Application implement into a business Essay Example | Topics and Well Written Essays - 750 words

Application implement into a business - Essay Example Wrapped wire method also is said to have a digital use of circuit for using solder less boards. Advantages of wrapped wire are as follows, it is reliable method, it is relatively cheap, can be used to make a permanent circuit, the last but not the least it is fast and easily to change the system for better operation. Although, this method is highly preferred in most of machines which consume relatively high voltage, they are associated with demerits such that connection to the lead square must be made with solder to the head of the IC socket where the pin wire is heading to. Therefore, capacitors, resistors and transistors soldered to the IC to complete the circuit (Kraslawski & Turunen, 2013). Another disadvantage is that, low current is associated with few number of mA, thus reducing working capacity of the machine. Prototyping environments and processes regarding to a computer system Environment is a key factor that should be considered before buying and setting a prototype system. For instance, a computer is one of the electronic gadgets that require sensitive attention to be considered. Therefore, wrap wire method and printed circuit board are used because they are safe, highly reliable and so on. Computers requires a steady flow of current such that, connection of wires from a power supply to the entire system should be very competed to avoid failure of current from reaching the destination. Additionally, printed circuit board helps machines to keep steadiness flow of current to the junior elements such as transistors and capacitors which maintains functioning of a computer. In a computer system there two types of prototypes namely, hardware prototype and software prototype (National Research Council, 2008). Hardware prototypes are mostly concerned with fixing all the physical functional parts of a computer. These parts include motherboard elements, monitor, a nd switches among other physical part of a computer. On the other hand, software prototypes are concerned with installation of programs, such as micro soft office, VLC, internet among many programs, as one can prefer (Russell, M. T. (2008). Defining an accessibility technology for the prototype in a business In order to achieve desirable and accessible prototypes many companies have found it as a

Tom's Shoes Link to Society Essay Example | Topics and Well Written Essays - 500 words

Tom's Shoes Link to Society - Essay Example He was hurt by this condition and felt the need to do good and help those children he saw in the streets. He promised himself that he was to do anything possible to help these children hence Blake and his team decided to take a financial risk and started shoes manufacturing company. He decided that, for every pair of shoes purchased, a pair is donated to the needy child in the society (Schermerhorn 148). Furthermore, children not only in Argentina, but also across the world that many live under poverty life and cannot even afford even the basic needs. These children walk barefoot hence get infected by soil diseases, which go through their bare foot. Most children are likely to get sores, cuts and other injuries that later become serious wounds increasing the infections of diseases to their bodies. In order to avoid these shoes play an essential role in preventing children and even adults in poor rural areas from getting infected from these diseases. On the other hand, children from poor families do not go to school due to lack of shoes, which is part of school dress code. Meaning these children will not go to school to get the education that will help them better their future. Therefore, TOMS has promoted education since many children who never went to school because they lacked shoes now can go to school and there is a reduction in the high spread of soil diseases that infect the p oor in society. The company dispersed ten thousand pairs of shoes to needy children in Argentina in the year 2006. It has also distributed shoes to needy children in over 40 countries across the world among them Rwanda, USA, Argentina, South Africa, Rwanda, Haiti among many other developing countries. As a result, the organization has attracted many donors and has received grants and funds from them. This made the company expand its business and

Leadership Characteristics Research Paper Example | Topics and Well Written Essays - 500 words

Leadership Characteristics - Research Paper Example â€Å"Student leaders who possess high self concept often strive for self-development† (Ahmad, Ghazali, and Hassan, 2011, p. 24). Trustworthiness of a leader plays an integral role in his/her success in the contemporary age of competition (Caldwell, Hayes, and Long, 2010, p. 497). Hence, both self-confidence and trustworthiness of an individual are equally important in making him/her effective as a leader. A leader has several motives. Drive means a leader’s motivation to achieve the goal. Tenacity means the leader’s strength or cohesiveness with the followers. Resilience means the power of a leader to take pressure and yet deliver the work. I believe that there are both positive and negative motives for leadership. â€Å"[Positive Leadership] motives that have received most attention are those of power, affiliation and achievement† (Marti, Gil, and Barrasa, 2009, p. 268). The negative motives for leadership include aggression, and authoritarian style. For example, tenacity helps a leader overcome obstacles. â€Å"[A]long with basic leadership essentials such as honesty and integrity, tenaciously seeking the truth is one of the most important characteristics a leader can have† (Harms, 2006, p. 49). Likewise, resilience helps a leader make informed decisions in the times of extreme pressure. Once, I was made the leader of a project in school. I had four members in my group excluding me. We had to make a group presentation. As the leader, factors that were within my control were roles of individual group members that I could assign as per my wish, the schedule for making the presentation, and the professional standards to be followed in the presentation. Factors that were beyond my control in that group project included occasional dissatisfaction of the group members with their roles, grudges between the group members leading them to interpersonal conflicts, and limitation of the resources for the project since we had to complete it within

Slave owners Thesis Example | Topics and Well Written Essays - 2500 words

Slave owners - Thesis Example This research will begin with the statement that the institution of slavery was a dark era in the history of the American nation. Although now criticized as morally intolerable, several in colonial America believed that the economic growth of the United States was dependent upon forced laborers. Although it was a very popular form of labor during the early stages of American growth, it was very cruel and evil type of labor and Americans understood this; to be a slave owner you had to of had a mindset that was just purely focused on wealth and status and no respect for the black race at all. The owner and slave relationship was characterized by the domination of the owner over the slave. Force was the basis of this relationship and this idea was clearly articulated in the 1829 decision by a judge in North Carolina concerning the relationship between an owner and a slave. He wrote: With slavery ... the end is the profit of the master, his security and the public safety; the subject, one doomed in his own person, and his posterity, to live without knowledge, and without the capacity to make anything his own, and to toil that another may reap his fruits†¦. The power of the master must be absolute, to render the submission of the slave perfect. Another common aspect of American slavery was isolation. Africans were stolen away from their homes, families, and culture. Everything that was familiar to them was stripped away and they were then isolated in a new world.... laims of birth, they were also denied the right of creating family ties that would be recognized by the law.5 Selling children away from their parents was a common practice. The law did not recognize African slave relationships, and families could be ripped apart if masters desired. Selling husbands away from wives or children away from mothers was a common practice in America and was sometimes used as a threat of punishment.6 Some masters tried to keep families together; however this was rare. "Kenneth Stamp forcefully insists that the great majority of slaveholders chose business over sentiment and broke up families when under financial pressure."7 For most masters, monetary success tended to be more important than the happiness of slaves. African slaves in America were deemed social outcasts. They were thought to be strange and assumed to be savage. These were the major components in that sense of difference that provided the mental margin between masters and African slaves. They were never considered equals to whites and were placed at the bottom of the social hierarchy. As Winthrop Jordan wrote: They did not belong to the same community as Christians, or civilized Europeans. The focus of this "we-they" distinction was at first religious, later racial. †¦to be Christian was to be civilized rather than barbarous, English rather than African, white rather than black.8 African slaves were considered strangers by the white population and also among each other. They were taken from various areas throughout Africa and the chances of being enslaved with others from the same area or clan were slim.9 Owners could use slaves for whatever they pleased; slaves had no rights. They could not make basic decisions on their own such as what or when to eat. Slaves could not choose

Presidential vs. Parliamentary Government Essay Example for Free

Presidential vs. Parliamentary Government Essay Every nation, ever since the dawn of civilization, has always had some form of government. It is of necessity rather than need, as a nation without one will always result to anarchy. Today, two of the most popular and well-known forms of government are the presidential form of government and the parliamentary form of government. Each form of government has its own pros and cons, and the debate of whether one is better than the other has long been a subject of discussion.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The main difference between the two forms of government is how the extent governmental powers are distributed and/or separated between branches of the government, and whether one branch has or does not have power over another. In the presidential form of government, political and administrative powers are distinctly divided between the executive branch (the President), the legislative branch (i.e., the congress/senate), and the judiciary branch. The powers vested in the executive branch is usually balanced against those given to the legislature. Laws and bills are made by the legislature and it is the executive branch which enacts it. The President has the power to veto the bill, preventing its execution, but the legislature may override the Presidents veto, provided they can gather enough votes to do so (â€Å"Parliamentary versus Presidential governments†). This serves as a check and balance for both branches, ensuring that one does not overpower the other.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the parliamentary form of government, however, there is a fusion of power between the legislative and executive branch. This is mostly due to the fact that the head of government, the Prime Minister, is voted into position by the legislature, which is often mostly composed of the ruling party or coalition. Hence, almost always, the constituents of the executive and the legislature branches are the same (â€Å"Governing Systems and Executive-Legislative Relations†).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The terms of office for both heads of the government also varies. In the presidential system of government, the President serves a specific, defined term. In the parliamentary system, the Prime Minister stays in power for as long as he or she has the support of the majority of the legislation. Political parties also hold less of an impact on the presidential system than on then parliamentary system since the President can still be voted in office regardless of whether his or her political party is a minority or not. In parliamentary system, its almost always the ruling party which holds dominance over the outcome of the election of head of government.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Given the choice, from the points stated, I would rather be a citizen of a country ruled by a parliamentary government, like the United Kingdom. There is more cohesion and unity given the fact that the legislative and the executive powers come from one ruling, common party. This would mean that bills are passed much quicker. Also, ethnicity, race, and ideology wont be much of a conflicting factor, especially for a very diverse country, since power is equally divided amongst the legislators, and not just focused on one (e.g. the President). Lastly, a study conducted by the World Bank has found out that a parliamentary system is associated with lower corruption (Lederman, Loayza, Soares, par. 1). Works Cited â€Å"Governing Systems and Executive-Legislative Relations.† UNDP: Governance: Political   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   systems and their impact on Governing Relations. 2006. 18 December 2007.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.undp.org/governance/docs/Parl-Pub-govern.htm Lederman, Daniel and Normal Loayza and Rodrigo R. Soares. â€Å"Accountability and   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Corruption: Political Institutions Matter.† World Bank Policy Research Working Paper No. 2708. 2001. 18 December 2007. http://ssrn.com/abstract=632777 â€Å"Parliamentary Versus Presidential Governments.† eSSORTMENT. 2002. 18 December 2007.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://mi.essortment.com/presidentialpar_rket.htm

Particular social system Essay Example for Free

Particular social system Essay Ethics is the discipline that deals with the good and the bad as well as with the moral duty and responsibility of an individual. It can also be defined as the study of the choices made by individuals as regards right and wrong (Marie, 2005). Ethics is mainly concerned with the philosophy that results in a particular behavior. Ethics are of different types, and they differ in terms of their application in different contexts. Ethics state the working of a particular social system. They point towards the utilization of morality. At birth, as indicated by Be The Dream (2009), everyone is practically a blank slate. The period of infancy is characterized by total emptiness. The only skill an infant is equipped with is crying in order to attract the attention of the other people. Infants are contented with just lying watching the world revolve around them until they need something. However, as life progresses, individuals develop values in accordance with what they have previously learned or gone through (Be The Dream, 2009). The main intent of developing ethics is to set up the capacity to come up with rational judgment and ethical decisions. The whole process of personal ethics development is continuous and goes on through out life (Marie, 2005). Personal ethics, morals and values go hand in hand. Values are beneficial aspects learned from childhood, either as a result of interaction with the environment or from parents. Morals are the inherent beliefs that develop from the values system of the way an individual should react in a particular situation (Fairleigh Dickinson University, 2010). Ethics, on the other hand, are characterized by an individual’s reaction to difficult situations. Ethics play a major role of testing the morals of an individual. Personal ethics are instilled by the culture, environment as well as the background in which an individual is brought up (Fairleigh Dickinson University, 2010). Family values in addition to traditional values are very important in the upbringing of a child. These values play a major role in assisting an individual develop personal ethics at a very tender age. Various personal ethics include: honesty, loyalty, punctuality, open-mindedness, self respect as well as respect for others and fairness (Marie, 2005). Hatcher (2007) states that the expression of one’s ethics is not always comprehended in the global context at large, immediate surrounding, or even among the closest family members. This is mainly as a result of the difference in the development of personal ethics. Personal ethics develop early in life through interaction with family, church, school, and other members of the general community. All these people play part in helping one mold his/her beliefs (Hatcher, 2007). Personal ethics are established through unconscious observations as well as experiences of childhood. Personal ethics narrate values that help an individual make sense of his/her life. They enable one to make moral decisions that are not inclined towards the good of an individual but to all people. An ethical person undergoes extensive internal battles, trying to figure out whether his or her actions will negatively impact on others. Personal ethics enable individuals to make decisions that are meant for the benefit of all. They act as an innate factor that enable individuals make rational and morally correct decisions (Hatcher, 2007).

The Electricity Company Of Ghana Action Plan Finance Essay

The Electricity Company Of Ghana Action Plan Finance Essay Electricity generation, transmission and distribution in Ghana mainly involve three institutions that work in an interrelated manner. Volta River Authority (VRA) generates the electric power through hydro and thermal plants and, until recently, also had responsibility for the high voltage transmission system. The Ghana Grid Company (GRIDCO), created as part of reforms in the power sector, now has responsibility for the high voltage transmission so as to have that separated from generation entities. It is the least known of the institutions. The Electricity Company of Ghana (ECG) distributes the energy produced to most consumers through low voltage transmission lines. It is the institution that is in direct contact with most of the public. Figure 1 below shows the main processes of the power distribution in Ghana. The ECG is a limited liability company owned solely by the Government of Ghana and has the responsibility of supplying and distributing electrical power in the southern part of Ghana. It was established in November 1997 as Joint Stock Company based on the companies code in accordance with the 1993 Corporate Act (Act 461) of Ghana. The company has its headquarters in Accra, a total workforce of 5,281 with a customer base of 1.7 million (ECG annual report 2008). Vision The ECGs vision is to be among the leading electricity distribution companies in Africa in terms of quality, safety and reliability. Mission Statement The mission statement of the company is to provide quality electricity services to support economic growth and development in Ghana. The primary objective of the company is to supply electrical energy to people in its areas of operation. In discharging its various duties, the company has executed a number of national electrification programmes on behalf of the government. The ECG is a monopoly in the electricity distribution sub sector of Ghana. The tariffs that clients pay for the supply of electricity services are regulated by the state owned company called Public Utility Regulatory Commission. The ECG charges commercial rates to its clients which are subsidized by government. Organizational structure The company is run by the Board of Directors, Principal Officers and Advisors. The companys Board of Directors are appointed by the Government of Ghana. The Principal Officers and Advisors control and run the eight directorates of the Company. These directorates are Engineering, Operations, Customer Services, Materials Transport, Finance, Audit, Legal Services and Human Resources. Figure 2 below depicts the organizational structure of the ECG. Fig.2: The Organizational Chart of ECG Board of Directors ManagingDirector rector Divisional Managers (3) Divisional Managers (6) Director Legal Services Director Customer services Divisional Managers (3) Employees Employees Director Human Resource Director Customer services Director Material and Transport Director Material and Transport Director Audit Director Finance Director Engineering Director Operations Divisional Managers (6) Divisional Managers (3) Divisional Managers (2) Divisional Managers (2) Divisional Managers (3) Divisional Managers (3) Divisional Managers (5) Divisional Managers (3) Lower managemt Employees LOwer Managemt Employees Lower Managemt employees Employees Lower Managemt Employees Lower managemt Employees Lower managemt Employees Lower Managemt Employees Lower Managmt Employees Board of Directors The Board of Directors as at 29th June, 2009 was composed of the following persons: Ing.Sqn. Ldr. Clend Sowu (Rtd.): The chairman of the Board. He is a Consultant Engineer and a Retired Military Officer. Mr. Cephas Gakpo: The Managing Director of the company Mr. Bernard Allotey Jacobs: A Media Practitioner Barimah Kwame Nkyii XII: Omanhene Assin Aimanim Traditional Area, Tax Ecpert. Dr. Kwaku Osafo: Economist/Engineer Mr. Samuel M. Codjoe: Lawyer Mr. Anthony Gyampo: Educationist Mr. Kwabena Adjei: Businessman, Communication Professional Hon. Dr. Nii Oakley Quaye-Kumah: Member of Parliament for Krowor Constituency, Veterinary Surgeon Mr. Jake Kofi Anre: A Lawyer and Secretary to the Board Directorates of ECG The Engineering Directorate is responsible for the planning and designing of the distribution network. The directorate is also responsible for the procurement and implementation of investment projects. The Operations Directorate is responsible for delivering quality reliable and safe supply of electricity to customers, maintain the network regularly in order to reduce the number of interruptions and outages, respond quickly to faults and use modern technology to operate the distribution system; Materials Transport Directorate has responsibilities of managing all activities regarding materials received for projects and other ECG operations. In addition, the department has to manage all operations regarding Transport (Vehicles). Customer Services Directorate has responsibilities of gathering all information about Power Purchases, Power Sales, Average End-User-Tariff (EUT), System Losses, Revenue Collection, debtors position at the end of each year and customer population. Audit Directorate is responsible of operational, commercial and financial activities of ECG. With Technical Audits, physical inspections and reconciliation of materials usage are carried out. The directorate is also responsible of Audit investigations on fraud and corruption. Lastly, it support Management about operational activities and give directives to address them. Legal Services provides legal services to the ECG. The Director is the Secretary to the Board of Directors and maintains a Board Secretariat to provide secretarial services to the Board of Directors. He is involved in the prosecution of people involved in the illegal activities against the ECG to reduce system losses. Finance Directorate has responsibilities of analyzing and reviewing financial data, reporting financial performance, preparing budgets and monitoring expenditures and costs for the ECG as a whole. Human Resources Management Directorate has responsibilities in the following areas: Staffing (Employment and Recruitment, Personnel records, Compensation); Training and Development and Industrial Relations (Health and Safety). The ECG is a Strategic Enterprise in the sense that it is the only electricity distribution company that supplies electricity to the whole of Ghana. Secondly it offers employment to over 5,000 Ghanaians, making it the largest employer in Ghana. SITUATIONAL ANALYSIS The analysis of the performance of ECG as described below is based on available information up to year 2008. The Impact of Global and National Forces on ECGs Operations The worldwide economic recession (Credit Crunch) affected both the economy of Ghana and ECGs operations. The year saw rapid hikes in crude oil and metal prices which resulted in the high cost of power generation from thermal sources and sharp increases in the cost of materials and equipment required for capital investment projects. The Ghana Cedi also depreciated against the major world trading currencies especially the US Dollar, the Euro, and the British Pound. Since most of the inputs for ECGs capital investment projects were imported, prices consequently increased relative to energy sales which were generally denominated in the Ghana Cedi. The cost of investment projects therefore increased from 12% to about 20%. The U.S dollar for instance appreciated in value against the Ghana Cedi from a rate of $1: GHÂ ¢0.92 in July 2007 to $1: GHÂ ¢1.49 in June 2009Â  [1]Â   The inflation rate in Ghana also contributed to the high cost of operations and subsequently affected the companys profitability. The inflation rate has increased over the period from an average of 10.73% in 2007, 16.46% in 2008 to 19.86% in 2009. This resulted in increases in labor cost and other local raw material inputs. Details of the inflation rate is attached as appendix 1 Financial, Operations and Human Resources Performance Profit and Loss The ECG has made an operating profit of GHÂ ¢25,089,202 in 2008. Prior to this year, the company had been making losses. In 2006 and 2007 for example, the net operating losses were (GHÂ ¢3,429,300) and (GHÂ ¢8,657,716) respectively. Current Assets The stocks level at year 2008 was GHÂ ¢135,851,792. This was an increase of 99.8% over year 2007 figure. The Accounts Receivables also increased by 50.5% to GHÂ ¢258,033,418 in 2008. The table below depicts the status of the Current Assets of the company over the three year period from 2006 to 2008. Current Assets 2008 GHÂ ¢ %age change 2007 GHÂ ¢ %age change 2006 GHÂ ¢ Stocks 135,851,792 99.8 67,999,841 39.3 48,800,300 Debtors 258,033,418 50.5 171,411,587 16.2 147,503,100 Prepayment 8,323,294 184.6 2,924,574 48.4 5,665,800 Short Term Investment 16,358,519 108.5 7,845,126 12.0 7,002,600 Cash and Cash Balances 49,473,765 42.6 34,690,929 16.4 29,796,100 468,040,788 64.3 284,872,057 19.3 238,767,900 The increases in the stocks and debtors depict a weak inventory management and credit policy of the company. Debtor/Sales Ratio The Debtor/Sales ratio which is an expression of customer debt in days of billing was 130 days in 2008. It deteriorated from 138 days in 2006 to 162 days in 2007 representing a decrease of 17.4%. Although there was an improvement from 162 days in 2007 to 130 in 2008, the figure is still too high. Loans and Suppliers Credit The ECG through the Government of Ghana has secured the following loans and credit from the World Bank and other suppliers for investments in its distribution network. This has increased the companys debt situation tremendously. DSUP $15m financed by IDA, ECG (2003-2007) GEDAPÂ   $94.5m financed by IDA and partners, AfDB, ECG, (2008-2012) GEDAP Extension $70m for Ashanti Region, financed by IDA (2010-2014) French credit Euro 65m for Tema and Kumas. Financing from the french govt. (2008-2012) Norwegian credit Euro 60m for Greater Accra and Eastern regions. Financing from the Norwegian govt. (2008-2012) El Sewedy credit 16.5m from El Sewedy TD (2010-2011) As at December 2008, an amount of GHÂ ¢171.92 million was outstanding in suppliers credit. Systems Losses System loss is a power loss in its course from the source to end users. In 2007 the systems loss was 24.03%. This increased to 25.58% in 2008 as result of poor transmitting system and also theft through illegal connections. The ECGs performance in this area is declining and this is adding onto the cost of operations of the company. The table below shows the trend of the systems losses over a three year period from 2006 to 2008. System losses units (GWh) Year 2005 2006 2007 2008 Total Purchases 5045.4 5252.8 5145.6 5799.4 Total sales 3762.0 3978.4 3909.1 4315.8 System losses in % 24.26 24.03 25.58 Human Resources Capacity ECGs staff strength at the end of the year 2008 was 5,281. This was an increase of 6.07% over year 2007 figure of 4,929. Staff turnover over the year period is showed in the table below. Employee turnover Year 2006 2007 2008 Employee turnover 3.02% 3.27% 3.53% The percentage of employee turnover increased from 3.27% in 2007 to 3.53% in 2008. The reasons assigned for this increase upon our investigation are lack of motivation and incentives to the employees. Evaluation of ECG This section of the Plan tries to come out with a range of expected fair market values for ECG incase the government find it necessary to privatize it. The main purpose of this evaluation is to give all stakeholders especially government and management of the company a fair market range of values within which the ECG can be sold. ECG, as already mentioned above is a public monopolist and as such not listed on the Ghana Stock Exchange (GSE). As a result of this, the market Comparison Method of evaluation can not be used. The only feasible formulas to use would be the Asset Appraisal Method and the Discounted Cash Flow Method. Asset Appraisal Method This method involves revising all the asset and liabilities of the company including Goodwill. Using the 2008 audited financial report of the company, we can easily get the values of the asset and liabilities of the company at Net Book Values (NBV) and not the Revised Values. Since we are not in a position to revalue the companys assets and liabilities we are solely relying on the NBV of these assets and liabilities. The NBV of assets and liabilities for the 2008 financial year were given as follow: 2008 GHÂ ¢ Current Assets 468,040,788 Fixed Assets Plant, Property and Equipment 1,171,197,452 Goodwill 2,021,653,890 Total Asset 5,008,661,390 Less Current Liabilities (259,567,145) Value ECG 3,401,324,985 Calculating the value of Good Goodwill is calculated based on the Supper Profit Method. This involves determining a value for the expected future profit of the company. Here, some past profit of the collected based on the 2008 report and an average is taken. We then make adjustments to reflect future profits. Thus, expected future expenses and income are adjusted. Years Net profit/Loss GHÂ ¢ 1999 17365,259 2000 (7,583,807) 2001 152,973,046 2002 (451,974) 2003 (483,609) 2004 (269,686) 2005 (305,425) 2006 (475,200) 2007 (48,836,581) 2008 11,598,017 Total 123,530,040 Average profit for the 10 years = Expected Future Operating Expenses Looking at the operating expenses of the company over the years, the average expenses over the years is around GHÂ ¢6,574,530. Since expenses are expected to increase over the coming years, a 10% adjustment is made to reflect future changes. This 10% was chosen based on the increasing trend of operating expenses from 1999 to 2008. This brings the total future expected operating expenses to (GHÂ ¢6574530 +GHÂ ¢657453) GHÂ ¢7,231,983. Expected Future Income Again, looking at the operating income over the years, the average income for the 10 years is GHÂ ¢54,145,602. Since the expected income are expected to increase as a result of the stabilization of the Ghanaian Cedi against major foreign currencies, stable world price of crude oil, materials, and of course the discovery of crude oil in Ghana. Taking all these factors into consideration, a 15% adjustment is made to reflect these changes. Therefore the future operating income is (GHÂ ¢54,145,602 + 8,121,840) GHÂ ¢62,267,442 GHÂ ¢ The number of years of purchase which depends on the bargaining powers of both the government who is the owner of ECG and the would-be private investor on the reputation of the company. ECG, as earlier discussed, serves both the Ghanaian Economy and other two countries in West Africa (Togo Benin). It also has the potential to expend to other countries as a result of the discovery of crude oil in Ghana. With all the above reputations and potentials, we have decided to fix the number of years of purchase at 30 years. The Goodwill for the company would be Limitation of this method The value of the fixed assets used in the valuation might have some composition of non-productive assets and therefore would affect the fair market value of the company. Discounted Cash Flow Method This method takes into consideration the time value of money. Thus, discounted cash streams of future cash flow. Here, the first thing we do is to forecast the future cash flow by making adjustments to 2008 cash flow of the company. From the cash flow statement (2008), the net cash flow was GHÂ ¢15,819,658. Since cash inflows are expected to increase over the next few years due to expansion and reduction in operating expenses, an upward adjustment of 15% is made to the net cash flow for the next five (5) years. Thus, from 2008 up to 2013. Expected net cash flow from 2013 upwards can not be forecasted due to uncertainty. Discount Rate The company is at the moment using a discount rate of 10%. Due to the possibility of inflation and exchange rate fluctuations, have decided to fix the discount rate between 12% 15%. According to the discounted cash flow method: FMV = Present value of cash flow up to the terminal year + Present value of terminal value. Year Expected Net Cash Flow GHÂ ¢ 2009 18192607 2010 20921498 2011 24059722 2012 27668681 2013 31818983 Using the NPV formula which is given as: NPV =, we can now calculate NPV at both rates of discount (12% and 15%). NPV @ 12% = But Terminal = NPV = NPV (12%) = GHÂ ¢2,200,234,081 NPV @ 15% = But terminal value = NPV = GHÂ ¢1,708,064,531 Interpretations Since the Asset Appraisal Method gave us the highest value of GHÂ ¢3,401,324,985 it would be considered. We are therefore concentrating on the Discounted Cash Flow Method range of values to determine the value of the company. This therefore means that the value of ECG, must be in the range of GHÂ ¢1,708,064,531 and GHÂ ¢2,200,234,081. SWOT ANALYSIS The investigations conducted on the ECG revealed the strengths, weaknesses, opportunities and threats as summarized in the table below. STRENGTH Competent Work Force High level of technical expertise Government Support A monopolist (large customer base) Facilities (i.e. warehouse) Availability of donor funds Installation of prepayment meters Customer Call Center Vast Distribution network system Low cost of production as compared to countries in the sub region Availability of electrical fault detection technology WEAKNESSES High turnover of professional and technical staff Uncompetitive conditions of services Lack of rule enforcement Poor Communication Lack of team work Not clear defined job descriptions Talents in the company not used to the best advantage No effective Research and Development (RD) Weak Inventory Management High network distribution losses Mismanagement of resources OPPORTUNITIES Potential to expand (nationwide and other countries) Potential of quality power delivery Political and Economic stability Staff training and development West Africa Gas Pipeline Oil discovery on the coast of Ghana THREATS Government Interferences Government determination of Tariffs Fluctuations in the exchange rates Effects of inflation Natural Disasters (i.e. rain storms) Increasing World prices of metals, materials and equipment WEAKNESSES OF THE THREE MAIN DEPARTMENTS THAT NEEDS TO BE RESTRUCTURING BASED ON OUR ANALYSIS MATERIALS AND TRANSPORT DEPARTMENT Weak Inventory Management Unstructured Procurement Unit Increases in the world prices of metals, materials and equipment Mismanagement of Company resources Effects of inflation on local procurement Fluctuation in the exchange rate OPERATIONS DEPARTMENT No effective research and development High network distribution losses Unreliable and low quality of power supply Inadequate training and development of operations staff Inadequate staff HUMAN RESOURCES MANAGEMENT DEPARTMENT High turnover of staff Talents in the Company not being used to the best advantage Poor Communication Lack of team work Uncompetitive conditions of service Lack of rule enforcement No well defined job description Excess labor force STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGIES Based on the SWOT analysis, the following strategic alternatives are recommended to bring about turnaround for the Material and Transport Directorates; Human Resource Directorate and the Operations Directorate. MATERIAL AND TRANSPORT DIRECTORATE Assets Reduction Strategies: Divesting Specific Assets Assets that are in surplus with respect to the future requirements of the company should be sold off. Unproductive and obsolete assets such as transformers, power cables, electric conductors and meters should be sold. Reducing Inventory Material costs should be reduced through improved buying practices, better utilization of materials and efficient inventory management. Inventory of the company such as transformers, meters, cables, conductors and wooden poles should be managed based on Vital Few Trivial Many Principle. This will help the company to avoid holding too much inventory, which is cost to the company and also prevent the company from holding too little inventory which can make the company loose customers. Not only that but also, the reorder level should be fixed between the maximum order level and the minimum order level to prevent the inventory from reaching the danger level. Reducing Debtors (Accounts Receivables) There should be a credit policy to help in the effective administration of the debtors. Customers credit worthiness should be well determined. Debts should be collected within 30 days. There should also be a debt recovery plan. Reducing Cost The Company should adopt Total Cost Management (TCM) control strategy as a way of reducing cost. There should be intelligent optimization and not just cost cutting in the areas of direct costs; overheads; procurement costs; production costs; selling and distribution costs; inventory costs; personnel costs. There should be speedy execution of contract bids and procurement processes to avoid additional costs being incurred as a result of lapse of deadlines. The introduction of e-Procurement should also be used to facilitate the procurement process. The company should also enter into forward contracts to reduce costs. Debt Restructuring Arrangements should be made for third party (government) to service the debt on behalf of the enterprise. There should be selective sale of assets and the revenue that would be realized from the sale of these assets should be used to offset the debt owed to suppliers. Legal Restructuring Specific legal steps should be taken to privatize the company. HUMAN RESORCE MANAGEMENT DIRECTORATE Organisational Restructuring There should be a merger of the engineering and operations directorates to ensure harmonization of action plans towards the achievement of corporate objectives. Information technology should also be used to make the hierarchical organizational structure flat. A strategic planning unit should be created and headed by a corporate strategist to lead the process of strategically positioning the company towards the achievement of the companys goal. There should be appropriate job descriptions, specifications and schedules matching with the qualifications, experiences and skills of employees so to get the best performance out of them. Furthermore, training and development should be a routine exercise for the company. Rules and regulations should be explicit, easily accessible and discipline enforced to ensure compliance with set standards. Labour Redundancy Management should develop a Redundancy Implementation Plan considering the economic climate and political mood of the country, since the implementation of the redundancy plan could be a complex and time consuming process. Staff Performance Appraisals methods such as the Balanced Scorecards should be used to identify and declare non performing staff redundant. Compensation packages should be prepared for such redundant staff, and contingency plans made for unforeseen circumstances in the event of strikes. OPERATIONS DIRECTORATE Physical Restructuring It is recommended that this Directorate should be merged with the Engineering Directorate to bring about efficiency and effectiveness. The size of budget for Research and Development should be increased. Investments in distribution networks should be increased to improve quality and reduce losses of electric power. There is also the need to improve upon the monitoring of customers consumptions to be able to detect theft of electric power. The technical staff strength should also be augmented and given the appropriate technical know-how so to be able to cope with the growing demands of the proposed merger of the Operations and Engineering Directorates. Safety equipment should be made available for the staff to use in protecting themselves in order to reduce the rate of accidents. Proposed Timeline for implementation of Turnaround strategiess TURNAROUND STRATEGIES 2010 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Discussions with Management Assets Reduction Reducing Cost Debt Restructuring Legal Restructuring Organisational Restructuring Labour Redundancy Physical Restructuring Conclusion ECG plays a vital role in the socio- economic development of Ghana and there is no doubt that any Turnaround would yield enormous benefits to the Ghanaian economy. Hence, for the above recommended strategies to bring about any meaningful Turnaround, it calls for commitment and support of management of ECG and the government of Ghana. Not only that but also, for efficient and effective implementation of the strategies, there is the need for expert knowledge and advice. It is therefore hoped that the necessary support will be given for the desired results to be realized in ECG. Privatization Option The public sector in Ghana has suffered setbacks which are largely attributed to ineffective and in efficient management. When we consider the case of Ghana Electricity Company, noticing the trend of losses of the company over time and the failure to meet the objectives or purpose of its formation, in view ,it is suggested that it would be better for the ECG to involve expatriates into their operations, this can be done by private sale of there shares to the foreign multinationals who have got the technical and financial knowhow and experience in the distribution of energy to buy into the private share of the organization ,Government should endeavor to have multinational partnership in the operation of the privatization by giving them of shares in the enterprises. There is need for good follow up on privatized enterprises. This would make the organization to be more effective and efficient in their operation. The federal Government should encourage this multinational to participation in the distribution of power in Ghana. This would be done by establishing a power sector reforms which will allow the involvement of foreign multinationals expatriates in the distribution of power. These reforms would include the provision the necessary Infrastructures which would enable the reduction in establishment costs, rationalization of power tariff, mobilization of private capital for power generation and transmission and lower capital-power generation ratio. In order to achieve these goals, distribution companies. A State Electricity Regulatory Commission would also be also set up to monitor the operation of the company. The desire to involve the private sector in the management and provision of infrastructure and services which will prompt multinational company to buy private share of the organization. . Private placement occurs when a company makes an offering of securities not to the public, but directly to an individual or a small group of investors. Such offerings do not need to be registered with the Securities and Exchange Commission (SEC) and are exempt from the usual reporting requirements. Private placements are generally considered a cost-effective way for small businesses to raise capital without going public through an initial public offering (IPO) The ECG should sale 49 of its shares to a multinational partner would be able to participate in the core business of energy distribution in Ghana. Also the Government should provide