9 Steps Of Spiritual Growth Essay - 1367 Words

9 Steps to Spiritual Growth By Stalis Norma Ethica | Submitted On November 24, 2013 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Expert Author Stalis Norma Ethica For different people having various faiths, spirituality can mean very different concepts. However, we commonly agree that spirituality is about connecting with soul. It is a sense of awareness going far above average thinking. Among pathways to spiritual growth are particular worship, meditation, and contemplation. Spiritual growth refers to the process of trying to understand the meaning of life, death and the reason for existence. No wonder, it may take years of awareness and practice to reach spirituality. Practicing all the activities that lead to a spiritual path overnight will not automatically bring you to your destination. In fact, every person has his or her own pace to develop spiritually. When a crisis bumps, all of us need an ability to transcend ourselves at least to have ability to hold on to something higher than our crisis itself. People healthily affiliated with a particular religion usually are familiar with this concept although spirituality is actually different from religion. However, those with or withoutShow MoreRelatedChrist in Discipleship1731 Words   |  7 Pagesbeing a disciple of Jesus Christ. He shares an example of obeying Christ. Mark 2:14 (KJV) â€Å"And as he passed by, he saw Levi the son of Alphaeus sitting at the receipt of custom, and said unto him, ‘Follow me’. And he arose and followed him.† Matt. 9:9 and Luke 5:27-28 are also examples of obedience to Christ: Jesus called Levi, and Levi just got up and followed. Bonhoeffer points out, â€Å"The call goes out, and without any further ado the obedient deed of the one called follows. The disciple’s answerRead MoreAnalysis Of The Book Kingdom Triangle 1612 W ords   |  7 Pagesin-depth look into my own spiritual journey. Additionally, I will be integrating several biblical principles into a plan that I created as I seek spiritual growth. Biblical Principles Related to Education Would you believe me if I told you that, as humans, we are in combat for our souls on a daily basis as we travel this earth in our flesh-covered vessels. Today, we live in a society where the â€Å"norms† are unrecognizable. Many of us seek direction and growth but forget to turn toRead MoreSpheres and Stages of Discipleship Essay1656 Words   |  7 PagesTERRELL  PEARSON         CHICAGO,  IL   FEBRUARY,  2015      2      Introduction   In  this  paper  Ã‚  I  will  identify  the  five  stages  of  discipleship  according  to  the  growth   process  described  in  the  book  Ã¢â‚¬â€¹ DiscipleShift:  Five  Steps  That  Help  Your  Church  To  Make   Disciples  Who  Make  Disciples.​   These  five  stages  are  spiritually  dead,  spiritual  infant,  spiritual   child,  young  adult,  and  parent.1  In  addition  I  will  also  discuss  what  is  called  the  Ã‚  Four  Spheres  of   discipleship.2      Spiritually  Dead  Ã‚   The  ApostleRead MoreAnalysis Of The Movie Nope 755 Words   |  4 Pagesand steps through the fence and gets himself unstuck. He’s free. He just had to change his perspective a bit and move forward instead of trying to pull back. So often when we find ourselves in a spiritual rut and need to get unstuck in our life with Jesus we just need a bit of a new perspective. To change our view point and redirect our efforts and we’ll find our way to being unstuck. Have you ever felt stuck in your relationship with Jesus? Like things were just stagnant? Maybe the growth and excitementRead MoreSection 2 Essay1524 Words   |  7 Pagescontinues through program (Objectives 4, 7, 8) o Weekly - meeting with small group led by Mentor o Bi-weekly - one-on-one meeting with Mentor to develop spiritual growth o Monthly - serve in a volunteer position at church alongside Mentor Section 3: Faith into Action - Months 7 8 (Objectives 8, 9, 10) o Work with mentor to develop personal Spiritual Agenda o Participate in 2-3 Service projects outside of the church building o Identify personal long-term role within the community of believers (withRead MoreGod Has Made Provision For Everything He Created855 Words   |  4 Pageschurch. 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The Biblical reference to Spiritual gifts are found in four passages: Romans 12:6-8, 1 Corinthians 12:8-10; 28-30, Peter 4:9-11, and Ephesians 4:11. They are Leadership, Administration, KnowledgeRead MoreThe Beatitudes1197 Words   |  5 Pagesfill. (Verse 6) * Blessed are the merciful: for they shall obtain mercy. (Verse 7) * Blessed are the clean of heart: for they shall see God. (Verse 8) * Blessed are the peacemakers: for they shall be called the children of God. (Verse 9) * Blessed are they that suffer persecution for justice sake, for theirs is the kingdom of heaven. (Verse 10) First beatitude The word poor seems to represent an Aramaic à ¡nyà ¢ (Hebrew anà ®), bent down, afflicted, miserable, poor; while meekRead MoreThe Importance Of Activity752 Words   |  4 PagesBehavior Progress: During this review period, Connor has continued to participate in all aspects of the program with difficulty. Connor acquired 9 sanctions this review period. A review of Connor’s sanctions reflect that Connor has struggled with following staff instructions and complying with program expectations. In addition to sanctions, Connor also acquired 4 room restrictions during this review period. On 8/12/17, Connor received an early bed room restriction, for talking during a fire drillRead MoreFive-Year Personal Growth Plan1399 Words   |  6 PagesFIVE-YEAR PERSONAL GROWTH PLAN Liberty University Online PLED 325-DO3 LUO BY Desmond W. Akenteng Instructor’s Name: Dr. Tyler Scarlett Date: October 29, 2014 Introduction Every man/woman whom God has called want to do the work God has giving to him/her and do it successfully, God works with time and He does everything orderly. So in order for me to do God’s work successfully and accurately, I have to have a time table to guide me so that I would not waste time on things

Soundness of Biotechnology Advancements in Agriculture...

The use of genetically modified organisms in agriculture is on the rise. Many scientists debate that genetic engineering in the agriculture field is the best way to answer many issues pertaining to poverty, environmental harm, food security, and the necessity for increasing competition in sales. In the other hand, others raise ethical issues relating to the health of the people who consume these genetically modified food, the potential damage to the environment as well as the welfare of the farmers and their food security. Genetically Modified Organisms, short form (GMOs), refer to organism whose genome has been engineered in the laboratory in order to favour the expression of desired physiological traits or the production of desired†¦show more content†¦Countries like Vietnam, India and Kenya can benefit from genetically produced bio-pesticides as those countries are experiencing diseased vegetable crops and trees. Potato crops in Vietnam, cardamom crops in India and banana crops in Kenya are often farmers’ main source of income.4 By having such diseased crops, this raises an extremely damaging effect towards the farmers’ and their families’ lives. By incorporating bio-pesticides into agriculture, GMOs has a possibility to provide a method for high resistance and high yielding crops.5 Bio-pesticides can solve problems pertaining to a lack of clean, pure seeds and planting materials because bio-pesticides provide tolerance in the purity of the seeds and planting material. The use of biotechnology in the agriculture field can also contribute to assist and support the production of foods, mainly cereals and maize, in areas with limited resources. Acidic soil, drought and pests often cause unfavorable environments for farming, whereas insect resistance and aluminum tolerance can evade these environmental obstacles.5 GMOs has the ability to deliver a complete farming season. Through the use of GMOs, it assists in the production of larger quantities of food for these farmers to help ensure that they receive a profitable growing and harvesting season. More nutritious foods are becoming available

Night Creature Crescent Moon Chapter 16 Free Essays

â€Å"Who’s Simon?† I spun toward the bed. â€Å"Where did you hear that?† Adam tested his head on one palm, his face shuttered. â€Å"From you. We will write a custom essay sample on Night Creature: Crescent Moon Chapter 16 or any similar topic only for you Order Now † â€Å"I never told you about him.† â€Å"Not told, no. You said de name in your sleep. And since you’re sleeping with me, I want to know who he is.† Had I dreamed Simon or not? I wasn’t certain. If I had, was that good or bad? If I hadn’t, what the hell? I glanced at the window, but the handprint was gone. Had it ever been there in the first place? â€Å"Who is he? Adam sounded as if he was speaking through clenched teeth. When my gaze returned to his, I saw that he was. â€Å"Simon’s my husband.† A flicker of violence passed over his face. â€Å"You didn’t think you should mention a husband? I might do a lot of things, but I try not to fuck another man’s wife if I can help it† â€Å"No. I’m not – I mean we’re not – He isn’t – â€Å" Adam got out of the bed and crossed the floor so fast I barely had time to take a step back. When I did, I hit the wall. He grabbed me by the forearms and dragged me onto my toes. His grip hurt, but I was too bewildered to protest. â€Å"He isn’t what?’ â€Å"Alive.† Or at least I didn’t think so. Adam released me as if I were a hot potato; I would have fallen if I hadn’t had the wall to hold me up. â€Å"Sorry.† He shoved a hand through his hair. I wasn’t sure if he was apologizing for Simon’s death or for manhandling me, but I understood his anger. In fact, his fury at the idea I was married made me view him in a different light. Adam Ruelle hadn’t seemed the type to respect marriage vows, to take to heart the myth of one man, one woman, forever. If I’d been wrong about that, I’d been wrong about him. Which only confused me more. â€Å"Never mind,† I said. â€Å"Forget it.† â€Å"You haven’t forgotten.† â€Å"No.† â€Å"You still love him. I could tell by de way you said his name.† I wanted to ask how he knew so much about love, but I didn’t The conversation only emphasized that we were practically strangers, and I wanted to keep it that way. â€Å"I’ll always love Simon. Death can’t change what I feel.† He stared at me so hard, I got the feeling he wanted to open my head and peek inside, find out what made me tick. â€Å"How did he die?† I didn’t want to talk about this, especially naked, so I yanked the sheet off the bed and headed for the bathroom. Adam caught the tail end and held on. â€Å"You dream of him,† he whispered. I wasn’t so sure it had been a dream, but I couldn’t tell Adam I’d seen my dead husband outside his window. â€Å"I saw a wolf,† I blurted instead. â€Å"Dreams aren’t real.† I wasn’t so sure anymore. â€Å"There.† I pointed. â€Å"At the window. Big, black, with weird blue eyes.† If Adam hadn’t been nude, I wouldn’t have noticed him tense. His gaze nickered to the window and back. Nevertheless, I was distracted by the ripple of muscle beneath skin, the wave along his abdomen like a softly flowing river. â€Å"There was no wolf, cher.† â€Å"What about the howls in the swamp? The deaths? The tracks?† â€Å"What about them?† â€Å"Why do you keep denying even the possibility that there’s a wolf or ten out here?† â€Å"Because there isn’t.† I gave a frustrated little shriek and resisted the urge to kick him. â€Å"You want me to prove it? Tonight I take you. I know this swamp like I know my own name. If there’s anything here that doesn’t belong I’d have seen it† Unless he was hiding something, and I kind of thought that he was. Maybe I shouldn’t go tripping off merrily into the swamp with him in the dark. I might never be heard from again. Be safe, Simon had said. What had he meant? From the loup-garou? From my feelings? Or from Adam? But what choice did I have? If I was going to fulfill my vow, I needed help. And the only help available was the only man who’d made me feel alive since my whole world died. Life certainly was a vicious bitch. I blinked as another thought occurred to me, one that made me dizzy with dismay. Cursing, I collapsed on the bed. â€Å"I’m no damn good at this.† Sex required responsibility. Protection. My celibate lifestyle had kept me free of disease. I was also free from birth control, being both a widow and an idiot. The bed dipped as Adam sat beside me. His hip brushed mine, but he touched me nowhere else, and for that I was grateful. When he touched me I couldn’t think. Obviously. â€Å"You’re pretty good at this, if you’re askin’ me.† â€Å"What?† My mind wasn’t keeping up very well with the conversation. â€Å"You said you were no damn good, but you are.† I smiled before I could stop myself. â€Å"Thanks. But I meant at technicalities.† His blank stare made me continue. â€Å"Protection. We didn’t use any.† I saw the understanding spread across his face. I waited for the horror, the panic, the escape, but it didn’t come. â€Å"You don’t have to worry.† â€Å"I think I do.† â€Å"You wanna ask me have I been with a lot of women?† I shrugged. My lame-ass equivalent of â€Å"Hell, yes!† â€Å"Once I fucked tike rabbit, my father said.† â€Å"How†¦ flattering.† â€Å"He thought so.† Now would be the time to ask about his father. Then again, what did it matter how, when, or why Ruelle Senior had died? â€Å"Me, I was lookin’ for love. What’s that song? In all de wrong places.† The sadness on his face made me want to touch him, but I knew where that would lead. â€Å"Those days are gone,† he murmured. â€Å"Love isn’t for me.† â€Å"Why not?† Adam contemplated my face. â€Å"You aren’t lookin’ for love. We both know that.† He was right, so I dipped my head. â€Å"I want you. Shouldn’t, but can’t seem to help myself. I see that red hair,† He picked up a strand and rubbed it between his fingers. â€Å"Smell your skin, stare into your pretty green eyes, and I lose my mind.† Being wanted for my body was something new, and I kind of liked it. â€Å"Since I left de army, there’s been no one.† â€Å"No one?† I found that hard to believe. â€Å"No one,† he insisted. â€Å"And in de army, they tested us regular for every old thing. I came out clean, cher, and clean I still am. Right?† He quirked a brow and my face heated. I’d never had a conversation like this before, although if I planned to spend the rest of my life alone, with the occasional lover to take off the edge, I’d have to get used to them. â€Å"There was never anyone but Simon,† I whispered. The words until you hung in the air unspoken. Adam touched my hair again. â€Å"Why not?† â€Å"He was everything, and when he died – † My throat closed. â€Å"A part of you went with him,† he finished. I didn’t bother to answer. Couldn’t, really. â€Å"It’s not natural to be alone.† I cleared my throat. â€Å"I’m fine.† â€Å"Sure you are. You’ll fall in love again.† â€Å"No,† I snapped. â€Å"No?† â€Å"I don’t ever want to feel the way I felt when he died.† â€Å"So you feel nothing?† â€Å"I had my shot. Simon was it for me.† â€Å"You don’t think you can love twice in one lifetime?† I lifted my head, looked him straight in the eye. â€Å"No.† He studied me for a second to ascertain that I meant what I said. He must have seen that I did, because he gave a sharp nod, as if we’d sealed a bargain. I guess we had. â€Å"You’re like a wolf,† he murmured, â€Å"mating for life. If one dies, de other is forever alone.† â€Å"How do you know so much about wolves?† â€Å"Common knowledge, no?† I stared at him, suspicious though I wasn’t sure why. He was right. The whole mating-for-life thing was common knowledge. â€Å"Never mind,† I muttered. I’d had another cheery thought. â€Å"There’s more to be concerned about than STDs.† All I needed was a baby. I could barely take care of myself. I glanced around the sparse bedroom. Adam wasn’t doing much better. In truth, I wasn’t crazy about kids. I didn’t long to be a mother. Maybe this made me a freak of nature, but that’s how I felt. I was an only child. I’d never played well with others. Without brothers and sisters, nieces and nephews, I’d had neither a reason nor an inclination to babysit Kids just made me twitchy. Simon and I had decided all we needed was each other. We’d planned to travel the world, sleep in tents until we couldn’t anymore, then retire. Besides, if I wasn’t going to have Simon’s child, I certainly wasn’t going to have anyone else’s. â€Å"I can’t,† Adam murmured. To make sure we were talking about the same thing, I asked, â€Å"Can’t what?† â€Å"Have children.† â€Å"No kidding.† I lowered my gaze to his lap. â€Å"You aren’t exactly equipped for the process.† â€Å"I meant I can’t get you, or anyone else, pregnant† I wasn’t sure what to say. I could ask what was wrong with him, but since he hadn’t offered to tell me†¦ should I? What was the etiquette for something like this? I didn’t have a clue. Adam stood and turned away, as if the conversation upset him. Maybe he’d been wounded, although I hadn’t seen any scars and I’d seen pretty much everything. Perhaps, unlike me, he’d wanted children one day. Learning he’d never have them would hurt and might account for some of the sadness in his eyes. The question was: Did I believe him? I studied Adam’s tense shoulders. A better question might be: Why would he lie? Since I couldn’t come up with an answer, I went to him and slid my arms around his waist. â€Å"It doesn’t matter.† â€Å"Nor The way he said the word, with that French twist, always made him sound just a tad sarcastic, which was probably the whole idea. â€Å"For us, that’s a good thing.† He turned in my arms, taking me into his. â€Å"Whatever you say.† â€Å"We’re having a – â€Å" Adam tilted his head. â€Å"A what?† An affair sounded too long-term and old-fashioned, a fling too flippant for the intensity of what we’d shared. â€Å"I’m not sure,† I said. â€Å"But whatever it is, it’s about sex, not love, or kids, or anything but the moment Right?† â€Å"What man would say no?† Lowering his head, he kissed me, putting all of himself into the embrace. Only later, when we were back in bed, my heart still pounding, my chest still heaving after another bout of exactly what I’d wanted, did I consider his response. Or rather his lack of one. Adam had the habit of answering every one of my questions with a question of his own. And that wasn’t really an answer at all, was it? How to cite Night Creature: Crescent Moon Chapter 16, Essay examples

Unit 3 Assignment free essay sample

The article starts with a note to the author by an anonymous sender that echoes the stigma other twenty-something year olds have towards online dating. This person is afraid of gaining a bad reputation of sorts, like being called a loser, pathetic, or desperate if they are found out for approaching online dating as a means to meet people for a relationship. It seems a bit strange because of a lot of people using the internet as a means to communicate nowadays yet, turn their noses up to online dating because it isnt normal to date someone online. In a way it can be a bit scary, even the author agrees, but with how dating sites are set up to where it is, at least, not a blind date but then again, it can be terrifying with how straight-to-the-point some of these websites can be, sometimes feeling like there are no real social interactions between the parties involved. We will write a custom essay sample on Unit 3 Assignment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However there are other websites, such as facebook. com or myspace. com that people will connect over and build relations over through various communications that the sites provide (such as private messages or poking). Something about these sites seem more organic than dating sites, and so a man named Adam Sachs, who noticed that people feel more comfortable in situations with friends around, created a site called ignighter. om that focuses completely on a group of friends meeting with another group of friends in a safe environment that would be more comfortable for the people involved. There is an upside that comes with online dating though, and that would be how well you can get to know a person. Without the face-to-face interaction there is no need to worry about superficial things that could get in the way. As useful as this is though, I believe that online dating is still not an actual replacement for meeting and dating a person you can meet offline. If anything, I believe that connecting with people online is best left to be used as a tool to find others that you may like or to start by being friends with, at least to find some common ground to start with and when you do meet any of the people you find online to just go from there. It should not matter what others think when it comes to how you will handle your personal life. What matters most is that you know how you are handling your personal life and that you know that you are liking what you are doing for yourself.

Principles of Environmental Science Inquiry and Appications Flashcard

Principles of Environmental Science Inquiry and Appications

Tips to Write a Good Rhetorical Essay

Tips to Write a Good Rhetorical Essay Rhetorical Paper Writing Tips Are you looking for an easy way to start a rhetorical paper and make it brilliant? You are reading the right article. This type of assignment is becoming popular in higher educational establishments especially in colleges. The main idea of the paper is to provide students’ opinion after analyzing specific books, TV programs, works of art, etc. The task looks rather engaging and interesting. The only problem is that a few students really know how to get started to make it work. This is where our writing tips may come in handy. At least, you will have a clear understanding of how to write a rhetorical paper from scratch. What is a rhetorical essay? As it was mentioned above, a rhetorical essay describes a TV show, specific book or article in a special manner. Before you start writing, you need to define your reading audience in order to choose a proper language and writing style. The fundamental components of this essay type include: The Author; The Target Audience; The Message. Always consider the above-mentioned elements before getting started with the rhetorical essay. Now, let’s get closer to the paper itself as well as its structure. The structure of rhetorical essay As well as any other academic paper, rhetorical essay consists of several essential blocks. They are as follows: Introduction with all major points highlighted; Thesis Statement or Logos with evidence to support the main point of your paper; Ethnos to prove the credibility of a chose author; Pathos to review the way author uses his or her emotions. This part also includes the investigation of how the visuals appeal to the paper; The Conclusion to summarize the effect main arguments have on the target audience. To handle the above-mentioned points, you need to establish an in-depth rhetorical analysis using the following instruments: Identify the core argument and sum it up; Break the main argument into smaller pieces; Link those pieces to your thesis statement. A rhetorical essay should be written in a brief and sharp style. Avoid long sentences and make the paper easy to read. Formal language is the best bet for this type of an assignment. Despite all tips, writing this type of essay is extremely hard especially if you deal with it for the first time. Opting for professional academic assistance may be a good solution to the problem. You do not need to waste your time on exploring and researching the information. You get a flawless paper in time at a reasonable price.

Module7-mob Case Study Example | Topics and Well Written Essays - 250 words

Module7-mob - Case Study Example ood at these points: (1) they discussed the plan thoroughly before starting work; (2) they set goals based on realistic figures; (3) they all agreed on what was written on the plan and expressed their commitment to it; and (4) Parker tried to motivate his crew with a bonus. However, here were the results: (1) two members kept on failing to reach their daily targets; and (2) they did not finish on time. Flaws on how Parker managed the project include: (a) failure to acknowledge the problem in a timely manner; (b) failure to work out a performance improvement plan; (3) rejection of constructive criticism; and (4) failure to motivate members on a regular basis. Parker’s poor management of the project resulted to Millar quitting working for the company while Boyce stopped accepting assignment on a regular basis. The following suggestions could have remedied the situation. Parker should have: (1) shown empathy to his crew and listened to their concerns; (2) motivated his crew on a daily basis instead of going into a verbal tirade each time they fail to meet their goal; and (3) consulted with his crew on how to improve their

Your Are An Enterpreneur Assignment Example | Topics and Well Written Essays - 2000 words - 1

Your Are An Enterpreneur - Assignment Example The companies such as Coca-Cola, Pepsi and other leading companies would be reached. In the agreements, retailer margin, transport of products, loss in transit, bulk purchase discounts and other important factors shall be discussed. However, before going to finalize agreements, the entrepreneur intends to research the existing policies and interaction between these companies with the retailers. For this purpose, both online and offline resources would be used to gather the relevant information. The entrepreneur intends to hire three full time assistants serving to customers. These assistants would be required to guide customers, provide information and assist them with any other requirements needed by the customers. The reason behind hiring three assistants is to facilitate customers. This facilitation enhances possibility of customer loyalty. Subsequently, this would generate an interrupted flow of customers and revenue would be keep

International business stratergy Essay Example | Topics and Well Written Essays - 3000 words

International business stratergy - Essay Example The performance measurement is significant as it recognizes the existing performance gaps between contemporary and desired performances and provides an indication of progress towards closing the gaps. Carefully selected key performance indicators identify precisely where to take action to improve performance. This paper deals with the identification and application of the concepts of lean management and the key performance indicators for the maintenance functions. Initially the paper defines the complex framework of UK public sector and then describes the application of lean management and KPIs within the UK public sector. At the end, the paper deeply emphasizes on how the UK Public sector progressing well in terms of management strategies. The issue is elaborated critically that how public sector organizations are actively hitting the target but missing the core objectives. UK Public Sector It is very tough for a person not citizen of UK to easily comprehend the structure, operation s, and management systems of UK public sector. Probably the main reason is the complex restructurings, numerous administrative divisions, and a combination of district councils, county councils, and unitary authorities which make the whole managing structure quite complex. Both the county and district divisions have their particular area of jurisdiction. Public sector Area of responsibility County level Education, Social Services, Transport, Strategic Planning, Fire Services, Consumer Protection, Refuse Disposal, Smallholdings, Libraries District level Local planning, Housing, Local highways, Building regulations, Environmental health, Refuse collection Divided level Recreation, Cultural matters Lean Management Daniel, T. Jones was the first one who presented the concept of lean management in 1990s. Today his concept has been developed into a mini discipline which the public sector and industrial organizations are using in their area of operations. Principally the approach supports the mapping business procedures, recognizing the waste, delays and restricted accesses, re-designing the workflow to aim for perfection (Jones, 2003). The concept is described in the following diagram. Instead of simply accepting the uncritical pre-existing ideas, the lean management is basically an optimizing variation in terms of improving the efficiency, decreasing the waste, and the utilization of experimental procedures to decide what does matter. The goals of lean management systems differ from author to author e.g. some authors believe on an internal focus to increase the profit of the organization (Liker, 2004) while there is a lot which assert that progress must be done for the sake of the customer (Womack et al, 1990). UK public sector organizations apply different techniques of the principles of lean management to attain maximum output. Initially the concept of lean management was presented in terms of manufacturing industry. Toyota Production System (TPS) was the first c oncept of lean which was developed from 1940s to 1970s also known as Japanese Waste Model. The leading goals of TPS were to eliminate the seven wastes which included wastes in terms of transport, inventory, motion, waiting, over production, over processing, and defects (Womack and Jones, 2003). Ford (1922) describes the entire concept of waste in just one paragraph. â€Å"

Motives of Bank Mergers and Acquisition

Motives of Bank Mergers and Acquisition Chapter One 1.0 Introduction Over the years, the world have witnessed growth and development in the business world and will still record a lot more due to rapid technological growth in recent times. Merger and Acquisitions (MA) has contributed immensely to the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic development and also helped indirectly to create stability in some industries in both developing and developed nations. A merger is usually the amalgamation of two or more companies running commercial activities. On the other hand, acquisition is where one company takes over another and the identity of the other company can be eradicated as it becomes part of a larger company. Most MAs between companies have occurred as a result of achieving economies of scale and penetrate into new markets. Many bank employees regard MA as a threat to their jobs as the period will record shareholders demand for reduction of workforce. It will also be problematic to execute Human resource management with, and the environment of MA due to t he changes that will be recorded in the procedures and practices in the new company. The vast majority of mergers acquisitions research is correctional and focuses on publicly traded corporate entities, using quantitative secondary data made available by large number of databases (Meglio and Risberg, 2010). Background to the Study A significant change has been witnessed in the Nigerian banking sector over the years, in respect to ownership structure, number of institutions and locations, as well as the profundity of operations. There are some numbers of effects when companies merge or when one company acquires another company (Cigola and Modesti, 2008). This include reduced expense in production and management cost, deriving It was observed that downsizing, mergers, and acquisitions are examples of the radical organizational responses to increase global completion, improvements in technology, and government deregulation (Shook and Roth, 2010). The changes so far recorded have been predisposed mostly by the challenges posed by issues as globalization, deregulation of the financial sector, and the implementation of a decision making and prudential requirements that are in line with international standards. This is why some companies may deliberately choose to merge with any other readily available in its line of business. The benefits in most cases are much more than the losses if any is recorded. Mergers have also had effects on employees as the process usually leads to an upward or downward review of wages and salaries. There are also cases where the MA leads to downsizing of workforce as new technological operation techniques will be adopted and there will be less needed for human resource compared to the former way of operation. Bank Mergers and Acquisition A significant amount of research has been done to ascertain the success rate of MAs in banks to be able to draw conclusion on its profitability and efficiency (Behr and Heid, 2011). It was pointed out that despite the considerable prospective U.S banking mergers in the 1980s; many of them were not successful in achieving their aim due to the cost of efficiency. Banks have diverse reasons why they merge which relates to the business motives behind it such as managerial incentives (Wood, 2006). The banking industry was partly strengthened through MA as they use the merged assets to build a strong capital base for the bank and more assets that have appreciated value. Soludo (2004) enumerated the fundamental problems of the banks, particularly those classified as unsound, have been identified to include; persistent illiquidity, poor assets quality and unprofitable operations and further mentioned that their major problems also included weak governance , weak capital base, late publicatio ns of annual reports, gross insider abuses and over dependence on public sector deposits. Many literatures indicates that banking sector reforms in Nigeria propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial design; and involve a banking sector that is consulting with regional integration requirement and international best practices (Somoye, 2010). Nigerian Banking Industry In the recent past, Nigerian banks have adopted poles apart strategies to achieve a predetermined least amount capital base during the banking sector consolidation in the year 2004 and 2005 which was put at twenty five billion Naira (Alao, 2010). This process saw a lot of banks in Nigeria to source for funds from all forms of businesses to meet up the demand and at a point, it was observed mergers or acquisition of smaller banks was the only way out of the regulation. MAs is a global phenomenon with an estimated four thousand deals taking place each year. Elumilade (2010) mentioned that banks are the linchpin of the economy of any country. He mentioned that banks in any every country play a vital position in respect to the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial system and they could be regarded as vital agents for development process. Banks also are relevant through financial intermediation services and promote economic growth (Afolabi, 2004). According to Ibru (2006), there was an embryonic phase of the Nigerian banking industry which began with the first set of banks started with the African banking corporation which had its headquarter in south Africa and was pioneering by the Nigerian banking system in 1892. In 1894 the British bank for West Africa which now known as the first bank while union bank of Nigeria plc formerly known as the Barclays D.C.O started in 1925. The British and French bank now united bank for Africa was established in 1949. Many other indigenous banks were established and they ushered in the era that saw the constant monopoly erstwhile enjoyed by the foreign owned banks (CBN, 2008) Central Bank of Nigeria and Market Recapitalization The Central Bank of Nigeria (CBN) in 2004 introduced a policy that made it mandatory for recapitalization to be carried out in the banking industry. This was mentioned as the fourth phase of the banks restructuring scheme and all banks should comply strictly before the end of 2005 (Afolabi, 2004). This led the emergence of twenty five consolidated banks and the process encouraged mergers and acquisition in many cases. They were 89 members of the Nigerian banking industry (NBI) prior to the recapitalization. It was recorded that the CBN in 2009 provided two hundred billion Naira to four undercapitalized banks after an audit was carried out which reported that they could face liquidity problems and needed funds to continue normal operations. In addition, the CBN decided to stabilize the system and return confidence to the markets and investors, an addition injection of six hundred and twenty billion naira of liquidity into the banking sector and there is a replacement of leadership in eight banks which has given sector a little more balanced than its formal position (Sanusi, 2010). Relevance of the Research After the bank consolidation in 2005, it was mentioned in a CBN report that UBA Plc and First Bank of Nigeria have been effectively competing with multinationals in various aspects of international business. CBN Report (2007) also revealed that some Nigerian banks after the consolidation were able to register their presence in the developed countries like United States of America and United Kingdom as participate in foreign market areas of funds transfer and loans servicing. Mergers and acquisitions have for long attracted interest of many researchers in academics in trying to predict the outcomes of the deals (Meglio and Risberg, 2010). They further explained that the inconsistency in some research findings has necessitated the need for more integrative frameworks to grasp the complete phenomenon. Also, the researchersà ¢Ã¢â€š ¬Ã¢â€ž ¢ opinion aiming to explain mergers and acquisition outcomes in general have not been able to successfully develop and test a grand theory about MAs. Aim of the Study This research aims to look into the overall motives of banks mergers and acquisition as well as its impact on the Nigerian economy. Research Questions and Objectives Research Questions What are the implications of bank mergers and acquisition? What are the motives behind bank merger and acquisition? How does merger and acquisition impact on efficiency? How can merger and acquisition effect competition in the Nigerian banking sector? Research Objectives To critically evaluate mergers and acquisition in the banking sector To analyse the impact of merger and acquisition in the Nigerian banking sector To evaluate the success of UBA merger and acquisition To identify the success factors of UBA in Nigeria Banking sector Plan of the study The plan of this work has been structured to begin by providing a background of the area under discussion and justifying the need for the study in the first chapter. This would be immediate followed by review of literatures relating to similar issues and traditional views of mergers and acquisition in chapter two. The research method which will highlight how I intend to gather data will be presented in the third chapter. The data analysis and findings will be presented and discussed in chapters four which will be followed by the summary, conclusion and recommendation in chapter five. Summary This chapter gives an insight into the subject matter by examining the different related aspects of the subject that will contribute to the major focus of the other chapters. It is a known fact that MA has positive and negative impacts in any sector or environment where it has occurred and this will give us the opportunity to draw the impact of competition that will bring in the absence of a monopoly situation. Chapter Two Literature Review Recent studies show that the bank recapitalization process that took place in Nigeria in 2005 has been of great importance to the sector. Merger and acquisition across the world have had positive impact in the strength of the firm in most cases. The banking sector in Nigeria across the world has had course to experience MA in some cases and this helped them in restricting in various forms. The UBA merger with STB was a success as the experience of the first generation bank and agility of a new generation bank was put together to produce a stronger UBA Plc. History of Mergers and Acquisitions MA history time and again have surprises many people when they realise that the concept of MA are not new, and on the converse they are progressing from the early years. It helps us to understand the evolution of the concepts in the world. The economic watch (2011) mentioned that there are five major stages of MA which discussed as wave period. Each of these waves recorded its progress associated with it and has a technological support that gave rise to the era. Past experience has also shown that MA are triggered by economic factors. The period between (1897 1904) saw a lot of horizontal mergers as companies which enjoyed monopolistic competition over their area of production such as electricity and transcontinental railroads merging with others in same area. It mainly occurred between heavy manufacturing industries at that time. A lot of mergers failed towards the end of this phase as they could not get the desired efficiency and the state of world economy as at 1903 as well as th e stock market crash on 1904 did not help matters. Chu (2010) reflected to the mergers in Canadian banks in 1889 to 1926 which could be referred to as both the first and second wave period. He explained that economist has not fully explored the mechanisms through which financial developments affects economic growths. Canadaà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth trough MA under the period was under study was also associated with higher banking concentration and a wider branch network. Kling (2006) also agreed that the German universal system emerged around 1914 as the big banks in Berlin acquired smaller banks. This development supported industrial enterprise and external growth through industrial enterprise. The second wave or MA was recorded between 1916 and 1929 which were more between oligopolies as that of monopolies in the first era. The post world war economic boom after the First World War supported these mergers. Also, government policies as at that time started to encouraged companies to work together and technological innovation in areas of transportation provided the needed for such MA. Most of the mergers at this time were mainly horizontal or conglomerate in nature. Producers of key metals, petroleum products, food products, chemicals and transport equipments were mainly involved in the mergers of this period. Investment also supported very in merger as at the period but the great depression of 1929 and the stock market crash in same year brought period to an end. There were mainly conglomerate mergers as at 1965 to 1969 which was stimulated by sky-scraping stock prices, interest rates, and stringent enforcement of antitrust law in the third wave merger. This period did not end well as government were becoming too harsh towards them end of the period but a few companies did well in the 1970s. The fourth merger wave was within 1981 to 1989 recorded mergers in some industries such as airline, banking, oil and gas and pharmaceutical. There many cases of foreign takeovers and the period ended with anti takeover laws, reforms in financial institution and the gulf war. Kim and white (1998) analyzed almost all commercial banks mergers in the united states between 1985 and 1991, and found out evidence of decreasing cost efficiencies in most mergers, except for mergers between very large financial institutions. The small and medium commercial banks decreased efficiencies after merger. Globalization, stock market boom and deregulation in the telecommunication, banking and petroleum industries were major characteristics of the fifth merger. Most of the mergers at this time were geared towards profit maximization but the burst of the stock bubble also ended this era. Huyghebaert and Luypaert (2009) states that in the year 2007 alone, there almost forty thousand deals announced in respect mergers and acquisitions across the world. This accounted for an aggregate value deal value of one thousand, three hundred and forty-five billion dollars. Ernst and Young (1995) also identified the alternatives of acquisition: financial, geographic, and symbiotic and absorption acquisitions. In the case of financial is where a company is bought into a holding company for the purpose of restructuring. The main objectives for the acquisition are mainly to eradication, reduce cost and improved efficiency. There are so many firms with ideas to change the world of business but lack the financial muscle to improve in research and development and or invest more into the existing findings. Any business speculator that gets hold of this will ensure that these ideas see the light of the day by an outright acquisition so as to finance the company for growth. Geographic acquisitions are intended to expand the acquirerà ¢Ã¢â€š ¬Ã¢â€ž ¢s core business across new frontiers. The term emerging markets rings a bell in business as every investor want to sell products and services where there is a ready market with a thriving huge population. In the rece nt years, most businesses have moved their production sites to Asia where there cheap labour and n emerging market for the product. Some parts of Africa where there reasonable levels of stability have also seen to be good to expand into as a new frontier. The sales of mobile phone handsets the Nigerian market could be seen as a good example a new frontier for Chinese or Japanese phone manufacturers. Companies merge with others in a different location just to get access to the new location as well. Symbolic acquisitions are described as where newly acquired products and competencies are absorbed into the parents business but the acquired company retains a level of independence, absorption acquisition imply that the two businesses are fully integrated, with one effectively loosing identity. This is an effective business strategy as the name of the former company is like an asset and most customers may not continue with the product or services if the name is changed. The case of Tata acquiring land rover in 2009 is a suitable case where the name Tata is known for production of trucks and military vehicles, but land rover is known for luxury cars and as such the change of the name perceived with strength should remain to keep the market moving smooth. The case of absorption acquisition as mentioned before where one companies gradually losses identity could be seen in the case if Safeway supermarket and Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s supermarket where Safeway gradually faded away. Chen and Tan (2011) examined how the deregulation of financial services industry has intensified in some European countries a significant portion of business handled by banks. This is because the deregulated banks have more financial capacity to manage and finance businesses with a confidence of measuring up at the end of the day. There were two hundred and thirteen mergers during 1989 to 2004 with the acquirer of a European bank and the target of an insurance company. This was because the growth and success rate of mergers was lucidly clear to business world at time, in that firms were on the lookout for a similar thriving company that they could merge resource and ideas together to achieve economies of scale and reduced overhead cost. Koetter (2007) was of the view that prior to the merger targets perform poorly compared to acquirers in many merger cases. The increasing efficiency of a firm reduces the hazards of takeovers but increases the risk if bank failures. Therefore, the probability of takeovers and failures is influence significantly by efficiency. Imala (2005) identified eight reasons for merger and acquisitions in the financial service sector. The identified reason are in relation cost savings attributed to economies of scale as well as more efficient allocation of resources; revenue enhancement which is derived from the impact of consolidation on bank size, scope, and overall market power; risk reduction due to change in organisational focus and efficient organizational structure; new development which imposes a high fixed cost and need to spread these costs across a large customer base; the advent of deregulation which removed many important legal and regulatory barriers; globalisation which engender a more globally integrated financial service and geographical expansion of banking operations; financial stability characterised by the smooth functioning of various components of the financial system, with each component resilient to shock; shareholders pressure on management to improve profit margins and returns on investment made possibly by new and powerful shareholders blocks. Nigerian Banking Environment According to Adegbaju (2007), there have been remarkable developments in the Nigerian banking sector over the years. Mergers and acquisition in Nigerian banks to took place in 2004 / 2005 commenced after an announcement by the CBN that all commercial banks in Nigeria should upgrade their minimum capital base too twenty five billion Naira before the end of December 2005. Umoren, (2009) examined the benefits of the fortification and consolidation of the Nigerian banking system as it could be seen as the first phase where by such reforms are made to help to guarantee a well built and reliable banking sector that is also considered to be diversified to ensure depositors safety. The role of money in the development of any nation cannot be over emphasized and the Nigerian economy needs to be capable and competitive in the African continent particular as well as the world in general. Madabueze (2008) mentioned that the recent reforms in Nigeria banking sector which required the banks to source for high capital base to the tune of twenty five billion naira which is put at approximately one hundred and ninety million dollars, recorded a sharp drop down of the number of banks from eighty-nine to less than twenty-four currently in operation. He further argued that this will enable the Nigerian banks to become relevant and active players in the international scene, helping the image of Nigeria as a financial capital of some sort of (china of Africa). The Nigerian economic policy was regarded as an economically fragile policy some decades before then but the recapitalization process has enable two recent developments which is a positive message to the international community. The CBN governor at that time, prof. Charles Soludo explained that before the recapitalization commenced, the Nigerian banks have not played their role in economic development because of their fee ble and frail capital base and as such, there was a great need to strengthen them through the consolidation process. Madabueze (2007) opined that the crusade requesting the CBN to be flexible with their position of recapitalization did not involve bankers alone as members of the national assembly in Nigeria also requested the CBN to reverse its decision of recapitalization to the amount twenty five billion naira. Is was further observed as he mentioned that members of the public were completely against the move as they felt the process will worsen the situation and many of them started making panic withdrawals from their accounts. On the other hand, the CBN also had its fair supporters which included the former president of the federal republic of Nigeria, Olusegun Obasanjo who publicly showed his support for the twenty five billion capital base for banks, the Manufacturers association of Nigeria (MAN) who were completely in support of the policy claiming that it will enlarge the national economic base and help to position the real sector. Ogundele (2008) agreed that mergers are essentially the amalgamation of two or more companies that of all or the parties must be in existence legally and the surviving company continues to function in its originally registered name. In some case, merged companies find themselves out of business and leave its assets and liabilities to the acquiring company. Williams and Rao (2006) focus on mergers and acquisition because they are events that correspond to considerable changes in the asset structure of the bank. Commercial bank faces different risk, capital structure and regulatory environments as against firms that have been traditionally studied for governance effects and managerial risk aversion. Owokalade (2006) observed the definition of mergers as posited by the company and allied matters act decree of 1990 that any amalgamation of the undertakings of two or more companies or the undertaking of two or more companies and one or more bodies corporate. He emphasized that a form of dealings combination whereby two or more companies join collectively to become one; being voluntary liquidated by having it interest taken by the other and its shareholders becoming shareholders in the blown up existing company. Kurfi (2010) is of the view that mergers as a principle of the combination of two or more companies that translate same business purposes and agree to come together and decide whichever the given name of one of the companies or absolutely take a new name. He further mentioned that amalgamation is another word for merger. Mergers usually occur between firms of almost same size and are usually friendly. In the case of Stanbic bank and IBTC bank, they arrive at a name StanbicIBTC bank plc after their merger and the resultant name was due to the friendship earlier involved and almost same size of the banks. Kazmi (2006) grouped merger into four: horizontal, vertical concentric and conglomerate mergers. Further explanation revealed that horizontal mergers takes place where there is a combination of two or more firms in the same business, or an organisation engaged in certain aspects of the production and marketing process. When there is a merger of two or more firms but necessary in the same business which might be complementary in supply of materials or marketing is referred to as a vertical merger. The concentric merger takes place when there is a combination of two or more firms related to each other in line of function, customer group or alternative technologies used. Conglomerate merger occurs when there is a combination of two or more firms that are unrelated in customer function, customer group, and alternative technologies. There are situations where a company gets involved in all the above listed forms of mergers. For example, HP a computer and printers giant has merged with Com paq recently and before then acquire Apollo computers which related, acquired Agilent technologies which were into chemicals and medical business, acquired Mercury Interactive which was a software company. The UBA Merger Mergers and acquisition is simply a different approach encourage survival of the fittest is to give rise to a stronger, more efficient, better structure and skilled industry. The Guardian Newspaper reported in 2005 the UBA merger started with separate meetings where that boards of directors of UBA and Standard Trust Bank Plc accepted the arrangement for a union of both financial institutions. The bank aimed to become the biggest bank in West African and one of the largest in Africa. When they considered the assets of both banks before the merger, it was observed that had a formidable asset base after accessing their portfolios at that time and when is been concretised, they could customers from all sectors of the economy. It has over 100 branches spread out strategically across the country in what is described as the largest truly online real-time banking network in sub-Saharan Africa. It is often referred to as Nigerias neighbourhood bank. This derives from its national orientation in terms of geographic spread and continuing national expansion. Wheelen and Hunger (2008) confirmed that UBA the former Trade bank and Citi express bank because the firms were different in sizes and as such they can either be friendly or hostile. Todayà ¢Ã¢â€š ¬Ã¢â€ž ¢s UBA is a merger between two predecessors banks, legacy UBA and Standard Trust Bank (STB) which were ranked third and fifth in size respectively prior to the 2005 CBN reform and consolidation programme. It was a huge success as the ability to anticipate industry trends, coupled with the banks agility, enabled them to be the first successful merger in the history of Nigerian banking industry, thus creating the current UBA plc which its management rates as the largest financial services institution on West Africa. As the economies of Nigeria and Africa continues to improve, following the established path of the emerging market; i.e. increased political stability, improved government finances, growing domestic consumer demand, high commodity prices and significant improvement in the economic indicators, the UBA is well positioned as a warrant on the African renaissance story. The presence of UBA in all commercial centres and major cities in Nigeria and Ghana has earned the bank the nickname: the neighbourhood bank. This appellation ties in with the UBA brand promise. à ¢Ã¢â€š ¬Ã…“The wise choiceà ¢Ã¢â€š ¬? and guides our retail distribution strategy which enable us to deliver exactly should be expected by both potential and existing customers of the bank in respect to proximity, choice, convenience and customization. UBA is a bank that is operating out of two of the most vibrant economies in the sub region; Nigeria and Ghana, the new |UBA combines the financial strength of fifty-seven year UBA and the young , innovative and technology driven dynamism of the then STB. UBA has maintained a consistent and solid financial performance in its forty-five year history since it began business in 1961. The bank has record history of leading and pioneering innovations in Nigerian financial sector. It is the first ever and only Nigerian bank to surpass the one trillion balance sheet size with contingents inclusive. It is the only sub-Saharan African bank excluding republic of South Africa that has a branch in New York, USA. UBA was ranked the number one bank in Nigeria in 2007, and bank of the year award (Thisday, 2007). This was due to the banks outstanding performance in the banking sector. Euromoney (2000) confirmed that UBA was the best domestic bank in Nigeria and was the first among international banks to be registered under Nigerian law. The bank has received excellence credit ratings both short and long term, global credit rating (SA) AA+ and A+ in 2005.UBA is the first Nigerian bank to offer an IPO following its listing on the Nigerian stock exchange in 1970. UBA was the first Nigerian bank to introduce a Cheque Guarantee Scheme known as the UBACARD in 1986. It was the first bank to introduce the Nigerian Government Bond index in 2006. It was also the only Nigerian company with the GDR programme. The GDR is a negotiable certificate representing ownership of shares. They are quoted and traded in US dollars and the dividends are paid in same currency. It is specially designed to facilitate the purchase, holding and sale of non US securities by foreign investor. This GDR programme enables foreign institutional investors to hold and trade UBA shares without having to expatriate funds into Nigeria. This Depositary Receipt (GDR) is preferred by some investors who are unable to hold Nigerian securities for compliance reasons or due to a lack of the appropriate infrastructure for holding an ordinary share. The GDR also trade, clear and settle according to international market conventions rather than those prevalent in Nigeria (UBA Report, 2008) West Africa and indeed everywhere the bank has presence. It is simple, elegant, vibrant and memorable, combining the mustard seed of legacy STB and the typographic execution of the letters UBA, predominantly in red and white. During the period of the former standard trust bank plc (STB Plc) acquired 27.34% of the United Bank for Africa Plc (UBA plc) and this transaction resulted not a merger between the two banks, whereby all assets and liabilities of standard trust bank Plc were transferred to UBA Plc. The entire share capital of STB was cancelled and STB was dissolved without being wound up and the shareholders of STB were allotted UBA shares. Motives of Bank Mergers and Acquisition Motives of Bank Mergers and Acquisition Chapter One 1.0 Introduction Over the years, the world have witnessed growth and development in the business world and will still record a lot more due to rapid technological growth in recent times. Merger and Acquisitions (MA) has contributed immensely to the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic development and also helped indirectly to create stability in some industries in both developing and developed nations. A merger is usually the amalgamation of two or more companies running commercial activities. On the other hand, acquisition is where one company takes over another and the identity of the other company can be eradicated as it becomes part of a larger company. Most MAs between companies have occurred as a result of achieving economies of scale and penetrate into new markets. Many bank employees regard MA as a threat to their jobs as the period will record shareholders demand for reduction of workforce. It will also be problematic to execute Human resource management with, and the environment of MA due to t he changes that will be recorded in the procedures and practices in the new company. The vast majority of mergers acquisitions research is correctional and focuses on publicly traded corporate entities, using quantitative secondary data made available by large number of databases (Meglio and Risberg, 2010). Background to the Study A significant change has been witnessed in the Nigerian banking sector over the years, in respect to ownership structure, number of institutions and locations, as well as the profundity of operations. There are some numbers of effects when companies merge or when one company acquires another company (Cigola and Modesti, 2008). This include reduced expense in production and management cost, deriving It was observed that downsizing, mergers, and acquisitions are examples of the radical organizational responses to increase global completion, improvements in technology, and government deregulation (Shook and Roth, 2010). The changes so far recorded have been predisposed mostly by the challenges posed by issues as globalization, deregulation of the financial sector, and the implementation of a decision making and prudential requirements that are in line with international standards. This is why some companies may deliberately choose to merge with any other readily available in its line of business. The benefits in most cases are much more than the losses if any is recorded. Mergers have also had effects on employees as the process usually leads to an upward or downward review of wages and salaries. There are also cases where the MA leads to downsizing of workforce as new technological operation techniques will be adopted and there will be less needed for human resource compared to the former way of operation. Bank Mergers and Acquisition A significant amount of research has been done to ascertain the success rate of MAs in banks to be able to draw conclusion on its profitability and efficiency (Behr and Heid, 2011). It was pointed out that despite the considerable prospective U.S banking mergers in the 1980s; many of them were not successful in achieving their aim due to the cost of efficiency. Banks have diverse reasons why they merge which relates to the business motives behind it such as managerial incentives (Wood, 2006). The banking industry was partly strengthened through MA as they use the merged assets to build a strong capital base for the bank and more assets that have appreciated value. Soludo (2004) enumerated the fundamental problems of the banks, particularly those classified as unsound, have been identified to include; persistent illiquidity, poor assets quality and unprofitable operations and further mentioned that their major problems also included weak governance , weak capital base, late publicatio ns of annual reports, gross insider abuses and over dependence on public sector deposits. Many literatures indicates that banking sector reforms in Nigeria propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial design; and involve a banking sector that is consulting with regional integration requirement and international best practices (Somoye, 2010). Nigerian Banking Industry In the recent past, Nigerian banks have adopted poles apart strategies to achieve a predetermined least amount capital base during the banking sector consolidation in the year 2004 and 2005 which was put at twenty five billion Naira (Alao, 2010). This process saw a lot of banks in Nigeria to source for funds from all forms of businesses to meet up the demand and at a point, it was observed mergers or acquisition of smaller banks was the only way out of the regulation. MAs is a global phenomenon with an estimated four thousand deals taking place each year. Elumilade (2010) mentioned that banks are the linchpin of the economy of any country. He mentioned that banks in any every country play a vital position in respect to the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial system and they could be regarded as vital agents for development process. Banks also are relevant through financial intermediation services and promote economic growth (Afolabi, 2004). According to Ibru (2006), there was an embryonic phase of the Nigerian banking industry which began with the first set of banks started with the African banking corporation which had its headquarter in south Africa and was pioneering by the Nigerian banking system in 1892. In 1894 the British bank for West Africa which now known as the first bank while union bank of Nigeria plc formerly known as the Barclays D.C.O started in 1925. The British and French bank now united bank for Africa was established in 1949. Many other indigenous banks were established and they ushered in the era that saw the constant monopoly erstwhile enjoyed by the foreign owned banks (CBN, 2008) Central Bank of Nigeria and Market Recapitalization The Central Bank of Nigeria (CBN) in 2004 introduced a policy that made it mandatory for recapitalization to be carried out in the banking industry. This was mentioned as the fourth phase of the banks restructuring scheme and all banks should comply strictly before the end of 2005 (Afolabi, 2004). This led the emergence of twenty five consolidated banks and the process encouraged mergers and acquisition in many cases. They were 89 members of the Nigerian banking industry (NBI) prior to the recapitalization. It was recorded that the CBN in 2009 provided two hundred billion Naira to four undercapitalized banks after an audit was carried out which reported that they could face liquidity problems and needed funds to continue normal operations. In addition, the CBN decided to stabilize the system and return confidence to the markets and investors, an addition injection of six hundred and twenty billion naira of liquidity into the banking sector and there is a replacement of leadership in eight banks which has given sector a little more balanced than its formal position (Sanusi, 2010). Relevance of the Research After the bank consolidation in 2005, it was mentioned in a CBN report that UBA Plc and First Bank of Nigeria have been effectively competing with multinationals in various aspects of international business. CBN Report (2007) also revealed that some Nigerian banks after the consolidation were able to register their presence in the developed countries like United States of America and United Kingdom as participate in foreign market areas of funds transfer and loans servicing. Mergers and acquisitions have for long attracted interest of many researchers in academics in trying to predict the outcomes of the deals (Meglio and Risberg, 2010). They further explained that the inconsistency in some research findings has necessitated the need for more integrative frameworks to grasp the complete phenomenon. Also, the researchersà ¢Ã¢â€š ¬Ã¢â€ž ¢ opinion aiming to explain mergers and acquisition outcomes in general have not been able to successfully develop and test a grand theory about MAs. Aim of the Study This research aims to look into the overall motives of banks mergers and acquisition as well as its impact on the Nigerian economy. Research Questions and Objectives Research Questions What are the implications of bank mergers and acquisition? What are the motives behind bank merger and acquisition? How does merger and acquisition impact on efficiency? How can merger and acquisition effect competition in the Nigerian banking sector? Research Objectives To critically evaluate mergers and acquisition in the banking sector To analyse the impact of merger and acquisition in the Nigerian banking sector To evaluate the success of UBA merger and acquisition To identify the success factors of UBA in Nigeria Banking sector Plan of the study The plan of this work has been structured to begin by providing a background of the area under discussion and justifying the need for the study in the first chapter. This would be immediate followed by review of literatures relating to similar issues and traditional views of mergers and acquisition in chapter two. The research method which will highlight how I intend to gather data will be presented in the third chapter. The data analysis and findings will be presented and discussed in chapters four which will be followed by the summary, conclusion and recommendation in chapter five. Summary This chapter gives an insight into the subject matter by examining the different related aspects of the subject that will contribute to the major focus of the other chapters. It is a known fact that MA has positive and negative impacts in any sector or environment where it has occurred and this will give us the opportunity to draw the impact of competition that will bring in the absence of a monopoly situation. Chapter Two Literature Review Recent studies show that the bank recapitalization process that took place in Nigeria in 2005 has been of great importance to the sector. Merger and acquisition across the world have had positive impact in the strength of the firm in most cases. The banking sector in Nigeria across the world has had course to experience MA in some cases and this helped them in restricting in various forms. The UBA merger with STB was a success as the experience of the first generation bank and agility of a new generation bank was put together to produce a stronger UBA Plc. History of Mergers and Acquisitions MA history time and again have surprises many people when they realise that the concept of MA are not new, and on the converse they are progressing from the early years. It helps us to understand the evolution of the concepts in the world. The economic watch (2011) mentioned that there are five major stages of MA which discussed as wave period. Each of these waves recorded its progress associated with it and has a technological support that gave rise to the era. Past experience has also shown that MA are triggered by economic factors. The period between (1897 1904) saw a lot of horizontal mergers as companies which enjoyed monopolistic competition over their area of production such as electricity and transcontinental railroads merging with others in same area. It mainly occurred between heavy manufacturing industries at that time. A lot of mergers failed towards the end of this phase as they could not get the desired efficiency and the state of world economy as at 1903 as well as th e stock market crash on 1904 did not help matters. Chu (2010) reflected to the mergers in Canadian banks in 1889 to 1926 which could be referred to as both the first and second wave period. He explained that economist has not fully explored the mechanisms through which financial developments affects economic growths. Canadaà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth trough MA under the period was under study was also associated with higher banking concentration and a wider branch network. Kling (2006) also agreed that the German universal system emerged around 1914 as the big banks in Berlin acquired smaller banks. This development supported industrial enterprise and external growth through industrial enterprise. The second wave or MA was recorded between 1916 and 1929 which were more between oligopolies as that of monopolies in the first era. The post world war economic boom after the First World War supported these mergers. Also, government policies as at that time started to encouraged companies to work together and technological innovation in areas of transportation provided the needed for such MA. Most of the mergers at this time were mainly horizontal or conglomerate in nature. Producers of key metals, petroleum products, food products, chemicals and transport equipments were mainly involved in the mergers of this period. Investment also supported very in merger as at the period but the great depression of 1929 and the stock market crash in same year brought period to an end. There were mainly conglomerate mergers as at 1965 to 1969 which was stimulated by sky-scraping stock prices, interest rates, and stringent enforcement of antitrust law in the third wave merger. This period did not end well as government were becoming too harsh towards them end of the period but a few companies did well in the 1970s. The fourth merger wave was within 1981 to 1989 recorded mergers in some industries such as airline, banking, oil and gas and pharmaceutical. There many cases of foreign takeovers and the period ended with anti takeover laws, reforms in financial institution and the gulf war. Kim and white (1998) analyzed almost all commercial banks mergers in the united states between 1985 and 1991, and found out evidence of decreasing cost efficiencies in most mergers, except for mergers between very large financial institutions. The small and medium commercial banks decreased efficiencies after merger. Globalization, stock market boom and deregulation in the telecommunication, banking and petroleum industries were major characteristics of the fifth merger. Most of the mergers at this time were geared towards profit maximization but the burst of the stock bubble also ended this era. Huyghebaert and Luypaert (2009) states that in the year 2007 alone, there almost forty thousand deals announced in respect mergers and acquisitions across the world. This accounted for an aggregate value deal value of one thousand, three hundred and forty-five billion dollars. Ernst and Young (1995) also identified the alternatives of acquisition: financial, geographic, and symbiotic and absorption acquisitions. In the case of financial is where a company is bought into a holding company for the purpose of restructuring. The main objectives for the acquisition are mainly to eradication, reduce cost and improved efficiency. There are so many firms with ideas to change the world of business but lack the financial muscle to improve in research and development and or invest more into the existing findings. Any business speculator that gets hold of this will ensure that these ideas see the light of the day by an outright acquisition so as to finance the company for growth. Geographic acquisitions are intended to expand the acquirerà ¢Ã¢â€š ¬Ã¢â€ž ¢s core business across new frontiers. The term emerging markets rings a bell in business as every investor want to sell products and services where there is a ready market with a thriving huge population. In the rece nt years, most businesses have moved their production sites to Asia where there cheap labour and n emerging market for the product. Some parts of Africa where there reasonable levels of stability have also seen to be good to expand into as a new frontier. The sales of mobile phone handsets the Nigerian market could be seen as a good example a new frontier for Chinese or Japanese phone manufacturers. Companies merge with others in a different location just to get access to the new location as well. Symbolic acquisitions are described as where newly acquired products and competencies are absorbed into the parents business but the acquired company retains a level of independence, absorption acquisition imply that the two businesses are fully integrated, with one effectively loosing identity. This is an effective business strategy as the name of the former company is like an asset and most customers may not continue with the product or services if the name is changed. The case of Tata acquiring land rover in 2009 is a suitable case where the name Tata is known for production of trucks and military vehicles, but land rover is known for luxury cars and as such the change of the name perceived with strength should remain to keep the market moving smooth. The case of absorption acquisition as mentioned before where one companies gradually losses identity could be seen in the case if Safeway supermarket and Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s supermarket where Safeway gradually faded away. Chen and Tan (2011) examined how the deregulation of financial services industry has intensified in some European countries a significant portion of business handled by banks. This is because the deregulated banks have more financial capacity to manage and finance businesses with a confidence of measuring up at the end of the day. There were two hundred and thirteen mergers during 1989 to 2004 with the acquirer of a European bank and the target of an insurance company. This was because the growth and success rate of mergers was lucidly clear to business world at time, in that firms were on the lookout for a similar thriving company that they could merge resource and ideas together to achieve economies of scale and reduced overhead cost. Koetter (2007) was of the view that prior to the merger targets perform poorly compared to acquirers in many merger cases. The increasing efficiency of a firm reduces the hazards of takeovers but increases the risk if bank failures. Therefore, the probability of takeovers and failures is influence significantly by efficiency. Imala (2005) identified eight reasons for merger and acquisitions in the financial service sector. The identified reason are in relation cost savings attributed to economies of scale as well as more efficient allocation of resources; revenue enhancement which is derived from the impact of consolidation on bank size, scope, and overall market power; risk reduction due to change in organisational focus and efficient organizational structure; new development which imposes a high fixed cost and need to spread these costs across a large customer base; the advent of deregulation which removed many important legal and regulatory barriers; globalisation which engender a more globally integrated financial service and geographical expansion of banking operations; financial stability characterised by the smooth functioning of various components of the financial system, with each component resilient to shock; shareholders pressure on management to improve profit margins and returns on investment made possibly by new and powerful shareholders blocks. Nigerian Banking Environment According to Adegbaju (2007), there have been remarkable developments in the Nigerian banking sector over the years. Mergers and acquisition in Nigerian banks to took place in 2004 / 2005 commenced after an announcement by the CBN that all commercial banks in Nigeria should upgrade their minimum capital base too twenty five billion Naira before the end of December 2005. Umoren, (2009) examined the benefits of the fortification and consolidation of the Nigerian banking system as it could be seen as the first phase where by such reforms are made to help to guarantee a well built and reliable banking sector that is also considered to be diversified to ensure depositors safety. The role of money in the development of any nation cannot be over emphasized and the Nigerian economy needs to be capable and competitive in the African continent particular as well as the world in general. Madabueze (2008) mentioned that the recent reforms in Nigeria banking sector which required the banks to source for high capital base to the tune of twenty five billion naira which is put at approximately one hundred and ninety million dollars, recorded a sharp drop down of the number of banks from eighty-nine to less than twenty-four currently in operation. He further argued that this will enable the Nigerian banks to become relevant and active players in the international scene, helping the image of Nigeria as a financial capital of some sort of (china of Africa). The Nigerian economic policy was regarded as an economically fragile policy some decades before then but the recapitalization process has enable two recent developments which is a positive message to the international community. The CBN governor at that time, prof. Charles Soludo explained that before the recapitalization commenced, the Nigerian banks have not played their role in economic development because of their fee ble and frail capital base and as such, there was a great need to strengthen them through the consolidation process. Madabueze (2007) opined that the crusade requesting the CBN to be flexible with their position of recapitalization did not involve bankers alone as members of the national assembly in Nigeria also requested the CBN to reverse its decision of recapitalization to the amount twenty five billion naira. Is was further observed as he mentioned that members of the public were completely against the move as they felt the process will worsen the situation and many of them started making panic withdrawals from their accounts. On the other hand, the CBN also had its fair supporters which included the former president of the federal republic of Nigeria, Olusegun Obasanjo who publicly showed his support for the twenty five billion capital base for banks, the Manufacturers association of Nigeria (MAN) who were completely in support of the policy claiming that it will enlarge the national economic base and help to position the real sector. Ogundele (2008) agreed that mergers are essentially the amalgamation of two or more companies that of all or the parties must be in existence legally and the surviving company continues to function in its originally registered name. In some case, merged companies find themselves out of business and leave its assets and liabilities to the acquiring company. Williams and Rao (2006) focus on mergers and acquisition because they are events that correspond to considerable changes in the asset structure of the bank. Commercial bank faces different risk, capital structure and regulatory environments as against firms that have been traditionally studied for governance effects and managerial risk aversion. Owokalade (2006) observed the definition of mergers as posited by the company and allied matters act decree of 1990 that any amalgamation of the undertakings of two or more companies or the undertaking of two or more companies and one or more bodies corporate. He emphasized that a form of dealings combination whereby two or more companies join collectively to become one; being voluntary liquidated by having it interest taken by the other and its shareholders becoming shareholders in the blown up existing company. Kurfi (2010) is of the view that mergers as a principle of the combination of two or more companies that translate same business purposes and agree to come together and decide whichever the given name of one of the companies or absolutely take a new name. He further mentioned that amalgamation is another word for merger. Mergers usually occur between firms of almost same size and are usually friendly. In the case of Stanbic bank and IBTC bank, they arrive at a name StanbicIBTC bank plc after their merger and the resultant name was due to the friendship earlier involved and almost same size of the banks. Kazmi (2006) grouped merger into four: horizontal, vertical concentric and conglomerate mergers. Further explanation revealed that horizontal mergers takes place where there is a combination of two or more firms in the same business, or an organisation engaged in certain aspects of the production and marketing process. When there is a merger of two or more firms but necessary in the same business which might be complementary in supply of materials or marketing is referred to as a vertical merger. The concentric merger takes place when there is a combination of two or more firms related to each other in line of function, customer group or alternative technologies used. Conglomerate merger occurs when there is a combination of two or more firms that are unrelated in customer function, customer group, and alternative technologies. There are situations where a company gets involved in all the above listed forms of mergers. For example, HP a computer and printers giant has merged with Com paq recently and before then acquire Apollo computers which related, acquired Agilent technologies which were into chemicals and medical business, acquired Mercury Interactive which was a software company. The UBA Merger Mergers and acquisition is simply a different approach encourage survival of the fittest is to give rise to a stronger, more efficient, better structure and skilled industry. The Guardian Newspaper reported in 2005 the UBA merger started with separate meetings where that boards of directors of UBA and Standard Trust Bank Plc accepted the arrangement for a union of both financial institutions. The bank aimed to become the biggest bank in West African and one of the largest in Africa. When they considered the assets of both banks before the merger, it was observed that had a formidable asset base after accessing their portfolios at that time and when is been concretised, they could customers from all sectors of the economy. It has over 100 branches spread out strategically across the country in what is described as the largest truly online real-time banking network in sub-Saharan Africa. It is often referred to as Nigerias neighbourhood bank. This derives from its national orientation in terms of geographic spread and continuing national expansion. Wheelen and Hunger (2008) confirmed that UBA the former Trade bank and Citi express bank because the firms were different in sizes and as such they can either be friendly or hostile. Todayà ¢Ã¢â€š ¬Ã¢â€ž ¢s UBA is a merger between two predecessors banks, legacy UBA and Standard Trust Bank (STB) which were ranked third and fifth in size respectively prior to the 2005 CBN reform and consolidation programme. It was a huge success as the ability to anticipate industry trends, coupled with the banks agility, enabled them to be the first successful merger in the history of Nigerian banking industry, thus creating the current UBA plc which its management rates as the largest financial services institution on West Africa. As the economies of Nigeria and Africa continues to improve, following the established path of the emerging market; i.e. increased political stability, improved government finances, growing domestic consumer demand, high commodity prices and significant improvement in the economic indicators, the UBA is well positioned as a warrant on the African renaissance story. The presence of UBA in all commercial centres and major cities in Nigeria and Ghana has earned the bank the nickname: the neighbourhood bank. This appellation ties in with the UBA brand promise. à ¢Ã¢â€š ¬Ã…“The wise choiceà ¢Ã¢â€š ¬? and guides our retail distribution strategy which enable us to deliver exactly should be expected by both potential and existing customers of the bank in respect to proximity, choice, convenience and customization. UBA is a bank that is operating out of two of the most vibrant economies in the sub region; Nigeria and Ghana, the new |UBA combines the financial strength of fifty-seven year UBA and the young , innovative and technology driven dynamism of the then STB. UBA has maintained a consistent and solid financial performance in its forty-five year history since it began business in 1961. The bank has record history of leading and pioneering innovations in Nigerian financial sector. It is the first ever and only Nigerian bank to surpass the one trillion balance sheet size with contingents inclusive. It is the only sub-Saharan African bank excluding republic of South Africa that has a branch in New York, USA. UBA was ranked the number one bank in Nigeria in 2007, and bank of the year award (Thisday, 2007). This was due to the banks outstanding performance in the banking sector. Euromoney (2000) confirmed that UBA was the best domestic bank in Nigeria and was the first among international banks to be registered under Nigerian law. The bank has received excellence credit ratings both short and long term, global credit rating (SA) AA+ and A+ in 2005.UBA is the first Nigerian bank to offer an IPO following its listing on the Nigerian stock exchange in 1970. UBA was the first Nigerian bank to introduce a Cheque Guarantee Scheme known as the UBACARD in 1986. It was the first bank to introduce the Nigerian Government Bond index in 2006. It was also the only Nigerian company with the GDR programme. The GDR is a negotiable certificate representing ownership of shares. They are quoted and traded in US dollars and the dividends are paid in same currency. It is specially designed to facilitate the purchase, holding and sale of non US securities by foreign investor. This GDR programme enables foreign institutional investors to hold and trade UBA shares without having to expatriate funds into Nigeria. This Depositary Receipt (GDR) is preferred by some investors who are unable to hold Nigerian securities for compliance reasons or due to a lack of the appropriate infrastructure for holding an ordinary share. The GDR also trade, clear and settle according to international market conventions rather than those prevalent in Nigeria (UBA Report, 2008) West Africa and indeed everywhere the bank has presence. It is simple, elegant, vibrant and memorable, combining the mustard seed of legacy STB and the typographic execution of the letters UBA, predominantly in red and white. During the period of the former standard trust bank plc (STB Plc) acquired 27.34% of the United Bank for Africa Plc (UBA plc) and this transaction resulted not a merger between the two banks, whereby all assets and liabilities of standard trust bank Plc were transferred to UBA Plc. The entire share capital of STB was cancelled and STB was dissolved without being wound up and the shareholders of STB were allotted UBA shares.

Antidumping and the WTO Essay example -- Economy Economics Environment

Antidumping and the WTO While antidumping doesn't get a lot of press, it is certainly one of the biggest issues that the WTO is dealing with today. During the recent WTO Ministerial Conference in Seattle, much was mage about protesters who were demanding higher environmental standards or international labor standards. Little was mentioned about antidumping. However, In the midst of the many demonstrators there were steel workers and members of other union organizations like the AFL-CIO who were there to defend US antidumping laws. Antidumping regulation was a major issue for Seattle as it is for the organization of the WTO in general. From the inception of the WTO, there has been controversy over antidumping laws from diverse groups. Some countries feel that other countries place antidumping measures on products that have not really been dumped. Since the 1994 Uruguay Round, many developing nations feel that they have been unfairly targeted for antidumping penalties by the industrialized nations. Count ries such as Japan and South Korea have also called for reforms. The US, being the largest economy in the world tends to be on the receiving end of much of this controversy about its national antidumping laws. Adding to the confusion, not many cases brought to the WTO panels have been settled as of yet. There are many complaints about antidumping procedures, and some economic graphs can be used to demonstrate these complaints about antidumping and the WTO's antidumping laws. In 1995, the World Trade Organization was born out of the Uruguay Round of trade talks. The WTO has upwards of 123 member countries and new members are always in the process of joining. The WTO is an organization that basically a more formal extension of the GATT (General Agreement on Tariffs and Trade) which had existed for around 50 years. However, the WTO agreements also cover trade issues not in the GATT agreement, such as trade in services and intellectual property rights. Also, WTO member countries must ag ree to all the obligations of its agreements. The WTO also features binding panel resolutions. Countries must accept the panel rulings; under GATT that was not necessarily true. Still, WTO embodies the same spirit as GATT. It favors trade liberalization and globalization over trade barriers. In particular, one main objective of the WTO is to reduce trade restrictions, and o... ...tidumping , this paper restricted its examination to only half of the antidumping story; there are many arguments for the antidumping laws that are currently on the books. No one is suggesting that the US or any other industrialized nation let its industries be unfairly put out of business, if that is truly the case at hand. Still, as the Seattle Round demonstrates, the WTO's antidumping laws seem to have satisfied to few countries. Given the spirit of its trade barrier reduction goals, the WTO should make sure it gets its antidumping rules right. Bibliography: "Consultations on FTAA and WTO Negotiations." Consultations with Canadians. 4 Oct. 99 . Dumler, Christopher M. "Anti-dumping Laws Trash Supercomputer Competition." Cato Briefing Papers. 14 Oct. 1997. . Griswold, Daniel T. "Industry Sets Steel Trap for U.S. Economy." Cato Center for Trade Policy Studies Articles. 23 October 1998.. Hindley, Brian and Patrick A. Messerlin. 29 Nov. 1999. "Japan Wants New Trade Talk." Reuters. 29 Oct. 1999. K & S Law. "Combating Injurious Imports." 29 Nov. 1999. Raghavan, Chakravarthi. "Call for Revision of Anti-dumping, Subsidy Rules. " Third World Network. .

Accounting statements and ratios Essay

Accounting statements and ratios provide a great deal of information about a company’s financial stability. Some of the concepts to be discussed in further detail include horizontal analysis, current ratio, quick ratio, and cash to current liabilities ratio. A horizontal analysis is used to compare data from two or more periods side by side. The current ratio reveals the relative amount of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the assets by the current liabilities. This paper will examine the financial standing of Apple, INC and provide recommendations on how to better improve their financial gains in the future. Apple was founded in April of 1976 to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007 to reflect its shifted focus towards consumer electronics. Apple Inc. is headquartered in Cupertino, California and designs, develops, and sells consumer electronics, computer software, online services, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone, and the iPad. Its online services include iCloud, iTunes Store, and App Store. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites. Apple is the world’s second-largest information technology company by revenue after Samsung Electronics, and the world’s third-largest mobile phone maker after Samsung and Nokia. Below is the horizontal analysis and balance sheet of Apple, INC for 2011 through 2013. This analysis shows that while Apple has consistently seen an increase in revenue, they have also seen an increase in administrative and operating expenses each year. Also, there has been a steady increase in the cost of goods sold. Minimizing these costs could drive the revenues for Apple, INC even higher. Below are the liquidity ratios for Apple, INC. These ratios can be used as a tool to determine a company’s ability to pay off its short-terms debts obligations. The current ratio is computed as follows: Current Ratio = Current Assets/Current Liabilities. The quick ratio: Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities. The liquidity ratios as they apply to Apple, INC suggest that the company is becoming more liquid the longer they are operational. â€Å"Liquidity is the ability to meet near-term obligations as they mature,† (Bridgepoint Education, INC, 2012, p. 229). Based on the information provided, Apple, INC is doing very well and are overly-capable of meeting their near-term financial obligations. Reference Apple, INC company financials. (2014). Retrieved, AUG, 2014, Retrieved from http://www.nasdaq.com/symbol/aapl/financials Principles of Accounting: Volume I. (2012). San Diego, CA: Bridgepoint Education, Inc