buy custom Qassim Cement Factory essay

buy custom Qassim Cement Factory essay This report has been compiled with the sole objective of showing stakeholders of the Qassim Cement Company the progress made by the company. This is a symbol of their commitment to the betterment of this organization. The company profile is discussed in the first part of this paper. This will help to give stakeholders a brief history of the company as well as the legacy of Qassim Cement. The next section to be analyzed is the vision and the mission of the company, which illustrate the path, which the company would like to take, and provide a revised version of both. Next, the internal and external audit of the company will be considered. In the analysis, the internal factors of the organization are discussed in detail. The reason for including this section is to identify the internal strengths and weaknesses of the company. Following the internal audit there will be the external audit. The external audit is intended to demonstrate the cement industry in the Kingdom of Saudi Arabia and all factors that influence it. In the report, we will also provide a detailed benchmarking for the company to show ways through which the company can get a competitive advantage over its rivals. We will, in addition, establish annual objectives, which will mirror their long-term objectives and help to achieve them, and create a new organizational structure. This will help in fulfilling the objective of this report, which is to create a new strategy. That will be achieved by using various tools including the IFE matrix, the BCG matrix, and the QPSM matrix among others. Through these tools, we will provide professional opinions based on the information available as well as offer recommendations on how to proceed regarding our strategies and the future of the Qassim. 2.Company profile Establishment: The Qassim Cement Company is a cement company with its headquarters in Saudi Arabia. The Saudi company was established in August 1976, in accordance with the Royal Decree No. M/62 on 15 Shaban, 1396H. Two years later, on August 2, 1978, it became registered under commercial registration number 1131001224 on 28 Shaban, 1398, in Buraydah City. The companys principal activity is the production of cement and its derivatives. Location: The company is located at the heart of Saudi Arabia, in the region of Qassim specifically at Buraydah, 330km northwest of Riyadh. Policy: QCC operates on a policy to continuously review the progress of the company through regular audits and other techniques. Purpose: The companys primary purpose is to manufacture and sell cement and related commodities in Saudi Arabia. Italso performs all activities related to the cement manufacturing industry. Shareholders: The companys major shareholders are listed inthe Saudi Stock Exchange Market. This is under the Reuters code3040. Employees: According to a recent survey conducted on the company, it has approximately six hundred and fifty employees representing all departments. Capital structure: The authorized capital ofthe company is SAR 900 million fully paid. This total is divided into 90 million shares. On the other hand, these shares have a par value of SAR 10 per share. Assets: According to the survey conducted in 2010 by the Consolidated Audited Financial Report,Qassims total net operating revenues have declined byapproximately 1.84%.Values were estimated to range from SAR 986,557 to SAR 968,426. On the other hand, the return on equity has decreased from 32.93% to 26.99%. This is the total equity or net income of the company. The total assetturnover in return went from 26.82% to 24. 74%. Thus, the Net Profit Margin (Net Income/Net Sales) decreased from 61.02% to 51.69%. The Debt to Equity Ratio (Total Liabilities/Equity) dropped to critical 9.08% as compared to 22.77% in thelast year. On the other hand, the Current Ratio (Current Assets/Current Liabilities) went from 3.49% to 4.96%. These figures are taken and compared withthe same period inthe previous year. The latest statistics of April 2012 revealed that the last trade was at 83.75 SAR. Products and services: The company manufactures three main types of cement namely: Ordinary Portland Cement (OPC/Type I), which has been produced from the onset of the company. This type was the first to be manufactured by the company in 1976. The other two types are Sulphate Resistant Cement (SRC/Type V) and Limestone Cement - Finishing Cement. The company is a consumer-oriented firm. This means that it controls mining from the quarries to manufacture finished cement. Since then, the Qassim Cement Company (QCC) has held the status of being one of the best cement manufacturers in the continent. Market Targets: The company targets consumers in the Northwest and Central Saudi region. The greatest competitor facing by the company in this region is Yamama Cement. Production: Over the years since its inception, the company has been consistently increasing its productivity. For example, in 1986, the company increased its production capacity from 2,000 tpd to 4200 tpd. In 1996, production capacity was increased to 4,700 tpd, and seven years later the capacity was 5000 tpd. To aid in this development, the company underwent several technological changes. For instance, improvements were made by the France FDB with the objective of reducing dust emissions from plants. Other issues that had been addressed together with technological innovations included the improvement of the energy efficiency of a plant. In 2007, the company made some improvements with the help of the Ishikawajima-Harima Heavy Industries Company Limited (IHI) of Japan to increase the production capacity of the plant. These improvements doubled the companys capacity. Because of the increasing demand for cement, the company plans to embark on an expansion project that will lead to the construction of four additional plants. The projected outcome of this is that it will boost production by at least 6million tons. 2.1 Qassim and corporate social responsibility Corporate social responsibility is a very important aspect for any organization. Corporate social responsibility (CSR) is a way for organizations to give something back to the society for their labor, resources and support. This gives the company a good public image, resulting in a competitive advantage over its competitors. CSR policy acts as a built-in, self-regulating mechanism for QCC, whereby the business is monitored. This ensures that the organization adheres to the law, ethical standards and international norms. Although corporate social responsibility sometimes may appear as if the company adds to its expenses, it pays off in the long-run, since more people in the community will desire to work in the company. In addition, more investors will want to be affiliated with it. The Qassim Cement Company has played a key role in promoting the community. Some of the key areas that have been affected arethe health sector, the education sector and the environment. 2.1.1 Health Health is a key area in the society. A healthy workforce ensures that employees maximize on productivity. One of the most notable contributions initiated by Qassim is a project that is aimed at analyzing the validity, safety and fitness of all types of human food. The project is supposed to be launched in the Burayda city, and it consists of very sophisticated lab work to ensure good quality food for human consumption. Another notable contribution is the establishment of an underage handicapped center. This center is aimed at hosting children with various disabilities. By showing the community that they support them, they win more customers. This acts as a competitive advantage for the firm. 2.1.2 Finance The company is also responsible for the King Aziz women charity foundation, which is a microfinance institution meant to provide microloans for small micro enterprises (SMEs). 2.1.3 Education Qassim has been financing the education sector for years. This money has helped educational facilities accommodate more people as well as afford equipment and books needed for quality education. 2.1.4 Environment The environment is a key component of the community. Thus, QCC has established programs that measure, monitor and improve the environment. The companys environmental policy helps them monitor the progress made in the environment. The company has also gone an extra mile at ensuring that the rate of air pollution from dust has been reduced to less than 30mg/m3. QCC has invested significantly in controlling all pollution sources throughout the years. Furthermore, the company has taken up capital investment projects to help in the reduction of fugitive dust. The company has further built a water treatment plant to treat wastewater. The company also has over 48,000 plants and a vast landscape of approximately 21,000 sq.m. The level of CO2 emissions has also been significantly reduced. Currently, Qassim has been applying a mining system, where advanced management systems are used in quarries to preserve natural resources. 2.2 Company vision The vision of the company is to become a leading regional cement and building materials company that is globally recognized for its customer focus, operational excellence and high quality products. 2.2.1 Revised vision Today, the company worksonattaining a prosperous future in the industry. This is possible by ensuring superior customer satisfaction. Another way of attaining this objective is by consistently providing high quality products that conform to the set standards. 2.3 Company mission The mission of Qassim Cement is to become cement and building materials company that will persist in providing quality commodities in an environmental friendly and efficient way. Another mission is to maximize stakeholders wealth. 2.3.1 Revised mission Today, the company aims to provide quality management systems. This is in order to promote skills, training and knowledge. The company also aims to incorporate the virtue of teamwork in its employees in order to maximize production. 3. Internal factors analysis Internal Audit (INA) of any organization helps the management to understand the various factors within the company that are likely to affect the company. It is important for managers to analyze the internal environment of the business so that to they can be able to strengthen their strong points further as well as eliminate their weak points. In the case of Qassim industry, the company has a very strong labor force, which is a major strength for the company. Below, other internal factors that is likely to influence the company: 3.1Management Qassim Cement is managed by a board of various members. This board is led by a chairman, a vice chairman and a general manager, who is also a board member. This board is accountable for executing and revising the effectiveness of the companys internal control framework as approved by the Board of Directors. In addition, the manager with the backing of the board sets companys ideals and ethical code of conduct that all employees must abide by in order to retain their jobs. Other roles of management in the company include: 1. To implement systems and measures within the company to identify any unconventionality, control and report on major risks facing the company. These risks could be in the form of changes in market prices of raw materials, breaches of the law or regulations, unauthorized activities and fraud. 2. To conduct constant annual reviews aimed at identifying enormous risks facing the economy. This role is accomplished through monitoring through various management committees that have been established to ensure the effectiveness of the companys control framework. This committee also maintains specific oversight of key risks 3. To centralize functional control over all computer system developments and operations in the company. 4. To consult with stakeholders and stockholders on the best market opportunities to exploit. 5. To maintain the oversight of business operations and manage actions to ensure consistency with regulatory requirements. 6. To put systems and procedures for the constant identification, evaluation and management of substantial risks faced by Qassim in place throughout the year. These procedures enabled Qassim to discharge its obligations with the code of conduct dictated by the industry. 3.2 Human resources Qassim operates based on the belief that human resources are the most valuable asset they possess. The company has been continuously developing its value proposition by ensuring that its employees get continuous personal and professional growth. The company operates on a culture, whereby employees are highly skilled with great backgrounds and experience. The company ensures that the working environment is safe and ideal for their workers. To enforce this, they offer their workers health insurance covers with one of the best policies in Saudi Arabia. QCC has swimming pools, recreation centers and playgrounds for employees. The company strives to maintain its employees, since the workforce is the most valuable asset of the organization. To ensure quality, excellence and increased performance, the company urges its employees to get educated. The company has programs that train new employees and the existing ones incase they need to acquire skills that are more advanced. Since the establ ishment of the Qassim Cement Company, the development of a reliable workforce has been a strategy behind the success of QCC. The company has initiated several development programs, which are aimed at developing its employees with special focus on the local workforce. An example of such a program is a professional development program, the target of which is newly graduated engineers. The company attracts them to join this program in order for them to develop and specialize their skills. This ensures that the company has a well-trained workforce that is competent and accountable, hence guaranteeing excellence in the running of the company. Another program that is geared towards developing a reliable workforce is the Human Resources Development Fund (HRDF). This program ensures that QCC recruits more than 140 employees from Saudi Arabia. 3.3 Property The company plans to embark on an expansion project that will result in the construction of four additional plants. The projected outcome of this is that it will boost production by at least 6million tons. 3.4 Environmental perspective Qassim aspires to be recognized as a company that promotes sustainability in the environment. Over the years, the company has established several programs that are aimed at protecting the environment by reducing the level of pollution. This can be achieved through reducing carbon dioxide levels released as well as dust waste. Furthermore, the company has programs that are aimed at recycling waste, and conserving water and electricity. The company has tried to create an awareness culture in their staff as well as the rest of the society so that everyone can learn to appreciate and treat the environment with respect. 3.5 Security and safety The Qassim Cement Company management is focused on ensuring the culture of health and safety. The company continuously evaluates and analyzes safety gaps existing to determine means of improving safety measures companywide. The objective of this is to raise employees, contractors, customers and visitors safety perception. To achieve this, the company will have to conduct numerous surveys, risk assessments and benchmarking. To enforce this, QCC management is committed to: 1. Implementing the latest international safety standards within an integrated safety management system. 2. Provide training and creating safety awareness, as well as providing safety tools and equipment. 3. Develop and implementing evacuation and emergency plans. 3.6 Information Technology The company has been utilizing modern technology to improve productivity, as well as smooth out the production process. For instance, because of modern technology, the company can communicate effectively as well as run internal systems properly. The company broadly applies Information Technology to ensure consistency in the quality of products. Another use of Information Technology is to automate the business process as well as to reduce the lead-time. 3.7 Community service and sustainability Qassim, as a company, has over the years become a dynamic and legally responsible company that has over the years incorporated the community into its operations. The company has undertaken several projects focused on promoting the living standards of the people in the community around. 4.Industry structural analysis Industry Qassim Cement functions in the cement and building industry of Saudi Arabia. Since the country became a member of the World Trade Organization, there has been emerging projects of economic cities being built every day. In Saudi Arabia, the cement and building industry is characterized by strength, stability and resilience. The cement industry consists of eight listed companies. Each one of these companies has integrated plants. In total, these companies produce approximately 28.5 million tonnes (mt) and 33.1mt respectively. Presently, Yamama Cement (YCC) is the largest cement company at the present moment. 5. External audit A companys external environment includes factors outside the company's boundaries that significantly influence decisions made in the company. These macro environment factors are in the outer ring and include: 5.1 Societal values and lifestyles The society keeps on changing with time. These changes can be caused by an increased income. This means that the average disposable income of Saudis has increased as a result of economic stability. Thus, they are in further need of better housing. The development of social facilities also leads to an increase in the demand for building facilities. 5.2 Population demographics and geography As the population increases, the demand for housing also increases leading to the expansion of the cement industry. In addition, with an increased choice and easier access and switching, consumers are more demanding than ever before? This has resulted in an increased demand for cement for infrastructure. In the case of Qassim, the company is located in a highly populated area that has been rapidly evolving. The Qassim Cement Company is strategically located giving it a strong geographical advantage. Another notable factor is that it is the company with the lowest cement production cost in Saudi Arabia. This enables it to remain profitable. This creates an ample market for the organization. 5.3 Legislation and regulations The government is responsible for setting up policies that are beneficial to both organizations and consumers interests. The implemented trade laws and other fiscal policies ensure that organizations operate within the set parameters. This protects consumers from exploitation by traders. It also ensures that businesses operate smoothly in a manner that positively impacts the government. 5.4 General economic conditions This issue refers to the state of the economy. For instance, during the period of recession, most organizations lower their production, and the opposite fact is experienced during a boom. When the economy is thriving, more development takes place. This is beneficial for organizations, in this case, Qassim. 5.5 Technology Rapid changes and advancements in ICT are one of the major factors affecting the cement industry. Mainly because it relies heavily on technology, for services it provides, and usually allocates large portions of its budget to obtain and develop reliable technology to smoothly run the company. For instance, today most activities in Qassim are automated. This enhanced consistency in the quality of goods produced. 5.6 Political changes Politics greatly affects the economy of any country. A politically stable country is more likely to attract investors and donors, and hence, it results in the economic growth. Saudi Arabia has experienced political stability that has influenced the development of the country. Furthermore, the country recently joined the World Trade Organization, which has been a major milestone to the cement industry. Qassim cement factory Consolidated balance sheet of December 2011 ASSETS 2011 2010 Current assets: Cash and cash equivalents 244,725,482 19,717,605 Trading investments 412,693,329 468, 579,796 Accounts receivables, net 46,110,418 50,728,168 Prepayments and debit balances, net 7,910,647 9,578,960 Inventories, net 188,903,510 186,635,430 Assets available for sale - - - 6,350,000 Total current assets 900,343,386 741,589,959 Non-current assets: Property, plant and equipment 1,170,180,909 1,222,589,445 Capital work in progress 20,744,559 22,953,521 Deferred expenses, net 32,274.562 35,871,839 Total non-current assets 1,223,200,030 1,281,414,805 Total assets 2,123,543,416 2,023,004,764 LIABILITIES AND EQUITY Current liabilities: Trade payables 12,875,008 12,196,335 Accrued expenses 69,153,164 82483,781 Dividends 36,166,545 32,695,875 Zakat Provision 27,463,090 20,752,889 Total current liabilities 145,657,807 148,128,880 Non-current liabilities: Employees end of service benefits 22,215,149 20,269,662 Total non-current liabilities 22,215,149 20,269,662 Total liabilities 167,872,956 168,398,542 EQUITY Shareholders equity: Capital 900,000,000 900,000,000 Statutory reserve 190,546,424 135,256,410 General reserve 376,016,157 376,016,157 Retained earnings 490,394,133 444,584,010 Total shareholders equity 1,956,956,714 1,855,856,577 Minority interests (1,286,254) (1,250,355) Total equity 1,955,670,460 1,854,606,222 Total liabilities and equity 2,123,543,416 2,023,004,764 According to the balance sheet above the companys assets increased considerably from 2010 to 2011. Graphically, the balance sheet for 2011 can be represented by means of the following diagram: NB: The debt to assets percentage is 0.00% The Qassim Cement Company posted net profits of SR 158, 442,456 for the first quarter of 2012. This is an increase as compared to SR 147 176 466 gained in the first quarter of 2011. This shows a 7.65% increase in profits. Therefore, the consolidated gross profit increased by 4.87 %. The consolidated operating profit during the first quarter of this year (2012) is SR162, 195,404 as compared to SAR 151,687,337 for the corresponding quarter in 2011. This demonstrates an increase of 6.93 %. For three months, earnings per share (EPS) amounted to SR1.76 against SR1.64 for the same period in the previous year. This increase in net profit over the same period can be caused by the improvement in sales value. NB: Earnings per share (EPS) are determined for operating income, expenses, and net profit for the year in accordance with theweighted average number of ordinary shares outstanding during the year. Comparative figures should amended by bonus shares. Income statement for 2011 Qassim has shown a sustained performance, outperforming the market in several areas, such as its net profit. The company also deals with the stock exchange market, where the public is the largest shareholder with 51%. The market is showing a positive attitude towards expansion and development. Its increased net profit and decreased operating costs indicate a positive outcome for the company. 7. Michael Porters five forces model The Porters model is used to evaluate the competitive position of a company or an organization. This model is used in strategic planning, since it helps managers and CEOs to understand their company as well as the industry better. The model represents complex concepts using easily accessible formats. The basic idea behind the Porters model is based on five fundamental competitive forces namely: Barriers to entry; Threat of substitutes; Bargaining power of buyers; Bargaining power of suppliers; Rivalry among the existing players. In my analysis, I used the Porters fiveforces model in regard withthe Qassim Cement Company to help me fully understand the competitive environment of the company. In addition, the model provides data that will help the management modify Qassims competitive forces. This will help to boost the position of the company. The information derived from this analysis of the Qassim Company can help the management of the company decide on how to influence or exploit certain aspects of their industry. Graphically these five concepts look as follows: Force 1: Rivalry among existing players: Qassim has been handling the competition rather well. It has been taking advantage of the possibility of growth in the industry among other things mentioned above. The Qassim Cement Company deals strictly with the production of cement. The company has eight key competitors in the country. Since the company commodities are homogenous, competitors are in a position to offer the same product at a cheaper price, and ccan market their products better than Qassim. Some factors that contribute to increasing rivalry in the Saudi cement industry include: The large number of cement companies: Saudi Arabia contains several cement companies, which are considered direct competitors to Qassim. Such companies include Yamana and Saudi Cement among others. These companies are all competing for the same consumers in the market. Thus, just like in any industry the greater the number of competitors, the greater the threats available. Such a factor strongly impacts the strategy chosen by each company. High market growth rate: the cement market in Saudi Arabia has been growing tremendously over the years and it still has massive potential to expand. Today, there are over 8great cement companies in Saudi Arabia, which have branches all over the country to cover the vast demand. Qassim is taking advantage of the market potential and has been setting up investments all over inorder to help it gain a greater market share. Similar commodities being offered: The cement industry is flooded with homogenous products, since cement cannot be extensively differentiated. Thus, the market is flooded with cement from different industries competing for the greatest market share. However, what varies is the companys commitment and ability to fulfill their customers needs. Low switching cost: Since there are many cement companies in the country, customers can easily switch brands and not suffer any losses. Therefore, companies strive to maintain loyal customers in order to increase their sales and remain in business. High exit barriers: The cost of exiting an industry is remarkably high, and most companies cannot leave their current industries because of the risk of losses. Thus, companies are left stuck in industries that do not benefit them. Force 2: Threat of substitutes: As a decision maker, it is crucial for any organization to analyze the likelihood of the commodity getting substituted. In Qassims case, consumers can only change the brand of cement, since cement has no substitute. Managers should determine the switching cost of consumers switching to another brand. The likelihood of consumers switching to another product should be analyzed. Consumers tastes and preferences are not permanent, and in order to address this issue, decision-makers have to be aware of what consumers need and constantly upgrade their commodities. Force 3: Bargaining power of buyers/consumers: In Saudi Arabia costumers have increasing bargaining power over commodities they get. One main reason that backs this move is the availability of options for customers, since there are other cement companies in the country. This means there are many cement companies, all offering similar services. Therefore, the only way, Qassim can maintain its clients, is by creating customer loyalty by providing customized commodities based on consumers needs. The company has to make products that are geared towards consumer satisfaction. This way, consumers will remain loyal to the brand that meets their needs in the best way. Price sensitivity also plays a great part in maintaining consumers. This is because consumers attach themselves to products that give value for their money. Thus, the company must ensure that it is sensitive to the financial status of consumers and arguesfor fair prices for their commodities. Finally, the company should ensure that customers get the right information about their product. This can be achieved through proper advertising and marketing to ensure customers are not misinformed regarding the commodity. Force 4: Bargaining power of suppliers: This force relates to such aspects in the industry that are determined by suppliers. Qassim should establish how strong they are as sellers. In addition, they should establish all available suppliers in the industry and weigh their options. The impact of switching suppliers should be determined. For instance, how switching suppliers will affect the quality of commodities. In addition, switching costs of taking up other suppliers are also important. If switching costs are too high, companies may opt to retain their current suppliers. Another major factor is the threat of forward integration. Force 5: Barriers of entry: New entrants in the cement industry face significant challenges in attracting customers and expanding their market shares. Although there are some concerns around the operation of new companies and their regulation, most firms can achieve necessary regulatory authorization and meet standards set by the bureau of standards. However, we have found that new entrants face significant challenges in attracting customers. This can be a result of the combination of low levels of switching by existing customers, high levels of brand loyalty and consumers' preference for their current providers, whom they trust. These challenges pose a great challenge to new firms in the cement industry in Saudi Arabia. The impact of this is that new entrants get discouraged. This is because they harbor the fear that they may be unable to attract sufficient customers to help them recover start-up costs, grow their market share and maintain successful presence in the market. 8. Financial statement analysis 8.1 Cash Flow Statement Analysis The Qassim Company has a steady cash flow and a constantly increasing net profit. This is confirmed by further analysis. A positive number in Net Cash from Operating Activities is a great indicator of how healthy the companys operations are in generating cash. The annual cash flow of the Qassim Cement Company. (All values are in millions SAR) FY 2010 FY 2011 The cash flow from operations in the period of2010-2011 increased from 547.50 to 690.00. However, the cash gained from investments declined form 130.27 in 2010 to18.46 in 2011. The cash flow from financing activities increased slightly in2011, although values were negative indicating a loss or a deficit. Cash flow statement of the Qassim Cement Company for 2010/2011 Cash from Operating Activities 12/31/201112/31/2010 + Net Income 552.90 500.56 + Depreciation Amortization 90.46 98.00 + Other Non-Cash Adjustments 60.96 -1.62 + Changes in Non-Cash Capital -14.32 -49.45 Cash from Operations 690.00 547.50 Cash from Investing Activities + Disposal of Fixed Assets 8.87 0.58 + Capital Expenditures -16.05 -17.52 + Increase in Investments 0.00 0.00 + Decrease in Investments 0.00 0.00 + Other Investing Activities -11.29 147.21 Cash from Investing Activities -18.46 130.27 Cash from Financing Activities + Dividends Paid -446.53 -472.75 + Change in Short-Term Borrowings 0.00 0.00 + Increase in Long-Term Borrowings 0.00 0.00 + Decrease in Long-term Borrowings 0.00 -199.50 + Increase in Capital Stocks 0.00 0.00 + Decrease in Capital Stocks 0.00 0.00 + Other Financing Activities 0.00 -1.40 Cash from Financing Activities -446.53 -673.65 Net Changes in Cash 225.01 4.12 8.2 Shareholders Equity Statement Analysis Based on the statistics collected in 2003-2010, the total shareholders equity is listed below. 2003 2004 2005 2006 2007 2008 2009 2010 2011 1, 054,513 1,105,849 1,187,751 1,405,050 1,651,137 1, 902,345 2,166,600 2,411,686 1,956,956,714 According to the survey conducted on shareholders activities in the Qassim Cement Company, shareholders unanimously agreed to approve an interim dividend of SR 202.5 million for the income gained in the first half of 2011. This value amounts to SR 2.25 per share. It has been agreed that the company should transfer 10% of the annual net income to their statutory reserve. In addition, the general assembly has been given the power to stop such cash transfers in cases, when the total sum of money exceeds 50% of the paid capital. However, this reserve amount can be used as back-up plans to cover any unexpected losses or to increase its capital, rather than distributing it back to shareholders. However, shareholders must consent to this move of the company. Qassim shareholders have established a general reserve from their retained earnings. Another decision made during the last shareholders general assembly is that all dividends recorded in the same year should be approved by the general a ssembly of shareholders. 8.3 Balancing statement analysis Analyzing the Balance Sheet Statement, there are some items that must be discussed which include: The short-term investments of the company have reduced from 468.58 to 412.69 while the companys long-term assets have also reduced. However, the total assets have increased from 2,023.01 to 2,123.54 The companys current liabilities have reduced, while its long-term liabilities have increased. However, the total amount of liabilities for 2011 and 2010 are 167.87 and 168.40 respectively. The share capital and APIC and the total preferred equity have remained constant for the last two years. Retained earnings have also increased significantly, mainly because of the companys recent good business activities, as well as a healthy net income. It is worthwhile noting that the companys share capital increased over the years. 8.4 Income statement analysis: Income statement of the Qassim Cement Company for the period 2010/2011 12/31/2011 12/31/2010 Revenue 1,034.78 968.43 - Cost of Revenue 425.53 411.67 Gross Profit 609.25 556.76 - Operating Expenses 37.49 38.15 Operating Income 571.76 518.61 - Net Non-Operating Losses (Gains) -10.04 -4.26 Income Before XO Items 552.86 500.40 - Extraordinary Loss, Net of Tax 0.00 0.00 - Minority Interests -0.04 -0.16 Net Income 552.90 500.56 - Total Cash Preferred Dividends 0.00 0.00 Net Inc Avail to Common Shareholders 552.90 500.56 Abnormal Losses (Gains) 0.00 0.00 Normalized Income 552.90 500.56 Basic EPS before Abnormal Items 6.14 5.56 Basic EPS before XO Items 6.14 5.56 Basic EPS 6.14 5.56 Basic Weighted Average Shares 90.00 90.00 Diluted EPS before Abnormal Items 6.14 5.56 Diluted EPS 6.14 5.56 Diluted Weighted Average Shares 90.00 90.00 Gross profit and operating income are on the increase. In addition, the companys revenue has increased from 968.43 to 1,034.78 for the last two years. This resulted in an increase in the net income of the company from 500.56 to 552.8. 9. Generating Alternative Strategies Here we will use different matrixes to generate alternative strategies and make recommendations. (Input Stage) 9.1 EFE Matrix Key External Factors Weight Rating Weighted score Opportunity High demand for imported cement in India 0.05 1 0.05 Industry consolidation 0.11 3 0.33 Increased customer demand in Saudi Arabia 0.25 3 0.75 Growth prospects in the Saudi Arabian buildingsector 0.05 1 0.05 Increasing demand forcement in the Sri Lanka and African markets 0.15 3 0.45 Threat Stiff competition with eight core competitors 0.2 4 0.8 Uncertain global market 0.07 2 0.14 Economic downturn 0.15 1 0.15 Increasing prices of key inputs 0.03 2 0.06 Government oversight 0.05 3 0.15 Total 1.00 - 1.90 9.2 IFE Matrix Key Internal Factors Weight Rating Weighted Score Strengths Good contact with raw material suppliers 0.09 3 0.27 Operating their own quarries and workshops 0.12 4 0.48 Supportive employee culture 0.06 4 0.24 Companys strategic location 0.10 3 0.12 Buy custom Qassim Cement Factory essay

How to Learn the Russian Alphabet

How to Learn the Russian Alphabet The Russian alphabet is based on Cyrillic and Glagolitic scripts, which were developed from Byzantine Greek in order to facilitate the spread of Christianity during the 9th and 10th centuries. Some letters in the modern Russian alphabet look familiar to English speakers - Е, Ð £, К, Ð  - while other letters do not resemble any characters in the English alphabet. Russian Alphabet Sounds The Russian alphabet is relatively easy to learn thanks to its principle of one letter per sound. This principle means that most phonemes (sounds that convey meaning) are represented by their own letters. The spelling of Russian words typically reflects all of the sounds that are part of that word. (This will get more complicated when we move onto allophones- variations of possible pronunciations.) Get to know the Russian alphabet by studying all three columns below. The first column provides the Russian letter, the second column provides an approximate pronunciation (using English characters), and the third column gives an idea of what the letter sounds like, using an example from an English word. Russian Letter Pronunciation Closest English Sound , a Ah or aah Far, lamb , B Boy , V Vest , Gh Guest , D Door E, e Yeh Yes , Yoh York , Zh pleasure, beige , Z Zoo , E Meet , Y Toy , K Kilo , L Love , M Mop , N No , O Morning , P Pony , R (rolled) , S Song , T Train , Ooh Boo , F Fun , H Loch , Ts Ditzy , Ch Cherish , Sch Shhh , Sh (softer than ) Shoe , hard sign (non-vocalized) n/a , Uhee no equivalent sound , soft sign (non-vocalized) n/a , Aeh Aerobics , Yu You , Ya Yard Once you have learned the Russian alphabet, you should be able to read most Russian words, even if you don’t know their meaning. Stressed and Unstressed Vowels The next step is to learn how Russian words are stressed, which simply means which vowel in the word is emphasized.  Russian letters behave differently under stress and are pronounced more distinctly  according to their alphabet sound. Unstressed vowels are reduced or merged. This difference is not reflected in the spelling of Russian words, which can be confusing to beginner learners. While there are several rules governing the way unstressed letters are pronounced, the easiest way to learn is to expand your vocabulary as much as possible, naturally acquiring a sense of stressed vowels along the way.