Coca Cola Auditing Project

AIM 6334 Auditing and Assurance Service Research Project [pic] Li-chung Lee Kung Ya Cheng Jui-Ping Lin Table of Contents I. Introduction:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. P. 3~4 II. Ch 1: The client acceptance/continuation process, including establishing an understanding with the client†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦P. 4~5 III. Ch2: Obtaining an understanding of the entity and its environment, including internal control. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦P. 5~6 IV. Ch3: Preliminary Engagement Activities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ P. 6 V. Ch4: Assess Risk and Establish Materiality†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. P. 7~8 VI. Ch5: Consider Internal Control†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦P. 9~11 VII. Ch6: Plan the Audit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. P. 11~14 VIII. Ch7: Complete the Audit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. P. 15 IX. Ch8: Evaluate results and issue an audit report†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. P. 16 X. Reference†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦P. 17 XI. Attachments†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. P. 18~23 I. Introduction: The Coca-Cola Company (Symbol: KO) was incorporated in September 1919 under the laws of the State of Delaware and succeeded to the business of a Georgia corporation with the same name that had been organized in 1892. The Company is the manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Finished beverage products bearing its trademarks, sold in the United States since 1886, are now sold in more than 200 countries. Along with Coca-Cola, the Company markets nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite. It manufacture beverage concentrates and syrups, which the Company sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as finished beverages, which the Company sells to distributors. The Company owns or licenses more than 450 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. The Company is one of numerous competitors in the commercial beverages market. Of the approximately 53 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to the Company account for approximately 1. 5 billion. [1]The reason we chose this company is because it has enormous market share in countries around the world. In order to expand its market share, The Coca-Cola Company cooperated with the major fast food chain company. Today, The Coca-Cola Company become a well known and globalization company. We want to know how it can be sustainability and venerability company in the world. From its reports, we also found out it has tremendous benefit from its advertising. In this paper, we concern that how the auditors build a good audit plan in such large company and such complex business. II. Ch1: Understanding of the client There are five major reasons that we consider to accept The Coca Cola Company to be out client. 2] Management Integrity Based upon assertions of management ranging from the existence of an element in the financial statements to disclosures of information regarding that element, we examines The Coca Cola Company financial statements that are no responsible practitioner would knowingly place reliance on assertions of a client's management which had questionable integrity. Relationshi ps with Other Professionals We will follow the GAAS requirement to communicate with the predecessor auditor prior to committing to provide audit services to The Coca Cola Company. Matters of interest include the opinions issued by the predecessor auditor, resignation of the prior auditor or the refusal to stand for reelection, disagreements between the prior auditor and management regarding accounting principles or auditing procedures and any â€Å"opinion shopping† issues. Inquiry of other professionals having dealings with the client should, however, not be limited to the predecessor auditors. Furthermore, we will ask bankers, lawyers, and other professionals can provide important valuable information about The Coca Cola Company and its management. Risk of Association The Coca Cola Company engaged in legitimate business activities that do not violate the laws of the jurisdiction where the company is headquartered or carries on its business. After reviewing its financial statement, we believed that its financial is stability and liquidity. Technical Competence The auditors who will perform the auditing are well trained due to the complexities of the modern business world. And also, the auditors have the necessary technical competence to perform the required work or risk potential liability or damage to reputation. Professional Fees Audit fees charged to The Coca Cola Company will base on commensurate with the risks to the providing the services requested. The fees will cover adequately the cost of the services provided. III. Ch2: Obtaining an understanding of the entity and its environment In the 21st century, the beverage industry has been become one of the fastest developing industries and the competition in this industry become significantly. Even in this market share campaign, The Coca Cola Company still remains its leader position in the beverage industry. The Coca-Cola Company and six of their largest bottling partners developed a strategy for sustainability in 2002. That plan focuses on the role and impact of the Coca-Cola system in four key areas: workplace, marketplace, environment and community. Furthermore, The Coca-Cola Company uses this strategy to guide the approach to sustainability issues and to report the progress. [3] In last year, when lots of companies in the industry are going down, The Coca-Cola Company still delivering consistent performance. For its internal control, the company follows the independent and experience requirement of NYSE and SEC for many years. And the audit committee has been composed entirely of non-management directors. [4] IV. Ch3: Preliminary Engagement Activities Every member in our audit team is well trained and performs follow by the conduct of AICPA and SEC. Regarding to the ethical and independence matter, we has three major requirements. 1. Our auditor have to sign the contract to make sure that he/she will not take a position in the The Coca-Cola Company in two years 2. We will not hire the auditor who uses to work in The Coca-Cola Company. 3. We required the auditor to report to the partner who has special relationship with the The Coca-Cola Company. V. Ch4: Risk and Establish Materiality The Coca-Cola Company is a globalization company; it faces various issues. For example, Obesity concerns, water scarcity and poor quality, increased competition, and evolving consumer preferences are risks having the potential to have a material adverse effect on our client. To be an auditor, we assess client’s RMM (risk of material misstatement) with understanding the client entity and industry. After audit risk is set, we go further to assesses inherent and control (environment) risks. In addition, assessing client’s inherent and control risks which can influence the level of detection risk directly. Base on the case, we make an assumption in order to maintain the audit risk. The following table shows numerical and non-numerical example of audit risk. Audit Risk |RMM |DR | | |IR |CR | | |5% |50% |20% |50% | |low |moderate |low |moderate | â€Å"Audit risk on most engagements is much lower than 5%. [5]According to conservative assumptions that we decide inherent risk is assessed at moderate (50%). The Coca-Cola Company is a multinational company, so there are not only lots of accounts receivable which come from different branches in the world, but also lots of inventories which were made or stored in different factories and warehouses in the world. As the reasons above, The Coca-Cola Company may face some risks, such as is there reason to believe that receivables include significant balances in foreign currencies? Is there reason to believe that the existence of the accounts receivables which generate from different oversea branch companies or subsidiaries? Are there significant foreign currency inventories balance? Are manufactured inventories transferred between locations, divisions, or subsidiaries within a consolidated entity? Are there material-inventories owned by the client but held by others (e. g. , on consignment with customers)? Therefore, we should assess the inherent risk in moderate level. On the basis of our experience, after we read the predecessor auditor’s report and our client’s past annual report. We presumed that our client has well internal control so that we can assess the control risk in low level. Overall, in order to keep the audit risk in low level, we decided our detection risk in moderate level. Besides, in our client’s industry there are some companies that try to inflate their revenue and assets so in our audit we will focus on operating cycle. In other words, we will put emphasis on auditing accounts receivable and inventory to make sure there are no major accounting schemes or fraud that will mislead the presentation of financial statements. Materiality â€Å"Materiality includes both the nature of the misstatement, as well as the dollar amount of misstatement, and must be judged in importance by financial statement users. †[6] In our engagement, we will use the nature and dollar amount to decide what materially is for our client as the follow chart. Account |Accounts receivable |Inventory | |Materiality | | | |Nature |1. Recognize revenue in wrong period |1. Easy to thief | | |2. The existence of the A/R |2. Hard to count the ending balance | | |3. Risk of foreign currency exchange | | |Dollar amount |In our firm’s policy, in manufacture industry we adopt the 10% of net income after|The same as left column. | | |tax to decide the materiality. For example, the net income 2007 multiply 10% | | | |$5,981M*10%=600M | | VI. Ch5: Consider Internal Control 1. Define Internal Control: According to the COSO’s definition of internal control, â€Å" a process, effected by an entity’s board of directors, management, and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (1) reliability of financial reporting, (2) compliance with applicable laws and regulations, and (3) effectiveness and efficiency of operations. †[7] 2. Identify some controls that would be relevant to the audit. Account |Accounts receivable |Inventory | |Control | | | |Authority |Inquire about credit procedure for new customers (Valuation) |When shipping the Inventory to vendor or supplier, the | | |From a population of approved sales orders (and returns), select a|warehouseman should get the proper authority shipping | | |sample and examine documents for evidence of credit check |document. | |(Valuation) | | |Custody |Prepare daily cash summa ry (copy to A/R and Accounting) |Observe physical controls over inventory. | | |Segregation of duty: Mailroom & cashier |Segregation of duty: Warehouse & Shipping | |Recording keeping |Trace a sample of shipping documents (selection from pre-numbered |The perpetual records should reconcile to the general | | |shipping documents) to sales invoice, sales journal, and A/R |ledger. | |master file (Completeness) |The reconciliation of Inventory and the Lower or market| | |Match remittance advices and check deposit summary |price valuation should be review by proper accounting | | | |manager or management. | 3. Discuss the components of Internal Control: |Control environment |After we understand the internal control procedure and policy, we ensure that our client has ideal control| | |procedure, high ethical standard, and monitoring processes. | |Risk assessment |Risk exist in the oversea marketplace (in failures to merge China companies) | | |In failures to accurately record and report financial information. |Control activities |Authority | | |Custody | | |Segregation of duty | | |Recording keeping | |Information and Communication |Our client has good information and communication function including initiating, authorizing, recording, | | |processing, and reporting entity transactions, conditions, and events. |Monitoring |Our client use computer accounting software and system to assess the quality of other transaction and | | |operational controls over time. It includes the periodic assessment of both the design and operation of | | |controls on a timely basis. | 4. The elements involved in obtaining an understanding of Internal Control We should obtain an understanding of the five components of internal control sufficient to: A. Evaluating the design of relevant controls and determining whether they have been implemented. B. Assess the risk of material misstatement. C. Design the nature, extent, and timing of further audit procedures. 5. Access Control Risk We should assess the inherent risk in moderate level. On the basis of our experience, after we read the predecessor auditor’s report and our client’s internal control procedures. We can presume that our client has well internal control so we can assess the control risk in low level. 6. Managements Responsibilities and the auditors’ responsibilities under Section 404. | |Managements |The auditors | |Laws or standards |Sarbanes-Oxley Act of 2002 ( for publicly traded |Second standard of fieldwork | | |companies) |2. PCAOB Auditing Standard No. (AS 5) | |Responsibilities |In addition to certifying the company’s financial |Auditors must provide their opinion on the effectiveness of | | |statements (Section 302), management must also report on |client’s internal control. | | |the company’s internal control over financial reporting | | | |(Section 404). | | (Chris Linsteadt, 2008 Audit Class Slides ch6) VII. Ch6: Plan the Audit 1. Assess the need for specialists In our case, we should hire some com puter audit experts who can help our firm to make sure that our client’s accounting system is sate and correct. 2. Assess the possibility of illegal acts. Risk |The possibility of illegal acts | |Is there reason to believe that the existence of the accounts |There were some fake transactions which were made by management or employees. | |receivables which generate from different oversea branch companies or |If the sales don’t get proper credit authority, there will be huge bad debt | |subsidiaries? |expense in the future | |Are there material-inventories owned by the client but held by others |The management may try to inflate the sales in the end of year so he may try to| |(e. g. , on consignment with customers)? |recognize consignment as sales revenue. | |The management may use consignment to control the company’s ending inventory or| | |COGS. | |Are manufactured inventories transferred between locations, divisions,|The management may use complicated relat ed party transaction to generate fake | |or subsidiaries within a consolidated entity? |sales or ending inventory. | | |The employees may have chance to steal the coke formula or inventories. | 3. Identify related parties After we discussed with the management and checked the related party transactions, there is no material related party transaction in this engagement. 4. Conduct preliminary analytical procedures. |Accounts Receivable |Inventory | |Compare with industry rate to make sure our client’s A/R turnover rate and |Compare with industry rate to make sure our client’s inventory turnover | |days are reasonable. |rate and days are reasonable. | |Compare our client’s allowance for doubtful account policy with competitors’|Make sure the change in our client’s inventories is reasonable without | |policy to make sure the bad debt expenses are reasonable estimated. |material misstatement. |Make sure the change in our client’s A/R is reasonable without material | | |misstatement. | | 5. Consider additional value added services. After we obtain and understand our client’s internal control, we should detect our client’s internal control. We can prepare a feedback report to our client and help our client to improve their internal control or accounting system. Besides, when our client’s face s ome problems about new accounting standards, we could help our clients to train their accountants 6. Audit Plan and Audit program. Receivables | |Name of Client: | |Period: | | | |Estimated audit hours: | |Audit procedures | |Sign and date by | |Working paper Ref. | | | |auditors | | | |01. TEST PROPRIETY OF REVENUE RECOGNITION POLICIES AND PROCEDURES – Receivables [Validity, | | | | | |Cutoff] | | | | | |02. CONFIRM RECEIVABLES [Validity, Completeness, Recording, and Cutoff] [Q04 – No] | | | | | |03. TEST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND BAD DEBT EXPENSE [Valuation] | | | | | |04. TEST PRESENTATION OF RECEIVABLES [Presentation] | | | | | |05. TEST LATE CUTOFF OF SALES [Cutoff] [Q01A – Sales Invoices] | | | | | |06. TEST LATE CUTOFF OF SALES [Cutoff] [Q01A – Initial Records] | | | | | |07. ROLL-FORWARD TEST FOR RECEIVABLES TESTED PRIOR TO YEAR END [Validity, Completeness, | | | | | |Recording, Cutoff] | | | | | |08. TEST RECEIVABLES TO SUBSEQUENT CASH RECEIPTS [Validity, Completeness, Recording, Cutoff] | | | | | |09. TEST ALLOWANCES FOR SALES RETURNS AND DISCOUNTS [Valuation] | | | | | |10. TEST PRESENTATION OF RELATED-PARTY RECEIVABLES [Presentation] | | | | | |11. TEST VALUATION OF FOREIGN CURRENCY RECEIVABLES [Valuation] | | | | | |Reviewer : | |Sign: | |Date | 6. Audit Plan and Audit program. |Inventory | |Name of Client: | |Period: | | | |Estimated audit hours: | |Audit procedures | |Sign and date by | |Working paper Ref. | | |auditors | | | |01. OBSERVE AND TEST-COUNT INVENTORIES [Validity, Completeness, Recording, Cutoff, Valuation]| | | | | |02. TEST THE FINAL INVENTORY COMPILATION [Validity, Completeness, Recording, and Cutoff] | | | | | |03. TEST MARKET VALUATION RESERVES [Valuation] | | | | | |04. TEST PRESENTATION OF INVENTORY [Presentation] | | | | | |05. TEST LATE CUTOFF OF INVENTORY PURCHASES [Cutoff] [Q05A – Recorded Purchases] | | | | | |06. TEST EARLY CUTOFF OF DEBIT NOTES [Cutoff] | | | | | |07. TEST BOOK TO PHYSICAL ADJUSTMENTS [Validity, Completeness, Recording] | | | | | |08. ROLL-FORWARD TEST FOR INVENTORIES PRICE TESTED PRIOR TO YEAR END [Validity, Completeness, | | | | | |Recording, Cutoff] | | | | | |09. TEST ELIMINATION OF INTERCOMPANY PROFIT [Valuation] | | | | | |10. TEST BALANCES DENOMINATED IN FOREIGN CURRENCIES [Valuation] | | | | | |11. TEST PRESENTATION OF RELATED-PARTY BALANCES [Presentation] | | | | | |Reviewer : | |Sign: | |Date | VIII. Ch7: Complete the Audit The auditor’s responsibilities during the completion stage of the audit: â€Å"Before issuing the audit report, the auditor needs to: 1. Perform a final review of the audit to be sure the financial statements are fairly presented and the audit documentation supports the audit report 2. Assess the ability of the client to continue as a going concern, and 3. Make a final review of the auditor’s assessment of internal control based on evidence gathered and any material misstatements identified in the financial statement audit. In addition, we should get the management representation letter and letter of audit inquiry to make sure there are no material contingent liabilities and events subsequent to the financial statements and keep communicating with the audit committee. The follow data are made by assumption: Contingent Liabilities |Subsequent events | |Our client may lose the litigation about merger in oversea. It will cause a |Note disclosure: | |huge loss for our client. |On January  8, 2009, our Company sold substantially all of our interest in | | |Vonpar Refrescos S. A. (â€Å"Vonpar†), a bottler headquartered in Brazil. Total| | |proceeds from the sale were approximately $238  million, and we recognized | | |a gain on this sale of approximately $71  million. Prior to this sale, our | | |Company owned approximately 49  percent of Vonpar's outstanding common | | |stock and accounted for the investment using the equity method | |Our client is a multinational company so it may have the threat of | | |expropriation of assets in a foreign country. | | |Our client may get loss in the highly competitive nonalcoholic beverages | | |industry. If our client signs purchase and sale commitments with its | | |supplier, it may get a huge loss in the future. | | | |Other important investments which will change our client’s accounting | | |principle similar as above. | IX. Ch8: Evaluate results and issue an audit report Independent Auditor’s Report The Board of Directors and Stockholders The Coca-Cola Company: We have audited the consolidated balance sheets of the Coca-Cola Company and subsidiaries (the â€Å"Company†) as of December 31, 2007 and 2008, and the related consolidated statement of income, stockholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2008. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements bases 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 presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements refereed to above present fairly, in all material respects, the financial position of the Coca-Cola Company and subsidiaries as of December 31, 2007 and 2008, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2008, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of the Company’s internal control over financial reporting as of December 31, 2008, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission(COSO), and our report dated March 14, 2009 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Lee &Cheng &Lin LLP Dallas, U. S. A. March 14, 2009 X. References †¢ â€Å"The company description,† Market watch < http://www. marketwatch. om/tools/quotes/profile. asp? symb=ko> †¢ Deppe, Larry A. , â€Å"Client acceptance: what to look for and why. (Tips for accountants on deciding which new clients to accept) (Cover Story)†, The CPA Journal , May 1992, †¢ â€Å"Strategic vision†, The Coca Cola Company website à ¢â‚¬ ¢ â€Å"2008The proxy statement†, The Coca Cola Company website, †¢ Chris, Linsteadt, â€Å"2008 Audit Class Slides† †¢ Rittenberg, Schwieger, Johnstone. Auditing, A Business Risk Approach. Thomson&South-Western Publishing. 6th,2008 †¢ â€Å"SEC filing† The Coca Cola Company website Retrieved from the World Wide Web: XI. Attachment (Financial Statements) Consolidated Balance Sheet COCA COLA CO | | | | | |10-K | | | | | |02/28/2008 | | | | | |? | | | | | |Balance Sheet | | | | | |December 31, |2007. 00 |2006. 0 | |(In millions except par value) |? | |? | | |ASSETS |? |? |? |? | |CURRENT ASSETS |? |? |? |? | |Cash and cash equivalents |$4,093 |$2,440 | |Marketable securities |? |215 |? |150 | |Trade accounts receivable, less allowances |? |3,317 |? 2,587 | |of $56 and $63, respectively | | | | | |Inventories |? |2,220 |? |1,641 | |Prepaid expenses and other assets |? |2,260 |? |1,623 | |TOTAL CURRENT ASSETS |? |12,105 |? |8,441 | |INVES TMENTS |? |? |? |? | |Equity method investments: |? |? |? |? | |Coca-Cola Enterprises Inc. |? |1,637 |? 1,312 | |Coca-Cola Hellenic Bottling Company S. A. |? |1,549 |? |1,251 | |Coca-Cola FEMSA, S. A. B. de C. V. |? |996 |? |835 | |Coca-Cola Amatil Limited |? |806 |? |817 | |Other, principally bottling companies |? |2,301 |? |2,095 | |and joint ventures | | | | | |Cost method investments, principally |? |488 |? 473 | |bottling companies | | | | | |TOTAL INVESTMENTS |? |7,777 |? |6,783 | |OTHER ASSETS |? |2,675 |? |2,701 | |PROPERTY, PLANT AND EQUIPMENT net |? |8,493 |? |6,903 | |TRADEMARKS WITH INDEFINITE LIVES |? |5,153 |? |2,045 | |GOODWILL |? |4,256 |? |1,403 | |OTHER INTANGIBLE ASSETS |? |2,810 |? 1,687 | |TOTAL ASSETS |$43,269 |$29,963 | |LIABILITIES AND SHAREOWNERS EQUITY |? |? |? |? | |CURRENT LIABILITIES |? |? |? |? | |Accounts payable and accrued expenses |$6,915 |$5,055 | |Loans and notes payable |? |5,919 |? |3,235 | |Current maturities of long-term debt |? |133 | ? |33 | |Accrued income taxes |? |258 |? 567 | |TOTAL CURRENT LIABILITIES |? |13,225 |? |8,890 | |LONG-TERM DEBT |? |3,277 |? |1,314 | |OTHER LIABILITIES |? |3,133 |? |2,231 | |DEFERRED INCOME TAXES |? |1,890 |? |608 | |SHAREOWNERS EQUITY |? |? |? |? | |Common stock, $0. 25 par value; Authorized 5,600 |? |880 |? |878 | |shares; | | | | |Issued 3,519 and 3,511 shares, respectively | | | | | |Capital surplus |? |7,378 |? |5,983 | |Reinvested earnings |? |36,235 |? |33,468 | |Accumulated other comprehensive income |? |626 |? |(1,291) | |(loss) | | | | | |Treasury stock, at cost 1,201 and 1,193 |? |####### |? ####### | |shares, respectively | | | | | |TOTAL SHAREOWNERS EQUITY |? |21,744 |? |16,920 | |TOTAL LIABILITIES AND SHAREOWNERS EQUITY |$43,269 |$29,963 | Consolidated Income Statement |COCA COLA CO | | | | | |10-K | | | | | |02/28/2008 | | | | | |? | | | | |Income Statement | | | | | |Year Ended December 31, |2007. 00 |2006. 00 | |(In millions except per share data) |? | |? | | |NET OPERATING REVENUES |$28,857 |$24,088 | |Cost of goods sold |? |10,406 |? 8,164 | |GROSS PROFIT |? |18,451 |? |15,924 | |Selling, general and administrative expenses |? |10,945 |? |9,431 | |Other operating charges |? |254 |? |185 | |OPERATING INCOME |? |7,252 |? |6,308 | |Interest income |? |236 |? |193 | |Interest expense |? |456 |? 220 | |Equity income net |? |668 |? |102 | |Other income (loss) net |? |173 |? |195 | |Gains on issuances of stock by equity method |? |? |? |? | |investees | | | | | |INCOME BEFORE INCOME TAXES |? |7,873 |? |6,578 | |Income taxes |? |1,892 |? 1,498 | |NET INCOME |$5,981 |$5,080 | |BASIC NET INCOME PER SHARE |$2. 59 |$2. 16 | |DILUTED NET INCOME PER SHARE |$2. 57 |$2. 16 | |AVERAGE SHARES OUTSTANDING |? |2,313 |? |2,348 | |Effect of dilutive securities |? |18 |? |2 | |AVERAGE SHARES OUTSTANDING ASSUMING DILUTION |? |2,331 |? |2,350 | Consolidated Statements of Cash Flows COCA COLA CO | | | | | |10-K | | | | | |02/28/2008 | | | | | |? | | | | | |Cash Flows | | | | | |? | | | | | |? | | | | | |? | | | | | |? |? |? |? |? |Year Ended December 31, |2007. 00 |2006. 00 | |(In millions) |? | |? | | |? | | | | | |OPERATING ACTIVITIES |? |? |? |? | |Net income |$5,981 |$5,080 | |Depreciation and amortization |? |1,163 |? 938 | |Stock-based compensation expense |? |313 |? |324 | |Deferred income taxes |? |109 |? |(35) | |Equity income or loss, net of dividends |? |(452) |? |124 | |Foreign currency adjustments |? |9 |? |52 | |Gains on issuances of stock by equity investees |? |? |? |? | |Gains on sales of assets, including bottling |? |(244) |? (303) | |interests | | | | | |Other operating charges |? |166 |? |159 | |Other items |? |99 |? |233 | |Net change in operating assets and liabilities |? |6 |? |(615) | |Net cash provided by operating activities |? |7,150 |? |5,957 | |INVESTING ACTIVITIES |? ? |? |? | |Acquisitions and investments, principally |? |(5,653) |? |(901) | |beverage and bottling companies | | | | | | Purchases of other investments |? |(99) |? |(82) | |Proceeds from disposals of other investments |? |448 |? |640 | |Purchases of property, plant and equipment |? |(1,648) |? (1,407) | |Proceeds from disposals of property, plant |? |239 |? |112 | |and equipment | | | | | |Other investing activities |? |(6) |? |(62) | |Net cash used in investing activities |? |(6,719) |? |(1,700) | |FINANCING ACTIVITIES |? |? |? |? | |Issuances of debt |? 9,979 |? |617 | |Payments of debt |? |(5,638) |? |(2,021) | |Issuances of stock |? |1,619 |? |148 | |Purchases of stock for treasury |? |(1,838) |? |(2,416) | |Dividends |? |(3,149) |? |(2,911) | |Net cash provided by (used in) financing |? |973 |? (6,583) | |activities | | | | | |EFFECT OF EXCHANGE RATE CHANGES ON CASH |? |249 |? |65 | |AND CASH EQUIVALENTS | | | | | |CASH AND CASH EQUIVALENTS |? |? |? |? | |Net increase (decrease) during the year |? |1,653 |? |(2,261) | |Balance at beginning of year |? |2,440 |? 4,701 | |Balance at end of year |$4,093 |$2,440 | | | | | Consolidated Statements of Shareowners’ Equity |COCA COLA CO | | | | | |10-K | | | | | |02/28/2008 | | | | | |? | | | | |CONSOLIDATED STATEMENTS OF SHAREOWNERS#146; EQUITY | | | | | |Year Ended December 31, |2007. 00 |2006. 00 | |(In millions except per share data) |? | |? | | |? | | | | | |NUMBER OF COMMON SHARES OUTSTANDING |? |? |? |? | |Balance at beginning of year |? |2,318 |? |2,369 | |Stock issued to employees exercising stock |? |8 |? 4 | |options | | | | | |Purchases of stock for treasury 1 |? |(35) |? |(55) | |Treasury stock issued to employees exercising |? |23 |? |? | |stock options | | | | | |Treasury stock issued to former shareholders |? |4 |? |? |of glaceau | | | | | |Balance at end of year |? |2,318 |? |2,318 | |COMMON STOCK |? |? |? |? | |Balance at beginning of year |$878 |$877 | |Stock issued to employees exercising stock |? |2 |? |1 | |options | | | | | |Balance at end of year |? 880 |? |878 | |CAPITAL SURPLUS |? | ? |? |? | |Balance at beginning of year |? |5,983 |? |5,492 | |Stock issued to employees exercising stock |? |1,001 |? |164 | |options | | | | | |Tax (charge) benefit from employees stock |? |(28) |? 3 | |option and restricted stock plans | | | | | |Stock-based compensation |? |309 |? |324 | |Stock purchased by former shareholders |? |113 |? |? | |of glaceau | | | | | |Balance at end of year |? |7,378 |? |5,983 | |REINVESTED EARNINGS |? |? |? |? | |Balance at beginning of year |? |33,468 |? 31,299 | |Adjustment for the cumulative effect on |? |(65) |? |? | |prior years of the adoption of Interpretation | | | | | |No. 48 | | | | | |Net income |? |5,981 |? |5,080 | |Dividends (per share $1. 36, $1. 24 and $1. 12 |? |(3,149) |? (2,911) | |in 2007, 2006 and 2005, respectively) | | | | | |Balance at end of year |? |36,235 |? |33,468 | |ACCUMULATED OTHER COMPREHENSIVE INCOME |? |? |? |? | |(LOSS) | | | | | |Balance at beginning of year |? |(1,291) |? |(1,669) | |Net foreign currenc y translation adjustment |? |1,575 |? 603 | |Net gain (loss) on derivatives |? |(64) |? |(26) | |Net change in unrealized gain on available-for-sale |? |14 |? |43 | |securities | | | | | |Net change in pension liability |? |392 |? |? | |Net change in pension liability, prior |? |? |? |46 | |to adoption of SFAS No. 58 | | | | | |Net other comprehensive income adjustments |? |1,917 |? |666 | |Adjustment to initially apply SFAS No. 158 |? |? |? |(288) | |Balance at end of year |? |626 |? |(1,291) | |TREASURY STOCK |? |? |? |? | |Balance at beginning of year |? |(22,118) |? (19,644) | |Stock issued to employees exercising stock |? |428 |? |? | |options | | | | | |Stock purchased by former shareholders |? |66 |? |? | |of glaceau | | | | | |Purchases of treasury stock |? |(1,751) |? (2,474) | |Balance at end of year |? |(23,375) |? |(22,118) | |TOTAL SHAREOWNERS EQUITY |$21,744 |$16,920 | |COMPREHENSIVE INCOME |? |? |? |? | |Net income |$5,981 |$5,080 | |Net other comprehensive income adjustments |? |1,917 |? 666 | |TOTAL COMPREHENSIVE INCOME |$7,898 |$5,746 | [8] ———————– [1] http://www. marketwatch. com/tools/quotes/profile. asp? symb=ko [2] http://www. nysscpa. org/cpajournal/old/12543349. htm [3] http://www. thecoca-colacompany. com/citizenship/strategic_vision. html [4] http://www. thecoca-colacompany. com/investors/proxies. html [5] Rittenberg, Schwieger, Johnstone, p105 [6] Rittenberg, Schwieger, Johnstone, p101 [7] Chris, Linsteadt, â€Å"2008 Audit Class Slides Ch6† [8] http://ir. thecoca-colacompany. com/phoenix. zhtml? c=94566&p=irol-sec&se

Lasting Effects of Nuclear Arms Race and Cold War Essay

The cold war and the armed race have been regarded as one of the insecurity problem in the world of today. Cold war can be regarded as the state which involved the conflict, fear and competition between the allies of the United States of America and the Soviet Union with other counties which were allied. This cold war was felt in the period between the years of 1940s and the 1990s. At this period the war was fought by the use of the propagandas, military advancements, technological advancements and the weapon development which is generally referred as the arms race. During this period there was a lot of the defense spending by the member countries involved, many wars and the development of the hatred between the countries which were involved. This war was characterized by the increased hatred between the member countries. Thus this war was characterized by indirect attacks, thus it can be regarded as the war of words as the superpowers never fought directly. The cold war and the arms race have had profound lasting effects in the economic, political and the social growth of the world. This paper tries to analyze the lasting effects which were created as a result of this cold war and the arms race in general. At the same this paper tries to bring out the methods and the organization of this cold war and the milestone in the arms race in that time of the cold war up to the present world. The end of the cold war does not mean the end of the nuclear dangers. For instance the world is under the second nuclear danger, which is felt through the consequate terrorist attacks and the space missile advancements. (Bourantonis 48-55). The cold war has been regarded as the origin of the nuclear danger in the world up to date. It has been noted that it has created a dangerous world which makes the citizens of different countries to live with a lot of fear. This can be regarded as one of the dangerous challenge which the world superpowers such as the United States of America have ever experienced. The cold war has brought the basic realities of the arms race in the community at large. According to President Reagan, â€Å"nuclear war can not be won and should never be fought†. The cold war can be regarded as a long-term product which was created by the competition and proud ness between the world super powers (Bourantonis 48). In contrast to the fact that the United States, the Soviet Union, France and Britain had joined hands against the axis powers, this led even to much disintegration afterwards which has since reduced the developmental cooperation. There have been major disagreements between these states on regard to the direction of the post war world. ASfter the end of this cold war the military powers were mostly possessed by the Soviet Union and the United States of America while the axis powers occupied most of the Europe economic land. After the end of the cold war, it was believed that the nuclear danger had also come to an end, but this is not through up to date. Still there are many issues which need to be answered in relation to the political, social and economic developments. This has been not in light since the nuclear powers had been initially neglected. After the year of 1991 when the cold war ended many people believed that there would be better trends which shall promote the security of the world, but that has proved to be a nightmare. The effects of the cold war have not stopped but instead they have reversed their direction. It is true that there is a new era of the arms race which can be regarded as the second nuclear age (Buchanan, Tom 75-79). The United States of America taught that the expansion of the Soviet Union would threaten the developing nations. Thus in the year of 1949 Mr. Truman who was then the president of United States of America had negotiated four hundred dollars from the congress for the promotion of the technical developments in the Latin America ,Africa and Asia. But such a move was not to develop these countries but to prevent the spread and growth of the communism principles which were supported by the Soviet Union (Byrad, Peter 68-69) . Consequently the United States of America and other Western powers made alliances to act against the attempts of the Soviet in extending their influences in the word, both in the economic and the political matters. After the end of the cold war there was a lot of the dictatorship among the countries in the western sphere. For instance in the year of 1949 the united states of America decided to sign a treat which was commonly known as the North Atlantic Treaty, where by the members said that the if any country which was a member was attacked, then it would be considered as an attack to all (Cowley 33-35). In response to this the Soviet formed an alliance commonly known as the Warsaw Pact. As a result of this arms race many countries in the world have a lot of the nuclear weapons which has generally endangered the world security. Although the nuclear arms decrease is the main aim of most of the countries, some of the negotiation process has consequently failed. The first arms negotiation which took place in Moscow between Moscow and Washington in the year of the 1969 aimed at reducing the massive weapons which were established during the cold war failed. Consequently there was the formation of the ABM Treaty in the year of 1972 between the Moscow and Washington, whereby it was agreed that the involved countries would reduce the nuclear missile system, but this treaty has been in jeopardy. At the same time there was the formation of the Nuclear Nonproliferation Treat (NPT), which was one of the arms treat which was negotiated in the post war era. This NPT treaty which was signed in the year of 1968 was considered as one of the most important treaty which would have improved the security of the world but it has been constantly claimed that it was a plot between Moscow and Washington to promote their own interests (Crocker 27) Actually the conflict which is in the high degree between the Soviet Union and the Western world as been regarded as the basic catalyzing factor which is increasing the arms race in the present world (Dobrynini15). Although the collapse of the Soviet union in the year of 1991 was seen as the end of the arms race, this is not true. There is a lot of political struggles in the present world which has promoted the insecurity thus taking the place of the cold war. As the increase of the nuclear dangers is still felt in the present world, then the nuclear powers will not justify before the global world the reasons why they are holding their nuclear production strategies. The present world has tremendously changed. After the fall of the Berlin wall and the end of the cold war, the world had prophesized the end of the bipolar powers and the establishment of the multpolar powers. (Ericson 12-14). The United States of America had consequently has taken a new relationship by claiming that they are building an everlasting environment for solving their former nuclear disputes. For instance the United States government claims that it has taken a peace full dialogue of arms disarmament so as to reduce the arms powers in the world. But this method is not operational since other countries posses the nuclear weapons secretly without exposing them. The present world can be regarded as a world with increased threats. The world has reached in an era which makes the countries to push for the national security . Friedman, Norman (69), says that† As the cold war threat of massive nuclear strike has receded, new threats have emerged related to the proliferation of weapons of mass destruction and ballistic missiles†. At this century we are seeing a different picture which is developing slowly in the world. The arms control treats has totally collapsed. For instance the START treaty has reduced it s function since 1993 and it is in the process of breaking down. At the same time the ABM treaty is also in limbo due to the fact that the United States of America has decided to construct the missile defense systems. This defense system has consequently led to a lot of conflicts between Russia and the United States of America. The United States of America had requested Russia to comply with the amendments of the Start treaty so as to allow the United States of America to establish it s missile defense systems but Russia has constantly refused by arguing that the missile system may destabilize the nuclear race balance between the member countries. This missile defense system may be regarded as one way of the arms race in existence in the present world. Generally the post cold war time has proved to be having the bad conditions in regard to the nuclear arms control. The international interactions between many countries have deteriorated to a great extent. The economic developments have reduced between United States of America and Russia due to effect of the nuclear weapons development by these two powers. These two countries have been regarded as the forcing powers in the control of the nuclear weapons in the world. The nuclear weapons were consequently used by the United States of America and Russia. These nuclear weapons have a lot of impact in the world of today as they can destroy the entire world in general. Both indirectly and directly, the nuclear weapons have a profound effects in the relations between the United states of America and Russia (Soviet Union). Regardless of the fact that the United states of America and Russia have a particular duty in the development of the world s nuclear weapons policies, they have been implicated in the nuclear mess as they have experienced many problems from their creation. As a result the world security council has created the nuclear policies which regulate the arms development in the world. Russia and the United States of America are regarded as the leaders of the nuclear weapons development. At the same time the other countries has emerged successfully in the production of the lethal weapons such as the atomic bombs and some long range missiles which can be used in the war periods to deliver the nuclear devices from a long distance. For instance the relationship of the Russia and the United States of America as been in a difficult state as a result of the nuclear development between these two nations which have been regarded as super powers at one instance. When Bolsheviks was declared the leader of Russia, United states of America developed some enemity with the Soviet Union and it consequently cancelled the diplomatic links with the Soviet Union until the year of 1934 (Wolf 35-39). But in the year of 1941 United states of America and the Soviet united against Germany. The end of the Second World War which was characterized by the arms race between the countries led to the creation of two major alliances which served as the arms block. These alliances came to be known as NATO and the Warsaw Treaty. These two alliances were greatly involved in the cold war. The countries which were involved were supposed to adhere to the principles of either the USSR or United States of America in terms the political, economc and the military practices. In reward to their participation these countries would gain some security. This type of collaboration would be regarded as a type of colonialism. The Soviet Union and The United states of America had a cold war instead of a real war which is usually characterized by the participation of the military. As a result those countries which not allied to either the United States of America or USSR block started looking for means of creating their own nuclear weapons. For instance some countries like Britain and China succeeded. Thus this led to the establishment of five general nuclear powers which included the USSR, USA, Britain, France and China (Blum, William, 15-30). The long term effects of the arms race can be detected in the nuclear terrorism. Many of the terrorist groups such as the Al Qaeda have consequently used the same lethal weapons which were produced during the cold war. Most of the arms which are used in the terrorism attacks originate from the inferior countries which were developing the nuclear weapons silently. Not only that the arms race ended during the end of the cold war, but also the arms race is on progress. For instance many countries such as India, North Korea, Pakistan and Pakistan have constantly started to develop the nuclear weapons . This countries argue that they are carrying out peace full technological research. This is regarded as one method of establishing the nuclear weapons without the presence of the cold war. The historical lesson behind the nuclear weapons development is that those who develop them are responding to the fear that they may be attacked. As President Roosevelt quoted† The Soviet Union then raced to build the bomb because it feared the nuclear might of the United†. Consequently it might be established that the Indian government tested it s military for fear of the Chinese nuclear might. At the same time China carried out it s bomb tests because they feared the nuclear advancement of the Soviet Union and The United States (Breslauer, George, 37-38). There is a series of the threats and on the other hand some counter threats in the present world that links with the cold war are springing in the southern Asia and this links the future establishments of the nuclear weapons in the region. It has been quoted that many nations have developed nuclear weapons as a result of the regional reasons (Edelheit, Hershel, 45). In general the post cold war has a lot of lasting developments. There are no effective measures which can be used to eliminate the nuclear weapons. This is the emergence of the nuclear dangers. In this world, the nuclear advancement to other nations and the nuclear proliferation of the present nuclear powers can be regarded as the second dangerous era. The other lasting effects of this cold war and the arms race in general are that, the economic growth of the involved countries decreased. The expenses of the United States of America were high. Many American armies lost their lives in the Korea and Vietnam wars. Consequently the Soviet soldiers lost their lives also. Other people died in the Western Asia since the Asian soil was commonly used as the fighting ground of the axis powers. At the same time after the collapse of the cold war, Russia cut the military numbers. This step led to the unemployment of many people. Consequently after the Russian government started the capitalist reforms, it suffered the financial constrains which is more severe than the great depression of the 1930. In general the living standards in Russia have reduced during this post cold war period(Aslund, Anders 54). The environmental effect of this cold war and the arms race is one of the outstanding effects to the citizens of the involved countries. For instance the bombs which could explode caused a lot of environment pollution in the present world. The Japan bombing by the United States of America led to the release of the dangerous gases which have since then led to the birth deformity of the subsequent generations. Moreover the remains of these lethal weapons have caused a lot of air pollution and soil pollution. Even up to date the effect of such bombings is felt, many people lost their people whom they depended on to provide the daily live hood. The cold war up to date serves as one of the influential force in the world affairs, for instance the political roles in the United States of America are determined by the cold war, the ones who were supporters of the communistic groups have no much support. Those were against the Soviet Union are regarded as the true sons of the American soil thus they get much political benefits. Following the effect of McCarthyism theory which led to many prosecution of those w leading top much suffering. Thus in conclusion it can be determined that the cold war and the arms race in general has a lasting effect in the worlds up to date. Works cited Andrew, Christopher; Mitrokhin, Vasili, the Sword and the Shield: The Mitrokhin Archive and the Secret History of the KGB. Basic Books, 2000. Anatoly (2001), In Confidence: Moscow’s Ambassador to Six Cold War Presidents, University of Washington Press, 2001. Aslund, Anders, â€Å"How small is the Soviet National Income? † 1999. Blum, William, Rogue State: A Guide to the World’s Only Superpower, Zed Books 2006. Bourantonis, Dimitris, A United Nations for the Twenty-first Century: Peace, Security, and Development, Martinus Nijhoff Publishers, 1996. Breslauer, George, Gorbachev and Yeltsin as Leaders. Cambridge University Press. 2002. Buchanan Tom. Europe’s Troubled Peace, 1945-2000. Blackwell Publishing. 2005. Byrd, Peter. â€Å"Cold War†. In Iain McLean & Alistair McMillan. The Concise Oxford Dictionary of Politics. Oxford University Press. 2003. Charles Jr. The Impoverished Superpower: Perestroika and the Soviet Military Burden. California Institute for Contemporary Studies. 2000. Cowley, Robert, The Reader’s Companion to Military History, Houghton Mifflin Books, 1996 Crocker, Chester; Fen Hampson & Pamela Aall, Leashing the Dogs of War: Conflict Management in a Divided World, US Institute of Peace Press, 2007. Dobrynin, Edelheit, Hershel and Abraham. A World in Turmoil: An Integrated Chronology of the Holocaust and World War II. Greenwood Publishing Group. 1991. Ericson, Edward E, Feeding the German Eagle: Soviet Economic Aid to Nazi Germany, 1933–1941, Greenwood Publishing Group, 1999, pp12-14. Friedman, Norman (2007). The Fifty-Year War: Conflict and Strategy in the Cold War. 2007. pp62-69 .

Contract Sperm Whales Essay

This agreement is drawn up and signed in Dubai, UAE on the 25 th of April 2012, by and between 1. Jetta Pharmaceuticals Ltd., producer of special medicaments for improving the immune system, based in Kuala Lumpur, Malaysia, represented in this matter by its sales director Mr. L. Dziel, hereinafter referred as „seller† and 2. Vegan Perfumes, sole producer of SKY ® perfumes, based in 19 Royce Avenue, Nottingham, United Kingdom, represented in this matter by its sales manager Ms. Sara Zydorczak, hereinafter reffered as „buyer† Whereas: 1. 2. 3. 4. 5. 6. Jetta Pharmaceuticals Ltd. buys the entire output of Sperm Whales from Whales Hunting Ltd. Jetta Pharmaceuticals Ltd. pays Whales Hunting Ltd. in lump sum. Whales Hunting Ltd. transports 200 Sperm Whales to the new-built warehouse (costs of transport included in output price) From the warehouse organs will be shipped to the both companies headquarters. Vegan Perfumes repays Jetta Pharmaceuticals Ltd. in lump sum (bank account transfer, 72 hours after receiving the e-mail address will all needed data). All prices are expressed in American dollars ($). The parties agree as follows: 1. 2. 3. The Quantity of the Sperm Whales, which will be bought from Whales Hunting Ltd. The initial price of mammals bought from Whales Hunting Ltd. by Jetta Pharmaceuticals Ltd. Building the new warehouse where the whales will be stored and eviscerated. The work will be outsourced to the local company. 4. 5. 6. Creating the new limited liability company „Whales Medicaments & Perfumes†. Founding a charity organisation „Sea forever†. Details, which are connected with the transaction (transport, custom duty, etc.) Negotiated issues: Price: †¢ The Price includes all taxes and costs of transport – first from Whales Hunting Ltd. headquarters to the warehouse and then to Malaysia and to the United Kingdom †¢ Currency: $ (US dollars) Details: Jetta Pharmaceuticals Ltd. buys the entire yearly output of Sperm Whales from Whales Hnting Ltd. The date of the transaction is 25th April 2012 Price: $ 25.000 per Sperm Whale Output: 200 Sperm Whales Amount of money: $ 5.000.000 Jetta Pharmaceuticals Ltd. pays $ 5.000.000 and after receiving the money Whales Hunting Ltd. transports 200 Sperm Whales to the new warehouse which location will be send in the e-mail after transfering money to the given bank account. From the warehouse organs needed by Jetta Pharmaceuticals Ltd. will be send to Malaysia and organs needed by Vegan Perfums will be send to the United Kingdom. The eviscerated mammals will be sold to the museums in Australia, New Zealand and another countries. The money from this sales will be transfered to the special 2 bank account created for the new charity organisation „Sea forever†. The activity of „Sea forever† will be descripted in another contract signed during the first visit in the new warehouse. The Import Licence is the Buyer’s responsibility, if required. If the Buyer fails to obtain the Import Licence, the Seller has the right to terminate the present contract. The deadline of this transaction depends on the day when the new warehouse will be built and the work outsourced to the local company. Payment terms: Form of payment: money transfer to the bank account Time of effecting the payment: 72 hours Goods: The cases from 200 Sperm Whales – sent to Malaysia Ambergis from 200 Sperm Whales – sent to the United Kingdom 200 eviscerated Sperm Whales – left in the warehouse until bought by museums or private collectors Packaging: Containers suited to the transportation of organic matter Warranty: The transport company is responsible for deli vering the products Type of transport: first two – planes, eviscerated mammals – container ships Place: Transport to Malaysia and the United Kingdom, in the future another directions Costs of the transport: All costs of transportation included in Transaction Price. The seller is obligated to cover all additional costs if necessary. Time range of a contract: This contract come into force within 7 days after it is signed. The contract terminates when the parties decide. Force Majeure: natural disasters, earthquakes, hurricanes, floods, wars, riots or other major upheaval, government restictions, UN or EU restrictions, performance failures of parties outside the control of the contracting party (subcontractors, suppliers, carriers, outsourced company, company building the warehouse) Applicable law: This contract shall be governed by and constructed according to New Zealand law Disputes: Any disputes, controversies or claims between the parties arising out of or relating to this Agreement shall be enforceable and judgment upon any award rendered by the arbitrators may be entered in the state court of Kuala Lumpur, Malaysia, having jurisdiction. The parties will have rights to enter state courts in case of strong disagreement with the judgment of the arbitration court.

Violent game Research Paper Example | Topics and Well Written Essays - 1250 words

Violent game - Research Paper Example Even though video games are capable of releasing pressures and certainly entertain most people, video games still needs to be banned among young teenagers because videos game may lead to aggressive behaviors, mentality issues, and even more criminals of young teenagers. Observation reveals that video games present such deep seated implications, off-ramp thoughts as well as outlook and perception of the children. Such games greatly influence the psychology of the kids and inculcate a feeling of hostility and brutality. Studies have been conducted across the world as the situation is becoming alarming and the consequences of videogames and computer games are culminating into behavioral tribulations. An augmentation in aggression is reported to be due to observation of cruel movies or playing videogames that are based on killing acts. Videogames are immensely flattering modern children and their parents. Easy availability has not only revolutionized gaming besides keeping the children b usy, but also inculcate violence in children (Web: "Reality Bytes: Eight Myths About Video Games Debunked"). Videogames started in 1952, created by A. S. Douglas, the first computer game, Noughts and Crosses. This was presented as his dissertation. Followed by various others, Russell (1962), who developed "Spacewar". It gained popularity across the world and transformed the entire fun of gaming. With the introduction of character "Mario" in "Donkey Kong", developed by Miyamoto (1981) made the game popular. Eventually, the game became one of the most admired source of amusement not only between kids but also amongst adults. With this game Miyamoto emerged as an industry giant. Later, in the year 1994, Entertainment Software Board was established by Entertainment Software Association, with an intention of providing ratings and information about video and computer games (Web: " History of Gaming "). With the advancement of technology, Sony released its play station (PS) 2 in the year 2 000 with magnificent graphics and performance. The year 2001 witnessed the release of Grand Theft Auto 3. It gained popularity because of its quality but it was rated to be unlegislated as it encompassed slaughtering people, choosing prostitution and burglary of cars and money (Web: "The Video Game Revolution"). Such results demand to prohibit video games to avoid deterioration of developing psychology of the kids. Videogames and computer games are inducing an alteration in the behaviour pattern of the children of the present epoch. They are responsible for generating isolation, self-centred approach and also infuse violent temperament thereby leave little room for emotions and empathy, in turn they are responsible for permeating violence in children. The article highlights impact of videogames on behaviour pattern of the children playing such games. Establishing Credibility Now, it is been over 30 years, videogames are becoming the part and parcel of modern life. The video game ind ustry manages to churn multi-billion dollars as it is popular in every age group especially kids and youngsters and is a must for university libraries, laboratories to the living rooms of modern homes (Web: "History of Gaming"). With the advent of smart phones and mobiles, access to such games is gaining popularity as one can download desired games anywhere and at anytime. Considering the fact that videogames bring one of the most

Media Law Matrix Assignment Example | Topics and Well Written Essays - 750 words

Media Law Matrix - Assignment Example New technologies push the boundaries of ethical discussions on ownership of creative work First Amendment The media’s right to free expression is protected, with the amendment prohibiting the enactment of laws that abridge or curtail press freedom and free speech What are the bounds of press freedom? Can private individuals slighted wrongly by the press and by individuals seek redress under the law? This relates to libel as a legal recourse. Prior restraint prohibition An extension of the First Amendment, prohibiting government from prohibiting speech prior to the utterance of the speech. The effect is the broadening of the power of mass media, and the press in particular Ethical issues are again tied to limits of free speech as they pertain to the rights of private individuals Abridgements to First Amendment Rights Non-interference of government on free speech rights is not absolute, but may be justified by public safety considerations. The effect on media is the setting of b ounds on free expression, in cases where the public safety or the national safety are compromised There is the ethical issue of where the bounds of government power and the public and media lie. There is a tug of war in legal discourse/precedents relating to this Libel law The freedom of the press is not absolute, but is predicated on such freedom not trampling the rights of others. This is a curtailment and a bound on press freedom, because those slighted by media has recourse to libel law Libel law interpretations in courts determine the bounds of press freedom and free speech. Ethical issues are tied to making sure that judgments are just and fair to media and to private individuals Table inputs source: Vivian, 2011, pp. 424-445 B. Two Issues A. Local Media Issue The issue at hand in an article discussing the extension of the treatment of media organizations to private individuals posting online, in blogs and in social media, and the standards that ought to govern both forms of m edia, the traditional and the emergent, when it comes to considering the evidence and the arguments relating to possible defamation and libel charges. The issue at hand is tied to the emergence of social media and blogs in particular, and how those emergent media forms have empowered ordinary individuals to speak freely and to publish their thoughts with the same reach and power, and print permanence, as the newspapers and related media forms of old. There are established precedents for governing free speech issues for traditional media, but the precedent for emergent media is not always well laid out. On the other hand, recent court decisions seem to apply a different set of standards for blog-published and social media-published content on the one hand and traditional media on the other. The legal implications of the double standard are evident in the way there seems to be an unequal application of First Amendment rights as they apply to ordinary people in social media and to medi a practitioners, creating potential future problems in the interpretation of First Amendment and related laws. The ethical implications are profound, because the double standard may mean that the rights of private individuals, for instance, against defamation may be compromised by such unequal treatment of bloggers and ordinary social media users on the one hand a

African american history Essay Example | Topics and Well Written Essays - 250 words - 1

African american history - Essay Example She was a victim of slave trade and was sold at the young age of 8 to the wealthy Wheatley family in Boston. The family gave her the name Phillis, and Wheatley was mandatory for her as a surname. They taught her how to read and write, and after seeing her talent in poetry, they encouraged her to pursue it. Many praised her work, amongst them white colonists who could not believe that a slave could write such excellent poetry. She was the first African American woman and poet to publish a book. Her downfall began with the death of her master, John Wheatley, and afterwards the death of her two infant children, then came the imprisonment of her husband, Peter. This made her succumb to illness, and passed away in 1784 due to disease and poverty (Franklin, John and Alfred, 131). This originated from West Africa in 1741. It was a day for slaves to elect black people who would be placed to rule the black communities in power. Those elected by the slaves would include kings, judges, governors and other high officials to rule over them. The slaves were given a day off by their masters to join others in dances and parties. Slaves were made to dress well, as when they dressed badly it would be a bad image for the masters. The selected official was not legally recognized as a leader, but he acted as a go-between between the black people and the whites. He also ensured that the law was upheld in his area of jurisdiction (Melish, 122). It originated from the Southern and Northern states and was an accord reached for the period of the Constitutional Convention in Philadelphia in 1787. This agreement stated that three-fifths of the slaves were considered for taxation and representation in the Congress. It meant that slaves would be considered as human beings and part of the population and not as property. It stated as a dispute as the Northern States did not want slaves to be taken as a section of the population, rather they should be

Dynamics involved in gay and lesbian intimate partner abuse Essay

Dynamics involved in gay and lesbian intimate partner abuse - Essay Example The literature points out that the frequency of domestic violence in same-sex relationships has been equal to that in heterosexual relationships a hypothesis that stands a chance of being proven right or wrong. Domestic violence in same-sex relationships is in relation to same-gender relationships. Historically, the failure to evaluate the violence involved within same-sex relationships has been due to social stigma, discrimination, homophobia and gender based myths among other issues (Lundry and Leventhal, 1999). These issues provided a barrier which stops such incidences from being reported. It is so unfortunate how partners in these relationships have been suffering in silence due to the society’s ignorance. There are quite a number of issues which influence the response to domestic violence within a same sex relationship. These issues act as barriers in the way of reporting such incidences to the relevant authority such as the police. The first issue is the wall of silence. A common observation is that silence surrounds issues of domestic violence. People prefer to ignore rather than talk about the incidences. Bigne and Wetchler (2004) reveal that the incidences of domestic violence have for a long time been treated as a taboo among the lesbians and gays. This can be attributed to the denial of the problem such that victims resort to keeping quite. This is clearly the most effective way of promoting violence in the respective same-sex relationships. It is important to note two factors which contribute to the state of silence. Moriarty (2008) reveals that the privacy within such intimate relationships is one factor. This common realm of intimate relationships shuns external interference such that partners do not entertain intruders. The fact that these relationships are based on pillars of privacy, state regulation is quite difficult. Various governments find it difficult to get involved in to private businesses of its

Interagency Networks Essay Example | Topics and Well Written Essays - 1500 words

Interagency Networks - Essay Example The principle challenge that lies in any country is creating coordination and integration between the numerous national instruments through the interagency process. This is a major challenge faced even by the United States, a country whose power has global influence unmatched by any other country. The problem can become greater in the current century as strategy makers both of civilian and military stature struggle with geopolitical issues that will be needing fluency in fitting together all the elements and levers of power. Today, the U.S. has embassies, consulates and memberships in most international organizations. It has a singular military command system that has reach in every part of the world and even the outer space. It initiates and makes agreements that endorse peace, human rights, democracy and protection of the environment. All the instruments of American power are implemented to create a global impact. In spite of all these, there remains â€Å"the challenge of strateg ic integration, of bringing the instruments into calculated effectiveness†. The political leaders and the national security staff continuously attempt to achieve consistency with limited success through the interagency process. For any kind of policy formulation and implementation, the participants are governments or their agencies which mean governments function through the cooperation of subordinate agencies. The roles of governments for solving national and international problems are always under scanner. However, it is also needed that any structure that is created as advisory body of the government and to make strategic decisions for policy implementation should also be scrutinized. Governments function through institutions, hence officials of each institution should be categorized into coherent groups to assist the government. The challenge here is to organize the officials in an efficient manner, and to ensure positive outcomes of organizational decisions. The solution lies in performing functions in a better process, better organizations and more coherent allocation of government’s instruments. However, there is no common perspective on what is the best approach towards organizing a government’s myriad functions. Also, there is no concrete proof how well modifications in the working process of the government have worked. The demand to bring changes is â€Å"as often based on statements of belief or intent as on clearly defined calculations of institutional cause and effect† (O’Faircheallaigh et al., 1999, p.72). An organization is formed because of the

Is human genome editing inevitable Essay Example | Topics and Well Written Essays - 1250 words

Is human genome editing inevitable - Essay Example However, there have been worldwide debates regarding the ethical and legal aspects of human genome editing. So, this discussion is about the new molecular technique of CRISPRs, analyzing its present hype, benefits, and risks behind it. Moreover, the discussion traces critical perspectives of human genome editing and possibilities of this inevitable science in future. The analysis also justifies the ethical process and critically examines opinions of others on these emotive issues. In the past few decades, genome editing methods have been successfully experimented on animals and in the field of agriculture. In that direction, recent advancements have increased the possibilities of experimentation with human genomes. However, the inefficiency of the previous methods and lack of specificity raises doubts, with many sections terming it as inappropriate and unsafe for humans. Of late, the latest weapon added to the armory of human genome editing is a technique called Crispr-Cas9. The main reason for this technique to receive universal acclaim is that, unlike the previous methods, it is possible for scientists to insert, modify, or delete DNA with unprecedented precision, increased efficiency, specificity, and more flexibility. Because of this precision and efficiency, human body achieves optimal strength to impede attacks of microorganisms. â€Å"The method, known by the acronym Crispr-Cas9, co-opts the natural immune system with which bacteria remember the DNA of the viruses that attacks them so they are ready the next time those same invaders appear†.

Intelligence gathering and information interpretation Essay Example for Free

Intelligence gathering and information interpretation Essay Interpretation of the information gathered is dependent upon analytical and investigative techniques used to transform it into intelligence. In Ð ° publication from the CIA, it was reported that â€Å"Major intelligence failures are usually caused by failures of analysis, not failures of collection. Relevant information is discounted, misinterpreted, ignored, rejected, or overlooked because it fails to fit Ð ° prevailing mental model or mindset. † 6 Analysts and investigators need to keep open minds, be creative in approaches, and avoid assumptions that are not based on fact and corroboration. Information that has been gathered according to the guidelines above-properly standardized, formatted, and entered into Ð ° secure criminal intelligence database-is the starting point for the intelligence interpretation phase. However, no matter what the quality of the data or the magnitude of the database, it is analytical processes that extricate the intelligence. It is essential to have an approach and to know the data. Random querying based on Ð ° mere hunch or memory is like driving with ones eyes closed. Analysts must have Ð ° hypothesis or Ð ° structured analytical problem as their roadmap, and then they can start breaking down the information into manageable or working parts. Listed below are four general â€Å"intelligence gathering and interpretation† factors. 7 These should be used as Ð ° starting point when initiating analysis concerning homeland security, terrorism, and or organized hate groups: 1. Group information-Name(s), ideology (political or social philosophy), history of the group, and dates significant to the group (including dates on which former leaders were killed or imprisoned); publications (some groups also have Ð ° bible or manifesto that outlines activities-current, future, or hypothetical); gatherings, meetings, and rallies (often posted in periodicals or on the Internet). 2. Financial information-Sources of funds, proceeds from criminal activities, bank account information (domestic and foreign); the groups legal and financial supporters (generally, anyone who would write an official letter of protest or gather names on Ð ° petition for Ð ° terrorist is Ð ° legal-financial supporter, and sometimes an analysis of support will reveal links or mergers with other terrorist groups). 3. Personnel data-List of past and current leaders; list of active members and former members; any personnel connections between its members and other groups of similar ideology; group structure, particularly if the organizations pattern is based on columns and cells; and the skills of all group members, e. g. , weapons and electronics expertise, and explosive training. To assess threat, it is vital to know the skills of the groups. For example, if a group believes there leader is very important then what could happen if something happens to the leader. Often, the analysis of family background is useful to determine how radically Ð ° leader or member was raised or to identify military tenure or training. â€Å"Ð  decade ago the Gulf War ended with Ð ° tickertape parade in Manhattan for General Schwarzkopf and other American heroes who had returned victorious from the battlefield. Also around ten years ago the Russian War in Afghanistan ended in Ð ° defeat of the Russians. Afghanistan had been Russias Vietnam and, in some readings, Russias defeat had led to the collapse of the Soviet Union and thus, again, the victory of the United States. Some philosophers even thought that history had ended with the end of the competition between capitalism and communism. But perhaps neither history nor these wars themselves ended. Ten years later Manhattan was the target of an attack, in which Ð ° majority of young Saudis, strongly opposed to the presence of the US military in Saudi Arabia near the Islamic holy places, during and after the Gulf War, played Ð ° dominant role. This protest had been voiced in many ways by religious leaders who criticized King Fahd of Saudi Arabia, the guardian of the two noble Sanctuaries (Mecca and Medina), but the religious form of the protest and its significance in the Saudi polity had been ignored, since it was hardly recognizable and interpretable for Western media. In one of the many ironies of recent history, the CIA had brought many of the radical opponents of the close collaboration between the Saudi regime and the Americans to Afghanistan where they had successfully driven the Russians away, but subsequently had helped their fundamentalist Pathan allies, the Taliban, to establish Ð ° radical Islamic state. The most important of the Arab supporters of the Taliban was Osama bin Laden, Ð ° Saudi millionaire who used Afghanistan as Ð ° base for an anti-American terrorist network, called Al-Qaeda. The Americans therefore decided to attack Afghanistan in the aftermath of the 9/11 attack on New York and Washington, and the war ended with an American victory in Afghanistan. But, again, the seeds of Ð ° new war were already visible in the relatively fast toppling of the Taliban regime. President Bush Jr. decided that he should finish what his father had not accomplished in the first Gulf War, namely the ousting of Saddam Hussein, the leader of Iraq, together with his entire regime. With the Bush family in charge in these wars, one gets the feeling of watching Ð ° television miniseries with different episodes. † (Peter 2004 9)

Apples Ipad Promotional Strategy Marketing Essay

Apples Ipad Promotional Strategy Marketing Essay To survive in the global and competitive business environment, it is essential for a companys to conduct extensive research so that they can develop a strong brand image from the initial stage as it leads to greater financial benefits for the company. The marketing plan of Apples iPad is the topic where an effective marketing strategy is developed to ensure its success in the global competitive market where major plays such as Sony, Compaq and Dell have a significant impact upon Apples strategies. Apples latest ipad is the revolutionary product which is a portable mini device used as a pc anywhere with its wide range of options and innovative design. Apples marketing strategy will be focusing upon the product design, brand positioning, price and promotion of iPad in the global market. This will be linked to the research and analysis of the environmental forces and SWOT analysis to understand the companys position. Apples market strategy will be incorporated with the generic business strategy which is towards growth and maintaining a strong position in the market through its innovative products. Apple will use competitive marketing strategy for its iPad where two such strategies can be developed which are differentiation and Focus to make iPad a success in the global market. Marketing planning and strategies can become highly effective if Apple focuses upon its strategic human resource management and make continuous efforts to redesign its marketing plan to survive successfully. Company Description Apple Corporation is a highly successful organization that aims to advance in the technology field through its high quality and innovative products. The success of Apple is primarily based upon its innovation and dynamic technological advancement it takes to give its customers the ease and luxury to use its products. Apples latest product iPad is launched to compete with existing computers and tablet technology, as it is a portable high tech device for the usage of all needs of an individual whether personal or business use. Environmental Analysis/PEST Analysis This analysis will help in identifying the factors that affect the organizations ability to perform efficiently in the global markets. Political Forces: The political factors affect the organizations ability to operate efficiently in foreign markets. Therefore, Apples operations are affected by political conditions of developing countries in Asia where it is unable to meet its organizational targets successfully. The increasing suicide bomb rate and terrorism is another reason that limits the ability of Nestle to operate in some countries. Moreover, the changing legal requirements regarding the sales tax, import and export duties also affect Apple in terms of its rising costs and limitation to have access to a greater market. Economical Forces: Economical factors affect organizations ability to expand its business and achieve organizational objective of growth. The recent recession has slowed down economic activity and resulted in increase of prices of law materials, which have increase the costs and ultimately the prices of products. Apple faces low demand due to the big economies collapsing and going under stabilization phase, which has forced countries to boost their economy by discouraging imports and encouraging exports (Ball, McCulloch, Frantz Minor, 2006). Socio-Cultural Forces: In todays business enjoinment, people belonging to different backgrounds, experiences, values and cultures work together in multinational organizations with common objectives of gaining success in competitive global markets. Therefore, this creates a critical challenge for organizations to help employees develop positive and interpersonal relationships so that all people can work productively while respecting others culture and backgrounds. Apple has focused upon the cultural values of its employees as well as customers to achieve positive long-term relationships through maintaining an organizational culture which is highly flexible and culturally diverse. Technological Forces: Apple concentrates on the technological advancements of its work operations. The highly competitive and global business environment has forced organizations like Apple to become highly efficient through technology and internet revolution. Apple focuses upon innovation which can be achieved by meeting the new technological advancements and by being efficient in providing better quality and innovative products to its customers through advanced technology (Turban, 2004). SWOT Analysis The SWOT analysis assists organizations to identify the strengths and weaknesses of an organization which are internal and opportunities and threats which are external. This will help in understanding how Apple can utilize its strengths and opportunities and overcome its threats and weaknesses to survive in the global competitive market. Strengths: Apple is a successful organization and its iPod has a high market share in the global market due to its brand perception and image as s high quality innovative brand. Moreover, in the I.T industry, Apple holds a strong position by catering to the needs of the dynamic market with its extensive research and developments that enables it to satisfy its customers with highly innovative products. Apple has maintained its brand name in the global market and the customer loyalty is increasing at a high rate (Barnet Cavanagh, 2006). Weaknesses: Apple provides highly innovative products in the market but it is having issues with the quality of its products as recently the Apple iPad was reported to have a faulty screen and it had replace all those products. This is one major weakness of Apples products. Moreover, the company has a relatively weaker research and development system as compared to other major competitors and needs to put more emphasis on building strong reliable products as its brand name portrays (Borrington Stimpson, 2004). Opportunities: Apple has many opportunities for growth and expanding its range of products and services. It can develop iTunes and music player technology into cell phones and iPad devices. It can focus upon developing Podcasts for radio shows through internet and can enhance its iPad into more sophisticated and reliable device to be used by every individual. The I.T industry is full of rapid and dynamic changes and there is growing demand for innovative and technologically advanced products so for Apple, there are unlimited opportunities to avail for growth. Threats: The major threat for Apple and its products is the intense rivalry among competition in the technology industry. The competitive global environment has brought critical challenges for Apple to maintain a competitive and strong position in the global market. Moreover, Apples iPod and iPad are subjected to demand which can go down at any time due to saturation and substitutes in the market. Hence, to meet with changing trends and globalization, Apple requires extensive research and development to create a diversified range of products to be successful. Marketing Objectives The objective of Apples iPad device is to capture the market by creating awareness and persuading customers to use this device. Its emphasis will be entirely upon positioning iPad in the global market as a highly reliable device which is a need for every individual in todays busy hectic life. The marketing plan of Apples iPad should consist of two major objectives that help to achieve organizational success in todays global business environment. First of all, Apple focuses upon its customers through thorough market research and planning then the second step starts by integrating all organizations functions which are related to the marketing plan of the organization. After this, Apple becomes competent in planning and implementing its organizational core objectives to achieve positive results (Barnet Cavanagh, 2006). Marketing Strategy The marketing plan of Apple iPad is based upon extensive research and planning so that it can expand its operations worldwide where the marketing strategy aimed to promote the following key elements to strengthen its brand image. The major brand elements are the superior quality, friendly usability, design and reliability of the product. It can be promoted as a product that not only provides an ease to an individuals life but a reliable cost effective solution to all computer related problems. The following are the major components of the marketing mix that can help in understanding the product and how it is to be marketed in the global market. The marketing growth strategy of Apple mainly aims to provide superior quality and innovative products and services. This strategy helps in increasing customer loyalty and building a stronger position in the global competitive markets. Innovation is the success key of Apple. In todays highly competitive environment, developing innovative products is a major key towards achieving success. This requires extensive research and development by the businesses to be successful. Although, innovation has become a key towards success but it has high financial risk because the customers can dislike the new invention and it can go into waste (Gannon, 2009). Product Design: IPad is the new invention of Apple with extensive Research and Development. It is the latest technological device which is mini pc device equipped with high compatibility mode and ease of usage for users. It is a fully equipped device where a user can take pictures, watch movies, download large amount of data and send/receive emails, attachments and documents. It is designed for personal and business usage where a user can be highly digitized and connected to the world within seconds with no hassle. Ipad is the new revolution introduced by Apple to provide ultimate user friendliness and access to all technological advancements together in one mini device (Hall Jones, 2000). Brand Positioning: Initially, Apples iPad target market can be the professionals and businessmen who require portable easy accessible devise for their usage. And then, young customers comprising of students will be targeted through emphasizing upon its innovative and trendy design that provides unlimited options will start gaining popularity and acceptance in the global market then it can expand and broaden its market segments by satisfying a larger market segment by positioning iPad as a need for every individual. Promotion: Apples iPad promotional strategy will mainly focus upon word of mouth advertising and point of purchase strategy where consumers will be encouraged to discover and try out the product themselves. Apples latest iPad requires extensive marketing through television and other media sources to achieve high customer response. Television is an effective medium of advertisement ad Apples advertisement has given it more importance and this industry is flourishing through these innovative ads. Price: Apples iPad will be charged at a premium price from the start to show and prove that it is a superior quality and innovative device than any other available in the market. As it is an innovative product, it will be promoted in the market as a premium priced device that has value for the benefits it provides. This way the consumers will consider Apples iPad as a highly reliable and portable pc device that can make their life faster and efficient in terms of both work and entertainment which will lead to its brand image strengthening through this marketing strategy (Borrington Stimpson, 2004). Place: Apple has to focus upon building long term relationships with its suppliers, wholesalers, and retailers worldwide because this way its supply chain management can become highly efficient. As the economic activity has slowed down, it resulted in increase in the prices of oil, which has ultimately increased the costs of production for Apple and reducing its cost effectiveness. Also, the concept of E-commerce has greatly helped Nestle to automate its systems through E-shopping and E-supply chain management. Implementation Plan Now, we can develop an effective competitive marketing strategy where two such strategies can be developed which are differentiation and Focus to make iPad a success in the global market. Differentiation: Apples strategy of differentiation has its focus upon producing unique and innovative products for its customers which are not provided by other competitors in the global markets. The major success key of Apple is that it offers superior quality and innovative products and services to its users with prime emphasis upon innovation and design. Therefore, marketers must focus upon their advertisements that promote these five actors to influence consumer buying decisions. This will create a buzz in the market and gradually the image as a premium high tech pc device will strengthen all over the world which will contribute towards its brand equity. The spread of this innovation will be influenced mainly by its attractiveness, quality, price, promotion and durability. Customers make high involvement purchase decision for innovative products as it involves high risks. Moreover, Apple being the first one to enter the market with a highly innovative device will lead to its strong brand image b uilding in the competitive global market (Barnet Cavanagh, 2006). Focus: Apple can focus on more than one segments of the market and develop its brand image in these market segments for its latest iPad. The target segment for iPad will be the upper and higher middle-income group who want to improve their lifestyle with revolutionary gadgets. Through this strategy, Apple will be able to focus on its resources and plan towards a selected target segment for managing it effectively. To survive in global business environment is very challenging for iPad, therefore conducting thorough market research will help in achieving the core organizational objectives (Barnet Cavanagh, 2006). Evaluation and Control To meet with the intensified global competition, Apple requires extensive research and planning for its success in the future. The highly dynamic and uncertain global market brings serious challenges for Apples iPad to survive successfully. The major competitors of Apple such as Compaq, Sony and Dell Co have forced Apple to focus upon its brand equity in order to maintain its brand image worldwide. Apple can meet and control the challenges and obstacles arising in its way of growth through its long-term business strategy where effective marketing plan emphasizes upon innovation and building customer loyalty (Gannon, 2009). Firstly, focusing upon the Strategic human resource management, Apple can create a competitive advantage that is not imitable by its competitors. As Apple is known for its quality and innovation as the first energy drank, it has captured a very large customer base as compared to its competitors but to maintain this customer base or increase the number, it must focus upon developing sustainable competitive advantage through its human resource which ultimately leads to excellent customer relationships. Secondly, the 4 Ps of marketing also require changes and continuous improvements to survive in todays highly global business environment. The marketing campaigns can emphasis upon the design and reliability of the iPad in future to make the most reliable functioning device in the market. This will strengthen the brand equity as well as help in surviving successfully in the competitive global market. The positioning of Apple can be altered according to the market trends, the children and teenagers can be the target for iPad in future (Sana Shah, 2008).