Describe the Potential Effects of Discrimination

Applied Business Unit 8: Business Planning Task 6 Worksheet Task Six: Financial Planning YOU CANNOT START AND/OR COMPLETE THIS WITHOUT A FINAL SALES FORECAST AND A LIST OF ALL YOUR OPERATIONAL COSTS ————————————————- Lesson breakdown ————————————————- Lesson 1: †¢Introduction to Financial Planning and how do we create an integrated plan: Focus on cash flow forecast using operations plan ————————————————-Lesson 2+3: Cash flow analysis and develop aims and objectives; ————————————————- Introduce ‘ILP-time-off’ work to do  Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- Lesson 4: Cash flow revisions, Problem spotting based on cash flow and develop aims and objectives ————————————————- Lesson 5: Profit and loss account and Financial Ratio Analysis and developing aims and objectives ————————————————- Lesson 6: Break Even analysis and then develop aims and objectives ————————————————-Lesson 7: Final Amendments to Financial Planning; Problem spotting based on P&L, ratio analysis, break-even and develop plan Task 6 Brief Overview * In this section, you are going to produce financial documents for yo ur business proposal. You will need to use the sales forecasts and operations plan that you produced earlier. This section is important as you are attracting investment and assessing the viability of your plan * Calculate, analyse and evaluate the following; Use these subheadings in your report * Size and duration of budget * Start-up costs Running costs * Cash flow forecast * Break even analysis * Financial ratios * Profit and loss * Analyse all your financial documents showing detailed consideration for the Aims and Objectives: * Are they achieved? * If not what are the possible problems this can cause your business? * Can you think of any solutions to help you to overcome these problems so that you could achieve your aims? SUBMISSION OF TASK 6 The following is to be submitted as a Word document Use the following headings for your submission of your Financial Plan 1st submission.Copy and paste these into your final document: Submit all work on moodle for deadline 3rd December 2010 (4:15PM) 1. Financial Planning (main heading) 2. Cash Flow Forecasting Table (MB4 students need to submit 2 (+? )CFF Tables) a. Cash Flow Forecasting analysis (of each CFF produced) 3. Profit and Loss statement and Financial Ratios Table (MB4 students need to submit 2 (+? )P&L and F/R Tables) b. Profit and Loss statement and Financial Ratios analysis (of each P&L and F/R produced) 4. Breakeven Table (MB4 students need to submit 2 (+? )Breakeven Tables) . Breakeven analysis (of each Breakeven produced) TASK 6 FINANCIAL PLANNING CONTENT/ASSESSMENT CHECKLIST CRITERIA CASH FLOW FORECASTING| 1. Start-up budget: | a) 12 monthly graph (Cut and paste information from your cash flow forecast for your first graph)| b) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin an d develop business idea| IV.Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 2. Running costs: | a) 12 monthly graph (Cut and paste information from your cash flow forecast for your first graph)| b) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III.Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 3. 12 monthly Cash Forecast: 1 : Your initial forecast used to help identify problems| a) Analysis needs to consider:| I. You must have an in-depth explanati on of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III.Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 4. MB4 12 Monthly Cash Forecast: 2: A working example of your solutions to your identified problems in CFF1| a) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II.Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to co nsider in light of this new data? | PROFIT AND LOSS ACCOUNT| 5. Profit and Loss Account 1 : Your initial forecast used to help identify problems| a) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the ims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 6. MB4 Profit and Loss Account 2: A worked example of your solutions to your identified problems in P&L1| b) Analysis needs to consider:| VI.You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | VII. Research used to underpin and develop aims and objectives/ownership/key personnel| VII I. Research used to underpin and develop business idea| IX. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| X. What changes to your original idea/USP/aims do you have to consider in light of this new data? | FINANCIAL RATIOS| 7. Financial Ratios: Gross and Net Profit for P&L account 1| a) Analysis needs to consider:|I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 8. MB4 Financial Ratios: Gross and Net Profit for P&L account 2| a) Analysis needs to consider:| I.You must have an in-depth explanation of how these could a chieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | BREAKEVEN| 9. Breakeven table and calculation:1 : Your initial forecast used to help identify problems| a) Analysis needs to consider:| I.You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 10. MB4 Breakeven table and calculation:2: A working example of your solutions to your identified problems| b) Analysis needs to consider:|VI. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | VII. Research used to underpin and develop aims and objectives/ownership/key personnel| VIII. Research used to underpin and develop business idea| IX. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| X. What changes to your original idea/USP/aims do you have to consider in light of this new data? | TASK 6 ASSESSMENT GUIDE: HOW TO ACHIEVE THE BEST RESULTS? * You are assessed in Task 6 for BOTH AO2 and AO3 marks AO2 is marked out of 22 marks and all learners should be aiming for a minimum of MB4 which is 17/22 marks * AO3 is marked out of 14 and at this stage all learners should be aiming for a minimum of MB4 which is 11-14 marks. * We will award high marks for those learne rs who can: * Purposefully select data from a wide range of sources, * Analyse the problem and possible solutions * Develop their plan based upon research. * Give an in-depth explanation of how the marketing plan could achieve the aims and objectives of the business proposal. AO2 ASSESSMENT OBJECTIVES MB1| MB2| MB3| MB4| 2 3 4 5| 6 7 8 9 10| 11 12 13 14 15 16| 17 18 19 20 21 22| A business plan which includes aspects of the marketing plan. A description of how this supports the aims and objectives of the business proposal. | A business plan which contains the marketingPlan. A basic explanation of how this contributes to achieving the aims and objectives of the business proposal. | A business plan which contains a developed marketing plan. An explanation of how this could achieve the aims and objectives of the business proposal. | A business plan which contains comprehensive marketing plan.An in-depth explanation of how this could achieve the aims and objectives of the business propo sal. | * Aspects of the components are produced * Superficial coverage of aims and objective| * The components are complete * Aims and objectives are broadly considered| * The components are complete and developed * Beginning to target particular aims and objectives, but lacks precision| * The components are complete, developed and address the key parts of the problem * Targeting particular aims and objectives with precision| AO3 ASSESSMENT OBJECTIVES MB1| MB2| MB3| MB4| 2 3| 4 5 6| 7 8 9 10| 11 12 13 14| Collects some up-to-date data from a limited range of sources. Uses numerical and/or non-numerical techniqueson the collected data to provide a partial analysisof the requirements of:†¢ the marketing plan†¢ the operations plan†¢ the financial plan. Uses the results of the analysis to identify some relevant elements of the business plan. | Selects some up-to-date data from a limited range of sources. Uses numerical and/or non-numerical techniques on selected data to p rovide a partial analysis of therequirements of:†¢ the marketing plan†¢ the operations plan†¢ the financial plan.Uses the results of the analysis to outline a relevant business plan. | Selects relevant and up-to-date data from a range of sources. Uses appropriate numerical and/or non-numericaltechniques on selected data to provide a partial analysisof the requirements of:†¢ the marketing plan†¢ the operations plan†¢ the financial plan. Uses the results of the analysis to develop a relevant business plan, which considers the aims and objectives, form of ownership and key personnel required. Selects relevant and up-to-date data from a wide range of sources. Uses appropriate numerical and/or non-numericaltechniques on selected data to analyse the requirementsof:†¢ the marketing plan†¢ the operations plan†¢ the financial plan. Uses the results of the analysis to develop a consistentand integrated business plan, showing detailedconsideration o f the aims and objectives, form of ownership and key personnel required. | MB1| MB2| MB3| MB4| 1 2 3| 4 5 6| 7 8 9 10| 11 12 13 14|Collects data from a limited range of sourcesProcesses dataIdentifies some elements of the plans components| Selects data from a limited range of sourcesProcesses selected dataOutlines components of the plan| Purposefully selects dataAnalyses key parts of the problem or practical solutionsDevelops components of the plan| Purposeful selects data from a wide range of sourcesAnalyses key parts of the problem AND practical solutionsDevelops integrated components of the plan| Follow the below detailed overview of each task for advice and help on how to achieve MB4 for Task 6Task 6 MB4 Detailed Overview CASH FLOW FORECAST, ANALYSIS AND DEVELOPMENT Lesson 1: Task 1 1. Download cash flow forecast from moodle 2. Complete pre start up budget (SEE CASE STUDY!! ) 3. Complete pre start-up costs calculated from T5 4. Insert monthly sales figures from final sales forec ast 5. Insert monthly fixed costs calculated from T5 6. Insert monthly variable costs from T5 Lesson 2+3: Task 2 Analysis * All marks gained with this task is from your analysis of your financial data; not from your reports themselves. ————————————————-Identify problems and solutions with your plan (develop it) and also how your aims and objectives can/can’t be achieved Learners can achieve MB4 in A02/A03 by following the Financial Planning Assessment Objectives which requires them to identify problem areas and developing practical solutions to consider alternative perspectives. What you will need to include will depend on your individual business proposal. You need to identify areas of weakness such as high fixed costs, start up costs? * Perhaps you need a cash injection by selling equity to help you pay for start up costs? It could be you source alternative suppli ers for your variable costs or project that you will pay 30 days later which is to improve your working capital. * What is happening to the figures in the net cash flow cells, are you losing money each week? * This is a cash flow negative situation. * Or are you cash flow positive? * How long before you are cash flow positive? * Why is this so long? Lesson 3+4: Task 3 MB4- Revised cash flow forecast * MB4- You need to produce a refined Cash Flow forecast based upon the analysis of the key issues identified in T6 task 2. This is to include the developments you have made. Label this Cash Flow Forecast 2. * You need to analyse CFF2: * Identify problems and solutions with your plan (develop it) and also if your aims and objectives can be met- How/Why? PROFIT AND LOSS and FINANCIAL RATIOS Lesson 4: Task 1 1. Download Profit and loss template from moodle 2. Insert sales for year 1 from your final sales forecast 3. What is the total cost of these sales? How much were the total variable cos ts related to the output. These are costs such as ingredients, packaging or price of the club. Put this figure in Direct costs/cost of materials sold 4.Calculate A-B to = C which is the identification of Gross Profit 5. Insert all other costs for the year in the respective headings, adding headings where needed. 6. Add up all your total overheads and insert this figure in D 7. Calculate C-D to identify Net Profit or Loss Figure 8. Calculate your Gross Profit MB4- Task 1 b Revised PROFIT AND LOSS and FINANCIAL RATIOS You must now repeat this action again for the second cash flow forecast figures * You need to analyse P&L2 AND F/R2: * Identify problems and solutions with your plan (develop it) and also if your aims and objectives can be met- How/Why?Task 2= Financial Ratios Overview Profitability ratios are a key source of information for both investors and business planners. They provide a clear image of the business both in terms of your costs and profit. A strong ratio can be t he difference between investment and failure. Task A 1. Use the figures in your first profit and loss account to calculate Gross Profit Ratio. ————————————————- Gross Profit margin: ————————————————- A measurement of how much profit the business has made on its buying and selling activities. ———————————————— How good a business is at trading. ————————————————- Gross Profit margin= Gross Profit/turnover (Sales Revenue) X 100 (%) ——————————————†”—- The higher the % the better, e. g. ————————————————- A GPM of 45% means that for every ? 1 of sales, the firm makes 45p in gross profit 2. Use the figures in your first profit and loss account to calculate Net Profit Ratio. ————————————————- Net Profit margin: ———————————————— It is a measure of how much overall profit the business has made after taking into account all relevant costs that have been incurred. ————————————————- Net profit margin= net profit/turnover (sales revenue) X 100 —————â₠¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- The higher the % the better, e. g. ————————————————- A NPM of 45% means that for every ? 1 of sales, the firm makes 45p in pure profit Task B MB4 Complete for 2nd profit and loss account if constructed CFF2 Task 3= Analysis You must now undertake a critical analysis of each profit and loss account with clear reference and commentary related to the key issues such as profit or loss, gross profit, overhead costs, GPM, NPM etc * Clearly relate back to the businesses achievement of its aims and objectives (explain HOW AND WHY THEY ARE ACHIEVED), developing or revising your aims where necessary in your business plan. * Make clear reference to the FIGURES from your profit or loss, gross profit, overhead costs etc * You must undertake a critical analysis of each financial ratio * Identify and pr oblems and/or solutions: Are you profitable? If so†¦ by how much? * Can you grow? * Which costs are too high? * How can you improve your profitability? * What are the possible knock-on effects of these solutions for your business> * Which costs could be reduced? If so what would the possible impact of this be on your business idea? * Which costs cannot be reduced further? Why? What problems does this bring up? * How does a cash injection help or hinder the financial ratios/P&L? BREAK EVEN Task 1 1. Download the Breakeven table from Moodle 2.Input into the table your Annual Revenue (TR), annual FC and VC (with total FC and VC), and total costs. 3. You must then divide the total variable costs by the number of units you are selling in a year ( units can be the bottles/ no of clubbers you expect/ etc in a year) 4. This will give you the variable cost /unit 5. You must now calculate the break even OUTPUT point using the formula: 6. MB4 Calculate Break Even 2 from your revise d financial documents 7. All marks gained with this task is from your analysis of your financial data; not from your reports themselves. Identify problems and solutions with your plan (develop it) and also if your aims and objectives can/cant be achieved * Do you break even? * If so at what output? * Work out from your sales forecast when you will reach this breakeven output level * What aims can be achieved? How? Why? * If you don’t breakeven; why not? * You need to identify areas of weakness such as high fixed costs, start up costs, raw materials, low selling price? * What aims cant be achieved? How? Why? * What could you do to solve this breakeven problem? (hint: see changing B/E variables section) 8.MB4 analyse the effect of changing variables (FC, VC and/or Price) on the break even figure. * Calculate the effect of changing variables (FC, VC and/or Price) on the break even figure: * Analyse these break even scenarios and link to your aims and objectives. * What is the ef fect on breakeven level? * What are the potential problems you have identified with your break even? * Are there any solutions you can recommend to the business? * Such as reducing selling price? * Increasing selling price? * Increase advertising to increase sales? Reducing fixed or variable costs further? etc

Entrepreneurs Personality for Being Successful in Business

Entrepreneurs Personality for Being Successful in Business Miss. Sarita Ghanshyam Tiwari, (M. Com. M. Phil. ) e-mail: [email  protected] com Abstract Business success may causes due to many factors, but the greatest determinant of the business success is the entrepreneur himself / herself. Therefore, the question of what makes a successful entrepreneur is very important. There have been many answers to this question. Some people think entrepreneurs are born, others that they are made. Some see entrepreneurs as passionate leaders with a vision that is totally focused on one objective, while others describe them as compulsive controller. Some says entrepreneurs are risk takers while others say they are risk averse. All of these words may describe some entrepreneurs but they do not describe all successful entrepreneurs. There is no doubt that entrepreneur’s diploma’s, business knowledge and skills play an important role in business growth and success, but the personality of the entrepreneur is even more important. Recent researches in the field of psychology suggest that personality has a great deal to do with being a successful entrepreneur. This paper highlights the personality traits and essential factors of personality determinant of a successful entrepreneur and how does an entrepreneur’s personality can influence a business. The paper also reviews some notable Indian entrepreneur’s and their entrepreneurial work for justification of the topic. Introduction: Why certain people successfully starting and growing a business and others are not? Is it just luck or being in the right place at the right time? Someone can say it is just luck while others can say it is timing. But it also involves other factors too. Recent research in the field of psychology suggests that personality has a great deal to do with being a successful entrepreneur. This may raise many questions in one’s mind such as what is meant by personality? Can it be developed or is it inborn? Which aspects does it carry? Is it really necessary for an entrepreneur? Does it have any impact on the business growth? etc. Personality Meaning: Many people mistake the meaning of personality. They take the physical appearance and various external characteristics of an individual as his or her personality. As they talk about a marvelous personality they may refer to the height, weight, stature and complexion. Well, if you think that it is just the appearance of the physique of a person that determines the personality, then it is time to have a rethink. It is true that physical appearance does matter. However, since most of them are beyond our power and control. Physical appearance is just 10% of the total personality of an individual and not having a long lasting impact on others. There are many other aspects that contribute greatly to one’s personality, which are 90% of the total personality. These aspects involve character, behavior and attitude. Basically, personality development is the improvement of behavior, communication skills, interpersonal relationships, attitude towards life and ethics. Character can be considered the basic factor in determining an individual’s personality. It is the fact that all other factors behind a powerful personality will become useless if the person lacks a good character and behavior. Personality is like a building. Just a building can exist only when it has a strong foundation, a personality can impress others only when it has a formidable basis. And the strong foundation is supplied by character and behavior. If personality is developed on the solid base of values and ethics, it will last forever. Fake smiles and mannerisms may attract others for a comparatively short period. However, they are short-lived and do not help in improving one’s personality. In order to pinpoint this exactly take a look to a simple example. A book with decorative cover page may attract a person’s attention towards it but after looking inner contents of that book a person can predict his opinion regarding it i. e. whether is it a nice book or not? Here a decorative cover page does not carry a long lasting impact on that persons mind. Therefore, personality includes both factors i. e. physical appearance and formidable foundation of good behavior and character. Physical appearance is that personality which creates first impression in front of others that’s why it can be taken as the ‘primary or outer’ personality of an individual, while foundation is considered as ‘secondary or inner’ personality because it has second impact on others. It is not necessary that one should possess physical appearance because it is sometimes depends on the heredity factors of that person. It is inborn type of personality and sometimes depends on the luck factor too. If a person got good looks then it adds to his plus point. We should remember that a person’s height, weight and complexion are not in his hand but he can take care to keep himself neat and clean to impress others. Thus, working on primary personality is necessary but only putting concentration on it is not sufficient. The best personality is based on the solid foundation of character. Good behavior and co-operation makes a man popular. But this strong foundation is not an inborn quality of a person. It can be developed from one’s childhood and has impact of family, family background, friends, working area, society, regions and experience etc. These factors also contribute in developing one’s character and behavior. Does it require Certain Personality Traits to be a Successful Entrepreneur? Business may succeed due to many factors, but the greatest determinant of the business’s success is the entrepreneur himself/herself. Every year thousands of people start a business with the hope of being a successful entrepreneur. But many more business either fails or discontinues and others transfer ownership or control. Unfortunately only 20% of those businesses will survive long enough to celebrate their 5th anniversary and only 20% of those will survive long enough to celebrate their 10th anniversary. To save you doing the math, only 4% of all new businesses formed will survive at least 10 years. Therefore, for anyone who are starting a new business or already running a business the question of what makes a successful entrepreneur is very important. Because if business fails, it may not only cause for a loss with your personal savings and other assets, but it could give your ego a tremendous blow. So that, before making an extraordinary investment of time, energy and money to start a business, an entrepreneur needs to engage himself in some personal soul-searching. He needs to develop some personality traits in himself so that he can successfully handle his business affairs. Without it the business can fail as quickly as it started. An entrepreneur is a business owner, a franchise owner, or CEO of the company. And entrepreneur’s duties include managing employees, acquiring resources, seeking venture capitalism, handling finances, planning, time management, human resources, and more. Thus, being an entrepreneur requires special skills. There is no doubt that entrepreneur’s diploma’s, business knowledge and skills play an important role in business growth and success, but the personality of the entrepreneur is even more important. â€Å"How strongly does the businessman believe in himself and the success of his business? † â€Å"How decisive can the entrepreneur be in changing threats into business opportunities? † These are just a few of the situations that businessman must deal with, and not everyone can cope with these situations. So people who start up and run business need to know their own pluses and minuses, strengths and weaknesses, because self-knowledge through self-analysis is very important. However, self–analysis demands an understanding of one’s own personality in relation to one’s behavior. There is no ‘ideal’ entrepreneurial personality- successful entrepreneurs can be analytical, creative, fearless, flexible and focused. However, psychologists and other business people describe that successful business entrepreneur; whether male or female have some common traits. Personality traits determines the behavior of an entrepreneur in certain ways i. . how he perceive situations, solve problems, interact with people and carry out the job responsibility. Factors Determining Personality Of A Successful Entrepreneur: According to Webster’s dictionary, an entrepreneur is one who organizes, manages and assumes the risks of a business or enterprise. Entrepreneurs live i n the future. They have creative personalities, are innovative, and succeed on change. Starting and growing own business requires many skills to be successful. The traits and characteristics of an entrepreneur’s personality can blend with the needs of the business. If one better understand his/her business personality, then he/she can give a company the best part of them. An entrepreneur is determined by the following few outer personality factors, which are only 10% of his/her total personality: 1. Physical Appearance: It’s having a 50/50 born/made ratio and includes sound health, endurance, living style etc. 2. Good Health: An entrepreneur has to put in hard work. This requires tremendous physical stamina to work long hours for extended periods of time. 3. Family Background: It’s an environmental factor and determines environmental heritage. 4. Age and Education: It’s a functional matter . Work Experience: Most entrepreneurs first gain some work experience in the line of business and then start up. In spite of the above outer personality an entrepreneur must have inner personality factors, which are the formidable basis of his/her personality and contributes 90% of his/her total personality. Thus, all successful entrepren eurs will have the following personality traits in common. ? Never stop learning and growing ? Self confident ? Intelligence ? Respect to Others ? Motivating Others ? Communication Skills ? Looking for opportunities everywhere ? Seeking advice from qualified people ? Invests in their future Supports their own business ? Problem solving skills ? Always desire to work hard ? Competitive and have attraction towards Challenges ? Strong management skills ? Willing to pay a price ? Sense of Urgency ? Comprehensive Awareness ? Conceptual Ability ? Emotional Stability ? Always developing people’s skills ? A blessing to their community ? Takes responsibility ? Realistic Outlook and Possess Long term thinking ? Objective Approach ? Set goals and works towards those goals ? Organisational skills ? Decision making skills ? Optimism (Live by the philosophy that this is the best of times and that anything is possible) ? Orientation to excellence (often desire to achieve something outstanding that they can be proud of. ) ? Profit oriented ? Devotion towards his work ? Humanism ? Never quit tendency This is the most concise collection of the characteristics of an entrepreneur and is truly the heartbeat of what characteristics are necessary to truly succeed as a business owner. These traits can be learnt through study, practice and experience. An Entrepreneurs Personality can really influence a Business: We are in a more entrepreneurial period than we were in before the Second World War. With the close of the Second World War, a number of changes with far-flung effect on business world took place. Establishment of World Trade Organisation (WTO) obliged many countries to open up their boundaries and welcome industries, trade and service companies. This added complex dimensions to the intensity to competition. While these changes were taking place in organizational environment, customers attitude were also changed. Customers started demanding more value from the product and services that they bought in the market. Naturally customer satisfaction and delight become the goal to be achieved by organizations. This emerges the need for developing entrepreneurial personality in business owners. Therefore today an entrepreneurship is more than the mere creation of business. An entrepreneur has to do more than just fight hard to win their market share. They must ‘live in the world of action’ and often ‘need thinking several steps ahead’. Entrepreneur’s sense of opportunity, their drive to innovate, and their capacity for accomplishment have become the standard by which an enterprise is now measured. The presence of entrepreneurs in an economy is a sign of economic growth. Entrepreneurs with their personality traits will continue to be critical contributors to economic growth through their leadership, management, innovation, research and development effectiveness, job creation, competitiveness, productivity and formation of new industry. Some Notable Indian Entrepreneurs and their Entrepreneurial work: Dhirubhai Ambani : Born: December 28, 1932 Died: July 6, 2002 Achievements: Dhirubhai Ambani built India's largest private sector company. Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscent of the rags to riches story. He is remembered as the one who rewrote Indian corporate history and built a truly global corporate group. Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling â€Å"bhajias† to pilgrims in Mount Girnar over the weekends. After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company. Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's argest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in elecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionised capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an ‘equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980's. In 1992, Reliance became the first Indian company to raise money in global markets, its high credit taking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list. The Federation of Indian Chambers of Commerce and Industry (FICCI) named Dhirubhai Ambani the Indian Entrepreneur of the 20th Century. A poll conducted by The Times of India in 2000 voted him â€Å"greatest creator of wealth in the century†. Ekta Kapoor: Born: June 7, 1975 Achievement: Creative Director of Balaji Telefilms. Ekta Kapoor can be aptly called as the reigning queen of Indian television industry. The serials produced by her company Balaji Telefilms are a great hit with the masses and are dominating all the major T. V. channels in India. Born on June 7, 1975, Ekta Kapoor is daughter of former Bollywood uperstar Jeetendra and sister of current Bollywood hero Tusshar Kapoor. Ekta Kapoor did her schooling from Bombay Scottish School and later on joined Mithibai College. She was not interested in academics and on the advice of her father ventured into TV-serial production at the age of 19. And soon she changed the face of Indian television industry and completely dominat ed it. Today, Ekta Kapoor is the creative director of Balaji Telefilms. Her company has produced more than 25 serials and each one is being shown, on an average, four times a week on different television channels. Ekta Kapoor's serials have captured the imagination of masses. She has broken all previous records of TV serial production and popularity in India. Her most famous television venture has been â€Å"Kyunki Saas Bhi Kabhi Bahu Thi† which began in 2000 and has leaded the TRP ratings in India. Her other famous serials include â€Å"Kahaani Ghar Ghar Ki†, â€Å"Kahiin To Hoga†, â€Å"Kavyanjali†, â€Å"Kyaa Hoga Nimmo Kaa†, â€Å"Kasamh Se†, â€Å"Kahin Kisii Roz†, â€Å"Kasautii Zindagi Kay†, â€Å"Kkusum†, â€Å"Kutumb†, â€Å"Kalash†, â€Å"Kundali†, â€Å"Bandini†, â€Å"Kitni Mohabat Hai†. For her entrepreneurial skills and achievements Ekta Kapoor was awarded with Ernst & Young (E&Y) Startup Entrepreneur of the Year award in 2001. Conclusions: Today an entrepreneurship is more than the mere creation of business. An entrepreneur has to do more than just fight hard to win their market share. This emerges the need for developing entrepreneurial person ality in business owners. †¢ An entrepreneurs personality includes two factors: 1) Outer Personality Factors i. e. Physical Appearance, Work Experience, Family Background, Age and Education, Good Health etc. 2) Inner Personality Factors i. e. Personality Traits Personality traits can be learnt through study and practice, they are the formidable basis for building inner personality of an entrepreneur. While physical appearances, age, education, work experience are environmental factors, which are just outer part of an entrepreneur’s personality. †¢ It is not necessary that one should possess physical appearance, family background, age, education and work experience but he should possess the personality traits to tackle business operations successfully, because an entrepreneur is not determined by age, gender, race, religion, intelligence or education but successful entrepreneur do have some common personality traits. Personality traits determines the behavior of an entrepreneur in certain ways i. e. how he perceive situations, solve problems, interact with people and carry out the job responsibility. †¢ Entrepreneurs with their personality traits will continue to be critical contributors to economic growth through their leadership, management, innovation, research and development effectiveness, job creation, competitiveness, productivity and formation of new indus try. Bibliography: 1) Entrepreneur Characteristics: Personal Qualities of an Entrepreneur http://www. orebusiness. com/getting_started/primer/d943458887. brc 2) Bill Bither's Insights 5 Personality Traits of an Entrepreneur http://www. atalasoft. com/cs/blogs/billbither/archive/2006/01/03/inception-of-a. aspx 3) The 9 Personality Types of Entrepreneurs By Darrell Zahorsky, About. com Guidehttp://sbinformation. about. com/cs/development/a/personality_2. htm 4) What Are the Characteristics of a Successful Entrepreneur? http://www. aw-wrdsmth. com/FAQ/characteristics_successful_entre. tml 5) Entrepreneurship is More Than Just Being Your Own Boss Article by nicolelamarco (8,967 pts ) Edited & published by Ronda Levine (24,269 pts ) on Dec 23, 2009 http://www. brighthub. com/office/entrepreneurs/articles/60059. aspx 6) The Four Types of Entrepreneurs Article by R. Elizabeth C. Kitchen (12,490 pts ) Edited & published by JScheid (23,995 pts ) on Dec 26, 2009 http://www. brighthub. com/off ice/entrepreneurs/articles/60187. aspx 7) Entrepreneurial Stress and its Causes Article by William Busse (729 pts ) Edited & published by Ronda Levine (24,269 pts ) on Dec 23, 2009 http://www. brighthub. com/office/entrepreneurs/articles/60057. aspx 8) Successful Entrepreneurs – Those Who Have Made It Big http://blog. franchiseindia. com/events/2009/11/successful-entrepreneurs-those- who-have-made-it-big/ 9) Dhirubhai Ambani Biography http://www. iloveindia. com/indian-heroes/dhirubhai-ambani. html 10) Ekta Kapoor http://www. iloveindia. com/indian-heroes/ekta-kapoor. html

UK Economic Policies - 1090 Words

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Feminist Literary Criticism in Indian Camp By Ernest...

Feminist Literary Criticism in Indian Camp By Ernest Hemingway In the short story â€Å"Indian Camp†, by Ernest Hemingway, many controversies arise about the idea of feminism in the text. Feminism is a general term used to describe advocating women’s rights socially, politically, and making equal rights to those of men. Feminist criticism is looked through a â€Å"lens† along the line of gender roles in literature, the value of female characters within the text, and interpreting the perspective from which the text is written. Many of Hemingway’s female characters display anti-feminist attributes due to the role that women play or how they are referred to within a text by him or other characters. There are many assumptions that go along with the†¦show more content†¦Roles depicted in the story of â€Å"Indian Camp† are mostly dominated by men. â€Å"His female characters are typically shallow, and at best, are merely passive receptors of th e dominant men that surround them† (Wray). The roles of the men are active compared to the women, whose roles are generally passive. Nick’s father, the doctor, has to perform a cesarean section on the Indian woman. This creates the idea that the woman cannot handle having the baby on her own and suggests that a man is needed to complete the job that is typically performed by a woman in the Native American culture. He takes away the natural process of a woman producing a baby, which is the one valuable thing that a female is able to do that a man cannot. The word â€Å"Cesarean† itself suggests power or control as a result of its root â€Å"Caesar† (Anderson). The Indian woman that assists the doctor is just used to retrieve water as the doctor requests and then just stands there. She has no part of taking action in the situation besides what the doctor tells her to do. The other women present are only mentioned once to show that they are just there. Thre e Indian men and Nick’s Uncle, George, holds the Indian woman down as if she cannot allow herself to let the doctor perform his operation and gives the men power or strength over the woman. The woman’s husband commits suicide by cutting his own throat. â€Å"The Indian lay with his face towardShow MoreRelated The Forgotten Female in the Works of Ernest Hemingway Essay3143 Words   |  13 PagesThe Forgotten Female in the Works of Hemingway      Ã‚  Ã‚   Ernest Hemingway has often been accused of misogyny in his treatment of female characters (and, perhaps, in his treatment of women in his own life). It is not fashionable these days to praise the work of Ernest Hemingway, says Frederick Busch. His women too often seem to be projections of male needfulness (1). Many of his stories are seen as prototypical bildungsroman stories--stories, usually, of young men coming of age. There

Science vs. Nature as a Means of Obtaining Perfection in...

Although we may mask our insecurities with false confidence and bravado, deep down most people crave perfection. As the majority of us learn as we age, this idea of â€Å"perfection† is unobtainable. The older we get, the more we tend to accept the flaws and imperfections that make us individuals. However, there are others who never learn the hard lesson of acceptance. Instead they spend ridiculous amounts of money on surgeries, creams and concoctions in order to rid themselves of these marks and insecurities. It’s a constant battle, a fork in the road if you may, between science and nature. On one side there’s the high-road of nature and acceptance, and on the other there’s the scientific shortcut that, in reality, just continues to mask the original problem. The Birthmark leads us to believe that this is perhaps a topic Hawthorne struggled with himself. Hawthorne clearly displays his decided distaste for science and its unnatural ways in his short story, The Birthmark. Aylmer, the main character of the story, is a brilliant scientist/alchemist. He possesses a belief in mans ultimate control over nature, and thinks there is nothing man cant overcome (Harun). His obsession with his wife Georgiana’s small birth mark, which resembles a hand, begins after they’re married. Aylmer is fixated with the idea of Georgianas perfection; he believes that in order for him to experience perfect love, he must have a perfect woman to love (Norman). His obsession and distaste gradually wear

Leadership Skills for Transformational - myassignmenthelp.com

Question: Discuss about theLeadership Skills for Transformational andCharismatic. Answer: My experience: While I was placed in an organization in my internship years, I was given the position of a leader of eight member team. Previously I had never demonstrated any leadership skills and therefore I was quite concerned about my leadership skills. While working in the team, I decided on a strategy in order to complete a task. When I conveyed the strategy of time management, two of the members suggested that the strategy would not bring out positive effect as this would require more time. However, I became quite disappointed and stated that since I am the leader they are bound to follow my decisions. Though they expressed dissatisfaction initially, they acted as per my guidance eventually. Moreover, I also noticed that I was not being able to socialize with them and only communicated with them when I needed to talk about work. This was making the working environment very strenuous and was creating pressure as I was not supporting an informal environment to be developed in workplace. There was no question of showing empathy towards the team members as they could not be trusted with the work. I had little confidence that they would work successfully towards fulfillment of the goal. The productivity of the team members was very poor under my leadership and they felt highly stressed. Leadership skill that I will follow: The leadership theory which I select is my transformational leadership. Transformational leadership is a form of leadership where the leaders inspire their team members in every possible way so that they are able to fulfill the companys goals and missions. This style mainly shows a model of integrity and fairness along with having a set of goals (Avolio and Yammarino 2013). Here the leaders encourage others and at the same time provide support and recognition of the performance of the team members. A transformational leader mainly provides importance to the development of trust and relationship among the team members helping each of them to look beyond their self interest and inspiring them to reach beyond expectations (Dumdum, Lowe and Avolio 2013). They create an inspiring vision for the future by allowing everyone to contribute their precious suggestions while decision making so that innovative and creative ideas can be implemented. All these help the leaders to ensure that the ca pability for the team members is maximized (McClesky et al., 2014). Researchers have stated that leaders following this style of leadership need to be well organized and expect their members to be creative allowing effective feedback giving and receiving skills. Their main goal should be team oriented where members should be influenced to work together by developing strong bonds (Kark and Shamir 2013). Moreover researchers have also stated that such leaders become successful in building strong coalitions and can establish mutual trust. In addition, they have high integrity as well as high emotional intelligence showing empathy with others (Antonakis and House 2014). Lessons learnt from this theory: After going thoroughly through this theory, I learnt that I had actually made a number of mistakes while leading my team. The first weakness I noted is that I did not have proper feedback giving and receiving skills. Therefore, I got very disappointed when my team members wanted to give me feedback on my decisions. I was more of autocratic leader than the transformational leader. As I did not allow them to express their feelings, they feel disrespected and their self esteem got hurt. This affected their productivity and they developed a negative feeling. Secondly, due to my poor socializing skills, I failed to develop an informal relationship with them. Researchers say that informal environment helps employees in releasing their stress and reduces work pressure. They feel comfortable in the working environment and as a result can dedicate more to the organization. I also showed less empathy to them which resulted in developing negative feelings towards me and so we could not develop a stable working environment. My internal complexes did not allow me to trust them completely which was a weak point of my leadership skills. I should develop a trustworthy relationship with my fellow teammates so that they feel themselves important in the organization. They should be given a scope of expressing their views and suggestions. More, they feel involved in the team and better the rapport developed between team members, the more stable is the workplace environment and better the productivity of the organization. I would try to achieve all the traits of transformational leadership so that in future, I can develop as an expert leader and help my team reach the zenith of success in the organization. Future aspirations: I have always cultivated the desire to serve individuals in the context of healthcare, and for fulfilling this aspiration I considered getting a degree healthcare science. I have a wish to work in the pharmacy center in any healthcare center. My job is to provide advice to patients and also work in association with medical and nursing staffs on the wards in order to ensure that best quality treatment is delivered to patients. While working here, I have to communicate with a multidisciplinary team where beside me as a pharmacist in-charge and care coordinator; there will be doctors, speech therapists, occupational therapists, physiotherapists, dieticians, podologists and many others. Often in a nation like Australia, there is a high chance that I may have to face experts from different cultures and backgrounds. As an effective leader, I have to make sure that I undertake proper initiatives and decisions which never harm the cultural traditions and beliefs of the experts. Not only that , I also have to handle patients and their family members from different backgrounds and therefore I have to train the experts under me in an effective way by which they can maintain the cultural preferences and inhibitions of the patients and their members. Therefore, I would be following the cross cultural leadership styles which mainly help the leaders to understand how different individuals interact with each other. This leadership style would help me maintain a working environment in my future healthcare center so that no conflicts arise at workplace. Leadership theory: Cross cultural leadership is a new form of leadership which is often followed by leaders of global organizations as well as organizations having a multicultural environment. In this type of leadership styles, the leaders ensure that they can work with diverse team effectively and efficiently (Eissenbeis and Broadbeck 2014). In this type of leadership style, the leaders need to have not only knowledge about their work but also have to ensure that they are aware of the cultural differences of the different countries. These leaders have to work with employees of different culture and have to develop knowledge about their cultural traditions and preferences so that they are not forced to perform any activities which are not supported by their cultures (Dinh et al. 2014). Moreover different workers of different cultures can perform same task in different ways according to their traditional beliefs which also needs to be monitored by the leaders (Liden et al. 2014). Such leaders have to ad apt strategies so that there arise no conflict among the team members where every member do not respect each others cultural preferences an engage in conflict. It becomes the duty of the leaders to establish strategies which help them to understand how to respect each others traditions and establish strong bonds (Yoshida et al. 2014). Moreover, this kind of leaders should influence the team members to incorporate their own ideas and suggestions so that the decision taken is highly creative and innovative which would assure tremendous success in the workplace. This kind of leadership also ensures that with proper innovation and creativity they can set new goals and keep the members motivated and making them deliver the best (Thomas and Peterson 2017). Such leaders also ensure that they have proper personal skills, empathy, socializing skills and self awareness skills which make them develop bonds among all the members irrespective of their personal likings and cultural traditions whe re they respect each other and care for each others. Lesson learnt from theory: I believe that in order to be an effective leader in pharmacy department, I have to first overcome the language barriers so that I can effective communicate with the pharmacy assistants and the pharmacy technicians and junior pharmacists. I have to develop a collaborative work culture by establishing a common bond among the team members. As they would be coming from the different backgrounds and cultures, there remains high chance that they will all have stereotypes and biasness towards their cultures. I would first be trying to implement the concept of cultural competency in them by making them develop knowledge about how to treat their colleagues and respect them of their cultural traditions, preferences and inhibitions. I would implement strategies which would help them in developing binds among themselves so that communication remains uninterrupted and no conflict arises. I should ensure that all members are respectful of each others choices and provide effective feedback harbori ng a positive attitude. I will ensure that all the team members maintain three important features of emotional intelligence, flexibility and cultural awareness so that smooth workflow is maintained in the workplace. If I am being able to successfully incorporate these capabilities in my leadership skills, I will be able to ensure a culturally competent working environment which will help to provide highest productivity and maintain safety at the same time. References: Antonakis, J. and House, R.J., 2014. Instrumental leadership: Measurement and extension of transformationaltransactional leadership theory.The Leadership Quarterly,25(4), pp.746-771. Avolio, B.J. and Yammarino, F.J. eds., 2013. Introduction to, and overview of, transformational and charismatic leadership. InTransformational and Charismatic Leadership: The Road Ahead 10th Anniversary Edition(pp. xxvii-xxxiii). Emerald Group Publishing Limited. Dinh, J.E., Lord, R.G., Gardner, W.L., Meuser, J.D., Liden, R.C. and Hu, J., 2014. Leadership theory and research in the new millennium: Current theoretical trends and changing perspectives.The Leadership Quarterly,25(1), pp.36-62. Dumdum, U.R., Lowe, K.B. and Avolio, B.J., 2013. A meta-analysis of transformational and transactional leadership correlates of effectiveness and satisfaction: An update and extension. InTransformational and Charismatic Leadership: The Road Ahead 10th Anniversary Edition(pp. 39-70). Emerald Group Publishing Limited. Eisenbeiss, S.A. and Brodbeck, F., 2014. Ethical and unethical leadership: A cross-cultural and cross-sectoral analysis.Journal of Business Ethics,122(2), pp.343-359. Kark, R. and Shamir, B., 2013. The dual effect of transformational leadership: Priming relational and collective selves and further effects on followers. InTransformational and Charismatic Leadership: The Road Ahead 10th Anniversary Edition(pp. 77-101). Emerald Group Publishing Limited. Liden, R.C., Wayne, S.J., Liao, C. and Meuser, J.D., 2014. Servant leadership and serving culture: Influence on individual and unit performance.Academy of Management Journal,57(5), pp.1434-1452. McCleskey, J.A., 2014. Situational, transformational, and transactional leadership and leadership development.Journal of Business Studies Quarterly,5(4), p.117. Thomas, D.C. and Peterson, M.F., 2017.Cross-cultural management: Essential concepts. Sage Publications. Yoshida, D.T., Sendjaya, S., Hirst, G. and Cooper, B., 2014. Does servant leadership foster creativity and innovation? A multi-level mediation study of identification and prototypicality.Journal of Business Research,67(7), pp.1395-1404.

Security Analysis Or Portfolio Management free essay sample

Before Fama and French question it, most business schools taught their student CAPM is the means of describing the relationship between expected return and risk in stocks. In 1992, Fama and French hade a study on stock market decision factors of differences between stock returns, they found the beta (sensitivity to the market return) of the CAPM cannot explain all the differences between the stock returns, and the market value, book value ratio, p/e ratio of listed companies can explain the differences between the stock returns. The Capital Asset Pricing Model (CAPM) by Sharpe (1964), Lintner (1965), Black (1972), believe that stock returns just relative to the risk of the whole stock market. But in fact, only measures the risk cannot explain all the variation in expect returns, the sensitivity to the market return is more complicated. This article will show the different between Capital Asset Pricing Model and Fama amp; French Model, and the way to analysis the stock return. We will write a custom essay sample on Security Analysis Or Portfolio Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2. Comparison of Value versus Growth Stock 2. 1 Value Stock amp; Growth Stock In this article, the researchers define the value stock as those stocks that have low ratios of book value to market value, the growth stocks as those that have low ratios of book value to market value. 2. 2 Findings of Value versus Growth Stock on Investing Most investors think the growth stocks can bring a better return, because they think those are good company, and the returns will be high. But the researchers find the growth can bring a better return, the value stocks got a high price by the market, which make their returns be low. In fact, the growth stocks have low ratios of book value to market value, it make the growth stocks get good return. 3. Determinants of stock return Fama and French founding that the market risk factor and the value-growth risk factor can explain average return of this set of large international stocks. The market risk factor is the return on an international market portfolio of stocks, and the value-growth factor is the difference between he return on an international portfolio of high book-to-market stocks and the return on an international portfolio of low book-to-market stocks. 4. Capital Asset Pricing Model vs. Fama amp; French Model 4. 1 CAMP and Its Importance The CAPM is built on a single measure of risk that explains asset returns. The CAPM helps investors determine how much they will earn by taking into account the risk of investments and the time value of money. With higher risk, the investor will want a higher rate of return for his investment. Although most researcher question CAMP, but this model still used widely in investing. Use beta to forecast single stock is different, but the investors still believe that, when the stocks’ portfolio of beta is small, it means the stock change small than the volatility of the market; when the stocks’ portfolio of beta is large, it means the stock change more than the volatility of the market. For the fund managers, this is important, they can use the CAMP, and no matter the market price is rising or falling. When the market price is falling, they can invest the portfolio of beta is low, and vice versa. 4. 2 Fama and French Explanation about Stock Return Compared with the CAMP, Fama and French use more complicated way to explain the stock return. They use three risk factors to design a more perfect model. It often used by the finance professionals to explain the risk and return of equity portfolios. In this model, the beta still is the most important risk factors. The second risk factor is the size, it compare the weighted average market value of stocks in the market. Small stocks have a different activity than big stocks in ever market. In the long run, the big stocks have low returns than small stocks. But this return is not free, the small stock have more risk. The third factor is comparing the amount of value stock exposure in relation to the market. In most companies, the value stock rend have lower earnings growth rates, higher dividends, and higher book-market value. In the long run, the value have higher return. 4. 3 Implications of the Two Models for Investors This tow models had implications for investors, although the CAPM is not accurate,but it still can help people to get investing idea for the market. First of all, the CAPM thinks the market too simple, it only considers the risk, and there are at least two additional dimensions of risk, no matter it is a domestic or international portfolios of stock, it is get rewarded in average returns. Secondly, another implication is that, it makes the investors believe the value stocks have higher returns than growth stocks in markets around the world. Looking at book-to-market equity, Fama and French found that value stocks outperformed growth stocks in 12 of 13 developed countries from 1975 to 1995, and that the difference between average returns on global portfolios of high and low book-to-market stocks was 7. 6 percent per year. Furthermore, when earnings-to-price, cash flow-to-price and dividend-to-price were examined, the value premium continued to be evident. Conclusion Although the CAPM stills an important mean to describe the relationship between expected return and risk in stocks. But CAPM has some serious flaws, especially with the assumptions of the risk-free rate and the market rate. Investors must consider current market conditions before deciding what numbers to use. Additionally, CAPM ignores taxes and transaction costs, lower returns on higher risk and adequate risk measurement. Fama and French think more about the stock return, this model use more risk factors to analysis the change of the stock price.