Theory and concepts of creating a financial model Essay

Theory and concepts of creating a financial model - Essay Example Management should be skeptical of the model assumptions that will be related to the recommendation. There are different types of financial models that are used for various purposes. For example, a cash flow model is regarded as a powerful tool that can assist a financial team with project future performance in a business venture by evaluating the effect of that type transaction such as an an acquisition and LBO(Shim 2007, 67)2. It is also able to calculate returns and perform ration analysis. Financial models for investment options or product services are often custom developed in excel sheets as they take into account for unique characteristics such as cost structure, product market and competitive situation. The following guidelines should be used: Outline the model the type of model structure that would include the general output and the key components.The weight cost and the advantages of the type of model will also be factored in. The forecasting future method should be used in any financial model (Fernholz 2002, 56). When constructing a cash flow model there are a number assumptions that must be included. In this kind of financial model, there is a deterministic approach that uses certain simplifications.Among them is the investment of return that is known and does not usually vary from year to year. Another important aspect is that this rate is the same rate that will be used to discount the reserves and the third aspect is that the ultimate loss ration will be accurately predicted. There are some concepts that one has to know when creating a financial model like a cash flow model. Firstly, you have to have to start with the in mind- This will be inclusive of whether you are pricing options of an investment or building3. With the Cash flow model, you should be able to check for assumptions. From this you would be able to get truthfully generate outputs with a certain number of inputs. This kind of model should be one that you are able to adjust automatic ally and should be dynamic depending on your inputs. This model does not give room for a formula, like for instance, that will multiply a specific number of units with the determined price (Hambrook 2003, 95). This gives room in case the price might change in future. If you use a fixed formula and the prices change in the future, you will be forced to go the right cell of the Excel sheet and make changes every time the price changes. One of the major concerns that most investors have is determining the relationship between the risk and the return of a financial asset. This kind of information can be obtained in his portfolio. It is general knowledge that there is a good relationship between the risk and the expected return of a financial asset. In other words, when the risk of an asset increases, so does its expected return. What this means is that if an investor is taking on a big risk, he is expected to be compensated for doing so with a higher return of sales in the futures. Simi larly, if the investor wants to boost or increase the the expected return of the investment, he needs to be prepared to take on more risk. This is the reason why a portfolio is used to give this important relationship. It is important to note that the concept of Modern Portfolio Theory to show the connection between the risk and return of a portfolio of financial assets. The three types of portfolios that will help us

Communication in Security Settings Paper Essay Example | Topics and Well Written Essays - 1500 words

Communication in Security Settings Paper - Essay Example If they will use negative attitude instead of positive then it can create a trouble for them. Effective communication is the combined harmony of verbal and nonverbal behavior. NONVERBAL behavior can be explained as anything other than words themselves that communicates or affects (positively or negatively) the message "contained" in the words. Nonverbal communication contains body motion, facial expressions and eye movement. FACIAL EXPRESSION: While listening to a person you should ahead to indicate that you understand and is in agreement with the speaker. You glance away or yawn to signify that you are uninterested or would like for the speaker to discontinue talking. EYE MOVEMENT: Direct eye contact is necessary in the public to show a self-confident, truthful character. Most people find it hard to look at someone in the eyes when they are conversing with them. Straight eye contact can be anxiety-provoking and on a circumstance can reason some persons to lose their train of thinking. The answer is to focus your eyes someplace else on the face. For example, you can keep your eyes stuck to the persons nose, mouth, or ear. As long as your focus is within eight inches of the nose, the other individual will not be able to tell that you are not watching him or her directly in the eyes. When you are communicating with your sender or receiver you should be confident that there is no contest for your attention like thrilling things going on nearby or other people chatting (cell phones, IMs, chat rooms, email, etc.) Occasionally there is case that its hard to communicate simply because you cannot send or receive the message. Earsplitting noises can block communication, and so can stuff like lost phone signals and computers not being capable to interface. Sometimes the sender uses vocabulary that the receiver does not recognize,. Try to use

Libyan Legal System Research Proposal Example | Topics and Well Written Essays - 2500 words

Libyan Legal System - Research Proposal Example According to the paper the debate on the relationship that exists between the Sharia laws and the national laws in Libya is only new to the post Gadhafi period. The only difference now is that it gained momentum after the revolution as a result of the increasing legal and political importance of Sharia laws on the county. There are a lot of instances where the importance of the Sharia laws has been seen both in the Gadhafi era and the post Gadhafi regime. The major one after the revolution however is the Constitutional Declaration that was issued by the interim National Transition Council (NTC) stating that the Sharia laws remain the principal source of legislation in Libya. In another speech in October 2011 the NTC President went ahead to declare that any law in the county that violates the Sharia laws was suspended with immediate effect. These included the laws that had been put in place restricting the practice of polygamy and allowing women to own certain kind of properties6. The announcement further indicated that the county would only use Islamic banking where usury will be banned in the county. This is a clear indicator on the importance that the Sharia was in the post Gadhafi Libya. The paper will also focus on the efforts being made to ensure that the legal system in Libya is more effective. It will also present an array of solutions that can be used in the creation of a more effective legal system that has wide acceptance in the country.

Chronic pain management- article critique Lab Report

Chronic pain management- article critique - Lab Report Example 225, par 1). Health-related quality of life (HQRL) indicating individual’s state of physical and mental health and coping, pain intensity, HQRL, and patient satisfaction could be assessed in response to a multidisciplinary pain management program in order to examine whether these are amenable to change (p. 225, par 1). In the purpose statement, the multidisciplinary pain management program is the independent variable, and the pain intensity, coping strategy, and HQRL are dependent variables, and they have been clearly identified. The population identified includes a wide range of patients who have chronic pain symptoms, and the authors identifies significance of the study in terms of the need of development of a multidisciplinary pain management program that accommodates biophysical, psychosocial, and emotional aspects of chronic pain and treatment of them in a holistic manner. The author proposes to examine further to see if there is any positive change in pain symptoms after introduction of the proposed therapy in terms of coping, HQRL, and pain symptoms so a rehabilitative care plan can be developed. The literature review guides a reader for a possible treatment program for pain and rehabilitation that would call for a multidisciplinary approach to improve coping strategies and health-related quality of life (p. 225, par 1). The mechanism of coping as a cognitive-behavioral adjustment has been reviewed in detail. The rationale is well supported by evidence from literature that HRQL is considered to be an important outcome of interventions in chronic conditions like pain. Adequate conceptual definitions have been provided as derived from the literature (p. 225, par 2). For this, the authors have cited many specific references, 37 in all, all of them are direct. For example, they have cited the basic concept of modern

Teacher Education Essay Example for Free

Teacher Education Essay A teacher is someone whose job is to teach especially in a school whether it is a secondary school, primary school or even kindergarten. Every teacher should have their qualification in order to be a teacher in a school. So, I think that a kindergarten teacher should have at least a basic degree to qualify them to be a good kindergarten teacher. Why kindergarten teacher should have a basic degree? There are several reasons why kindergarten teachers need a basic degree which is to ensure the children get a good early education, the teachers can provide good teaching skills and to increase the competition among the university students nowadays. Teachers with a basic degree will ensure the children get a good early education. As we all know, world nowadays needs people with high level of education and to fulfill this mission, we need a teachers with wide knowledges and experiences which is a graduated students with basic degree can provide. . Besides, the children are like a white and blank cloth so it is teachers and parents who will colour them. The teachers with a basic degree have good enough knowledge to teach their students and they can provide correct and good education for the kids thus producing good generation for the future. The kindergarten teachers with a basic degree also can provide a good teaching skill for the students. At the university, the students are well teached with the ways to provide good study environment, good teaching skills and various styles to comfort the students. So, the teachers can teach the kids in a proper way ensuring they get a good education and the teachers can provide a good and enjoyful environment for the children to study well thus producing excellent and intelligent students. As we know, the children are very active so we need an enjoyful and bright environment to comfort them. The needs for kindergarten teachers to have at least a basic degree can increase the competition among the university students nowadays. The rate of failure rate among the students in the university nowadays is increasing so the increase of qualification in order to get a job will ensure the students to study hard to achieve good results when they graduated. This will  increase the level of education in our country thus producing good image for the country. In conclusion, the kindergarten teachers should have at least a basic degree to make sure the children get a well early educat

Globalization and the Digital Divide Essay Example for Free

Globalization and the Digital Divide Essay The globalization era has been developing in recent years. The use of technology has an important role in running the business. Any information about companies can be known in a second. This condition pushes the people in business to provide the accurate, detail and trusted information which is related to the company. It also makes the company compete to improve the performance of their operational activities. To help understand how modern business development, every company definitely has an orientation to make a high profit, therefore the company tries to build a good image in public. Companies will compete to increase their success both in industry and trade field. At first, the company will be profit-oriented, but as it progresses, it is not only focused on profit-making but also focused on social responsibility to keep the company alive. Companies must think about the impact on their environment. Rapid business development drives industry growth, especially in Indonesia. An industrial activity must be related to the utilization of resources and produce valuable products. This will have a direct and indirect impact on the environment. The natural resource management industry, especially the management of non-renewable resources (petroleum, natural gas, coal industries, etc.) is a short-term industry, but it has a long-term impact on the environment. Despite having a positive impact on the economy of a country, an industrial activity also has a negative impact on the surrounding environment. Negative impacts due to activities that cause environmental damage, should be minimized first for the good of the company and the community. At the same time, governments, stock exchanges, markets, investors and the public require companies to be transparent about the goals, performance, and impacts of their sustainability. Then came the practice of CSR (Corporate Social Responsibility) in the business world. CSR is the companys contribution to the stakeholders towards sustainable development by minimizing the negative impact of operational activities. Now CSR is widely known and in Indonesia has many companies that apply it. In addition, the policy has been made regarding the disclosure of CSR as stipulated in Law of the Republic of Indonesia Number 40 of 2007 and mentioned that a company that carries out its business activities in relation to natural resources, is obliged to carry out social and environmental responsibility. CSR is expressed in a report called Sustainability Report. As reported in www.globalreporting.org (2017), Sustainability Report is a report published by the company about the economic, environmental, and social impacts caused by daily operational activities of the company. One of the guidelines that can be used by companies in carrying out CSR activities is the GRI (Global Reporting Initiative). GRI is an international non-profit organization with network-based structure. GRI encourages the implementation of reporting with Sustainability Report as a way for companies and organizations to become more sustainable and contribute to a sustainable global economy. Companies report their activities based on principles and disclosures of standards in accordance with GRI Generation 4 (G4 Guidelines). In that way, the companies will feel the importance of CSR reporting that can improve their image, bring profit and ensure the survival of the company. However, if a company does not report CSR, it will create a conflict with stakeholders. Manufacturing is an industry whose main activity is processing or converting raw materials into finished or semi-finished goods so that goods have added value. Each processing of raw materials from manufacturers would produce waste, causes the environment to feel its impact. The large number of manufacturing companies operating in Java Island, making Java is the largest contributor of waste in Indonesia (National Geographic Indonesia, 2011). That is why covering the issue of environmental damage must be with a high skepticism. Because, besides a large number of output produced by the manufacturing company for its operational activities, it is still more output to be spent to repair environmental damage. Cases of thousands of liters of oil owned by PT Central Georgette Nusantara Printing (CGNP) that spill out pollutes Cibingbin River in Bandung, West Java makes people uneasy because the waste has been polluting the river that empties into the Sanguling Reservoir. The companys operational activities in this area cause environmental damage and harm the people around. It also causes two hectares of paddy fields managed by local people, threatened crops failing. This condition makes people consider the environmental issues are the main ones. After getting pressure from both the government and the people around the factory, the company is ultimately responsible for the environmental pollution issue. The case above pushes the role of CSR as a business-enhancing success for a company. This research is using firm size, profitability, leverage, public ownership and industry sensitivity as independent variables and CSR disclosure which uses G4 guidelines as the dependent variable. Firm size is an indicator that can indicate a condition or characteristic (large or small) of a company. Large companies are more in demand by analysts and brokers because they tend to be easy to publish financial reports and tend to be in stable performance positions (Astuti Nugrahanti, 2015). Profitability measures the overall effectiveness of management in generating profits with its assets (Smart Graham, 2010, p. 66). It means to measure the activity of the company in earned net profit. Leverage provides a description of the companys capital structure, thus it can use to see the level of risk of uncollectible debt (Fahrizqi, 2010). Public ownership is the proportion of share ownership owned by the public of the companys shares (Arthana, 2012). Industry sensitivity can be interpreted a s how big the influence of industrial activity that is directly related to the environment (Winarsih, 2015). The research about the determinant of CSR has been done by some researchers such as Arthana (2012) showed that public ownership and firm size have no significant effect on CSR disclosure. Meanwhile, leverage and profitability have a significant effect on CSR disclosure. However, it was a different research by Kusuma (2012). It showed that that firm size and public ownership have a significant effect on CSR disclosure and leverage does not affect the CSR disclosure. The research by Kusuma (2012) was support by Wijaya (2012), Zanirah (2012) and M. Nur D. Priantinah (2012) showed that firm size significantly influences, but to leverage and profitability does not affect the disclosure of social responsibility. Zanirah (2012) showed that the firm size has a positive significant effect and leverage has a negative effect, while profitability has no significant effect on CSR disclosure. M. Nur D. Priantinah (2012) showed that profitability and public ownership have no significant effect on CSR disclosure. Firm size has a positive significant effect and leverage has a negative significant effect. C. Putra (2012) has a different result compared with M. Nur D. Priantinah (2012) and Zanirah (2012). It showed that firm size has a significant effect on CSR disclosure in manufacture companies while leverage, profitability, and public ownership have no significant effect. From earlier studies that show the different effects on CSR disclosure exhibit the research gap with different variable and different object push the researcher to retest research by C. Putra (2012) by adding a variable to improve the results about â€Å"THE EFFECT OF FIRM SIZE, PROFITABILITY, LEVERAGE, PUBLIC OWNERSHIP AND INDUSTRY SENSITIVITY ON CSR DISCLOSURE (A CASE STUDY OF MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE YEAR 2013-2017)† Research Questions Based on the background, the research questions that are discussed in this research are: Does firm size have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017? Does profitability have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017? Does leverage have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017? Does public ownership have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017? Does industry sensitivity have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017? Do firm size, profitability, leverage, public ownership and industry sensitivity have a simultaneous effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017? Research Limitation The discussion of the problem is limited to affecting some variable to CSR disclosure, which consists of firm size, profitability, leverage, public ownership and industry sensitivity. The company which is observed is manufacturing companies listed on Indonesia Stock Exchange at 2013-2017. Research Purpose To analyze whether firm size has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017. To analyze whether profitability has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017. To analyze whether leverage has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017. To analyze whether public ownership has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017. To analyze whether industry sensitivity has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017. To analyze whether firm size, profitability, leverage, public ownership and industry sensitivity have a simultaneous effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017. Benefit For Company This study is expected to give information for manufacturing companies in preparing meaningful sustainability reports and making steady sustainability reporting and directed to standard practice. It contributes to the understanding of determinants of CSR disclosure to improve the implementation of disclosure guidelines. This study is expected to be an input for companies in doing consideration and decision making which will be useful in providing an additional value of the company. For investor As an overview of CSR disclosure that serves as a reference for investment decision making. For accounting department As a meaningful contribution to the accounting department to develop a study of financial management especially for CSR disclosure. For student This study helps extends the scope of previous studies by introducing independent and dependent variables engage with CSR. The results of this study are expected to be a reference and comparison for further research, which is a concern with the CSR disclosure. Glossary Firm Size Firm size is the number of assets owned by the company. Thus, the large and small of a company can be seen by its assets ADDIN CSL_CITATION { citationItems : [ { id : ITEM-1, itemData : { DOI : 10.1017/CBO9781107415324.004, ISBN : 9788578110796, ISSN : 1098-6596, PMID : 25246403, author : [ { dropping-particle : , family : Rahman, given : Arif, non-dropping-particle : , parse-names : false, suffix : }, { dropping-particle : , family : Widyasari, given : Kurnia Nur, non-dropping-particle : , parse-names : false, suffix : } ], container-title : Jurnal Akuntansi Auditing Indonesia, id : ITEM-1, issue : 1, issued : { date-parts : [ [ 2008 ] ] }, page : 25-35, title : The analysis of company characteristic influence towards CSR disclosure: Empirical evidence of manufacturing companies listed in JSX, type : article-journal, volume : 12 }, uris : [ http://www.mendeley.com/documents/?uuid=ad81e84f-e72e-4aeb-998f-b3df3f96da8f ] } ], mendeley : { formattedCitation : (Rahman Widyasari, 2008 ), plainTextFormattedCitation : (Rahman Widyasari, 2008), previouslyFormattedCitation : (Rahman Widyasari, 2008) }, properties : { noteIndex : 9 }, schema : https://github.com/citation-style-language/schema/raw/master/csl-citation.json }(Rahman Widyasari, 2008). Profitability Profitability measure the focus on company profits ADDIN CSL_CITATION { citationItems : [ { id : ITEM-1, itemData : { author : [ { dropping-particle : , family : Marcus, given : Brealey Myers, non-dropping-particle : , parse-names : false, suffix : } ], edition : Lima, id : ITEM-1, issued : { date-parts : [ [ 2006 ] ] }, number-of-pages : 372, publisher : Erlangga, title : Dasar-Dasar Manajemen Keuangan Perusahaan Jilid 2, type : book }, uris : [ http://www.mendeley.com/documents/?uuid=eaa4ed05-0031-4fc6-9f14-1d31d7503a15 ] } ], mendeley : { formattedCitation : (Marcus, 2006), manualFormatting : (Marcus, 2006, p. 80), plainTextFormattedCitation : (Marcus, 2006), previouslyFormattedCitation : (Marcus, 2006) }, properties : { noteIndex : 9 }, schema : https://github.com/citation-style-language/schema/raw/master/csl-citation.json }(Marcus, 2006, p. 80). Big companies are expected to earn more profit than small companies. It also measures the using of the efficiency of company assets AD DIN CSL_CITATION { citationItems : [ { id : ITEM-1, itemData : { author : [ { dropping-particle : , family : Husnan, given : Suad, non-dropping-particle : , parse-names : false, suffix : }, { dropping-particle : , family : Enny Pudjiastuti, given : , non-dropping-particle : , parse-names : false, suffix : } ], edition : Pertama, id : ITEM-1, issued : { date-parts : [ [ 1996 ] ] }, publisher : Unit Penerbit dan Percetakan (UPP) AMP YKPN, publisher-place : Yogyakarta, title : Dasar-Dasar Manajemen Keuangan, type : book }, uris : [ http://www.mendeley.com/documents/?uuid=561254b1-8c37-4dae-9f07-9552249e0f60 ] } ], mendeley : { formattedCitation : (Husnan Enny Pudjiastuti, 1996), manualFormatting : (Husnan Enny Pudjiastuti, 1996, p. 73), plainTextFormattedCitation : (Husnan Enny Pudjiastuti, 1996), previouslyFormattedCitation : (Husnan Enny Pudjiastuti, 1996) }, properties : { noteIndex : 9 }, schema : https://github.com/citation-style-language/schema/raw/master/csl-citation.json }(Husnan Enny Pudjiastuti, 1996, p. 73). Leverage Leverage means measuring the companys ability to fulfill its financial obligations. It can be that leverage is measure how far the company uses debt ADDIN CSL_CITATION { citationItems : [ { id : ITEM-1, itemData : { author : [ { dropping-particle : , family : Husnan, given : Suad, non-dropping-particle : , parse-names : false, suffix : }, { dropping-particle : , family : Enny Pudjiastuti, given : , non-dropping-particle : , parse-names : false, suffix : } ], edition : Pertama, id : ITEM-1, issued : { date-parts : [ [ 1996 ] ] }, publisher : Unit Penerbit dan Percetakan (UPP) AMP YKPN, publisher-place : Yogyakarta, title : Dasar-Dasar Manajemen Keuangan, type : book }, uris : [ http://www.mendeley.com/documents/?uuid=561254b1-8c37-4dae-9f07-9552249e0f60 ] } ], mendeley : { formattedCitation : (Husnan Enny Pudjiastuti, 1996), manualFormatting : (Husnan Enny Pudjiastuti, 1996, p. 70), plainTextFormattedCitation : (Husnan Enny Pudjiastuti, 1996), previouslyFormattedCitation : (Husn an Enny Pudjiastuti, 1996) }, properties : { noteIndex : 9 }, schema : https://github.com/citation-style-language/schema/raw/master/csl-citation.json }(Husnan Enny Pudjiastuti, 1996, p. 70). Public Ownership Public ownership is the proportion of share ownership owned by the public of the companys shares ADDIN CSL_CITATION { citationItems : [ { id : ITEM-1, itemData : { author : [ { dropping-particle : , family : Arthana, given : Ronny, non-dropping-particle : , parse-names : false, suffix : } ], container-title : Jurnal Ilmiah Mahasiswa FEB UB, id : ITEM-1, issue : 2, issued : { date-parts : [ [ 2012 ] ] }, page : 1-14, title : Pengaruh Karakteristik Perusahaan Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan (CSR) Pada Perusahaan Yang Terdaftar Di Indeks LQ45 Bursa Saham Indonesia (BEI), type : article-journal, volume : 1 }, uris : [ http://www.mendeley.com/documents/?uuid=848daaaf-51e9-409e-b044-80ae139493e6 ] } ], mendeley : { formattedCitation : (Arthana, 2012), plainTextFormattedCitation : (Arthana, 2012), previouslyFormattedCitation : (Arthana, 2012) }, properties : { noteIndex : 9 }, schema : https://github.com/citation-style-language/schema/raw/master/csl-citation.json }(A rthana, 2012). The bigger the share which is owned by the public, the more information will be explained, the investors want to get more information about its investment and make sure that it is safely managing then the obligation will be fulfilled. Industry Sensitivity Industry sensitivity can be interpreted as how big the influence of industrial activity that is directly related to the environment ADDIN CSL_CITATION { citationItems : [ { id : ITEM-1, itemData : { author : [ { dropping-particle : , family : Winarsih, given : Arga Mustika, non-dropping-particle : , parse-names : false, suffix : } ], id : ITEM-1, issued : { date-parts : [ [ 2015 ] ] }, title : Pengaruh Media Online , Sensitivitas Industri Dan Struktur Corporate Governance Terhadap Kualitas Environmental Disclosure Governance (Studi Pada Perusahaan High Profile di BEI), type : report }, uris : [ http://www.mendeley.com/documents/?uuid=d495d810-1aa1-41f2-8dc4-6690588eae85 ] } ], mendeley : { formattedCitation : (Winarsih, 2015), plainTextFormattedCitation : (Winarsih, 2015), previouslyFormattedCitation : (Winarsih, 2015) }, properties : { noteIndex : 10 }, schema : https://github.com/citation-style-language/schema/raw/master/csl-citation.json }(Winarsih, 2015).

The Need for Change Management in Coca Cola

The Need for Change Management in Coca Cola The company was established by Dr. John Stith Pemberton -a local pharmacist in Atlanta on May 8, 1886. It was first sold in Jacobs pharmacy for 5 cents per glass. Initially, Coca-cola was sold as a drug for curing minor diseases like dyspepsia, morphine addiction, and headache. Asa Griggs Candler acquired a stake in Pembertons company in 1887 and incorporated it as the Coca-Cola Company in 1888. Now, Coco-cola is one of the largest manufacturer, distributer and marketer of non-alcoholic beverage concentrates and syrups in the world. Coca Cola products bearing the companys trademark are now being sold in more than 200 countries around the world. The company owns or licence more than 450 brands, including diet and light beverages, waters, enhanced waters, juice, teas, coffees, and energy and sports drinks. The company step on blending raw material, packaging in canisters and shipping the finished products to bottlers. The bottling partners of coco-cola range from international and publ icly traded business to small, family owned operations. The bottling partners hold 90,500 associates to carry on the product to more than 200 million customers. The company had introduced at least 29 new lines of products from October 2004-August 2007 alone In 2009, the company generated revenue of $31billion with $6.8 billion net income. This company has fully understands the importance of innovation in business is the Coca-Cola Company Introduction Change management is a continuous process and it is followed by many organisations on a routine basis (Schroeder and Self, 2008). This process aims at attaining successful strategies, manpower and process for an organisation. The management of an organisation usually goes for a change mainly because of its stiff competition in market due to globalisation factor, technological innovation and demographic trend. Quite few people disagree with the concept but few say that the organisation is performing well by managing the major changes inside the organisation. Greenwood Hinings, 1988 state that organization needs to survive and in order to do so they anticipate and adapt to these changes through strategies including organizational redesign. This adoption of strategies leads to the change in the culture of the organisation. (Schroeder and Self, 2008 cite Collins, 2001) stating that organizations which fail to adapt or do not respond to the changes required in a timely fashion are prone to the risk of losing their market share to competitors, the further implications could be that they might lose key employees or lose the support of the shareholders and in extreme situations even demise. They also outlined two major challenges that the organisations face. The first would be to recognize the need for change and the second which is more significant is how to deploy strategies formulated to implement the changes recognised. If the change implementation is planned properly, then the chances of the failures are reduced a lot and it could also prevent the aftermaths of the failed change process such as reduced employee morale or diminished commitment. Need for strategic change in an organisation Coco-cola Company is one of the popular manufacturer and distributor of Non-alcoholic beverages.   It operates in many parts of the world and provides services to different customers. Today, many companies are using new approach for their products to reach more target market and to ensure that they can survive with the globalisation challenge. For this, the company needs to develop a new change process for sustaining in world market and facing the stiff competitors. The current state of Coca Cola stores in Hong Kong is pretty good and it is still one of the top distributors of soft drinks in Hong Kong. However, if it will be compared to other Coca Cola convenience stores in the world the marketing, inventory, and performance of workforce is not equivalent to other Coca Cola company. For that, the company decides to increase the efficiency of the marketing and inventory, as well as the productiveness of workforce through implementing change management programmes for maintaining stan dards and sustaining in world market. If the changes are applied within the management then in future there would be an increase in the company output. Factors driving the change: The main aim of Coca-Cola is to meet and satisfy the needs of customers with excellent product manufacturing and distribution.   The change management of this company is very fragile since they predicted that there are some marketing challenges in the near future that they need to face.  In-order to access the changes in Coca-Cola Company, there should a concrete identification of issues attached with company. The radical change process will affect the employees and other stakeholders of Coca-Cola Company. Basically, the route of the change is towards the development of workforce and not on the services. Since, the company has already established a reputation of delivering good services in the market. The change is also about the possible financial problems that the company may face in the near future.   From this discussion, the following figure shows the force-field analysis of the change management procedures suggested to the application of change management within Coca Cola Company. Force-Field Analysis From this analysis, it is clearly seen that the computed forces to change is much higher compared to the forces against change.   Force-field analysis is one of the most important tools used in change management (Bass, I. 2009). Meaning to say, the plan is quite logical with respect to possible opposition.   Actually, change management is basically defined as the formulation and assimilation of change in a methodical process (Kotter, J. P., Schlesinger, L.A. 1979). Meaning, the major objective of change management which is the introduction of new systems in the work organisation therefore the change project is normal to companies engaged in change management. Similarly, this can be compared to the adoption of new marketing strategies. Businesses like Coca-Cola Company must normally undergo change in order to evolve to a higher level of for instance, stability, management or production. Coca- Cola Company always wanted to have an extreme development. The Chief Executive Officer o f Coca-Cola may include changing the companys mission, reforming business operations, application of new technologies, major group efforts, or adoption of new programs.   Usually, the organisation is encouraged on settling on change management due to external influences, usually termed as the environment (Nickols, 2004). Thus, change management can alternately be defined as the response of different business to changes brought about by environmental influences in which organisations have minimal or absolutely no control over. Perhaps the space between the new organisation design and implementing it into reality is the whole coverage of organisation change and development. However, certain skills must be present from the initiators of change so as to successfully implement their project. Thus, managers need to have the necessary abilities not only on detecting what needs to be changed but also how to introduce the change effectively. System to involve stake holders The change process are relied on the whole organisation, which means various parties likely affected by change involving the increase in efficiency of marketing and inventory, as well as the effective work-force of employees. Stakeholders pertain to the parties linked to the business firm who stand to experience benefits or adverse effects from the change (Friedmand, 2007, p. 172). Identifying the stakeholders and the respective interests is important to develop ways of wining over these various stakeholders who are likely to contribute to the success of the planned change. Determining stakeholders or the parties affected by the change together with the impact of the change to these parties is also important in prioritizing stakeholder interests as well as the resolution of issues faced by the stakeholders. (French Delahaye, 1996, p. 22) Involving stake holders in change management strategies There are a number of stakeholders in the planned change falling under either internal or external stakeholders. First is top management of the organization who decide on the change, direct strategy implementation, and carry accountability for the outcomes of the change. Second are middle managers who are minimal affected by the change and comprise implementers of the tasks constituting change. Third are employees also affected by the change and serve as the movers in process of change. These three stakeholders also constitute internal stakeholders as they form part of the organization and directly experience and participate in the change process. Fourth are bottlers associates of the company who could be affected by the change of product. Fifth are investors and investment parts providing capital needed in the change process. Sixth are customers for whom the change is directed and from whom the impact of change is assessed. These last three stakeholders comprise external stakeholders by not being part of the organization. These stakeholders influence the change indirectly but could influence the success of the change management activity. The most important tool is the analytical tool is the resource dependence theory (Frooman, 1999, p. 191) that classified the relationship between the firm and stakeholders into four types, which are 1) firm power, 2) high interdependence, 3) low interdependence, and 4) stakeholder power. The nature of the relationship determines the issues requiring resolution to manage effectively stakeholders. The core idea of this analytical tool is the recognition of the limited self-sufficiency of business firms so that they have to rely on their environment to address difficulties. Firm-Stakeholder Relationship Stakeholders Firm Power Middle Managers, Employees, Stakeholder Power Customers, Top Management High Interdependence Investors and Investment Parties Low Interdependence Suppliers The implementation of this analytical tool shows the stakeholder priority of the organization in achieving the planned change in the context of resource accumulation. Since the company has strong dependence on investors and investment parties as source of capital and investors also rely on the company to experience returns. This means that the company should develop mutual positive relationship with investors and investment parties. Since the power of stakeholder is high in the case of customers and top management, which means that the company should consider the important roles of top management in directing change policy and customers in justifying the area of change.    Resistance to change The main success of implementation the change is achieved by identifying and understanding the factors which block the implementation process. Kotter (1996, p. 3) described blocks as the entirety of the hindrances and issues experienced by business firms in the course of implementing change. The unaddressed resistance may lead to severe delays, accumulation of additional costs and even failure in implementing the change. Resistance finds explanation through the transition curve (Fisher, 2001). The resistance for establishing the changes in marketing, inventory and performance of personal in Coco-cola Hong-Kong will rely entirely on managers and employees of the organisation. It also restructures the organisation by making some changes in the management by removing some employees or position or by adding some more employees or reassignment employees. This situation builds up a fear in the minds of employees and managers. The change also includes in hiring new employees, which can be perceived as a threat by existing employees. In particular, there are many sources which could resist the planned change. The employees have some fear on their employment status if any changes are implemented. So, the initial response of employees will be on fighting against the change to prevent their actual positions. On the other hand, it can create a positive attitude on employees that the new change will secure their position after implementing the changes. Employees experience more safety by improving their skills and knowledge and in order to finish their work effectively. Still another is the different perspectives of managers and employees towards the purpose and impact of the planned change. The different in opinion could divide support for the change. Last is the adverse perception towards the change because of lack of consultation. The implementation of change without sufficient consultation, based on the perspective of managers and employees, could develop negative regard towards the change. Kotters model of change Kotters model provides eight reasons why process of change in an organization fails. It means that if these eight reasons for failure is removed or their impact is minimized a successful change process is possible. These eight steps can broadly divided into three categories as preparation (steps 1-4), action (steps 5-7) and grounding (step 8). So Kotters model can be used to assess the change process in Coco-cola Company: 1.) Establish a sense of urgency: The senior management of coco-cola realised that a change in their system of operations was necessary in order for them to grow in business. Hence the coco-cola Hong-Kong firm did not delay in addressing the issue and realised the need for technological innovation and new marketing strategies required in the company operations. These were the internal factors that the company was sorting out after reviewing the financial report of the convenience stores. All in all, it can be said that the sense of urgency was established. 2.) Form a powerful guiding coalition: The second step is to create a strong guiding coalition. The management of coco-cola formed a team of experts to help in guiding the change process of the management. 3.) Creating a vision: The expert team appointed by the management presented a new vision for favouring the success and growth of the organisation. They also suggested some strategies to achieve the vision on a short period of time. 4.) Communicating the Vision: The management created a vision for the change and it is very important for the company to communicate the vision to its employees. The company planned to increase the productiveness of work force. So, this may create a conflicts or misunderstanding between management and employees of the company in communicating vision. The top management should properly guide the employees in how to respond that change. 5.) Empowering others to act on the vision: In this step the Coco-cola management was completely failed because they didnt empower employees to implement that vision. Employees werent encouraged to take any risks without the approval of the management and they were not allowed to take decisions at their own. Even management never used to welcome any new ideas from the employees during the branch meetings. 6.) Planning for and creating short term wins: Here management needed to motivate its staff members by creating short-term targets for them with a degree of low failure. But this wasnt the case. There was no short-term win strategy planned by the management and it was more focused on achieving the yearly targets of profit. So employees were totally neglected in the change process and nothing was done to motivate them like salary increase, bonuses, etc 7.) Consolidating improvements and producing still more change: For implementation of new vision the top management needs to change the systems and policies of coco-cola which didnt support that change. But this wasnt done. The employees who were more responsible to implement change were neither promoted or the company didnt hire any additional people for carrying on the vision. Coco-cola tried to execute change with help of the existing employees 8.) Institutionalizing new approaches: Coco-cola had realised the need of new strategies to implement change and also introduced incentives for the employees who would implement the change successfully. The company also saw to it that they communicated what they wanted from the employees successfully through conferences, emails and meetings. Overcoming Resistance to change In change management, the resistance of employees in firm is usual expected. However, overcoming the resistance is important in order to implement the required changes in the management strategies. According to Kotter and Schlesinger (1979) there are six approaches that an organisation can use in dealing with the resistance by the workforce and these are: Education and Communication- In order to overcome the resistance in Coca-Cola the employees should be educated and informed regarding the changes within the company before implementation and also to prevent incorrect information that will surround the work area. Participation and Involvement- employees should be involved with planned changes in management programmes of the company because once they become involved the employees will not resist but instead will participate in the changes that will be undertaken. Facilitation and Support- Some employees will resist the changes because they are unable to adjust with the new programmes implemented by the management to avoid resistance the management must support the employees that are having a hard time with the changes, establishing a support system will help and assist the employees to adjust quickly. Negotiation and Agreement- Coca-Cola should talk and negotiate with employees, and during the talks the management must discuss the incentives they will receive once they accepted the changes in the management strategies. Manipulation and Co-option- if the other approaches didnt work inviting the union leader to participate and be a representation in the change process will aid in overcoming the resistance to change. Explicit and Implicit Coercion- if all approaches didnt work then the last step would be forcing them to accept the implemented changes and threaten them that if they will not comply the employees will lose their jobs.   Conclusion Change management is basically defined as the formulation and assimilation of change in a methodical process. The major objective of change management is the introduction of innovative means and systems in the work organisation. This can similarly be compared to the application of certain information technologies in the company or the adoption of new marketing strategies. Businesses must normally undergo change in order to evolve to a higher level of for instance, stability, management or production. Appointing a new head officer, for example, can greatly enhance his subordinates based on his management principles and personality.   From these discussions, we may conclude that change management is a process in which all companies undergo. This is an important procedure because it enables the organisation to make decisions that will be advantageous and beneficial to the company. In addition, organisations that are open to change are generally more successful compare to companies tha t resist it. In a globalise market, new technologies and procedure are emerging rapidly, in order to keep up with this progress a company must be willing to adapt to management changes. The international, as well as, the local market has a very stiff competition, therefore in order to be on top change management must be utilised by companies. Coca-Cola is one of the best examples of companies that utilised change management efficiently and have yielded positive results. The evidence is the dominance of Coca-Cola in the soft drink industry not just in Asia but all over the world.