Gearing Ratio Dividends Decision and Working Capital - Free Essay Example

SABMiller plc is one of the biggest brewers in the world. The company produces globally recognised brands as Pilsner Urquell, Peroni Nastro Azzurro, Grolsch, Miller Genuine Draft, etc., and is also one of the largest bottlers of Coca-Cola products. SABMillers main office is located in the City of Westminster, London. It is listed on the London Stock Exchange and is part of the FTSE 100 Index. History SABMiller has operations and distribution interests across six continents. The company was founded as South African Breweries (SAB) in South Africa in 1895, where the business operations were limited until 1995 with the entry into the European market acquiring Dreher in Hungary. After this, the group began to expand operations and/or distributions all around Europe. In 1999 the company began to be listed on the London Stock Exchange to raise capital for acquisitions. Thus, in 2002 the group purchased the Miller Brewing Company in North America from the Altria Group and added Miller to its original name. SABMiller expanded its operations to the Latin American market in 2005 with the acquisition of a major interest in Bavaria S.A., South Americas second largest brewer, in Colombia. Actually the group has operations in another five countries of Latin America, including El Salvador, Ecuador, Panama, Peru and Honduras. The next important acquisition in Europe was on 9 October 2007 when SABMiller and Molson Coors Brewing Company made a joint venture known as Miller Coors. It was followed by the acquisition of Royal Grolsch in Europe on 19 November 2007. Moreover, SABMiller has brewing operations in another 31 countries from the African continent, and in Asia where is the second-largest brewer in India, has ventures in Vietnam and Australia, and produces a Chinese brewer brand in partnership with China Resources Enterprise Limited. Adoption of International Financial Reporting Standards SABMiller plc began to prepare its consolidated financial statements in accordance with IFRS from 1 April 2005. As the groups financial year represents the period from 1 April to 31 March, the first consolidated financial statement prepared in accordance with IFRS was for the 2006 financial year, because this includes comparatives for 2005. To be fully prepared for the transition in 2005 and for the first set of applicable financial statements for the year ending 31 March 2006, SABMiller established a project team involving representatives of businesses and functions to plan for and achieve a smooth transition to IFRS. The main effects of the adoption of IFRS that impact the groups 2005 published UK GAAP results included hedge accounting, accounting for embedded derivatives and other items as accounting for business combinations, pensions and post-retirement benefits, deferred tax, share-based payments, goodwill and the presentation of results of associates. 1. The companys gearing decision. Gearing Gearing ratio means the contribution of owners equity to borrowed funds. The ratio explains that how much amount in business is funded by the owner as against the borrowed funds. Gearing can also be defined as the ratio between the companys borrowing and owner equity. It is known as leverage. The interests cover or times interest earned and equity ratio are mostly common example of gearing ratio which is mostly used. Types of gearing ratio: Different types of gearing ratio are used to calculate the financial leverage of the company. The most commons way to calculate the gearing ratio is as follows: Long-term debt over total equity, or Long-term debt over long-term debt plus total equity By using the any above formula gearing ratio can be calculated which determine the financial leverage of the company. It tells us the level to which the firm performance is funded by creditor funds. Calculation of Gearing Ratio: The higher degree of gearing ratio or leverage of the company, the more company is measured risky. Company with high gearing ratio is more at risk whatever the situation company must carry on their services to its debt apart from that how bad sale are. A larger quantity of equity provides a cushion and is look like calculate of financial strength. Gearing ratio can be obtained by dividing long term liabilities with shareholder equity. The formula is given as below Gearing Ratio of SABMILLER We calculated the gearing ratio of SABMiller for four year by using the above formula and the result are shown below Appendix1 Calculation of Gearing Ratios Years 2007 2008 2009 2010 Long-term Liabilities 4,666 6,064 7,612 7,794 Shareholder equity 7,345 8,821 10,734 13,358 Gearing ratios % 75.62 80.50 85.24 66.41 The gearing ratio of the year 2007,2008,2009,2010 is 75.62, 80.50, 85.24, and 66.41 respectively. We took the figures of long-term liabilities and shareholder equity from the annual report of the company. The calculation of gearing ratio taken from the FAME. Historical background Miller and Modigliani derived the theorem and wrote their path breaking article when they were both professors at the Graduate School of Industrial Administration (GSIA) of Carnegie Mellon University. In contrast to most other business schools, GSIA put an emphasis on an academic approach to business question. The story goes that Miller and Modigliani were set to teach corporate finance for business students despite the fact that they had no prior experience in corporate finance. When they read the material that existed they found it inconsistent so they sat down together to try to figure it out. The result of this was the article in the American Economic Review and what has later been known as the MM theorem. Modigliani and Miller The Modigliani-Miller theory (1958) forms the basis for modern thinking on Capital structure. The theory states that in a perfect world, in the absence of taxes, bankruptcy costs, and asymmetric information, the value of a firm is unaffected by how that firm is financed. It does not matter if the firms capital is raised by issuing stock or selling debt. Therefore there is no optimal capital structure. Propositions: Originally this theory was proven under no tax assumption. Two propositions constitute this theory which can be extended to a situation with taxes sometimes .e.g. consider two identical firms but with different financial structures. The first firm i.e.U is unlevered; it is only financed by equity. The second firm i.e. L. is levered; it is partly financed by debt and partly by equity. The Modigliani-Miller theorem states that the value of the two firms is the same. Modigliani and Millers without tax In 1958, Modigliani and miller assumed that the company is a perfect capital market and ignoring taxation where the working capital and market value are remains constant at all levels of gearing . As a result company having financial risk if the company gears up, the working capital decrease which is caused by having a greater amount of cheaper debt is exactly offset by the increase in the WACC as well as an increase cost of equity. Therefore a company cannot reduce its WACC by altering its gearing. As gearing increases, the financial risk to shareholders increases, therefore Keg increases. Benefits of cheaper debt increase in Keg due to increasing financial risk. The WACC, the total value of the company and shareholder wealth are constant and unaffected by gearing levels. No optimal capital structure exists. (WATON D and Head A, Corporate Finance: Principles and Practice, 4th edition, FT Prentice Hall) Modigliani and Millers with taxes In 1963, when Modigliani and miller admitted corporate tax into their analysis, their conclusion altered dramatically. As debt became even cheaper (due to the tax relief on interest payments), cost of debt falls significantly from Kd to Kd(1-t). Thus, the decrease in the WACC (due to the even cheaper debt) is now greater than the increase in the WACC (due to the increase in the financial risk/Keg). The WACC falls as gearing increases. Therefore, if a company wishes to reduce its WACC, it should borrow as much as possible. Benefits of cheaper debt increase in Keg due to increasing financial risk. Companies should therefore borrow as much as possible. Optimal capital structure is 99.99% debt finance. (BREALEY and Myers, Principles of Corporate Finance, 6th edition, McGraw Hill) Conventional theory: If there is only the cost of equity capital WACC begins. Because the capital is replaced by cheaper borrowing money more expensive, WACC decreases. However, since the debt will increase further, both debt holders and shareholders observe a higher risk, they may need to increase revenue for both. Inevitably, WACC should be increased to a certain extent. This predicts that there is an optimal ratio of capital to which the WACC is the minimum. Bankruptcy cost The Companys Bankruptcy cost is including the cost of trustees fees, legal fees and other cost of reorganisation whereas the dead weight loss is incurred the firms value discounted value of the expected cash flow from operation. In 1977 WAENER measured the direct cost of bankruptcy in railroads (1933-1955). There are assumed that Modigliani and Miller is perfect capital market thus, the company would able to raise the fund and avoid bankruptcy. But in the real world a biggest drawback of the companies is their high level of debt which could backfires if they default to pay the rate of interest and in consequence company faced bankruptcy and this bankruptcy risk convey to shareholder and debt-holders. It is noted that shareholder suffer a high degree of bankruptcy risk as they come last in the creditors hierarchy on liquidation. However the debt and equity increase the Working Capital while it is reduce the companys share price. It also gives high level of gearing if it is modified wi th-tax model and then an optimal capital structure appears with below the 99.99% level of debt which is previously recommended. Evidence seems to support the view that capital structure trades off tax shield gains against bankruptcy costs (SEE JU, PARRINO, WEISBACH, JFQA, 2005).Optimal capital structure take on increasing amounts of debt finance until the marginal gain from the debt finance is equal to the marginal cost of expected bankruptcy Pecking order theory The pecking order theory is explained an optimal capital structure by studying the trade-off between the return and drawback of debt finance. In this approach, there is no search for an optimal capital structure. Companies cleanly pursue a recognized pecking order which permitted them to move up finance in the most competent way, the order is as follows: (Power T Walsh S O Meara P, Financial Management, Gill Macmillan) Use of retained earnings available for all issue debt; Then issue equity, as a last resort The justifications that support the pecking order there are three: companies want to reduce the cost issue Companies will want to reduce the time and expense involved convincing investors outside the merit of the project.. the existence of asymmetrical information, and are expected to exchange information, which management actions MYERS (1984) ARGUES firms diverge significantly from long-run target capital structures owing to preference to fund investment internally. One of the pecking orders comes into the theory that we have reason to expect that very profitable firms would borrow at least, because they have a higher retained earnings finance investment projects. Baskin (1989) found a negative correlation between high profits and high levels of leverage. This finding is contrary to the idea of the existence of an optimal capital structure and provides strong expertise offered by the pecking order theory. Agency Costs An Agency costs are known as the principal-agent problem. Most of the largest finance providers companies actively they are not able to manage the company. In effect the company need to employ an agents which are not possible way to measure the equity or debt- holders. If the company want to invest in high return project by raise fund from debt holder where the level of company performance are satisfactory than shareholders action could potential. Because they would get share from higher level of return otherwise they would feel less interest to invest their money in high risk of project. But debt holder would not get a share of the higher returns since their returns are not dependent on company performance. Therefore debt-holder often imposes restrictive covenants in the loan agreements for limit managements freedom of action. These agreements would: limit the further debt, set a target gearing ratio and current ratio. restrict the excessive dividends control the disposal of major assets or manage the type of activity the company may engage in. as gearing increases, the debt holder would include more obligation on companys freedom of operating and investment flexibility which may lead to a reducing share price and it is not acceptable by management. Thus, they generally limit the level of gearing to limit the level of restrictions on them. (J.M. Samuels, F.M. Wilkes and R.E Brayshaw, Financial Management Decision Making). Interpretation: The company seemed followed MM theory and the long-term borrowing had constant increment. Based on the 2007- 2009, and the ratios increased from 75.62% to 85.24%. In spite of 2009, the gearing ratio dropped to 66.41%, the debt still on an increased trend and the total long-term borrowing increased from $2915 million in 2007 to $7809million in 2009. Whereas according to Pecking Order, the retained earnings should be the most favourable finance for the company, however, SABMiller seemed not a case. The companys retained holdings was not utilized as the priority of the finance, by contrast, their main funding were from debt instead. Therefore it seems that SABMiller has some bankruptcy cost and agency cost. 2. The companys dividend decision. Dividends Dividend is the distribution of value to shareholders. Dividends represent drawings by the shareholders of the company. Dividends are paid out of the revenue reserves and should be deducted from these reserves (usually retained earnings) when preparing the balance sheet. Shareholders are often paid an annual dividend, perhaps in two parts. An interim dividend may be paid part way through the year and a final dividend shortly after the year end. Dividend Policy: Dividend policy (1961) defines as the rules and regulation to provide dividend payment of companies shareholders. A specific dividend policy gives a high level of advantage of the company and its shareholders. Because it is determine the impact of business operation in terms of different number of test scenarios and therefore company should have an efficient dividend policy to attract the shareholder for further invest in business. There are two dividend policy company could adopt such as: Dividend irrelevance Theory: Miller and Modiglianis (1958, 1961) Dividend irrelevant theory specify a frictionless market with a fixed investment policy, all feasible capital structure and dividend policies are optimal because all imply identical stockholder wealth, and so the choice among them is irrelevant. In the other sense irrelevant dividend policy is absence of taxes and transaction costs in perfect capital market which could not effect on shareholder value or stock price. There are three cases M M irrelevant policy does not affect on the shareholders value when company may need cash or company necessarily to sell share to raise fund to paid shareholder or when shareholder desire to get cash. The effect of any dividend policy can offset by management adjusting the sale of new stock or investors adjusting their dividend stream through stock purchases or sales. Dividend Relevance Theory: The dividend relevance theory was anticipated by Myron J.Gordon and John Lintner. They suggested that investors are generally risk averse and would rather have dividends today (bird-in-the-hand) than possible share appreciation and dividends tomorrow. This theory is opposite of MM Dividend irrelevant theory and dividend policy affect on the share price and it ensure that shareholders wealth is maximize. The SABMiller Plc has an effective dividend policy which is as follows: Dividend Policy of SABMiller Plc: In SAB plcs listing particulars dated 1 March 1999, the directors stated their intention to adopt a new dividend policy. This would take account of the Groups underlying performance; the opportunities for the profitable investment of retained profits; and would maintain an appropriate level of dividend cover, considering, among other factors, the level of dividend cover generally maintained by FT-SE All-Share companies and the Groups peers in the international alcoholic beverages sector. In the light of these statements, and having regard to the level of dividends paid by SAB Ltd in the past, the directors have determined to move the dividend cover in the medium term from the prior years approximately 1.8 times, to a range of 2.2 to 2.5. Taxation: There is no impact on shareholders which are companies. However, taxation can distort investment decisions by individuals, residents of the UK. Britain there are two kinds of taxes which are: capital gains tax and income tax. Income tax for greater shareholder influence (taxes @ 40%), which is why they prefer the capital gains which are taxed 18%. Low band, taxpayers can take advantage of the dividend tax @ 20%. Deferred tax is recognised on the unremitted earnings of overseas subsidiaries where there is an intention to distribute those reserves. A deferred tax liability of US$31 million (2009: US$16 million) has been recognised. A deferred tax liability of US$ 46 million (2009: US$29 million) has also been recognised in respect of unremitted profits of associates where a dividend policy is not in place. There are not any further details given in the Annual report 2010 and FAME or Companies website. Dividends declare over the years: As the group reports in US dollars, dividends are declared in US dollars. They are payable in south African rand to shareholders on the south African register, in US dollars to shareholders on the UK register with a address in the United States (unless mandated otherwise), and in sterling to all remaining shareholders on the UK section of the register. Appendix 2 Dividends paid years Total Dividends Adjusted diluted Earnings per Share Dividend per share Millions Cents 2006 520 108.4 44 2007 681 119.3 50 2008 769 142.4 58 2009 877 136.8 58 2010 924 160.4 68 The board has proposed a final dividend of 51 US cents to make a total of 68 US cents per share for the year- an increase of 17% from the prior year. This represents a dividend cover of 2.4 times based on adjusted earnings per share, as described above (2009: 2.4 times). The groups guideline is to achieve dividend cover of between 2.0 and 2.5 times adjusted earnings. The relationship between the growth in dividends and adjusted earnings per share is demonstrated in picture below. In addition, the directors are proposing a final dividend of 42.0 US cents per share in respect of the financial year ended 31 March 2009, which will absorb an estimated US$631 million of shareholders funds. If approved by shareholders, the dividend will be paid on 28 August 2009 to shareholders registered on the London and Johannesburg Registers on 21 august 2009. The total dividend per share for the year is 58.0 US cents (2008: 58.0 US cents). Dividend Announcement and Market Impact of SABMiller Plc: The SABMiller Plc dividend declared on 1st December 2010 which is 20 cents US per share( Financial Time) however the board of SABMiller Plc declared a interim dividend of US 0.195 per share which is payable on 10 December 2010 to their shareholders who is registered on the London and Johannesburg stock exchange. According to the last report on February 2011 we found that the SABMiller company the fourth quarter and full year ended December 2010 shows companys net income increased by 38% of $146 Million for fourth quarter and 21.9 % of $1.087 Million for full year which is favourable for positive pricing , band mix and an effective cost management. Leo Kiely the chief executive of SABMiller Plc comment that : We continue to invest in innovation behind our premium light brands, drive growth in our craft and import portfolio and deliver synergy and cost savings as promised and Our consistent focus generated positive net revenue per barrel growth for the fourth quarter. We are building brand equity and improving our mix to meet the challenges ahead in 2011. Interpretation: It is assumed that SABMiller Plc is practicing MM irrelevant dividend theory. Because the market is competitive however from the appendix 2 we can see that their dividend per share gone up over the five year whereas dividend per share growth increasing except 2009. In 2010 dividend per growth is 17.24% and dividend yield ratio is 2.30% which indicated company are concerned to reinvest of their profit. 3. The Companys management of working capital Working capital: Working capital is a financial tool which helps toÂÂ  measure of both companys efficiency and its short-term financial health. If working capital of the firm is in positive value it means company is efficient and healthy. But if working capital of the firm is in negative value that means company is unable to meet its short-term liabilities with its current assets e.g. cash, accounts receivable and inventory. The working capital also known as net working capital. If a company current assets remain lower than its current liabilities, then the company would be in problem in paying back to its creditors the short term. The worst possibility is bankruptcy. Calculating Working Capital: The following formula is use to calculate the working capital of company. By looking at the working capital position, we can predict the future financial difficulties. Even a business whos fixed assets worth more than billions of dollars can bankrupt if unable to pay its monthly bills. Poor working capital i.e.: increase borrowing and delayed payments to creditor can build pressure on the financial position of a company which ultimately lower its credit rating. Consequently a company has to pay more money due to its lower credit rating as bank charge higher interest rate. Negative Working Capital Can Be a Good Thing for High Turn Businesses Negative working capital indicated that companies high inventory turns and business operated by a cash basis where working capital not as much. That means company can raise money any time then turn around and plough that money back into inventory to increase the sales .if financial crisis arise for the short period of time management can stockpile the proceed from their daily. Therefore there is not necessary a large amount of working capital since the cash could arise quickly. Working Capital of SABMiller PLC: The following tables showed the working capital of SABMiller Plc for five years. Appendix3 years current assets current liabilities working capital WC ratio 2006 2829 4865 -2036 58.15005 2007 2989 5717 -2728 52.28267 2008 4127 6203 -2076 66.53232 2009 3472 5345 -1873 64.9579 2010 3895 5977 -2082 65.16647 As we know working capital of SABMiller Plc is in extremely negative which is not good for the investors and financial institution. The above data is taken from annual report and financial statement links for these above figures are being given in the end of assignment (Internet Reference). Analyses of working capital using ratios: Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years, watching especially for any unfavourable trends that may be starting. Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them. Balance Sheet Ratio Analysis: Balance sheet ratios measure liquidity and solvency (a businesss ability to pay its bills as they come due) and leverage (the extent to which the business is dependent on creditors funding). They include the following ratios: The financial ratio analysis by Meir Liraz Current Ratios: The Current Ratios is one of the best known measures of financial strength. Its formula is If you feel your businesss current ratio is too low, you may be able to raise it by: Paying some debts. Increasing your current assets from loans or other borrowings with a maturity of more than one year. Increasing your current assets from new equity contributions. Putting profits back into the business Converting non-current assets into current assets. Quick Ratios: The quick ratio is sometimes called the acid-test ratio and is one of the best measures of liquidity. It is known as liquidity ratio. The quick ratio is a much more exacting measure than the current ratio. By excluding inventories, it concentrates on the really liquid assets, with value that is fairly certain. The SABMiller Plcs Ratio Appendix 4 SABMiller Plc Consolidated Balance Sheet 2010 2009 2008 2007 2006 m m Total Current Assets 3895.00 3472.00 4135.00 2989.00 2829.00 Total Current liabilities 9204.00 7745.00 6257.00 5157.00 4865.00 Inventories 1295.00 1241.00 1362.00 928.00 878.00 Current Ratio 0.4231 0.4482 0.660 0.5796 0.5815 Quick Ratio 0.2824 0.2880 0.4431 0.3996 0.401 Form the Appendix 5 it noticeable that the SABMiller Plcs current ratio is not favourable and it indicated that company are not capable to pay their obligation whereas their quick ratio is favourable cause it decrease 0.2880 to 0.2824% by 2010 compare than 2009. Conclusion The SABMiller plc is one of the leading brewers who operating across six continents. The report approached their financial performance and risk Analysis with theatrical impact. According to 2010 financial report group revenue up 4 %( US$8,330 million) and EBITA up 6% with margin growth of 30 basis points (bps) driven by robust pricing and cost efficiency as well as they also gain in share market. They have strong cash flow of $2010M with dividend per share up 17%. However The SABMiller Plcs working capital is not favourable and company enjoying a high level of debt risk.

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Challenges and Strategies in Industry †MyAssignmenthelp.com

Question: Discuss about the Challenges and Strategies in Industry. Answer: Introduction Recruitment procedure of corporations includes various steps such as attracting potential candidates, evaluating the qualification of applicants, and posting them in the right job. The employees assist in the expansion of companys growth, therefore, the human resource management is required to select the right person for right job. The human resource management of software industry faces various challenges in their recruitment procedure. For succeeding in the software industry, it is necessary that software companies hire talented employees. This report will evaluate the challenges faced by corporations in the software industry. Further, the report will provide suggestions based upon HRM policies to address such problems. Software industry comprises development manufacturing and selling of software by various companies. Software organisations are making different kinds of software which companies are using in their accounting and production process. According to Lavie (2007), Software companies provide services like consultation data storage, data recovery and much more. According to estimation in 2013 this sector valued at the US$407.3 billion (approx.). It is growing with an estimating five percent growth rate. Microsoft, IBM, and SAP are some of the most successful companies in this industry. As per Lee et al. (2010), this sector started getting popular in 1953, and since that time they have never seen a negative growth. This industry has seen remarkable growth in last two to three decades, and it is generating millions of jobs in different parts of the world. Most of the government institutions and other industries are getting a significant amount of assistance to the facilities which software sec tor is providing in recent times. Every industry has to face various kinds of problems in the hiring process as they failed to get the desired candidate because of some reasons. Below are some of the major issues which software industry faces in the recruitment process. Software corporations require specific knowledge of different software and technology in a new employee. According to Agrawal, Khatri Srinivasan (2012), there has to be various tests procedures and infrastructure to check the ability and capabilities of candidates; all these require a high amount of time.Hours and even days are being consumed in selection processes of a software company. The recruitment process is significantly exhausting; some of the candidates leave in between the selection procedure. Due to lengthy recruitment process company has to face the consequences regarding talent loss. For example, Google prefers to hire only the talented programmers from the industry. Therefore, the recruitment process at Google takes around six to eight weeks. Human resource department prefers to check a candidate at various levels. They do not just check their technical skills, but they also prefer to know the social behaviour and logical knowledge of every candidate. Omnipresent Recruitment To recruit skilled and talented employees, human resource department has to explore various sources of recruitment. As per Swart Kinnie (2003), they have to check job applications of a large number of candidates through different sources, such as LinkedIn, Facebook, Twitter and their online portal. Software companies also need to take the assistance of various human resource firms to select the most eligible candidates. Potential candidates like to take the support of social media websites to find suitable jobs for them. The human resource department of companies face difficulties in maintaining a positive image over different social media platforms. The candidates can provide wrong information regarding their qualification over social media platforms; the human resource department finds difficulty in assessing such information and selecting employees based on such information (Agarwal Thite 2003). In the software industry, the demand for skilled and experienced employees is considerably high; it is an employee-oriented industry because usually talented employees decide their terms of working contract. According to Antony et al. (2007), Software corporations pay high salary packages and incentive schemes to talented employees to attract them in the organisations which can affect the budget of the company. The human resource department of enterprises, which did not have a large number of resources, find it difficult to attract or retain talented employees. Most of the companies did not fulfill their requirement of skilled programmers which causes them to work with limited employees, which increase the pressure of workers. High pressure at a job is one of the primary reasons for a developer to quit their organisation. The supply of skilled and talented programmers is low in the market, which causes human resource department to hire employees from foreign countries. If a large number of employees are from different countries, then corporations are require establishing diversity policies; without better diversity policies human resource department cannot recruit candidates from other nations (Richardson et al. 2010). Human resource department does not have any direct contribution to profit earned by a company; this issue creates funding problems for HR department because they fail to convince top-level management to allow the necessary amount of funds which is required to hire best candidates that are available in the industry. As per Chapman Webster (2003), for analysing talent and skills of candidates, human resource department require investing a large number of resources over machinery and test objects. Usually, the top level management did not allow a large budget for human resource department, which makes it difficult for them to select the right person for right job. In the software industry, a large number of corporations are start-ups; they did not have the proper funding or sources to hire talented employees. Therefore, most of the talented employees are hired by the large organisations which can be negative for the growth of start-ups. Millennial Retention People who were born in between the 1980s to 2004 are known as millennial. In the software industry, the majority of workers are young as compared to other sectors. Most aged people are not good with technology as compared to young adults. Issac, Rajendran Anantharaman (2004) provided that the average age of employees in the software industry is in between 24 to 32 years. The human resource department of modern companies finds it difficult to retain millennial employees in the organisation because they prefer to change companies quickly. The retention challenges are faced by even large software companies such as Apple, Microsoft, and Google. Most of the employees prefer positive and cooperative organisational environment over high salary packages. Therefore, many of talented employees establish their start-ups. Without an effective organisational environment strategy, it is difficult for human resource management to retain employees in the company. The growth of software industry is significantly high as compared to other industries, the companies which failed to keep up with the fast pace of growth, failed in the industry. As per Edison, Bin Ali Torkar (2013), for sustaining their growth, corporations are requiring to hire and retain talented employees in the organisation. High level of competition creates several problems for human resource department because competitive organisations pay large amount of salary package to attract talented employees in their corporations. Human resource department faces difficulty in retaining employees because they prefer to go for companies with higher benefits. In case of start-ups, they do not have significant sources which make it significantly difficult for them to recruit talented employees. Recommendations For improving the recruitment procedure in the software industry, corporations can implement various strategies of human resource management. These policies can benefit the company by recruiting and retaining talented employees. Following are few examples of HRM strategies which can be implemented by software companies. Most of the software corporations recruit employees through online portals or social media websites. The human resource management should include a separate department for talented profiling candidates through social media platforms. As per Christensen Hughes Rog (2008), the department should maintain a positive organisational image over social media sites and analyse various online application to find talented employees. Organisations should focus their sources on online platforms because it also reduces the recruitment expenditure of corporations. The human resource department can find and analyse the qualification of candidates through online portals. There is a significant demand of talented programmer in the software industry. High demand forces companies to pay high salary packages to talented employees. The companies can avoid such expense by providing training to their employees. Training the employees on their job can improve their skills and productivity which can benefit the companies. Organisations can establish a lock-in period for trained employees in the enterprise which can improve the retention of employees (Chan Kuok 2011). Most of the talented employees in software industry prefer positive working environment over high salary packages. The top-level managers of corporations should promote and implement policies regarding positive and cooperative culture in the company. A positive culture also attracts the talented employees in such organisation. For example, Google is known as the best place to work because of their positive environment culture. Google provide their employee's space to work, and their projects and the culture in their workplace is positive. This strategy allows Google to attract the best talent from the industry and sustain their future development (Lievens, Van Dam Anderson 2002). Conclusion Form the above report, it can be concluded that software industry in one of the fast-growing industries which include the development of software product and applications. The competition between software corporations is considerably high, and it is an employee-oriented industry. The recruitment procedure for software companies includes various problems such as high expenditure, long process, strong competition, the demand for talented workers, different sources of recruitment and retention of employees. For sustaining future growth, human resource department requires to employ and retain talented employees. The corporations can implement various HRM policies to address such challenges such as training facility can satisfy the demand for skilled workers, online process can reduce the expenditures and establishment of positive culture can improve retention of employees. These strategies can be valuable for the companies since they augment the development of the corporation. References Agrawal, N. M., Thite, M. (2003). Human resource issues, challenges and strategies in the Indian software industry.International Journal of Human Resources Development and Management,3(3), 249-264. Agrawal, N. M., Khatri, N., Srinivasan, R. (2012). Managing growth: Human resource management challenges facing the Indian software industry.Journal of World Business,47(2), 159-166. Antony, J., Jiju Antony, F., Kumar, M., Rae Cho, B. (2007). Six sigma in service organisations: Benefits, challenges and difficulties, common myths, empirical observations and success factors.International journal of quality reliability management,24(3), 294-311. Chan, S. H., Kuok, O. M. (2011). A study of human resources recruitment, selection, and retention issues in the hospitality and tourism industry in Macau.Journal of Human Resources in Hospitality Tourism,10(4), 421-441. Chapman, D. S., Webster, J. (2003). The use of technologies in the recruiting, screening, and selection processes for job candidates.International journal of selection and assessment,11(2?3), 113-120. Christensen Hughes, J., Rog, E. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations.International Journal of Contemporary Hospitality Management,20(7), 743-757. Edison, H., Bin Ali, N., Torkar, R. (2013). Towards innovation measurement in the software industry.Journal of Systems and Software,86(5), 1390-1407. Issac, G., Rajendran, C., Anantharaman, R. N. (2004). A holistic framework for TQM in the software industry: a confirmatory factor analysis approach.The Quality management journal,11(3), 35. Lavie, D. (2007). Alliance portfolios and firm performance: A study of value creation and appropriation in the US software industry.Strategic management journal,28(12), 1187-1212. Lee, C. H., Venkatraman, N., Tanriverdi, H., Iyer, B. (2010). Complementarity?based hypercompetition in the software industry: Theory and empirical test, 19902002.Strategic Management Journal,31(13), 1431-1456. Lievens, F., Van Dam, K., Anderson, N. (2002). Recent trends and challenges in personnel selection.Personnel Review,31(5), 580-601. Richardson, I., Casey, V., Burton, J., McCaffery, F. (2010). Global software engineering: A software process approach. InCollaborative Software Engineering(pp. 35-56). Springer Berlin Heidelberg. Swart, J., Kinnie, N. (2003). Sharing knowledge in knowledge?intensive firms.Human resource management journal,13(2), 60-75.

Nursing Essay Sample - Find Out How You Can Get Your Essay Test For the Online Class

Nursing Essay Sample - Find Out How You Can Get Your Essay Test For the Online ClassThere are so many great opportunities that a nursing student can take advantage of online but you need to ensure that you know what the requirements are for the various classes that you take. You will find the most popular ones that will allow you to earn your degree in the correct way and from the right providers.The first part of your college education that you should take advantage of is the nursing essay sample. These are a great way to make sure that you are prepared for the different essays that you will be required to write for the college admissions tests and papers.There are many different ways to go about creating a good kpaa essay. With that being said, it is important that you use the right resources. You want to ensure that you are only using the best resources that will make the different components of the essay flow smoothly.This means that you will need to have some basic research goin g on prior to actually starting the task. It is always a good idea to create a list of all of the resources that you will need to get started with. The list should be updated often as you continue your studies.With that being said, you will want to ensure that you look at all of the essay samples that are available. This is a good time to do some online searching to see what types of classes you are going to take in order to ensure that you are doing the right thing. You do not want to waste any time and effort when it comes to this.There are a number of places that you can go to in order to get the best of the kpaa essay samples. The Internet is one of the most popular ways that you can learn all about the application process. There are many different online classes that will help you get a feel for the various essay styles that you will be required to complete in order to earn your degree.As you can see, there are a number of different resources that you can use to help you in you r search for the best spam essay samples. It is not that hard to find the information that you are looking for, and you may find that you are able to skip some of the trial and error process. You should always be prepared for the worst case scenario when it comes to your education.There are a number of different options when it comes to getting the best spam essay samples. You should consider using a variety of different methods in order to ensure that you are getting the proper tools to complete the work that you need to get done.

Writing an Essay That Can Stand On Its Own

Writing an Essay That Can Stand On Its OwnWriting an essay is an essential part of school, but it can be one of the most difficult things to write. There are many different methods and books that will help you write better essays and you should have a good idea of how to do this.One thing that is very important is to know how to draft an essay. In high school you will write a couple of essays on different subjects. This could be a business essay, a humanities essay, or a history essay. After you have written those essays you should always make sure that you re-read them to make sure you do not forget anything important.The introduction is also very important. You want to make sure that the opening paragraph is something that is specific and leads the reader to the body of the essay. You should also get them involved in the beginning of the essay, as they will be reading it again and want to be involved.You want to make sure that your paragraphs are well written, and keep them short. The length of the paragraph should reflect the topic that you are going to discuss.Most students will find that if they are writing an essay for school, they need to be able to go into more detail. They may need to talk about a subject in more detail, or they may need to do some research to support their arguments. If you are able to do this then you can include more details in your essay.If you need to talk about a large amount of information, such as an essay on a certain subject, then you may want to use the study guide to help you with the essay. There are many free resources that can help you with the essay.You can also make use of resources to check out andto gain your own personal knowledge on certain topics that you may want to write about. Make sure that you are able to create an essay that is both interesting and professional.

Thoughts on Topics to Write an Argumentative Essay on in Simple Step by Step Order

Thoughts on Topics to Write an Argumentative Essay on in Simple Step by Step Order Whatever the sort of essay is, they need to proofread it again and again in order to ensure there aren't any traces of mistakes left. What you aspire to teach your reader will decide on the kind of your essay. You may also opt for any latest research work that's a little controversial to allure the readers to compose argumentative essay. Once you finish your research notes you can begin writing with confidence that you have all of the pieces you have to create an amazing essay. Innovate your own ideas to produce the essay more delight full and potent. In earlier times essay templates are known to help amateurs considerably. Though an essay could possibly be written for different purposes a writer should be creative, analytical and ought to be in a position to organize his thoughts in a crystal clear and crisp way. The college essays must be organized in the particular format and design based on the instructions given. Essays could be literary or non-literary. Researching the topic will permit you to find out more about what fascinates you, and should you pick something you truly like, writing the essay will be more enjoyable. There are various genres of essays and history essay is among them. You ought to make sure your essay states finally what you have been able to prove. It is essential that you always prepare a very first draft of the essay. Fallacies happen when the writer doesn't have strong support for those arguments to be stated. If it comes to write engineering essay for those students that are studying in electrical engineering school becomes confused since they are engineers and not the writers. When students are writing their argumentative essays that need to find, read and analyze a lot of material to do good. By obeying the above-given hints you will readily accomplish an impactful argumentative essay. Now you have all of the books and materials that are necessary to compose the essay. Each of these varieties of paper is owned by the category of informative essay. If you are searching for examples of argumentative essays, here's a sample that will help you out! To compose a strong argumentative essay, students should start by familiarizing themselves with a number of the common, and frequently conflicting, positions on the research topic so they can write an educated paper. When you choose a topic, ensure you select a well-defined, controversial matter. So, the choice of the topic is very important. It is crucial to opt for a great topic so as to compose a fantastic paper. Readers might have a tough time to work out what the argument is truly about and where it's leading to. When you pick the best topic you shall allow it to be attractive to the reader. If you're writing an ar gumentative essay it's important that you write on a topic that you have knowledge about and you think that you are able to win over the audience with your arguments. Persuasive or argumentative essays are supposed to convince the audience of ones viewpoint about a specific topic. Most Noticeable Topics to Write an Argumentative Essay on A fine idea may be to pick out a subject, which has a stable selection of accessible info and nonetheless sufficient room for a private research. After stating your thesis, you will want to talk about the matter in depth in order for your reader will comprehend the issue fully. An excellent topic will ensure it is simpler to pursue the purpose of an argumentative essay, which is, apparently, the whole investigation of the problem you speak about. When you have this issue in your hand you have to get started with researching the topic and collecting material which will assist you in supporting your viewpoint. You may start with an introductor y paragraph. If you choose to analyze your arguments in another part of your Psychology essay, your arguments have to be analyzed in the very same sequence as you presented them earlier. The thesis statement must be strong and positive in order to prolong the interest of the reader. You ought to be affirmative once you state the argument topic.