Cybersecurity Assignment Example | Topics and Well Written Essays - 750 words

Cybersecurity - Assignment Example This initiative is also geared towards ensuring, supporting, and facilitating innocuousness in all aspects of the Internet. It is important to consider the fact that this initiative involves and encourages the participation of almost all individual including the government and the public in general. Importance of NICE framework Based on the ever growing use of the internet, there has been the need of knowledgeable and talented individuals to protect, safeguard, as well as preserve various information structures set up and implemented within the country. According to National Initiative for Cyber Security Education (2012, p.9), â€Å"Across the nation, private and public sector organizations are looking for well trained professionals to assess, design, develop, and implement cyber security solutions and strategies†. Therefore, it is important to note that this initiative aims to elevate or upsurge the quantity of individuals fresh from college possessing the necessary knowledge , talents, and abilities to counter the problems associated with cybercrimes. This initiative also aims to engage other individual organizations in making this dream come true. This initiative also presents the basis through which individual organizations as well as professionals can participate in making the cyberspace safe and secure. Proposed Examples There are a lot of examples that can be used to describe the importance of this initiative in cyber security. First, this initiative can ensure that all workers in a particular organization acquire the necessary skills and knowledge to prevent and mitigate consequences of cybercrimes. It is import for employees to be aware that saving or storing sensitive information regarding the company is dangerous as hackers can access such information easily if strategies are not put into place to mitigate it. Secondly, educating students and other individuals on the importance of securing personal information such as names, national security n umbers, and bank information would prevent identity theft. Thirdly, this initiative can work hand in hand with local cyber cafes in ensuring individuals using the internet are monitored. This would prevent against individuals who prey on others and consequently steal their personal information. Expected outcomes The final outcome of this initiative is to provide and elevate the level of contact and coverage of cyber security through training and teaching the public. This initiative will also elevate the variety, assortment, and number of courses related to science in a bid to produce more individuals or professionals to take up cyber security roles. More professionals in this field will ensure that more research as well as important methodical studies is conducted to identify novel ways of cybercrimes and as well devise ways to counter their effects. This initiative also aims at ensuring an adoption of a cyber-security agenda and contrivances necessary to combat cybercrimes (Choi, 2 005). Implementation of framework Organizations can implement the NICE framework through a number of ways. For instance, they can ensure that all sent information or data is controlled and regulated. Strategies can be implemented to ensure that

Task 10-7 Education Technique Essay Example | Topics and Well Written Essays - 2000 words

Task 10-7 Education Technique - Essay Example The observed instructions entail conversation with the students for them to acknowledge the essence of the lesson. Furthermore, the utilization of identifiers limits confusion amongst the group members as evident in the color and shapes. Eventually, this creates a classroom where there is proper learning. The environment has enabled the creation of a positive environment where there is a good relationship between the students and their teacher. From the engagement of students in conversation and good relationship in class, the students are expected to learn to express themselves with confidence. For students’ higher understanding, they have to know what the teacher is saying, and ask questions or give their opinions. For example, the teacher asks, â€Å"do you have to work?†, while the students answer â€Å"yes† thus increasing the students’ engagement in class. The purpose of engaging students in class is to upgrade their performance and the entire school ’s performance. The level of student engagement is high. There is the participation in group-work and this allows all learners to contribute in class for them to learn from their classmates and the educator. These students are involved in all activities and that makes them feel more encouraged to partake in the class and learn. This is evident as they move towards the objects that facilitate learning.As evident in the lesson, students are allowed to move during the beginning of the class in a manner that is not fashioned.

Progeria Essay Example for Free

Progeria Essay As much as i love to learn about commonly known dieseases in class one diesease that striked me as i was watching a tv show last year was progeria. Progeria is derived from the Greek work meaning prematurely old. Jonathan Hutchinson and Hastings Gilford discovered the syndrome in 1886. The name Hutchinson Gilford progeria syndrome existed because of this. doctors have discovered a single gene mutation responsible for Hutchinson-Gilford progeria syndrome. The gene is called lamin A this is the protein necessary for holding the center of a cell together. Researchers believe the genetic mutation enables the cell to be unstable, which appears to lead to progerias characteristic aging process. As newborns with progeria it usually appear normal but as times progess the cchildrens growth ceases and they start developing characteristics of the eldelry. A study from the Netherlands has shows that 1 in 4 million births (within the Netherlands) are diagnoesed with progeria Currently, there are 80 known cases in the world. Approximately 140 cases have been reported in medical history. Classical Hutchinson-Gilford Progeria Syndrome is usually caused by a odd mutation taking place during the early stages of embryo development. It is almost never passed on from affected parent to child, as affected children rarely live long enough to have children themselves. Theres no cure for progeria Regular monitoring for cardiovascular disease may help with managing your childs condition. Some children undergo coronary artery bypass surgery or dilation of cardiac arteries to slow the progression of cardiovascular disease. Drugs known as FTIs, which were developed for treating cancer, have shown hope in laboratory studies in correcting the cell defects that cause progeria. FTIs are currently are being studied in human clinical trials for treatment of progeria. interstingly Children affected with progeria age rapidly – about 7 to 10 times faster than normal which means their looks and physiology resemble a 70- to 80-year-old person, but they keep a dwarfish child-like body. Death usually occurs between the ages of 12 and 14 years. This generally happens as a result of cardiovascular deterioration, which includes things atherosclerosis, myocardial infarction, and congestive heart failure. Typically doctors will not find the following features usually dealing with aging Tumors, Cataracts, Hearing Loss, Diabetes. The outcome is very poor and that is because death always occurs in cases of Progeria. There is currently no cure for this mortal disease and the only treatment is to simply deal with the reducing the complications that come up such as the cardiovascular deterioration. The earliest influences of progeria on popular culture occurred in the 1922 short story The Curious Case of Benjamin Button by F. Scott Fitzgerald (and later released as a feature film in 2008). The main character, Benjamin Button, is born as a seventy-year-old man and ages backwards; it has been suggested that this was inspired by progeria. Also Charles Dickens may have described a case of progeria in the family of Smallweed of Bleak House, specifically in the grandfather and his grandchildren Judy and twin brother Bart. A Bollywood movie Paa was made about the condition and in it the lead character (Amitabh Bachchan) played an 11-year-old child affected by progeria. The movie Renaissance deals with progeria. In episode sixteen of the first season of the television show The X-Files, the corrupt doctor had experimented on children with Progeria. In the 4 book series Otherland by Tad Williams one of the main characters suffers from progeria. in 1978 book When Bad Things Happen to Good People, which explores God and the problem of evil, was written in response to his 14 year old sons death by progeria. Amd lastly South African artist/hip hop artist Leon Botha was one of the oldest known Progeria sufferers, surviving to the age of 26 before his death in June 2011 in conclusion progeria is a diesease that has effected many and kiled many children altering their life immensly. the fact that there is no cure for this diesease is some what a hard truth for patients with this diesease. socially also many progeria patients are not accepted because of their physical abnormalities and disfigures. Never the less exstensive research has been sought out in order to cure and treat progeria.

Business Strategy of Tata Consultancy Services (TCS)

Business Strategy of Tata Consultancy Services (TCS) TATA group of companies: Tata Group of companies is the largest private corporate group in India and has been recognized as one of the most respected companies in the world which was founded by Jamsedji R Tata in 1991. The company has operations in more than 85 countries across six continents and its companies export products and services to 80 nations and the Tata Group comprises (114) companies and subsidiaries in seven business sectors (Tata Sons Ltd., 2010). SBUs of TATA group 🙠 For details please refer to appendix no.1) SBUs which form a major part of the Tata group include: Tata steel Tata motors Ltd. Tata consultancy services Tata Technologies Tata tea Tata power Tata Communications Tata Teleservices Tata hotels 1.1 Company profile: Tata consultancy services (TCS) SBU of Tata group: http://t2.gstatic.com/images?q=tbn:ftrqMPzMyAWhIM::t=1usg=__pSSLT1wgbnRMMkApfc8zl-8DYsg= Source: http://biet.beadvg.org/images/logos/tcs_logo_cmyk.jpg Tata Consultancy Services (TCS) is one of the SBU of Tata group of companies. It is a Software services consulting company which is a subsidiary Tata group .It is the largest provider of information technology (IT) and business process outsourcing services in Asia. It has offices in 42 countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange(BSE) of India.TCS mainly offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique strategic Global Network Delivery Model which is recognized as the benchmark of excellence in the IT industry (LinkedIn Corporation, 2010) .TCS is currently investing in new technologies, new processes people in order to achieve an competitive edge (Amdocs Ltd., 2010).(For details please refer to appendix no.2) TCS helps some of the worlds largest companies to adopt the right technology-enabled solution that helps them in following manner (Tata Sons Ltd., 2010). Optimize business performance Facilitate alignment of business with technology Connect their extended supply chains Reduce product development time Improve product differentiation Provide real-time business insight Lower operational costs TCS business structure: Following diagram illustrates operating structure of TCS: Fig 1.TCS operating structure Source: http://www.allbusiness.com/glossaries/organizational-structure/4943569-1.html 2 Business Level Strategies: TCS has developed its business level strategy by assuming as world financial institutions are in a tremendous shock of crisis and think of scaling up revenue from other industries. (Tata Consultancy Services Limited, 2010). TCS names its business divisions as Industry Service Practice which will help them to collect maximum revenue from Banking Financial Services and Insurance Sectors. (Please refer to appendix no. 3) Generic Business Strategies of TCS: TCS provides low cost Global delivery with the help global strategy. TCS mainly focus on customer relationship management customer retention in order increase the business revenue. TCS provides timely delivery of IT services with the help of proven delivery quality framework called as (iQMS) TCS uses differentiation strategy by providing low end services in terms of cost, resources. TCS also diffenciate its high end services such as consulting in term of niche offerings. TCS has strong knowledge management system resource Strength by which they has successful in reaching the overall cost leadership in the (IT) industry. TCS has develop a resolute strategy where they are providing (IT) services according to the requirements of customer and the nature of business. targeting new markets like Middle East, Europe, and Asia-pacific. Currently TCS Focus on Centres of Excellence (CoE) to hold ability so as to construct technologies such as service-oriented architecture, testing, and virtualization which will help TCS to attempt outsized projects so as to alter customers (IT) applications. Business level strategy model: Following diagram illustrates various business level strategies of TCS which are closely related to the company. Fig 2. Business level strategy model-TCS Source: Author Business level Strategies are listed below: Global Strategies Strategic Alliance strategy Acquisition strategy TCS: Co innovation network (coin) strategy (1) Global strategy: TCS global strategy structure tend towards its global operations to implement a Customer centric and integrated approach which will help them to control external factors arising from the Economic Meltdown in western countries. TCSs global operation units is divided into five main divisions includes the established markets like North America K Western Europe as well as the new markets includes mainly Latin America, Middle east, India and Eastern Europe. TCS was the first one to set the global delivery centre in China which distinguished TCS from other corporate companies (Mitra, 2005). This global strategy of TCS will Increase Companys market growth rate at the rate of 40% every year. TCS is establishing global delivery centres outside India which demonstrate TCS as a Global company. In recent years TCS was frequently changing its approach towards global market. (For details please refer to appendix no .3) Global strategy map: Following map illustrated the countries where TCS collaborate its global strategy Mainly includes US, Mexico, China, India, Hungary, UK, West-Europe etc. http://htmlimg3.scribdassets.com/entwg1s84irfuww/images/15-8f526c1a8f/000.jpg Fig.3 Global Strategy map Source: http://www.cogmap.com/chart/tata- consultancy-services 2 Strategic Alliances strategy: Tata consultancy services have been holding a strategic relationship with various International technology (IT) vendors such as Intel, Hewlett-Packard (HP), IBM this distinguished as service provider, customer, supplier, and alliance partner. (Mitra, 2005). The relationships with the international technology vendors have made TCS to maintain a holistic approach to create a joint venture opportunities with these international vendors on joint research by which each others strengths will provide a strategic advantage by following ways(For details please refer to appendix no.4) It creates joint engagements with (IT) vendors. It provide new or improved solutions on problems It helps to adopt a Joint go-to-market strategy for the specific (IT) solutions. 3. Acquisition strategy: TCS divides its acquisition strategy into two components. Organic means and inorganic means (Mitra, 2005). The Inorganic way of acquisitions of companies this has business sense to TCS as part of its strategy to look at expansion options has set up an internal team which will focus only on acquisition strategies.(For details please refer to appendix no.5) 4. Co- innovation network (coin) strategies: TCS have implemented a Co-innovation strategy in order to face the competition in todays globalization world. Where competition among the IT companies is increasing day by day. TCS has developed implement an innovative technology which will result in collaborating a Globally Distributed Network (GDN) (Mitra, 2005). (Please refer to appendix no.6) Bowmans strategic clock: Business level strategy of TCS can also be explained with the help of Bowmanà ¢Ã¢â€š ¬Ã… ¸s Strategic clock (work of Cliff Bowman) (For details please refer to appendix no.7) Fig 4. Bowmans strategic clock Source: Adopted from (Faulkner Bowman, 1995) Based on the competition faced by TCS they are using two parallel strategies so as to sustain in the (IT) sector. Differentiation:-TCS use differentiation strategy by offering its low high end services such as consulting in term of niche offerings terms of cost resources. Expertise that is different from those of the competitors in (IT) industry which are valued by the customers. Low price:-TCS has achieved cost (price) leadership in the (IT) industry with the help of its strong knowledge management system as compare to competitors. According to Bowmans strategic clock differentiation Low price strategy comes under hybrid strategy. So, it is evident that TCS use these strategies in order to keep up with the emerging (IT) trends and working out towards its goal of being the most chosen brand in the (IT) industry. TCS Business level Strategies can also be identified and explained with the help of Ansoff matrix which divides the strategy of a company into four different categories namely, (i) Market Penetration Strategy (ii) Market Development Strategy (iii) Product Development Strategy (iv) Diversification Strategy TCSs growth and development strategies based on Ansoffs matrix Ansoffix growth matrix 🙠 For details please refer to appendix no.8) TCSS Business level Strategies can also be identified and explained with the help of Assnsoff matrix as follows: Existing Products New Products (Market Penetration) Existing Markets: USA and Europe Existing Products: ADM, BPO, KPO, consultancy services software products. (Product Development) Existing Market: USA and Europe New Product: Consultancy and package implementation services in relatively growing sectors life sciences healthcare, aviation sector, and KPO services (Market Development) New markets: India, Middle-east and Australia Existing Products: ADM, BPO, KPO, consultancy services Software products (financial products). (Diversification) New products: vertical- Specific services packages, TCS Financial Solutions, and Platform-based BPO New markets: Latin America, Eastern Europe, Middle East Africa and India), Existing Market New Market Fig 4. Ansoffix growth matrix of TCS Source: Author (i) Market penetration strategy: As per the growth matrix TCS is currently penetrates its range of services into USA and Europe where they provide ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail firms) as well as they provide software products (financial products) to the firms as most large clients in US and Europe are concentrating on cutting costs of (IT) related services (Tata Consultancy Services Limited, 2010). TCS needs to be more aggressive on cost cutting strategy with good quality. (ii) Market development strategy: As per the growth matrix TCS is concentrating on new markets like India, Middle-east and Australia where they provide products like ADM, BPO, KPO consultancy services (in BFSI, manufacturing and retail) and software products (financial products) (Tata Consultancy Services Limited, 2010).Since these are the most fast developing IT market where TCS needs to keep a paradigm as a shift in focus from US EU markets to these new markets. (iii) Product Development Strategy: As per the growth matrix TCS is selling its new products such as Consultancy and package implementation services in relatively growing sectors especially in life sciences healthcare, aviation sector, and KPO services into existing markets like USA and Europe (Tata Consultancy Services Limited, 2010). This strategy will definitely help on building expertise in these domains by strategic acquisitions. (iv) Diversification strategy: As per the growth matrix TCS has diversified their new products like vertical- Specific services packages, TCS Financial Solutions, and Platform-based BPO into new markets like Europe and other emerging markets where the market growth of the company has increased by 40 % (Tata Consultancy Services Limited, 2010).TCS diversified its function to new markets like Latin America and Middle East for considerable expansion. In order to penetrate a new market TCS has established delivery and offshore centres in countries like Brazil, Uruguay and Mexico. 3 Strengths weaknesses based on business Level Strategies: Following table illustrates (TCS) strengths and weaknesses: Strengths Weaknesses Extensive Universal reach Strong economic performance Strong brand name and awareness Unique service Offerings Employee Management Skills (HR Skills) Innovation lab system Fame of founder Momentous publicity to financial markets Lack of focus on the domestic markets. Deficient in level of consulting Operations Source: Author 3.1 Strengths: (1) Extensive Universal reach: TCS has widespread a global reach by its product and services throughout its branches all over the world includes in UK, U.S, Middle east, Australia, Europe etc. (Tata Consultancy Services Limited, 2010). This provides a diverse revenue base for the company to have an active control on its business operations universally. (2) Strong economic performance: TCS has made apparent and strong economic presentations around the globe which makes its clients to be financially confident about the company and hence it will increase companys reputation. (3) Strong brand name and awareness: As the popularity of the brand TCS (Tata consultancy services) has been reach all over the world which made TCS a reputed brand image in the Global information technology (IT) and software industries. (4) Unique service Offerings: TCS provides a unique range of services including business consulting; information technology, business process outsourcing (BPO), infrastructure, and engineering which distinguished them from competitors belong to IT industry (Tata Consultancy Services Limited, 2010). (5) Employee Management Skills (HR Management Skills): The domestic base of TCS i.e. India is well -known for its skilled employees in IT field which naturally made TCS a very strong in HR management .TCS is also recruited its board of Directors are from overseas countries in order to adopt the strategies from all the parts of the world. (6) Innovation in lab system: TCS have most effective infrastructures and innovative labs all over the world with most modern technologies which help its employees to have an access to update the most up-to-date information to make research in various IT related fields (Tata Consultancy Services Limited, 2010). This provides TCS an competitive edge. (7) Fame of founder: Tata is recognised as the most renowned brand in Asia as well as the fame of the founder Mr.Ratan J Tata also added value to TCS (Tata Consultancy Services Limited, 2010). 3.2 Weaknesses: (1) Momentous publicity to financial markets: The Excess exposure on the financial service markets at a global level (Datamonitor, 1998). Which generally necessitate to be keep confidential as they it displays companys private policies and legal terms which is considered as the primary key weakness of Tata consultancy services (TCS) (2) Lack of focus on the domestic markets: As per the strength of TCS it has an Extensive Universal reach by its product and services throughout it are all over the world branch which provides a diverse revenue base for the company. (Datamonitor, 1998). But at the same time domestic markets are also affected due to lack of focus by the company. This is the key weakness of Tata consultancy services (TCS). (3) Deficient in level of consulting operations: Lack in Effective consulting team which show a strong reflection of decline in the growth Cycle of the TCS, Being a company which mainly works on Outsourcing on scale large projects and assignment which generally needs a very good effective consulting team which acts as the link between the Clients and company (Tata Consultancy Services Limited, 2010).TCS company is lacking behind in its level of consulting operations. Report to the Board of Directors To, The Board of Directors, Tata consultancy services Ltd. Subject: Recommendations for the (TCS) business unit. Respected Board members, In the report which is attached along with a critical research and analysis has been done on the corporate strategy followed by your company. The research and analysis has been conducted by using various corporate strategy tools and methods and the companys past and current strategies have been highlighted. On the basis of the strengths and the weaknesses of these strategies we have stated so; following are the recommendations which I was able to generate after studying the strategies adopted by the TCS: TCS should create specific value propositions aimed directly at the relevant stakeholders which include business executives, IT personnel in order to improve your market positioning in domestic markets. The excess exposure on the financial service markets which usually need to be kept confidential is considered as the main weakness of TCS so they can should focus more on increasing their IP (Intellectual Property) assets in order to lower the momentous publicity to financial markets (Tata Consultancy Services Limited, 2010). TCS can also go for isolation strategies with premium services like IT solutions and focus on a niche market. In market Meltdowns (recession) marketing can work as a differentiator. TCS can alter its focus from Low cost advantage to high quality services considering quality being pioneer in the (IT) industry. TCS can offer diverse services to refrain from being over-dependent and increasing exposure to the vulnerabilities of few sectors like USA. TCS can adopt ADM (Application Development and maintenance) system to increase value added services, BPO to Consulting and Package Implementation (Tata Consultancy Services Limited, 2010). Consolidation and strategic acquisitions are essential for future growth of revenues. The HP-EDS merger (one of the biggest ever merger in this industry) is evidence to this. TCS should prepare for such opportunities which are strategic fit for the company. TCS has rightly placed SMB (Small and Medium Businesses) as a separate strategic unit, which should be focused aggressively. They should also focus consulting practice on the same business unit (Tata Consultancy Services Limited, 2010).

The Unconstitutionality of Capital Punishment Essay -- Argumentative P

The Unconstitutionality of Capital Punishment Capital punishment is one of the most popularly debated topics in the nation today. Since colonial times, more than 13,000 people have been legally executed. A large percentage of these executions occurred during the early 1900's. In the 1930's, as many as 150 people were being legally executed every year. However, the number of executions started to decrease as public outrage became apparent. In 1996, thirty-seven states, including New Jersey, legalized the death penalty. Of the other thirteen states, Michigan abolished the death penalty in 1847, Minnesota in 1853, and Alaska and Hawaii never had the death penalty. Today, there are over 2,000 people on "death row." Almost all are very poor, and a significant number of them are mentally retarded or disabled (ACLU 1). The American Civil Liberties Union (ACLU) dictates that, "In all circumstances, the death penalty is unconstitutional under the Eight Amendment, and that its discriminatory application violates the Fourteenth Amendment" (1), and therefore, capital punishment violates the Constitution. Capital punishment should be illegal throughout the nation for many reasons. Capital punishment has many supporters. One of the major arguments that these supporters express is that the death penalty serves as a deterrent to crime. They argue that if the death penalty is legalized and practiced, it will discourage others from committing a crime. However, by comparing the data of the states with the death penalty and the states without the death penalty, one can easily see that the death penalty has no effect in deterring crime. According to the National Research Council in 1976, "the available studies provide no useful evidence on th... ...deterrence, it is incapacitation(Kaminer) C. Human judgment is not infallible 1. The risk of executing the innocent is too high. 2. The death penalty is final-no way to reverse. 3. Death Penalty and Sentencing Information study. D. Unconstitutionality 1. Violates the Eighth Amendment-"prohibition against cruel and unusual punishment(Litardo). 2. Violates the Fourteenth Amendment-"guarantees of equal protection of the laws and due process"(Litardo). E. Discrimination 1. Gender discrimination(Bedau). 2. Racial discrimination(Bedau). 3. Socio-economic level discrimination(Bedau). III. Conclusion A. Capital punishment is not an effective way of approaching the crime problem. 1. Capital punishment has many different difficulties as an attempt to decrease and prevent crime 2. Capital punishment should be illegal throughout the nation.

Prejudice in Heart of Darkness: Racism is a Relative Term Essay

Heart of Darkness: Racism is a Relative Term Racism is a relative term. While many people argue that Conrad's novel, Heart of Darkness, contains the theme of racism, they tend to ignore the fact that this novel was written around the turn of the century. During this time period it was accepted practice to think of a black man as savage because that was how the popular culture viewed the African American race. If someone called a black man "savage" today, that someone would be considered a racist. Of course, this turn of the century view of blacks is inexcusable but it was the accepted norm of the time. The problem is that modern critics tend to apply modern thinking to all novels, including those written in a specific time period with beliefs different from today. These critics do not incorporate the context of the novel and simply rage forward with a directed, ignorant viewpoint, arguing from a more civilized stance. The definition of a racist has changed a great deal since the early 1900s, and we must consider this when analy zing any piece of literature. The problem arises when modern thinkers assume that we must continue to build on our ever-expanding knowledge instead of looking into the past and trying to relate to the accepted views of the time. To try to see racist tendencies in a text we need to know the definition of racism. The definition we use today is as follows: A racist apprehends that th... ...), Heart of Darkness. London. Penguin Popular Classics (1994). Nationalencyklopedin 15 PAS-ROJ (1994), Engstrà ¶m, Christer (red.). Hà ¶ganà ¤s. Bokfà ¶rlaget Bra Bà ¶cker. Works Consulted Cox, C. B. Conrad: Heart of Darkness, Nostromo, and Under Western Eyes. London: Macmillan Education Ltd., 1987. Guetti, James. 'Heart of Darkness and the Failure of the Imagination', Sewanee Review LXXIII, No. 3 (Summer 1965), pp. 488-502. Ed. C. B. Cox. Watts, Cedric. A Preface to Conrad. Essex: Longman Group UK Limited, 1993. Notes: 1 Nationalencyklopedin 15 PAS-ROJ (1994), p. 431 2 Conrad, Joseph, Heart of Darkness (1902), p. 7 3 Conrad, Joseph, (1902), p.25 4 ibid, p. 73 5 ibid, p. 51

Lex Cost of Capital

Lex Service PLC— Cost of Capital In 1928 Lex Garages Limited, at the time of public incorporation, had single garage in London. After 60 years, Lex Service PLC became a leading company in automotive distribution and leasing in the United Kingdom. In late 1950, Lex obtained from Volvo Car Corporation the exclusive franchise to import and distribute Volvo cars in the United Kingdom that ended in1992 four years before the scheduled termination date. This news dropped the share price of Lexto 30%.In 1970s, Lex started to expand its business into other services like transportation andleasing and for temporarily in hotel management business. By the end of 1983, Lex was structured around two principal groups ¶ i-e Lex Automotive and Lex Electronics Worldwide. From 1991 to 1993, Lex sold its major electronic business to Arrow Electronics, Inc. With theseries of acquisitions by Lex, finally it entered in the profitable business by acquiring acontrolling interest in the U.K importersh ip, Hyundai Car (U. K) in September 1993. Thisacquisition gave Lex management control of a three year rolling contract that Hyundai Car heldwith Hyundai Motor Company of Korea. In this case study, board meeting was scheduled in 1993 to review its cost of capital proceduresand to determine whether Lex Service PLC should use different hurdle rates for differentdivisions or should use cost of capital for the whole company.Lex Service PLC was concerned about its cost of capital in 1993 because from 1991 to 1993 Lexhad gone through many acquisitions and sales of assets that changed its capital structure in ahuge way. That change of capital structure included the sale of whole electronic division toArrow Electronice, Inc and acquisition of Hyundai Car (U. K). Moreover, they had cash toreinvest so Lex wanted to properly estimate its Cost of equity. Once new cost of capital is computed that will enable the firm to estimate its required rate of return on its investments.Ingeneral companies m ake use of CoC through discounted cash flow or share pricing method. To calculate cost of capital (equity), risk free rate and value of risk premium, calculations are asfollows:If Lex had no debt in its capital structure then the relationship between its levered equity betaand asset beta can be like: ? (asset) = E/V * ? (equity) And it also implies that interest and principal payments on the debt are fairly safe that makes the beta of debt to zero. If there is no debt then cost of capital will become the cost of equity.Moreover if Lex adds moderate amount of debt in its capital structure that means equity will become more risky and cost of equity will increase and so will the cost of capital. In order to fully evaluate future investment opportunities, Lex should single discount rate if the project is enough to represent the whole firm e-g in acquiring the very similar company. But Lexshould use multiple discount rates in evaluating the projects that replicates one of its divisions e -g investment in the automotive division should use the cost of capital of automotive division andsame goes for other divisions