed, data monitor research shows that transparency is clearly needed: 40% of UK consumers are skeptical about health claims made by food manufacturers, compared to 32% who are trusting. McDonalds healthier menu items that have this year helped promote sales in Europe. Consumers will soon be able to read that the Cheese, Ham and Pepperoni Deli Brown Roll contains 616 calories, compared to 493 in a Big Mac, along with almost 10% more fat and more than double the amount of salt. Nonetheless, as the worlds leading fast food company, McDonalds will always per form better. In contrast to other industry players, Burger King has not focused on making its food healthier in the past, believing that the Superfan values taste over health when making food choices. In 2005, for example, the company invested a lot on fast foods to make them less unhealthy, with less salt, sugar and fat, stating it wanted to focus on providing tasty foods. By focusing on taste, Burger King aimed to gain a competitive advantage and achieve a reputation for producing tastier burgers. While this focus on taste is appealing to the Superfan, health is an issue of growing importance to a large sector of society. Therefore, in order to remain competitive, the company has had to respond to this growing demand for healthier foods. Its rivals have already made health changes to their menus and, with this in mind, Burger King has reformulated some of its menu items. Consumers are urged to cheat on beef, Burger King announces that it can offer more than just beef burgers. The creative marke ting is to tall consumers, while chicken is more health. Burger King has announced that it will be provided new hamburger named the Tender crisp Premium Chicken burger in the UK, Ireland, Sweden and Denmark. At the same time, Burger King wants to create new imagine that consumers go to fast food stores looking for health beneficial products, which will makes them feel better about their choice in turn. Market share Burger King has around 7,800 restaurants locally, while McDonalds has whopping 13,000 locations locally. Burger King has approximate 21.9% of the market share, while McDonalds has more than double that, a whopping 44% market share of the fast food industry. Comparatively, McDonalds has been expanding rapidly into the international market; in fact McDonalds has expanded in many third world countries, which include India, China, etc. Although Burger King also has international reach, its nowhere near McDonalds reach. Burger King has managed to expand in only a handful of international markets. Company PotentialMcDonalds SWOT Analysis McDonalds SWOT Analysis Strengths Market-leading position Robust all-round growth Strong brand equity Opportunities Alliance with Warner Home Video Innovations in the Menu Rising Hispanic population in US Strengths McDonalds is the worlds largest foodservice retailing chain. McDonalds serves one of the worlds favorite and most well known menus. The company has shown a strong growth in revenues. Its consolidated revenues have increased at a compounded annual growth rate. All segments of the company have witnessed strong growth. Europe, McDonaldss largest geographical market, saw revenues increase by 14.7%. McDonalds has a well-established brand that appeals to varied age groups and customer profiles. The Business Week magazine has ranked McDonalds as one of the ten most recognized brands in the world, a position that creates significant opportunities for the company. The company makes some of the largest selling fast foods in the world. Weaknesses The company witnessed an operating loss from its non-McDonalds brand restaurant operations. Operating losses from both these segments have lowered McDonalds overall profitability. McDonalds revenue per employee compared quite poorly with the average figures in the foodservice and restaurants industry. This indicates that the companys per employee productivity and profitability is lower than that of its competitors, a disadvantage in a fiercely competitive marketplace. During 2007-2009, McDonalds selling, general and administrative (SGA) expenses for Europe region increased substantially. Increasing SGA expenses in these segments have adversely affected the overall profitability of McDonalds. Opportunities A popular live-action series featuring Ronald McDonald will help further McDonalds popularity, especially amongst children. The company can cash in on this and boost its revenues. McDonalds continues to evolve its menu in order to maintain its leading market position. New products and branded everyday value remain a focus for McDonalds, as the company continues to refresh its offerings with its Euro Saver Menu in several European markets. Threats The company is facing pressures due to an increase in raw material prices. Owing to various import restrictions and higher demand, prices of beef. Further, the prices are expected to remain high during 2010 also. Beef is the major raw material for the companys products. A further hike in beef prices can have a negative impact on companys profitability. Over the past few years there has been a newfound emphasis on healthier eating. With a change in lifestyle, people are becoming more aware of the negative effects of unhealthy eating habits. This has a direct effect on the sales of the fast food chains that are associated with unhealthy food. Consumers are showing increased preference for fat-free and healthy food products. Food items containing trans-fat are losing market share as they are linked to cardiovascular diseases. Some negative publicity could adversely impact the revenues of the company, especially as consumers and government bodies all over the world get more conscious abo ut health effects of fast food. Burger King SWOT Analysis Burger King SWOT Analysis Strengths Strong market position and brand equity signifying customer acceptance Greater franchise mix-an attractive business model Innovative marketing campaigns and advertising to provide greater visibility Opportunities Expansion in existing and new markets-the rate of expansion in 2009 was 28% higher than the prior year Initiatives such as remodeling and usage if Bluetooth to enhance operational efficiency Positive outlook for quick service restaurant segment Strengths Burger King enjoys a strong market position with 11,925 restaurants operating in 73 countries and US territories. It is the worlds second-largest FFHR chain as measured by the total number of restaurants and system-wide sales. Additionally, BKCs Burger King and Whopper brands are two of the most widely recognized consumer brands in the world. Overall, the companys established brand image has enabled it to penetrate various global markets. The company leverages its strong market position to gain economies of scale and increase its bargaining power. BKC utilizes innovative marketing, advertising and sponsorships to drive sales and generate restaurant traffic. Strong and innovative marketing efforts will provide better visibility to the company, which will in turn have an impact on the revenue generating capacity of the company. Weaknesses Declining comparable sales growth-2009 recorded the lowest rate in three years BKC recorded a decline in its comparable sales growth in the recent past. Despite positive comparable sales growth across all reportable segments during 2009, comparable sales for the period were negatively impacted by significant traffic declines during the third and fourth quarters across many of the markets in which BKC operates. This was primarily driven by the continued adverse macroeconomic conditions, including higher unemployment, more customers eating at home, heavy discounting by other restaurant chains and the H1N1 flu pandemic. Declining comparable sales growth indicates the necessity of the management to focus on various product offerings that caters to the value conscious customers during times of poor economic conditions. Concentrated operations in terms of geographic presence and dependence on selected distributors-increases business risks. Opportunities Expansion in existing and new markets-the rate of expansion in 2009 was 28% higher than the prior year. Burger King is focusing on expanding its presence in existing and new markets. Expanding presence in existing and new markets will allow the company to establish a global footprint and favorably impact its revenue generating capacity. Initiatives such as remodeling and usage of Bluetooth enhance operational efficiency. Threats The fast food industry is intensely competitive and Burger King competes with many well-established food service companies on the basis of product choice, quality, affordability, service and location. As the restaurant industry has few barriers to entry, the company competes with large competitor base including restaurant chains and individual restaurants that range from independent local operators to well-capitalized national and international restaurant companies. McDonalds and Wendys are BKCs principal competitors. The company also competes against regional hamburger restaurant chains. The company also competes against national food service businesses offering alternative menus, such as Subway, PaPa Jones and Pizza Hut. Some of the Burger King competitors have greater financial, non-financial and other resources, which may help them to react to changes in pricing, marketing and other segment in general better than Burger King. Investor Potential This section will examine the attractiveness of investment into McDonalds and Burger King. The following two graphs show the variations in each companys share price over the three financial periods looked at throughout this reports. Both companies graphs are taken from Yahoo! Finance as this website showed the fluctuations during the three years that the financial analysis was conducted, allowing the share price to be compared to the businesses financial success. Share prices vary depending on how a company is performing; with more investors buying shares when they think the company is about to experience success. Success leads share prices to rise, due to the laws of supply and demand. McDonalds share price This graph shows that McDonalds experienced an overall increase in share price during 2006 to 2010. This could be due to the success of the McDonalds strategies, suggesting that the company has adopted a successful growth strategy and encouraging people to invest. Burger King share price Burger King have seen a steady drop in their share price relative to their drop in net profit in 2007-08, which could lead investors to become less attracted to the company. However, Burger King does have quite a strong growth strategy

Implementing Uniforms In School is The Right Thing To Do Essay

The argument whether uniforms should be allowed in school has been debated over the last few decades. Implementing a uniform policy within schools would help reduce the rise of violent crimes. In today's high schools, too many innocent youths become fatalities due to gang warfare that has spread into the school system. Many parents feel that if a uniform policy was implemented the spread of gang warfare and the idea children have to have name brand clothing would decrease drastically. However others are worried that this policy would infringe on students First Amendment rights. Yet there are other parents that all worried that the uniforms will cost too much. In the following essay these issues will be addressed. Proponents of uniforms argue that the widespread violence in schools is due largely to the gangs. They believe that the distinctive gang colors and symbols are used to intimidate non-gang members and reinforce gang allegiance. Gang members are often found wearing clothing with professional sports teams logos on them. The clothing is often stolen from local stores or from other children. Children who where this kind of clothing to so only because they like it or it is in style. Jim Steinberg of the San Francisco Examiner believes that," They have become a fashion statement and sometimes a gang statement." (1) This is why so many parents want the schools to go to a mandatory uniform policy. Many parents believe that if children wore uniforms, the violence in schools would drop drastically. Long Beach unified school district was the first large urban school district in the United States to implement a mandatory uniform policy. " In 1994, the Long Beach unified school district in California became the nation's fi... ... down from one child to another. By doing this they would come out ahead in the long run. The controversy whether to implement the uniform policy has gone on for quite a few years now. Both sides of the argument give compelling reasons why or why not the policy should be implemented. But with the rise in the violent crimes in the school system, I feel that it’s his time to protect our children and implement it. If we do not do it now, America's children will grow up knowing only violence. They will not know what it's like to live a life without fear. So if you have a chance to implement the uniform policy; do it. Bibliography: Works Cited â€Å"Dressed For Survival.† The Economist 3 Sept. 1994: A32 Dyson, Sen. Roy. â€Å" Do You Favor Mandatory Uniforms In The Public Schools?† 12 July 1996. Online Posting. Southern Maryland Online. 04 Mar. 1999

Eng 101 Expository Essay Final Paper

Laws for the Improvement in Educational Standards â€Å"No Child Left Behind is an excellent sword that we can use to open doors for the children we represent† (Wright, Attorney at Law). Peter Wright is an attorney who specializes in cases surrounding children with Special Educational needs. When he made this statement, he was referring to a law that President George W. Bush’s administration passed in 2001. No Child Left Behind (NCLB) is a law that requires states to assess the basic skills for children in certain grades. This was not the first law to be created by the government. Before NCLB was created, first there was Section 504 of the Rehabilitation Act, and the second was the Individual with Disabilities Educational Improvement Act (IDEIA) also known as Public Law 94-142. Every since the first law was created in the early 1970s schools all over have complained. So schools would not have to abide by these laws states would refuse the funding that was given to them by the government for education. When these laws were created, it was to protect all children with any kind of special needs. Before Section 504 was created schools could legally expel any child they thought may have had a learning disability. Section 504 of the Rehabilitation Act In 1973 Section 504 of the Rehabilitation Act was created to be an anti-discrimination statute meant to stop discrimination against students with special needs from governmental actors and to protect these students’ equal rights. For a student to qualify for protection under Section 504 he or she must be determined to (1) have a physical or mental impairment that can limit one or more major life activities; (2) it must be on record that the child does have an impairment; or (3) the child must be looked at as possessing said impairment. All students who qualify under Section 504 are entitled to a â€Å"free and appropriate public education† also known as FAPE. If a school violated the Section 504 laws the student must show (1) that he or she does have a disability stated in Section 504; (2) that the student does qualify for said benefit that he or she were denied; (3) that the student was denied because of his or her disability, and (4) that the benefit that student was denied is obtaining money from the government to help with the program (Hoffman-Peak, 2009). The US Department of Education (ED) is responsible for enforcing Section 504 for all schools receiving funds. Recipients of these funds include all public schools, colleges, and other education agencies within the state. Individual with Disabilities Educational Improvement Act In 1975 Congress created the Education for All Handicapped Children Act (Public Law 94-142). This Act stated that any school receiving federal funds is required to provide equal access to education for children with any kind of disability. With the input of the child’s parents public schools had to evaluate the student and create an educational plan that would be as close as possible to that of a non-disabled student. The Act also stated that school districts must provide administrative procedures for parents so they may dispute decisions surrounding their child’s education. Once these administrative efforts had become exhausted, the parents would be allowed to seek a judicial review under Section 504. The system of dispute resolution created by PL 94-142 was to help with the financial burden created by litigation. In 1997 President Clinton and Congress amended the law to Individuals with Disabilities Education Act (IDEA). This would be the first time since Public Law 94-142 was created in 1975 that a significant change was made while retaining the basic protections. The goal was to clarify, strengthen, and provide guidance on the law. The second time would be in 2004 when Congress would once again make amendments calling it Individual with Disabilities Educational Improvement Act (IDEIA). For 20 years the research showed that education can be more effective if; (1) it is ensured that the child receives general education to the maximum extent possible; (2) the parent’s role in the child’s education is stronger; (3) coordinating efforts from the school and agencies are made to guarantee that children are benefiting from these efforts. Also that special education is a service for children not a place for them to be sent off to, and (4) all personal who work with children with special needs will receive the proper education to teach these students. Because Public Law 94-142 was created a great deal of progress has been made toward meeting our nation’s goals for creating programs for individuals with special needs. Such accomplishments had included, one that a majority of children with special needs were included in regular classrooms with non-disabled children. No Child Left Behind Act Immediately after taking office in 2001 President George W. Bush proposed the idea for the No Child Left Behind Act. The bill passed through the United Stated House of Representatives on May 23, 2001, and again on June 14, 2001 by the United States Senate. After first proposing the Act close to a year before President Bush signed the Act into law on January 8, 2002. The goal behind this law was to hold schools and states accountable for improving the education of both disabled and non-disabled students. The purpose was to identify than transform schools that have not provided an excellent education to students. These schools would be turned into successful schools. Furthermore, NCLB intentions are to close the learning gap between high and low achievers, minority and non-minority students as well as advantaged and disadvantaged students. To accomplish this goal the reform planned to use a state assessment system designed to ensure all students are meeting the state academic and grade level content. The implementation of these goals, call for a high level standard that can be measured for all students. There is no doubt that this Act has brought a closer look on students who normally have performed on a lower level of education, causing it to be praised, while at the same time this law has been criticized by many because inconsistencies found within the law. Title One of the No Child Left Behind Act states a measure called Adequate Yearly Progress (AYP) in which schools, districts, and states must be held accountable for the education performance of students. However, there are faults with the Adequate Yearly Progress; one of these faults is whether or not AYP can provide an accurate measurement of the goals because states are allowed to make their own standards. Statistics show that there are 50 different educational measurement standards across the country. Because these states can create their own standards, they can manipulate their AYP, thus resulting in schools giving the impression that they are successful in teaching when they may not be. The Reauthorization of the Elementary and Secondary Education Act In 2010 President Obama and Congress assembled a blueprint of reform called The Reauthorization of the Elementary and Secondary Education Act. This blueprint builds and re-envisions a federal role around these five priorities. It states that (1) all students despite their race, income, ethnic or language background, or disability will be college and career ready when they graduate from high school. The government will support all states to implement a better education through an improvement of a professional development. (2) The government will elevate the teaching profession so as to recognize excellence in teaching. All school districts must develop a system that supports teachers. (3) Schools that have the most improvement from their students will be rewarded. This includes students graduating and those on their way to graduating by 2020. To make sure that the responsibility for improving does not fall all on the schools, states and districts will be held accountable for not providing their schools the support they need to succeed. (4) Incentives will be provided to encourage state and districts to work with schools to improve education of students. The government will support college going strategies to help students succeed. (5) A new competitive funding will help with flexibility, reward results, and ensure that these funds provided are used wisely. While districts will not be restricted on how they spend the funding. The government will help create new ideas that support family and the community with their child’s education (The Reauthorization of the Elementary and Secondary Education Act). Conclusion Since 1973 when Section 504 of the Rehabilitation Act was introduced into Congress there has been one clear goal amongst government. This goal is for all students no matter their background or disability are to receive an education. In the past 38 years Congress has reformed and amended all the education laws for improvement in the education system. It would no longer be acceptable for schools to fail in giving students the education they deserve. Throughout the years statics have shown that despite laws created our education system is failing and needs vast improvement in order for the next generation to succeed in the future. As stated by President Barack Obama in a letter, he wrote to be placed in the introduction of The Reauthorization of the Elementary and Secondary Education Act. â€Å"America was once the best educated nation in the world. A generation ago we led all nations in college completion, but today 10 countries have passed us. It is not that their students are smarter than ours. It is that these countries are being smarter about how they educate their students† References Author unknown (September 2010) Adequate Yearly Progress, Education Week Retrieved on May 23, 2011, from http://www. edweek. org/ew/issues/adequate-yearly-progress/ Berlatsky, N. (2011) No Child Left Behind Is a Good Law. Opposing Viewpoints: School Reform. Detroit: Greenhaven Press, from Powersearch. Hoffman-Peak, H. (Summer 2009) A Matrimonial Practitioner’s Guide to Special Education Law. American Journal of Family Law. Retrieved May 19, 2011 from, Powersearch Maleyko, G. Gawlik, M. A. (Spring 2011) No child left behind: what we know and what we need to know. Education. Retrieved on May 19, 2011, from Powersearch Us Department of Education (August 2010) Free Appropriate Public Education for Student With Disabilities. Retrieved May 23, 2011, from http://www2. ed. gov/about/offices/list/ocr/docs/edlite-FAPE504. html US Gover nment, (March 2010). A Blueprint for Reform: The Reauthorization of the Elementary and Secondary Education Act. ED. gov. Retrieved on May 20, 2011, from http://www2. ed. gov/policy/elsec/leg/blueprint/publicationtoc. html

Diminishing Returns Essays - Production Economics, Economics Laws

Diminishing Returns Essays - Production Economics, Economics Laws Diminishing Returns Law of Diminishing Returns The Law of diminishing returns is a key one in economics. It is used to explain many of the ways the economy works and changes. It is a relatively simple idea; spending and investing more and more in a product where one of the factors of production remains the same means the enterprise will eventually run out of steam. The returns will begin to diminish in the long run. If more fertilizer and better machinery are used on an acre of farmland, the yield will increase for a while but then begin to slow and become flat. A farmer can only get so much out of the land, and the more the farmer works, the harder it gets. The economic reason for diminishing returns of capital is as follows: When the capital stock is low, there are many workers for each machine, and the benefits of increasing capital further are great; but when the capital stock is high, workers already have plenty of capital to work with, and little benefit is to be gained from expanding capital further. For example, in a secr etarial pool in which there are many more secretaries than computer terminals, each terminal is constantly being utilized and secretaries must waste time waiting for a free terminal. In this situation, the benefit in terms of increased output of adding extra terminals is high. However, if there are already as many terminals as secretaries, so that terminals are often idle and there is no waiting for a terminal to become available, little additional output can be obtained by adding yet another terminal. Another application for this law is in Athletics, for runners, their investment is the time and energy put into training and the yield is hopefully improved fitness. Early in their running careers or early in the training program a couple of weeks of regular training would be rewarded with a considerable increase in fitness. Having achieved a very fit state though, two weeks of regular training will achieve a barely perceptible increase in fitness. But in todays world, this famous law seems to have been turned on its head. In Japan, for example, huge amounts of investment have resulted in large increases in the economy and large increases in capital goods per worker. But the rate of productivity growth did not decline the way one would have expected on the basis of diminishing returns. Japan got ahead and stayed ahead.

Free Essays on Would You Rather Be Deaf Or Blind

and viewing her in all of her beauty? Most of the people in this world have been blessed, blessed in ways they don’t even know. Blessed to have 5 senses and to feel in place, which is hard to feel if you have never felt ‘out’ of place. Only a few people in this world know what it feels like to not be able to hear moments of passion, excitement or laughter. Still fewer know what it is like to never have seen the three major colors, a rainbow, or have had the opportunity to form an opinion of beauty. Little Johnny was such a sweet baby. He looked around with his big eyes staring at things that intrigued him for seconds at a time. It wasn’t often that he cried, in fact, his parents didn’t recall many times of Johnny crying. Such a sweet boy, never a nuisance in the middle of night, only with the normal â€Å"problems† a child usually has in the middle of the night, only they never bother Johnny enough to cry. Johnny’s parents read to him every night, although it appeared that Johnny never paid too much attention to the stories they read. Now, a year later the parents plan their son’s first birthday party. At the party the young boy seemed very distracted, he didn’t react to singing or the noise makers like the other young guests at the party. It was at this point Johnny’s parents decided to take him to the doctor for a major checkup. The diagnosis was very hard for the family. Johnny w... Free Essays on Would You Rather Be Deaf Or Blind Free Essays on Would You Rather Be Deaf Or Blind Would you rather be born deaf or blind? As she whispers in your ear it tickles, but you know it’s a passionate moment so you don’t laugh, instead you return the favor and whisper â€Å"I love you† in their ear. A little while later, your loved one decides to slip into your anniversary gift, a silky material that seems to enhance every part, every movement of her body. Which of these could you bare to do without, hearing passionate exchanges between you and your partner, or seeing their reactions to your words and viewing her in all of her beauty? Most of the people in this world have been blessed, blessed in ways they don’t even know. Blessed to have 5 senses and to feel in place, which is hard to feel if you have never felt ‘out’ of place. Only a few people in this world know what it feels like to not be able to hear moments of passion, excitement or laughter. Still fewer know what it is like to never have seen the three major colors, a rainbow, or have had the opportunity to form an opinion of beauty. Little Johnny was such a sweet baby. He looked around with his big eyes staring at things that intrigued him for seconds at a time. It wasn’t often that he cried, in fact, his parents didn’t recall many times of Johnny crying. Such a sweet boy, never a nuisance in the middle of night, only with the normal â€Å"problems† a child usually has in the middle of the night, only they never bother Johnny enough to cry. Johnny’s parents read to him every night, although it appeared that Johnny never paid too much attention to the stories they read. Now, a year later the parents plan their son’s first birthday party. At the party the young boy seemed very distracted, he didn’t react to singing or the noise makers like the other young guests at the party. It was at this point Johnny’s parents decided to take him to the doctor for a major checkup. The diagnosis was very hard for the family. Johnny w...

Four decision issues managers faced when filling up their performance Essay

Four decision issues managers faced when filling up their performance review forms - Essay Example In order to minimize this problem, managers should be required to give their specific reason for the grades and evaluation. Through this, managers will be able to see that performance reviews should generally give an accurate overall performance of the employee. This will also enable them to see that their interaction with the employee is far outweighed by the way these customers deliver value for the organization. One of the most prevalent dilemmas in performance reviews are the managers perception of that this is a one-time annual reporting of how the employees fare. This hinders the management to give an accurate assessment of the employee under consideration as the manager may only note how the worker performs for the past month of two. In order to avoid this, managers should "invest time to give a day-to-day scorecard on individual qualitative and quantitative performance feedback impressions to employees on a day to day basis" (Heskett, 2006). Managers will be required to maintain a record of how their subordinates perform daily. This will be tallied every month in order to make it easier for employs to give a generalized assessment at the end of the year. Managers don't often recognize that the

The Values in the Pharmaceutical Line of Business Case Study

The Values in the Pharmaceutical Line of Business - Case Study Example The key opportunities and challenges that AstraZeneca faces in this day and age include the fact that it has to have a globally competitive strategy which can counter the pressures that it receives at the hands of the players which are already thriving big time within the related market domains. This would mean that the competition is cut throat and there is absolutely no room for leniency at any cost. It faces immense competition from Pfizer, Johnson and Johnson, Abbott Laboratories, GlaxoSmithKline, Novartis, Merck and Co., and Sanofi-Aventis – all of which are globally accepted players. However, it also faces rivalry as far as its pertinent business undertakings are concerned from the local players that are thriving on the word of mouth realms and hence are penetrating strongly within the related markets (Kassirer 2005). The key challenges would be to make its basis strong so that AstraZeneca does not fall back at its infancy stage in the future. Also there must be proper e mphasis on the factor that is related with its business strategy, which relies heavily on growing the business through strengthening of the already developed products and the ones that are in the pipeline, the delivery of what has been promised, the re-shaping of the business from time to time, and lastly the promotion of a culture that is socially responsible and accountable at the same time (Hosking 2002). AstraZeneca has to prepare a business strategy that is coherent, encompasses quite a few significant areas of business and undertakes measures to resolve disputes that have a long-lasting effect and consequence for the sake of the organization. AstraZeneca must know how to take care of its customers because this is an important yardstick when it wants to establish areas where it could build upon its basis in the long run. More than anything else, there is a need to discern the exact methodology behind AstraZeneca’s policy towards attracting new customers and thus retainin g them for longer periods of time. All these points are very essential as AstraZeneca tries its best to uphold its strengths and cash in upon the opportunities that come its way.