Financing Shipping companies

Financing Shipping companies There are several advantages for a shipping company to outsource a particular service or department. The main advantages with outsourcing are better cost control, lower risk and the outside suppliers expertise. Better cost control is achieved because outsourcing leads to less fixed costs and more variable costs. This means that the company in the short term is more flexible, and able to adjust costs faster and in some cases with less hassle. Outsourcing a service or department also lowers the need for an initial investment by removing the capital injection necessary for establishing a department/service. Less fixed costs and less long term fixed assets means lower risk for the company. In economical theory there also is an general opinion that outsourcing in many cases leads to cost reductions, due to a small internal department within the company not having the same degree of expertise as a bigger outside supplier and therefore not being able to deliver the services at a competitive cost. This lack of expertise compared to the outside supplier that specialises in the segment might also lead to a lower quality of service if the work is kept in house. With regards to expertise there also is a big advantage in that the company can keep focus on their core business where they have the necessary know-how and stay clear of outside disturbance. There are however also disadvantages with outsourcing. The main problem is loss of control due to the company not having the same supervision over the work being done. Another problem is that the outside supplier might not be able to adjust the service as well as an inside department after the companys needs at any given time. The degree of the advantages/disadvantages with outsourcing varies greatly with the complexity of the work that has to be done, the potential savings and the importance of in-house supervision. A certain degree of outsourcing of services will always exist i.e. transportation for a companys employees, postal services, big IT reforms etc. Solstad has decided to keep outsourcing at a minimum and integrated shipping operations are a part of the companys philosophy[1]. The company manages the total operation of the vessels[2], and have a large onshore support mechanism which includes freight, crewing, accounting, chartering, technical, and other administrative functions. The company is nevertheless open to outsourcing services and will evaluate whether it is possible to achieve more cost effective operations and an optimal return on capital employed in cooperation with new suppliers with a view to long-term strategic co-operations[3]. Such collaboration is also evaluated with regard to risk and capital injection. How has your company financed its vessels? Explain advantages and disadvantages by such financing. It isnt possible to find public information on how most of the specific vessels have been financed. However according to a news article in Skipsrevyen[4] about the acquisition of the M/S Normand Seven, the long term financing for that vessel is provided by Eksportfinans in cooperation with Nordea Bank, Fokus Bank and Danmarks Skibskredit AS. The companys balance sheet doesnt show in detail to whom the long term liabilities is owed, so to answer the question we will have to assume that the financing of the M/S Normand Seven is representative of how Solstad normally finances its fleet. As of the end of 2008 the company have long term fixed assets in vessels and new buildings of 7.289.858.000 NOK[5]. This equals just over 70% of the companys total assets of 10.213.357.000. The assets are financed with a total equity of 3.697.624.000 and total liabilities of 6.515.734.000. Out of the total liabilities long term loans to credit institutions/leasing obligations amounts to 4.831.208.000. In economic theory an equity ratio of 30 % is generally considered healthy, and the company also states in the annual report that the aim is to be financed by the owners (equity) with a ratio higher than 30 %. The total equity in percentage of total assets in 2008 was 36%, well above the companys goal. The companys equities are important when you need to raise capital from outside sources, as it may provide security for the lenders. Assuming that the financing of M/S Normand Seven is representative for the entire fleet the long term liabilities is provided by commercial banks like Nordea bank, Fokus bank, and Danmarks Skibskredit as well as government backed ship credit schemes like Eksportfinans. According to the annual report some of the fleet is also financed by leasing agreements. The advantages in getting mortgage-backed loans from commercial banks are that capital can be raised quickly and flexibly, while the owner is still left with full ownership of the business. The disadvantages by such financing is that commercial banks are uncomfortable with loans that are longer than 5-6 years[6] and often prefers to receive a balloon payment that might be difficult to handle for the shipping company. A leasing company is often more attractive if the borrower want longer finance than a commercial bank is willing or able to take onto their balance sheets. Eksportfinans also offers longer term finance than is usual for commercial banks, and offer repayment periods for up to 20 years[7]. Commercial banks normally take little risk and require a lot of security to protect their investment. According to the annual report[8] some vessels are placed as security for the mortgages. In addition, accounts receivables and bank deposits (2007) are tied. Solstads loan agreements are also subject to the owners working capital being positive at all times and that the market value of the vessels amounts to at least 110-125% of the outstanding loans. The company states that they satisfy all conditions of the loan agreements at 31.12.08[9]. Name three of the most important conventions your company must adhere to. Give reasons why those are among the most important ones. Solstad have ships registered in the Norwegian International Ship Register (NIS), Isle of Man Ship Registry (IOM), and the Norwegian Ship Register (NOR). Some of the criteria for NIS/IOM/NOR registered vessels are that they adhere to international conventions such as Safety of Life at Sea (SOLAS 74), Prevention of Pollution from Ships (MARPOL 73/78) and Standards of Training, Certification and Watch keeping (STCW 95) as well as other international regulations ratified by the flag states. Safety of Life at Sea (SOLAS 74) is the most important international treaty protecting the safety of merchant ships in the world. The first version of the treaty was passed as early as 1914 in response to the sinking of the Titanic.[10] It prescribed numbers of lifeboats and other emergency equipment along with safety procedures, including continuous radio watches. The intention had been to keep the convention up to date by periodic amendments, but a completely new convention was adopted in 1974. The convention regulates among other things use of the global maritime distress safety system, set construction criteria (subdivision and stability, machinery and electrical installations), fire protection/detection/extinction, obligatory life-saving appliances and arrangements, radio communications, safety of navigation etc. and is the centrepiece of maritime safety. Prevention of Pollution from Ships (MARPOL 73/78) is the main international convention covering prevention of pollution of the marine environment by ships from operational or accidental causes[11]. It was designed to minimize pollution of the seas, including dumping, oil and exhaust pollution. Its stated objective is to preserve the marine environment through the complete elimination of pollution by oil and other harmful substances and the minimization of accidental discharge of such substances. MARPOL contains 6 annexes, concerned with preventing different forms of marine pollution and covers pollution by oil, chemicals, harmful substances in packaged form, sewage, garbage and air pollution. The International Convention on Standards of Training, Certification and Watch keeping (STCW 95) sets qualification standards for masters, officers and watch personnel on seagoing merchant ships[12]. The aim of the convention was to introduce internationally acceptable minimum standards relating to training, certification and watchkeeping for officers and crew members. Today there are amendments concerning quality standards systems, oversight of training, certification procedures and rest period requirements. The amendments require that seafarers are provided with familiarization training and basic safety training which includes basic fire fighting, elementary first aid, personal survival techniques, and personal safety and social responsibility. This training is very important in ensuring that seafarers are aware of the hazards of working on a vessel and can respond appropriately in an emergency. Literature and references: Annual report (2008). Annual report 2008 Solstad Offshore ASA. Skudeneshavn. * Financial report (2009). 3rd quarter 2009 Solstad Offshore ASA. Skudeneshavn. Â · International Convention for the Prevention of Pollution from Ships (MARPOL) (1973). http://www.imo.org/Conventions/contents.asp?doc_id=678topic_id=258 International Convention for the Safety of Life at Sea (SOLAS) (1974). http://www.imo.org/Conventions/contents.asp?topic_id=257doc_id=647 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) (1978). http://www.imo.org/Conventions/contents.asp?doc_id=651topic_id=257 * Misje, M. (1989). Solstad rederi A/S 1964 1989. Skudeneshavn: Solstad Rederi. * Misje, M. (2004). Solstad rederi AS: 40 Ã ¥r 1964 2004. Haugesund: Nils Sund boktrykkeri. Presentation 3rd quarter (2009). Presentation 3rd quarter 2009 Solstad Offshore ASA. Skudeneshavn. Solstad Offshore ASA website. http://www.solstad.no * Stopford, M. (2009). Maritime economics 3rd edition. New York: Routledge. * Zachariassen, J. E. (2008, 21. April). M/S Â «NORMAND SEVENÂ ». Skipsrevyen. Eksportfinans website. http://www.eksportfinans.no/Bransjer/Skip.aspx [1] Annual report, page 2 [2] Annual report, page 13 [3] Annual report, page 13 [4] Zachariassen, 2008 [5] Annual report, page 26 [6] Stopford, 2009, page 284 [7] Eksportfinans website [8] Annual report, page 49 [9] Annual report, page 49 [10] International Convention for the Safety of Life at Sea (SOLAS), 1974 [11] International Convention for the Prevention of Pollution from Ships, 1973 [12] International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978

Ford Motor Company :: Business Management Marketing Essays

Ford Motor Company is the world's largest producer of trucks, and the second largest producer of cars and trucks combined. Ford has manufacturing, assembly or sales affiliates in 34 countries and Ford companies employed 337,800 people world-wide in 1996. Ford has manufacturing facilities in 22 countries on 5 continents, with 87 plants in North America and 41 in Europe. In Europe, in 1995, Ford's combined vehicle market share, at 12.2%, was the highest for eleven years, with three of the eight best-selling cars. In 1995, in the United States, five of the ten top- selling vehicles were Ford, including the best-selling car (Ford Taurus) and best-selling truck (F-series). On January 1, 1995, Ford merged its North American Automotive Operations and its European Automotive Operations into a single organization, Ford Automotive Operations. Instead of being organized by geographic regions, the Company is now realigned by product line, with five Vehicle Centers, each responsible for one group of products worldwide. At the same time, Ford is reducing the time taken to develop a new vehicle from 48 to 24 months and reducing engines, transmissions, and basic vehicle platforms by 30% worldwide. Ford hopes that by pooling global skills and resources will result in more variations on each vehicle platform, increasing the number of vehicles introduced over the next five years by 50%. One of the key strategies behind the realignment has been growth. Ford has launched a variety of new initiatives throughout the world, with joint ventures for the assembly of vehicles in countries as diverse as China, India, Thailand and Vietnam. In China, Ford expects to begin production of light trucks with a company named Jiangling Motors in the near future. In India, Mahindra Ford India Ltd. will begin manufacture and distribution of Ford products, beginning with the Ford Escort, in mid-1996 and Fiesta in 1998. In Thailand, Ford has a joint venture to produce pick-up trucks and in Vietnam, Ford plans to build a vehicle assembly plant at Hanoi, together with partners Song Cong Diesel. In Poland, the Plonsk plant has begun to build Escorts and Transits. Joint ventures are establishing a presence for Ford all over the globe. Ford is working with two companies in Korea, one to supply automotive air conditioning units and the second as a new joint venture to produce electronic components later this year. In addition to the 20% of Jiangling Motors, China, acquired by Ford in 1995, four further manufacturing joint ventures in China have been set up to produce radiators, glass, plastic and electronic components. Ford has also acquired a 45% equity in South African company, Samcor, for the assembly of Ford

Devestation Man Brings upon Himself in Goldings Lord of the Flies :: essays research papers

William Golding's Lord of the Flies is a story that has hidden symbolism. It is about a group of British schoolboys fleeing from England during World War 1. Their plane crashes on a deserted tropical island. Once on the island they have to cope with their new ?adult-less? life and make rules to live by. After spending time on the island, the boys begin to struggle for power which leads to several problems. The experience on the island serves as a symbol of life in the outside world and the devastation that man brings upon himself. Setting, specific characters, and symbolism help show this. The setting of the story is an important symbol of the outside world. Certain circumstances that happen on the island coincide what happens in the outside world. The world is in the midst of World War 1. On the island Jack and Ralph have their own war happening. The boys set fire to the island. It was a mistake, but they were enjoying it: ?At the sight of the flames and irresistible course of fire, the boys broke into a shrill, excited laughter.? They were enjoying the fire, though it was causing destruction and even killed an innocent boy. However, they were not much bothered by the thought because it did not involve them directly. They built ?war like? forts, even though there was nothing worth protecting. The island is like a miniature world. Certain circumstances that happen in the world happen on a miniature scale on the island. Specific characters in the story represent people in the outside world. Jack represents a dictator, like Hitler or Mussolini. He controls everything around him and abuses his power. He would take littluns and randomly beat them because he had more power over them. The littluns represented the masses. They would flow towards the leader that seemed the best for them. All they wanted to do was have fun, relax, and hunt. Jack provided all of that. Piggy was the voice of intelligence and reasoning: ?Which is better, law and rescue, or hunting and breaking things up He was the most intelligent person on the island and the rules came from him. Each person?s true identity came out on the island, for better or for worse, and they are all representative of to people in the outside world. The symbolism throughout the entire novel was significant. Jacks mindless hunters never spoke out against their leader.

Interpretation of A Feminist View on Pornography Essay -- Critique Reb

Interpretation of A Feminist View on Pornography The article that I will be breaking down in the following paper is â€Å"Pornography, Civil Rights, and Speech† by Catherine A. MacKinnon. I believe the best area to start is to briefly describe MacKinnon and her article. MacKinnon is a professor of law at the University of Michigan. The article deals with the affects of pornography on society. MacKinnon feels that some pornography should be illegal. Her reason for this view is not that she finds it offensive, but rather that she considers it as a form of sexual discrimination. There are many different views on pornography ranging from the belief that it is harmless fantasy all the way to it being a prime factor of the deterioration for society. MacKinnon says that pornography subordinates women and institutionalizes male supremacy. She even goes so far as to say that it is a political practice. Advocates of pornography claim its ultimate end to be pleasure, but MacKinnon says that the actual end is power. The article will att empt to prove a correlation between pornography and the violence taken against women, as well as their social and economic inequality. I feel that the article itself is poorly written, but will attempt to make her points a little easier to understand. I feel the necessity to state that the feelings of the paper are that of my views on MacKinnon’s article. They are not my views and may in fact be, misinterpretations of her views. To spare us the confusion, I will rebut it with my views that pornography is harmless, at the end of the paper. The article starts with a brief passage on sexual equality in society. Her presentation of the argument is to explain it as if she agreed with it, only to refute it by say... ...hy. It is a genre in which men are completely subordinate, and women have all the power. Her article is so weak because it does not take that into account. I know that is only one case, but we have stated time and again that philosophy must be consistent. If she cannot/does not take dominatrix into account, then her philosophy is inconsistent. To fully explain this article and pornography would require a lengthy paper that exceeds the requirements and purpose of this prà ©cis. I will end my paper by saying that I believe everyone has a right to free speech and equality, and I appreciate the article for what it was worth, but I do not feel it is justifiable or relevant to society. She bases her entire argument on an improvable correlation of pornography and sexual discrimination. Not to mention the fact that women also buy pornography. But that is a whole other prà ©cis.

Comparison of Islamic Banking and Conventional Banking Essay

The foundation of Islamic bank is based on the Islamic faith and must stay within the limits of Islamic Law or the Shariah in all of its actions and deeds. The original meaning of the Arabic word Shariah is ‘the way to the source of life’ and is now used to refer to legal system in keeping with the code of behaviour called for by the Holly Qur’an (Koran). Amongst the governing principles of an Islamic bank are : * The absence of interest-based (riba) transactions; * The avoidance of economic activities involving oppression (zulm) * The avoidance of economic activities involving speculation (gharar); * The introduction of an Islamic tax, zakat; * The discouragement of the production of goods and services which contradict the Islamic value (haram) On the other hand, conventional banking is essentially based on the debtor-creditor relationship between the depositors and the bank on one hand, and between the borrowers and the bank on the other. Interest is considered to be the price of credit, reflecting the opportunity cost of money. Islamic law considers a loan to be given or taken, free of charge, to meet any contingency. Thus in Islamic Banking, the creditor should not take advantage of the borrower. When money is lent out on the basis of interest, more often that it leads to some kind of injustice. The first Islamic principle underlying for such kind of transactions is â€Å"deal not unjustly, and ye shall not be dealt with unjustly† [2:279] which explain why commercial banking in an Islamic framework is not based on the debtor-creditor relationship. The other principle pertaining to financial transactions in Islam is that there should not be any reward without taking a risk. This principle is applicable to both labor and capital. As no payment is allowed for labor, unless it is applied to work, there is no reward for capital unless it is exposed to business risk. Thus, financial intermediation in an Islamic framework has been developed on the basis of the above-mentioned principles. Consequently financial relationships in Islam have been participatory in nature.

Should we adopt the Euro?

In recent old age there has been much debate as to whether the benefits outweigh the costs of adopting the Euro bills. This furrow, often a fierce and personal angiotensin-converting enzyme, has covered the movement pages of newspapers for a very long time, and continues to love on today. But what atomic number 18 the arguments, and should we authentically cave in the Euro? Let us jump off with the benefits of joining the Euro. One king-size benefit would be the ease of which one would be able to check distinct prices across europium due to one, exclusive and only currency.This would mean that a gigantic deal of time spent on checking, and comparing unlike prices in different countries with different currencies, would be a bus shorter. So, as a result, international exchange and purchasing would be much easier and more than(prenominal) time could be spent elsewhere. some separate great benefit of the adoption of the Euro is the greater competition that it would induce in the grocery store the pressure to lower inflation and growth productivity would lead to the need for more innovation in the markets, thus creating a healthier and an ever-growing saving.This would mean that the chance of move into a recession would be lower, exercising would be higher, and incomes would as well. A thirdly benefit is the encouragement of foreign companies to gift in the Eurozone. In due course, more money would be pumped into the economies of Europe and therefore generally Europe would be richer, especially the countries that adopted the Euro. Finally, joining the Eurozone would pass water Britain to join a large-scale grouping of countries that could, when working together, play a large role on the stage of reality politics, with the voices of smaller countries in the Euro able to puzzle a say on motley topics.On the other hand, there are some strong arguments against joining the Euro. A rather surprisingly popular, if a lesser stupid, reason put forward is superpatriotic one the centuries-old tradition of having the monarchs face on bank notes and coins would be ridden of if the country were to join the Euro, replaced with less patriotic images of Europe. This view is, rather unsurprisingly, not held with very high cypher among those for joining the Eurozone.Another argument against adopting the currency was the 20% devaluation of the pound sterling in 2008-10, resulting in not such a bad recession. It was possible that if the UK had been in the Euro at the time, the general economic stake would be a great deal worsened than it already is. A third argument against joining the Euro the problem of one Eurozone countrys economy failing resulting in more legal injury to the other countries that use the Euro.This means that if a small countrys economy failed, then the effect on other Eurozone countries would be greater due to the reliance on other countries in the Euro. In conclusion, I olfaction that, while the pat riotic argument is sooner weak, there isnt much use in joining the Euro, especially when its present situation is so bad considering the recession we ferret out ourselves in. Perhaps, though, in a few long time the UK may adopt this single currency, and rather of removeing what the costs and benefits are, we must ask ourselves will it last?

Education Problem in Korea Essay

A become gets a headache whenever she comes back home afterwards attending mothers regular meetings, the purpose of which is to get approximately information approximately mystic instruction. Her children keep her as busy as a professional manager. She surveys customary newly opened institutes c all(prenominal)ed hagwon, makes a group for cloak-and-dagger lessons, chooses instructors and pushes her children to story.When they ar asked close their plans for the declining years of their lives, most ar not saving for old age. They feel awkward because they argon not able to save money, so some mothers go to work to earn liberal for extra instruction expense. M whatsoever husbands and wives argue about their childrens education. However, their children shamt cargon about their pargonnts troubles.The children regard it as the born(p) role of pargonnts, because they are the kings or queens of the family, served by sacrificing parents from birth. Parents seem to resign thei r childrens complaining. Children taket appreciate their parents because they are not happy with their support. Some clippings they act wish robots controlled by mothers orders. They dont affirm time to talk with family, to play with their friends or to get satisfactory sleep. They always hurry to catch out something.As for me, I also have misgiving about my daughters private education. there are moments that I motive her to push to study a little bit more because I feel worried when I hear how some kinds of extra instruction her friends are taking. only if I can calm down my selfish require by looking at my exhausted daughter. I try to confirm that the most effective solution of studying comes from self-studying with strong motivation.Most parents dont wait until their children ask them to help with their studying. Theyre never satisfied. For example, many Korean goose daddies decide to leave their lives by themselves, not by the childrens demands, in spite of the stru ggle with loneliness after they get off their families to a foreign country.These days, many ordinary families without sufficient finances are planning for their children to study afield despite the huge cost. They probably train to pull their budget or even borrow the money. are their precious sons and daughters going to thank their parents in the emerging? Will their parents be satisfied with their children later? I wonder how great their outcomes will be.In access to problems within families, there are many spatial relation effects with private education at school, which are usually from the studying burden. They larn the material they contain in advance in hagwon before they learn it at school. Many math teachers in midriff school become upset while they are teaching theorems or concepts. Some students dont concentrate on the lesson because they are under a delusion that they already know e genuinelything. Actually, they cant solve even the easy and basic problems whe n about changed. What is the investment of the money and time for private lessons for? math teachers say the incomplete knowledge spoils the students ability to think.In English class, there are several smooth-spoken students with native pronunciation gained in English verbalise countries. However, sometimes teachers are upset when they are very quiet and never volunteer for the class because they dont want to be victims of cynical vamp from their friends. The students high-leveled from private education tend to be tire during class.Another big problem is about the students who have a kind of mental disease, some of who are extremely offensive and some who have abiosis without any interest in anything. Their attitude is usually caused by the pressure of studying and of too high expectations compared to their ability.Koreans all know that economic growth is based on educating for the future generation. Korea doesnt have enough natural resources, so we wishing to develop knowle dge and skills. The brass nowadays wants to increase autonomous high schools for agonistical system to build up superior talents. But parents are not likely to reduce the private education.We hope the government listens carefully to what the citizens say. For instance, English teachers need small classes according to students levels in order to contact the aim for English-speaking class. Parents and teachers dont want epoch-making policy, but just one abuse in the development of education policy.Korean parents need to remember this truth their investment in children who dont have self-motivation might waste their money, their time and their energy. Id like to advise parents to pee-pee their children a chance to choose what they want, and to wait until they are eager to study what they need. Also, I suggest they should abridge their neighbors private education, not worldly concern education.