Walt Disney Company s Corporate Strategy - 1805 Words

Christopher Lippert Professor Potter MGMT4850-C1 12 October 2015 Case 3 What is Walt Disney Company’s corporate strategy? Walt Disney is a famous name known to families across the globe. It has plenty of well known famous characters primarily animated cartoons. Animation and cartoons are not the only thing that Disney is well known across the globe for though. Disney builds strong family brand in the entertainment industry. Disney is not just a cartoon and animation producing company. Disney is a corporation that includes media network, theme parks and resorts, studio entertainment, consumer products, and interactive media. It is very diverse in the entertainment industry. The target customer for Disney is the entire family. International expansion and highly diversified strategy Disney consists of Disney theme parks not just in America, but Asia and Europe too. Disney wants growth internationally and it is. Disney has built a lot of different things in different industries but has been able to connect them all together. The Walt Disney Company has diversified into hotels and resorts, theme parks, cruise ships, television networks, animated motion picture, consumer products, and more. Walt Disney Company’s corporate strategy was centered on creating high quality family content, taking advantage of technological innovations to make entertainment experience more enjoyable, and their international expansion mentioned previously. Disney’s corporate level strategy isShow MoreRelatedWalt Disney Companys Mission Statement1134 Words   |  5 Pagesentertainment that the Walt Disney Company has created. Countless public relations professionals wonder, How can such a vast Fortune 500 company creates such intimate relationships with consumers? The answer is simple, The Walt Disney Company has a top of the line in-house public relations team that work tirelessly to create, implement and cultivate strategic PR campaigns and internal company policy that draws consumers into the gates of their empire. The Walt Disney World Company has grown substantiallyRead MoreDisney Corporation : A Media And Entertainment Corporation931 Words   |  4 PagesINTRODUCTION The Walt Disney Company is a media and entertainment corporation that is centered in the United States but also spans across North America, Europe, Asia- Pacific, and Latin America. Disney has five main components in which it operates, which includes media networks, parks and resorts, studio entertainment, consumer products, and interactive. The media network component of Disney Corporation includes broadcast and cable television networks, television production operations, televisionRead MoreWalt Disney s Corporate Strategy988 Words   |  4 Pages1. What is the Walt Disney Company s corporate strategy? (20 pts) †¢ â€Å"The Happiest Place on Earth†! Walt Disney’s corporate strategy focuses a lot on the family. They want to achieve family focuses content with the uses of technology to create an experience that will be the most memorable. Another key point of their strategy is to widen their reach of families on a more international scale. Being better than the competition has placed Walt Disney in the forefront. Media networks, theme parks, studioRead MoreDisney s Corporate Strategy For Long Term1314 Words   |  6 Pages-------------------------------- Title Page Page 2 --------------------------------------------------------------------------------------Table of Contents Page 3 ------------------------------------------------------------------------- Disney s Corporate Strategy Page 4 ----------------------------------------------------------------------------- Assessment of long-term Page 5 -------------------------------------------------------------- Assessment of Competitive Strengths Page 7 ----------Read MoreDisney : Disney s Strongest Presence1007 Words   |  5 PagesDisney Offices/Locations Disney’s strongest presence is in the United States. However, with operations in more than 40 countries, approximately 166,000 employees and cast members around the world, Disney sets the standard for the future of entertainment. Whether it s Disney or Marvel, ESPN or PIXAR – in China or the United States, India or Argentina, Russia or the United Kingdom, the people of The Walt Disney Company create content and experiences in ways that are relevant to the many culturesRead MorePorters Five Forces Model1257 Words   |  5 PagesPorters Five Forces Model 4.1 Threat of new entrants Since the Walt Disney Company has been able to find a very unusual niche within the industry, the barriers to entry are relatively high. The company is to grow in the position over a long term period , and must be from the departments of research and development ( R D) , marketing and finance to develop . Dependence on past experience , the company representatives know , to a large extent what the target customer wants. Threat of substitutesRead MoreWalt Disney1491 Words   |  6 PagesThe Walt Disney Company: The Entertainment King Case Analysis The Walt Disney Company is one of the largest media and entertainment corporations in the world. Disney is able to create sustainable profits due to its heterogeneity, inimitability, co-specialization and immense foresight. It also successfully uses synergy to create value across its many business units. After its founder Walter Disney s death, the company started to lose its ground and performance declined. Michael Eisner became CEORead MoreDisney : Disney And Pixar Merger1187 Words   |  5 PagesDisney and Pixar Merger The strategy that led to the merger of Disney and Pixar was a simply business deal with two companies that has been working with each other for years. Pixar initially began in 1979 as the Graphics Group, as a piece of the Computer Division of Lucasfilm. The gathering basically chipped away at PC equipment. Apple prime supporter Steve Jobs later obtained the company in 1986. The studio sought after its fantasy of making the first PC vivified full-length film. In 1995, PixarRead MoreDisney Company : Domestic Operations And U.s. Economy Growth1724 Words   |  7 PagesThe Walt Disney Company – Domestic Operations and U.S. Economy Growth Walt Disney is an American company, born and flourished in America. The business operation of the company is massive in the United States with its main headquarters in Burbank, California. There are five major business segments of the company; they are Media Network, Parks and Resorts, Studio Entertainment, consumer product, and interactive media and Walt Disney together with its subsidiaries and affiliates is a diversified globalRead MoreDisney s Current Published Mission Statement Essay1357 Words   |  6 PagesDisney s Current Published Mission Statement Walt Disney s does not have a distributed vision articulation. On the other hand, their current Statement of purpose can be found on their site (The Walt Disney Company, n.d.). The current statement of purpose peruses as takes after: The mission of The Walt Disney Company is to be one of the world s driving makers and suppliers of diversion and data. Utilizing our arrangement of brands to separate our substance, administrations and customer items,

Hamlet and the Oedipus Complex - 1537 Words

William Shakespeare’s Hamlet is a play about indecision, apprehension, and inner turmoil. Hamlet, the main protagonist, struggles within himself, attempting to muster the courage to avenge his father’s death by the hand of the current King, Claudius, who is also his late father’s brother. There seem to be many possible reasons for Hamlet’s delay in doing so. However, the one theory that answers all the questions is that Hamlet was possessed by his own Oedipus Complex , that is, he was deeply in love with his own mother, Gertrude. This can be seen throughout the play in several ways. Hamlet was understandably upset over his father’s death, but he was much less angry about the loss than he was disgusted with his uncle. His â€Å"girlfriend†Ã¢â‚¬ ¦show more content†¦(V, 1, 192-202) He seems apathetic towards the bodies in the graveyard, and even after Ophelia’s corpse was brought to the grave, he did not react until Gertrude said: Sweets to the sweet: farewell! I hoped thou shouldst have been my Hamlets wife; I thought thy bride-bed to have deckd, sweet maid, And not have strewd thy grave. (V, I, 230-235) It was then that Laertes leapt into Ophelia’s grave, and presumably for the sake of attaining Gertrude’s approval, Hamlet did as well. His feelings for Ophelia were of lower priority than pleasing his mother. He stayed with Ophelia for a sexual release, and when Ophelia found out that Hamlet did not love her and what he was using her for, she went mad. The songs she sang before the time of her death were about her dead father, Polonius He is dead and gone, lady/He is dead and gone/At his head a grass-green turf/ At his heels a stone, (IV, 5, 34 37). I hope all will be well. We must be patient: but I/ cannot choose but weep, to think they should lay him/ i the cold ground. My brother shall know of it (IV, 5, 73 75). This shows how Ophelia was consumed and eventually driven to madness and suicide by the influence of controlling men over her life: Hamlet was the catalyst to her destruction. King Hamlet’s spirit seemed to be well-aware of the nature of Hamlet’s love for Gertrude.Show MoreRelatedOedipus Complex in Hamlet Essay805 Words   |  4 PagesOedipus Complex in Hamlet In Shakespeare’s Hamlet, Hamlet’s personality can be explained by the Oedipus Complex. Throughout the play there are many times where he proves that he has Oedipus Complex. Oedipus Complex was not around at the time that that Hamlet was written. It just shows that Shakespeare saw the same personality complex’ as Freud. Freud first named the Oedipus Complex Theory in his book , An Interpretation of Dreams, in 1899. Freud states The child takes both of its parents,Read MoreEssay on Hamlet and the Oedipus Complex1319 Words   |  6 Pages When examining Hamlet through the lens of the Oedipus complex, it is critical to first define and thoroughly explain the Oedipus complex, then to apply it to Hamlets relationships, before a final conclusion is reached. The Complexities of the Complex Before one can understand the Oedipus complex, one must understand Sigmund Freuds theory on infantile sexuality. The Internet Encyclopedia of Philosophy points out that the roots of Freuds theory can be foundRead More Hamlet and the Oedipus Complex Essay1229 Words   |  5 PagesHamlet and the Oedipus Complex  Ã‚     Ã‚  Ã‚   William Shakespeares play Hamlet contains very similar elements to Sophocles Greek Myth, Oedipus Rex. In the late 1800s through early 1900s, a Doctor based out of Vienna, named Sigmund Freud, developed a theory based on the events of the play Oedipus Rex, which has since been coined the Oedipus Complex.   Ernest Jones also applied his knowledge of Freudian psychology and wrote a persuasive paper suggesting that Hamlet cannot kill his uncle Claudius becauseRead More Hamlet and the Oedipus Complex Essay1218 Words   |  5 PagesHamlet and the Oedipus Complex Hamlet is the typical kind of son almost every father and mother would want: intelligent, loving, caring, strong and loyal. Yet, some scholars believe that he is just another emotional character, defying our eyes to think that his acts are innocent, when his real purpose is to take his mother for himself. This gives scholars, like Ernest Jones, the impression that Hamlet’s actions were encouraged by an Oedipus complex, characterized by feelings of intenseRead More Hamlets Oedipus Complex Essays1190 Words   |  5 Pagescharacters who embody the elements of the classic Oedipus Complex, that of a son with an undue and unhealthy attachment to his mother. D.H Lawrenceamp;#8217;s Sons and Lovers, along with other early modernist works, shows how a sonamp;#8217;s bond to his mother can lead to that characteramp;#8217;s major downfall. Even earlier than works of the late 19th Century does the Oedipus Complex appear, in this case, William Shakespeareamp;#8217;s Hamlet. Shakes peareamp;#8217;s play about the Prince ofRead MoreOedipus-Complex In Shakespeares Hamlet1962 Words   |  8 Pagespsychoanalyst, Sigmund Freud, coined the term Oedipus-complex in 1910 when explaining a child’s psychological desire for his opposite-sex parent. Coupled with this desire is a bitter sense of rivalry with the parent of the same sex, as the child feels envious and compelled to win the affection of the coveted parent (Freud 19). Shakespeare’s Hamlet, although written prior to the development of this theory, is often referenced as a prime example of this complex. Hamlet famously descends into madness in an effortRead MoreOedipus Complex, Penis Envy, And The Tragedy Of Hamlet2112 Words   |  9 PagesAlthough it may be a difficult idea to grasp, Shakespeare employed some of Sigmund Freud’s concepts long before Freud himself was even a figment of his ancestor’s imagination. Many scholars discuss Shakespeare’s use of the Oedipus complex, pe nis envy, and many of Sigmund Freud’s other famous concepts and while a proxy family may not be a Freudian concept specifically, it certainly enables them. Many of Shakespeare’s works include a main character who has a strained relationship with their parentRead MoreLove Thy Mother Most Peculiar Essay1235 Words   |  5 PagesAbstract: Does Hamlet, a character in Shakespeare’s historical play, have the Oedipus complex? Do we truly understand the semantics of the Oedipus complex? Many critics have had different opinions. According to Webster’s online dictionary, the Oedipus complex is a â€Å"complex of males; desire to possess the mother sexually and to exclude the father; said to be a source of personality disorders if unresolved† (Websters Online Dictionary, 2011). Another source defines the Oedipus complex as â€Å"the attachmentRead More No Oedipal Complex Found in Hamlet Essay1150 Words   |  5 Pages No Oedipal Complex Found in Hamlet nbsp; Some scholars have interpreted Hamlets actions throughout Hamlet to be the Oedipus complex.nbsp; According to the story of Oedipus, Laius, his father, learned from an oracle that Oedipus would kill him.nbsp; Laius then left his son to die on a mountain, where he was found and raised by the King of Corinth.nbsp; Oedipus was also told that he would someday kill his own father, and fled Corinth because he believed that the King of Corinth was his realRead MoreFree Hamlet Essays : Freud s Hamlet 1656 Words   |  7 PagesFreud applied to Hamlet Hamlet is another one of William Shakespeare plays that ends in a tragedy, the play is about Hamlet, a prince from Denmark. Hamlets father was killed by Hamlets uncle, Hamlet wants to avenge his father’s death. Like most of Shakespeare’s plays Hamlet ends as a tragedy, everyone dyeing except Horatio, Hamlets friend, and the kingdom ends up in the power of Norway. According to Sigmund Freud’s the three structure of the human mind are the id, the superego and the ego. The id

Case1 free essay sample

University of Arizona Accounting 554 Case #1: Dow Chemical Company Goals: †¢ †¢ †¢ Become familiar with a set of financial statements including auditor opinion and significant accounting policy footnote, Perform basic analysis and interpretation of the financial statements, including common size analysis, Recognize the role of estimates in the measurement of financial statement amounts. Refer to the Dow Chemical financial statements for 2008 in answering the following: 1. Who are Dow’s external auditors? assignment help for diploma in childrens services Describe the two opinion letters that Dow received for 2008. In your own words, explain what these opinions mean. Why are the opinions dated several weeks after Dow’s year end? 2. Use a spreadsheet to construct common-size income statements for 2008 and 2007. (Note: common-size income statements are constructed by dividing each income statement item by net sales). a. Was the company profitable during 2008? During 2007? What does the term â€Å"profitable† mean? b. Compute the percentage change in net sales and in net income from 2007 to 2008. . What are Dow’s major categories of expenses? Do you detect any significant changes in the structure of costs in 2008 compared to 2007? d. Dow shows separate lines on the income statement for goodwill impairment losses, restructuring charges, purchased in-process research and development charges, acquisition-related expenses and asbestos-related credits. Why do you think the company chose not to just include all of the amounts within the line item for â€Å"Selling, general and administrative expenses. † e. How would the percentages you computed in part 2b change if the items in part 2d were excluded in measuring net income. (Caution: the items listed in part 2d are shown before tax, while net income is shown after tax. Be sure to adjust your answer accordingly, using the statutory tax rate of 35%. ) f. In a single sentence, explain why Dow’s profitability changed from 2007 to 2008. 3. Refer to the statement of cash flows. a. Compare Dow’s net income to cash provided by operations. Why is there such a big difference? b. Explain why (i) depreciation and (ii) restructuring charges are shown as positive additions to cash provided by operations. c. Based on reading the statement of cash flows, explain in a short paragraph where Dow got cash in 2008 and what happened to that cash. 4. Several sections in Note A to the Dow financial statements refer to estimates (either using the word â€Å"estimate† or otherwise). Make a list of accounting estimates mentioned in Note A. Which of these estimates do you think is most critical in measuring Dow’s income? The Dow Chemical Company and Subsidiaries PART II, Item 8. Financial Statements and Supplementary Data. Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of The Dow Chemical Company: We have audited the accompanying consolidated balance sheets of The Dow Chemical Company and subsidiaries (the Company) as of December 31, 2008 and 2007, and the related consolidated statements of income, stockholders equity, comprehensive income and cash flows for each of the three years in the period ended December 31, 2008. Our audits also included the financial statement schedule listed in the Index at Item 15 (a) 2. These financial statements and financial statement schedule are the responsibility of the Companys management. Our responsibility is to express an opinion on the financial statements and financial statement schedule based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of The Dow Chemical Company and subsidiaries at December 31, 2008 and 2007, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. As discussed in Note U to the consolidated financial statements, the Company is involved in litigation related to an agreement to acquire Rohm and Haas Company. The Company has disclosed that it is reasonably possible that the ultimate resolution of the litigation could have a material adverse impact on the Company’s consolidated financial statements. As discussed in Note A to the consolidated financial statements, effective December 31, 2006, the Company changed its method of accounting for defined benefit pension and other postretirement plans to conform to Statement of Financial Accounting Standards No. 58. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Companys internal control over financial reporting as of December 31, 2008, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our rep ort dated February 17, 2009 expressed an unqualified opinion on the Companys internal control over financial reporting. s/ DELOITTE TOUCHE LLP Deloitte Touche LLP Midland, Michigan February 17, 2009 64 The Dow Chemical Company and Subsidiaries Consolidated Statements of Income (In millions, except per share amounts) For the years ended December 31 Net Sales Cost of sales Research and development expenses Selling, general and administrative expenses Amortization of intangibles Goodwill impairment losses Restructuring charges Purchased in-process research and development charges Acquisition-related expenses Asbestos-related credit Equity in earnings of nonconsolidated affiliates Sundry income net Interest income Interest expense and amortization of debt discount Income before Income Taxes and Minority Interests Provision for income taxes Minority interests share in income Net Income Available for Common Stockholders Share Data Earnings per common share basic Earnings per common share diluted Common stock dividends declared per share of common stock Weighted-average common shares outstanding basic Weighted-average common shares outstanding diluted See Notes to the Consolidated Financial Statements. 2008 $ 57,514 52,019 1,310 1,969 92 239 839 44 49 54 787 89 86 648 1,321 667 75 $ 579 $ $ $ 0. 62 0. 62 1. 68 930. 4 939. 0 2007 $ 53,513 46,400 1,305 1,864 72 578 57 1,122 324 130 584 4,229 1,244 98 $ 2,887 $ $ $ 3. 03 2. 99 1. 635 953. 1 965. 6 2006 $ 49,124 41,526 1,164 1,663 50 591 177 959 137 185 616 4,972 1,155 93 $ 3,724 $ $ $ 3. 87 3. 82 1. 50 962. 3 974. 4 65 The Dow Chemical Company and Subsidiaries Consolidated Balance Sheets (In millions, except share amounts) At December 31 2008 Assets 2007 Current Assets Cash and cash equivalents Marketable securities and interest-bearing deposits Accounts and notes receivable: Trade (net of allowance for doubtful receivables 2008: $124; 2007: $118) Other Inventories Deferred income tax assets current Total current assets Investments Investment in nonconsolidated affiliates Other investments Noncurrent receivables Total investments Property Property Less accumulated depreciation Net property Other Assets Goodwill Other intangible assets (net of accumulated amortization 2008: $825; 2007: $721) Deferred income tax assets noncurrent Asbestos-related insurance receivables noncurrent Deferred charges and other assets Total other assets Total Assets Liabilities and Stockholders Equity Current Liabilities Notes payable Long-term debt due within one year Accounts payable: Trade Other Income axes payable Deferred income tax liabilities current Dividends payable Accrued and other current liabilities Total current liabilities Long-Term Debt Other Noncurrent Liabilities Deferred income tax liabilities noncurrent Pension and other postretirement benefits noncurrent Asbestos-related liabilities noncurrent Other noncurrent obligations Total other noncurrent liabilities Minority Interest in Subsidiaries Preferred Securities of Subsidiaries Stockholders Equity Common stock (authorized 1,500,000,000 shares of $2. 50 par value each; issued 981,377,562 shares) Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock at cost (2008: 57,031,291 shares; 2007: 41,011,018 shares) Net stockholders equity Total Liabilities and Stockholders Equity See Notes to the Consolidated Financial Statements. 66 $ ,800 3,782 3,074 6,036 368 16,060 3,204 2,245 276 5,725 48,391 34,097 14,294 $ 1,736 1 5,944 3,740 6,885 348 18,654 3,089 2,489 385 5,963 47,708 33,320 14,388 3,394 829 3,900 658 614 9,395 $ 45,474 3,572 781 2,126 696 2,621 9,796 $ 48,801 $ 2,360 1,454 3,306 2,227 637 88 411 2,625 13,108 8,042 746 5,466 824 3,208 10,244 69 500 $ 1,548 586 4,555 1,981 728 117 418 2,512 12,445 7,581 854 3,014 1,001 3,103 7,972 414 1,000 2,453 872 17,013 (4,389) (2,438) 13,511 $ 45,474 2,453 902 18,004 (170) (1,800) 19,389 $ 48,801 The Dow Chemical Company and Subsidiaries Consolidated Statements of Cash Flows (In millions) For the years ended December 31 2008 $ 579 $ 2007 2,887 $ 2006 3,724 Operating Activities Net Income Available for Common Stockholders Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Purchased in-process research and development charges Provision (Credit) for deferred income tax Earnings of nonconsolidated affiliates less than (in excess of) dividends received Minority interests share in income Pension contributions Net loss (gain) on sales of investments Net gain on sales of property, businesses and consolidated companies Other net loss (gain) Goodwill impairment losses Restructuring charges Asbestos-related credit Excess tax benefits from share-based payment arrangements Changes in assets and liabilities: Accounts and notes receivable Inventories Accounts payable Other assets and liabilities Cash provided by operating activities Investing Activities Capital expenditures Proceeds from sales of property, businesses and consolidated companies Acquisitions of businesses Purchases of previou sly leased assets Investments in consolidated companies Investments in nonconsolidated affiliates Distributions from nonconsolidated affiliates Proceeds from sales of ownership interests in nonconsolidated affiliates Purchases of investments Proceeds from sales and maturities of investments Cash used in investing activities Financing Activities Changes in short-term otes payable Payments on long-term debt Proceeds from issuance of long-term debt Purchases of treasury stock Proceeds from sales of common stock Payment of deferred financing costs Excess tax benefits from share-based payment arrangements Distributions to minority interests Dividends paid to stockholders Cash used in financing activities Effect of Exchange Rate Changes on Cash Summary Increase (Decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year See Notes to the Consolidated Financial Statements. 2,236 44 (260) 49 75 (185) 1 (127) 15 239 837 (54) (8) 2,853 812 (1,062) (1,333) 4,711 (2,276) 318 (63) (336) (331) 6 (855) 800 (2,737) 825 (760) 1,453 (898) 72 (70) 8 (45) (1,563) (978) 68 1,064 1,736 2,800 2,190 57 494 (348) 98 (183) (143) (108) (75) 577 (31) (1,002) (712) 799 (16) 4,484 (2,075) 211 (143) (30) (867) (78) 63 30 (1,952) 1,983 (2,858) 1,220 (1,354) 21 (1,462) 379 31 (51) (1,512) (2,728) 81 (1,021) 2,757 $ 1,736 2,074 104 (343) 93 (575) (19) (130) (12) 586 (177) (11) 242 (758) (129) (515) 4,154 (1,775) 296 (208) (111) (103) 6 10 (1,405) 1,383 (1,907) 23 (1,359) (739) 223 11 (57) (1,404) (3,302) 6 (1,049) 3,806 $ 2,757 $ 67 The Dow Chemical Company and Subsidiaries Consolidated Statements of Stockholders Equity (In millions) For the years ended December 31 2008 $ 2,453 902 (30) 872 18,004 579 (1,556) (14) 17,013 71 (182) (111) 723 (502) 221 (989) 16 (3,278) (4,251) 25 (452) 179 (248) (4,389) (1,800) (898) 260 (2,438) $ 13,511 $ 2007 2,453 830 72 902 16,987 2,887 (1,548) (32) (290) 18,004 42 29 71 (12) 735 723 (2,192) (74) 1,277 (989) (73) 20 78 25 (170) (970) (1,455) 625 (1,800) $ 19,389 $ 2006 2,453 661 169 830 (1) 1 14,719 3,724 (1,438) (18) 16,987 11 31 42 (663) 651 (12) (1,312) 1,147 (165) 165 (2,192) (2,192) 15 (127) 39 (73) (2,235) (559) (746) 335 (970) $ 17,065 Common Stock Balance at beginning and end of year Additional Paid-in Capital Balance at beginning of year Stock-based compensation Balance at end of year Unearned ESOP Shares Balance at beginning of year Shares allocated to ESOP participants Balance at end of year Retained Earnings Balance at beginning of year Net income Dividends declared on common stock (Per share: $1. 68 in 2008, $1. 635 in 2007 and $1. 50 in 2006) Other Impact of the adoption of FIN No. 48 Balance at end of year Accumulated Other Comprehensive Loss Unrealized Gains on Investments at beginning of year Unrealized gains (losses) Balance at end of year Cumulative Translation Adjustments at beginning of year Translation adjustments Balance at end of year Minimum Pension Liability at beginning of year Adjustments Balance at end of year, prior to Dec. 31, 2006 adoption of SFAS No. 158 Reversal of Minimum Pension Liability under SFAS No. 158 Recognition of prior service cost and net loss under SFAS No. 58 Pension and Oth er Postretirement Benefit Plans at beginning of year Net prior service (cost) credit Net gain (loss) Pension and Other Postretirement Benefit Plans at end of year Accumulated Derivative Gain (Loss) at beginning of year Net hedging results Reclassification to earnings Balance at end of year Total accumulated other comprehensive loss Treasury Stock Balance at beginning of year Purchases Issuance to employees and employee plans Balance at end of year Net Stockholders Equity See Notes to the Consolidated Financial Statements. 68 The Dow Chemical Company and Subsidiaries Consolidated Statements of Comprehensive Income (In millions) For the years ended December 31 Net Income Available for Common Stockholders Other Comprehensive Income (Loss), Net of Tax (tax amounts shown below for 2008, 2007, 2006) Unrealized gains (losses) on investments: Unrealized holding gains (losses) during the period (net of tax of $(70), $42, $30) Less: Reclassification adjustments for net amounts included in net income (net of tax of $(13), $(22), $(16)) Cumulative translation adjustments (net of tax of $(22), $5, $(39)) Minimum pension liability adjustments (net of tax of $ -, $ -, $657) Defined benefit pension plans: Prior service cost arising during period (net of tax of $ -, $(53)) Net gain (loss) arising during period (net of tax of $(1,561), $630) Less: Amortization of prior service cost included in net periodic pension costs (net of tax of $8, $5) Less: Amortization of net loss included in net periodic pension costs (net of tax of $13, $67) Net gains (losses) on cash flow hedging derivative instruments (net of tax of $(49), $14, $(39)) Total other comprehensiv e income (loss) Comprehensive Income (Loss) See Notes to the Consolidated Financial Statements. $ 2008 579 $ 2007 2,887 $ 2006 3,724 (158) (24) (502) (4) (3,307) 20 29 (273) (4,219) $ (3,640) 70 (41) 735 (88) 1,150 14 127 98 2,065 4,952 61 (30) 651 1,147 (88) 1,741 5,465 $ $ 69 The Dow Chemical Company and Subsidiaries Notes to the Consolidated Financial Statements Table of Contents Note A B C D E F G H I J K L M N O P Q R S T U Summary of Significant Accounting Policies and Recent Accounting Pronouncements Restructuring Acquisitions Inventories Property Nonconsolidated Affiliates and Related Company Transactions Goodwill and Other Intangible Assets Financial Instruments Fair Value Measurements Supplementary Information Commitments and Contingent Liabilities Notes Payable, Long-Term Debt and Available Credit Facilities Pension Plans and Other Postretirement Benefits Leased Property and Variable Interest Entities Stock-Based Compensation Limited Partnership Preferred Securities of Subsidiaries Stockholders’ Equity Income Taxes Operating Segments and Geographic Areas Subsequent Events Page 70 75 82 83 83 84 86 88 94 95 96 103 105 109 109 113 113 114 114 117 124 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of The Dow Chemical Company and its subsidiaries (â€Å"Dow† or the â€Å"Company†) were prepared in accordance with accounting principles generally accepted in the United States of America (â€Å"U. S. GAAP†) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for on the equity basis. Use of Estimates in Financial Statement Preparati on The preparation of financial statements in accordance with U. S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Foreign Currency Translation The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in â€Å"Accumulated other comprehensive income (loss)† (â€Å"AOCI†). Where the U. S. ollar is used as the functional currency, foreign currency gains and losses are reflected in income. 70 The Dow Chemical Company and Subsidiaries Notes to t he Consolidated Financial Statements Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in â€Å"Other noncurrent obligations† at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets as â€Å"Accounts and notes receivable Other. † Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. Cash and Cash Equivalents Cash and cash equivalents include time deposits and readily marketable securities with original maturities of three months or less. Financial Instruments The Company calculates the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. The Company utilizes derivative instruments to manage exposures to currency exchange rates, commodity prices and interest rate risk. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or AOCI, depending on the use of the derivative and whether it qualifies for hedge accounting treatment under the provisions of Statement of Financial Accounting Standards (â€Å"SFAS†) No. 133, â€Å"Accounting for Derivative Instruments and Hedging Activities,† as amended and interpreted. Gains and losses on derivative instruments that qualify as cash flow hedges are recorded in AOCI, to the extent the hedges are effective, until the underlying transactions are recognized in income. To the extent effective, gains and losses on derivative and nonderivative instruments used as hedges of the Company’s net investment in foreign operations are recorded in AOCI as part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and hedges of net investment in foreign operations, if any, are recognized in income immediately. Gains and losses on derivative instruments designated and qualifying as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the results included in income. Inventories Inventories are stated at the lower of cost or market. The method of determining cost for each subsidiary varies among last-in, first-out (â€Å"LIFO†); first-in, irst-out (â€Å"FIFO†); and average cost, and is used consistently from year to year. Property Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable asset s and is calculated using the straightline method. For most assets capitalized through 1996, the declining balance method was used. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. Impairment and Disposal of Long-Lived Assets The Company evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. 71 The Dow Chemical Company and Subsidiaries Notes to the Consolidated Financial Statements NOTE A – Summary of Significant Accounting Policies and Recent Accounting Pronouncements – Continued Asset Retirement Obligations The Company records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less. Investments Investments in debt and marketable equity securities, including warrants, are classified as trading, available-for-sale, or heldto-maturity. Investments classified as trading are reported at fair value with unrealized gains and losses included in income. Those classified as available-for-sale are reported at fair value with unrealized gains and losses recorded in AOCI. Those classified as held-to-maturity are recorded at amortized cost. The cost of investments sold is determined by specific identification. The Company routinely reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value. The excess of the cost of investments in subsidiaries over the values assigned to assets and liabilities is shown as goodwill and is subject to the impairment provisions of SFAS No. 142, â€Å"Goodwill and Other Intangible Assets. † Absent any impairment indicators, recorded goodwill is tested annually for impairment by comparing the fair value of each reporting unit, determined using a discounted cash flow method, with its carrying value. Revenue Sales are recognized when the revenue is realized or realizable, and has been earned. Approximately 98 percent of the Company’s sales are related to sales of product. The remaining 2 percent are related to the Company’s service offerings, insurance operations, and licensing of patents and technology. Revenue for product sales is recognized as risk and title to the product transfer to the customer, which usually occurs at the time shipment is made. Substantially all of the Company’s products are sold FOB (free on board) shipping point or, with respect to countries other than the United States, an equivalent basis. As such, title to the product passes when the product is delivered to the freight carrier. Dow’s standard terms of delivery are included in its contracts of sale, order confirmation documents and invoices. Freight costs and any directly related associated costs of transporting finished product to customers are recorded as â€Å"Cost of sales. The Company’s primary service offerings are in the form of contract manufacturing services and services associated with Dow AgroSciences’ termite solution, SENTRICONâ„ ¢ Termite Colony Elimination System. Revenue associated with these service offerings is recognized when services are rendered, accordi ng to contractual agreements. Revenue related to the Company’s insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. Revenue related to the initial licensing of patents and technology is recognized when earned; revenue related to running royalties is recognized according to licensee production levels. Legal Costs The Company expenses legal costs, including those legal costs expected to be incurred in connection with a loss contingency, as incurred. Severance Costs The Company routinely reviews its operations around the world in an effort to ensure competitiveness across its businesses and geographic areas. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under Dow’s ongoing benefit arrangements. These severance costs are accrued (under SFAS No. 112, â€Å"Employers’ Accounting for Postemployment Benefits – an amendment of FASB Statements No. and 43†) once management commits to a plan of termination including the number of employees to be terminated, their job classifications or functions, their locations and the expected completion date. Income Taxes The Company accounts for income taxes using the asset and liability method. Und er this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted rates. Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued. 72 The Dow Chemical Company and Subsidiaries Notes to the Consolidated Financial Statements The Company recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in â€Å"Income taxes payable† and the long-term portion is included in â€Å"Other noncurrent obligations† in the consolidated balance sheets. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. Earnings per Common Share The calculation of earnings per common share is based on the weighted-average number of the Company’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share reflects the effect of all potential dilutive common shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. RECENT ACCOUNTING PRONOUNCEMENTS In June 2006, the Financial Accounting Standards Board (â€Å"FASB†) issued FASB Interpretation (â€Å"FIN†) No. 8, â€Å"Accounting for Uncertainty in Income Taxes,† which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with SFAS No. 109, â€Å"Accounting for Income Taxes. † Th e interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN No. 48 was effective for fiscal years beginning after December 15, 2006. On January 1, 2007, the Company adopted the provisions of FIN No. 48. The cumulative effect of adoption was a $290 million reduction of retained earnings. See Note S for further information on income taxes. In September 2006, the FASB issued SFAS No. 158, â€Å"Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans an amendment of FASB Statements No. 87, 88, 106, and 132(R). † The Statement, which was effective December 31, 2006 for the Company, requires employers to recognize the funded status of defined benefit postretirement plans as an asset or liability on the balance sheet and to recognize changes in that funded status through comprehensive income. See Note M for further information on pension plans and other postretirement benefits. In September 2006, the FASB issued SFAS No. 57, â€Å"Fair Value Measurements,† which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Statement applies under other accounting pronouncements that require or permit fair value measurements and was effective for fiscal years be ginning after November 15, 2007. In February 2008, the FASB issued FASB Staff Position (â€Å"FSP†) FAS No. 157-2, which delayed the effective date of SFAS No. 157 for nonfinancial assets and nonfinancial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis, to fiscal years beginning after November 15, 2008. On January 1, 2008, the Company adopted the portion of SFAS No. 57 that was not delayed, and since the Company’s existing fair value measurements are consistent with the guidance of the Statement, the partial adoption of the Statement did not have a material impact on the Company’s consolidated financial statements. Since the Company’s existing fair value measurements for pension assets are also consistent with the guidance of the Statement, the adoption of the Statement for pension and postretirement plans at the December 31, 2008 measurement date did not have a material impact on the Company’s consolidated financial statements. In accordance with FSP FAS No. 157-2, the provisions of SFAS No. 157 were not applied to the long-lived asset impairments described in Note B or to the goodwill impairments described in Note G. The Company does not expect the adoption of the Statement for nonfinancial assets and nonfinancial liabilities on January 1, 2009 to have a material impact on the Company’s consolidated financial statements. See Note I for expanded disclosures about fair value measurements. In March 2008, the FASB issued SFAS No. 161, â€Å"Disclosures about Derivative Instruments and Hedging Activities, an amendment of SFAS No. 133. † The Statement requires enhanced disclosures about an entity’s derivative and hedging activities. The Statement is effective for fiscal years and interim periods beginning after November 15, 2008, which is January 1, 2009 for the Company; early adoption is encouraged. The Company’s enhanced disclosures are included in Note H. In September 2008, the FASB issued FSP FAS No. 133-1 and FIN No. 5-4, â€Å"Disclosures About Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarifi cation of the Effective Date of FASB Statement No. 161. † The FSP amends and enhances the disclosure requirements for sellers of credit derivatives (including hybrid instruments that have embedded credit derivatives) and financial guarantees. The FSP was effective for reporting periods ending after November 15, 2008. The Company currently does not hold any of these instruments, thus the FSP did not have an impact on the disclosures in the Company’s consolidated financial statements at December 31, 2008. 73 The Dow Chemical Company and Subsidiaries Notes to the Consolidated Financial Statements NOTE A – Summary of Significant Accounting Policies and Recent Accounting Pronouncements – Continued In October 2008, the FASB issued FSP FAS No. 157-3, â€Å"Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active. † The FSP clarifies the application of SFAS No. 157, â€Å"Fair Value Measurements,† when the market for a financial asset is not active. The FSP was effective upon issuance, including reporting for prior periods for which financial statements had not been issued. The adoption of the FSP did not have a material impact on the Company’s consolidated financial statements. See Note I for further information on fair value measurements. In December 2008, the FASB issued FSP FAS No. 140-4 and FIN No. 46R-8, â€Å"Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities. † The FSP, which is effective in the first reporting period ending after December 15, 2008, requires additional disclosures concerning transfers of financial assets. The FSP also requires additional disclosures concerning an enterprise’s involvement with variable interest entities and qualifying special purpose entities under certain conditions, none of which apply to the Company. The Company’s required disclosures concerning transfers of financial assets are included in Note J. In January 2009, the FASB issued FSP Emerging Issues Task Force (â€Å"EITF†) Issue No. 99-20-1, â€Å"Amendments to the Impairment Guidance of EITF Issue No. 99-20. † The FSP provides clarification on other-than-temporary impairment assessments for securitized assets within the scope of EITF Issue No. 99-20, â€Å"Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets. † The FSP is effective in the first reporting period ending after December 15, 2008. The implementation of the EITF did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Issued But Not Yet Adopted In December 2007, the FASB revised SFAS No. 141, â€Å"Business Combinations† (â€Å"SFAS No. 141R†), to establish revised principles and requirements for how entities will recognize and measure assets and liabilities acquired in a business combination. The Statement is effective for business combinations completed on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company will apply the guidance of the Statement to business combinations completed on or after January 1, 2009. In December 2007, the FASB issued SFAS No. 160, â€Å"Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51. The Statement establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. The Statement is effective for annual reporting periods beginning on or after December 15, 2008. T he Company does not expect the adoption of the Statement on January 1, 2009 to have a material impact on the Company’s consolidated financial statements. The Company will incorporate presentation and disclosure requirements outlined by SFAS No. 160 in the Company’s Quarterly Report on Form 10-Q for the period ending March 31, 2009. In April 2008, the FASB issued FSP FAS No. 142-3, â€Å"Determination of the Useful Life of Intangible Assets. The FSP amends the factors an entity should consider in developing renewal or extension assumptions used in determining the useful life of recognized intangible assets under SFAS No. 142, â€Å"Goodwill and Other Intangible Assets. † The FSP must be applied prospectively to intangible assets acquired in fiscal years beginning after December 15, 2008. The Company will apply the guidance of the FSP to intangible assets acquired on or after January 1, 2009. In May 2008, the FASB issued FSP Accounting Principles Board (â€Å"AP B†) Opinion No. 14-1, â€Å"Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement). The FSP applies to convertible debt securities that, upon conversion, may be settled by the issuer fully or partially in cash. The FSP, which is effective January 1, 2009 for the Company, is to be applied retrospectively to all past periods presented. The Company has not issued convertible debt securities; therefore, the FSP is not anticipated to have an impact on the Company’s consolidated financial statements. In June 2008, the FASB issued FSP EITF Issue No. 03-6-1, â€Å"Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. † The FSP addresses whether instruments granted in share-based payment ransactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two- class method. The FSP affects entities that accrue dividends on share-based payment awards during the awards’ service period when the dividends do not need to be returned if the employees forfeit the award. This FSP is effective for fiscal years beginning after December 15, 2008, which is January 1, 2009 for the Company. The Company does not have share-based payment awards that contain rights to nonforfeitable dividends, thus this FSP is not anticipated to have an impact on the Company’s consolidated financial statements. In September 2008, the FASB ratified the consensus reached by the EITF with respect to EITF Issue No. 08-5, â€Å"Issuer’s Accounting for Liabilities Measured at Fair Value With a Third-Party Credit Enhancement. † The Issue, which is effective in the first reporting period beginning on or after December 15, 2008, instructs issuers of a liability with a third-party credit enhancement that is inseparable from the liability to treat the liability and the credit enhancement as two units of accounting, and provide related disclosures. The Company does not carry any liabilities with inseparable third-party credit enhancements, thus the Issue is not anticipated to have an impact on the Company’s consolidated financial statements. 74

Management Practices and Corporate Entrepreneurship

Question: Discuss about the Management Practices and Corporate Entrepreneurship. Answer: Introduction The Australian Human Resource Institute has been representing the professionals of the people management. Almost 20,000 Australian members are associated with the institute to provide the enriched knowledge about the methods developing the career, advancing the HR professions, and supporting the HR professionals (Ahri.com.au 2017). The institute maintains the standardized certification for providing fruitful training and education services to Australian members that help in developing the business skills. This institute belong to the World Federation of People Management and Asia Pacific Federation of Human Resource. This AHRI model of excellence is a graphical representation that sum up the knowledge of the HR practitioners and their expectations accordingly. This is viewed as per the expectations of the peer in context of the capabilities and the behavior of the employees (De Brito and De Oliveira 2016). There are many of the competencies of this excellence model that are as: business driven, a strategic architect, an expert practitioner, an ethical and credible activist, a workforce and workplace designer, a cultural and a change leader and the stake holder and mentor coach. The study will provide the insightful knowledge about the business driven that have the significant impact on the business skill development. The study will also provide the discussion on ethical and credible activism by formulating strategic architect. Business driven The concept of business driven is such a competitive advantage that includes the innovation, quality management and cost engineering (Omer and Ahmed 2016). This is such an advantage that is responsible for having such human resources that actually contributes to the management and proves to be the key driver that is responsible for success in an organization. This is entailed by the capability of business driven by adopting the strategic competencies. The importance of human resource management to have this capability of being business driven can be explained as below: Beneficial in understanding the business, this is an essential function of the HR in an organization to understand the business. In other way, HR needs some of resources which are helpful in understanding the business. The potential for the HR to engage with the training and development is also provided when the company needs to update the skills and other competencies of the employees on an organization. The human resource management has to take the responsibility of deciding this initiative formulation process. (Hassan 2016). Engaging with the business: this is another major function which is responsible for managing the human resources to have the capability of being business driven. The organization should take the help of some experts who help in running the business by with some of the new ideas and innovation. Let us say, the assumption of HR graduate and dealing in the organization, such capability of being business driven are possessed by me. I am able to understand the business functions effectively by way of having a formal mechanism to completely engage into the business. I prefer for opting such ideas or strategies that are out of the box, rather than having the traditional approach to perform the role of the HR position in an organization effectively. Ethical and credible activism The ethical and the credible activism is the capability, this is responsible for focusing upon the work with taking the relevant actions along with the desired results. In other words, the HR must undergo the function of traditional and the transactional work effectively and without any flaw (Adewale and Anthonia 2013). The outcomes of these activities have a direct impact upon the performance of HR and other function such as marketing, sales and the production. The function of credible activism entails these capabilities. The importance for a human resource management to have this capability can be explained as below: Adopting the capabilities of credible activist should support the manager. This includes the situation that shall lead to fulfill the basic concepts such as inventory controlling, production scheduling, account receivable along with the basic of income statement and the balance sheet. This mechanism can help in influencing others; this is done by having same view in this context. Such situation is beneficial and important to both the parties (Qehaja and Kutllovci 2015). Assumption: I have applied as a HR position; I have such capabilities that are required by the HR to be a credible activist. This includes having a strong ethical system and internal value that helps the organization. Otherwise, this could lead the people towards acquiring fraudulent and corruptive behaviour. Such temptations degrade the performance standard and hence lead to deprived decisions that shall affect everyone. Strategic architect This is the capability that entails the mechanism that involves the business partners who align themselves with the HR function to form the effective business strategies. The human resource architect helps in defining the company with respect of the situations that are changing the market, socially and the economically (Muiswinkel 2013). Moreover, the ability to recognize the global and the local ongoing trends in the market that has an impact upon the business and hence respond accordingly. The importance of the human resource management to have these capabilities of strategic architect is as follows: It helps in defining the desired outcomes that are most valued by the CEOs of the organization along with the line managers. This is also important because it helps in measuring and communicating the values that is created by the HR activities (Ibrahim and Zulkafli 2016). It masters the basic decisions related to finance and other decision of the human resource department that influence the financial position of the company. Assumption: As a graduate HR, I possess some HR capabilities and it signifies that I am prompt in doing rather than talking about the business allies and strategic architect. As this requires the HR personnel to step and think out of the box and take decisions according to the experiences they have had. This in result helps in increasing the financial literacy and business both. The correct financial decisions shall help with the correct decision-making (Albrecht et al. 2015). However, the qualitative arguments shall only be credible when the understanding upon the quantitative side of the business. These are the assumption of the capabilities that shall be possessed by the HR personnel. References Adewale, O. and Anthonia, A., 2013. Impact of Organizational Culture on Human Resource Practices: A Study of Selected Nigerian Private Universities. Journal of Competitiveness, 5(4), pp.115-133. URL: https://www.cjournal.cz/files/154.pdf Ahri.com.au, 2017. About Us. [online] Ahri.com.au. Available at: https://www.ahri.com.au/about-us [Accessed 27 Mar. 2017]. URL: https://www.ahri.com.au/about-us Albrecht, S., Bakker, A., Gruman, J., Macey, W. and Saks, A., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35. URL: https://www.beanmanaged.com/doc/pdf/arnoldbakker/articles/articles_arnold_bakker_380.pdf De Brito, R. and De Oliveira, L., 2016. The Relationship Between Human Resource Management and Organizational Performance. Brazilian Business Review, 13(3), pp.90-110. URL: https://www.redalyc.org/pdf/1230/123045332005.pdf Hassan, S., 2016. Impact of HRM Practices on Employees Performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), pp.15-22. URL: https://hrmars.com/hrmars_papers/Article_03_Impact_of_HRM_Practices_on_Employees_Performance.pdf Ibrahim, H. and Zulkafli, A., 2016. Corporate governance, HRM practices and organizational performance. Socio-Economic Problems and the State, pp.1-11. URL: https://sepd.tntu.edu.ua/images/stories/pdf/2016/16hiiaop.pdf Muiswinkel, W., 2013. Human Resources Management and Training: Compilation of good practices in statistical offices. Compilation of good practices in statistical offices, 30(3), pp.11-23. URL: https://www.unece.org/fileadmin/DAM/stats/publications/HRMT_w_cover_resized.pdf Omer, N. and Ahmed, A., 2016. Human Resource Management Practices and Corporate Entrepreneurship: the Mediating Role of Organisational Commitment. International Business Management, 10(9), pp.1632-1638. URL: https://docsdrive.com/pdfs/medwelljournals/ibm/2016/1632-1638.pdf Qehaja, A. and Kutllovci, E., 2015. The Role of Human Resources in gaining Competitive Advantage. Journal of Human Resource Management, 17(59), p.47. URL: https://www.jhrm.eu/wp-content/uploads/2015/03/JournalOfHumanResourceMng2015vol18issue2-pages-47-61.pdf