The Subordinate Role of Reason in Hume's Moral Philosophy Essay

The Subordinate Role of Reason in Hume's Moral Philosophy - Essay Example Hume thought that what we perceive become images, and these images or pictures of reality are manipulated by reason. But, there is no manipulating these perceptions without the prior perceptions or sensations first: â€Å"I shall endeavor to prove first, that reason alone can never be a motive to an action of the will; and secondly, that it can never oppose passion in the direction of the will† [Cahn and Markie, Ed., 244]. What Hume is arguing, can be described as presenting a very sharp or definite distinction between â€Å"reason† which he calls â€Å"utterly impotent† when contrasted with the â€Å"passions† [Cahn and Markie, Ed., 247]. And, unlike the images that can be manipulated by reason, the relationship between the â€Å"passions† and â€Å"actions† is a direct one or as he phrases it: â€Å"morals excite passions, and produce and prevent actions ... the rules of morality, therefore, are not conclusions of our reason† [Cahn a nd Markie, Ed., 247]. Most might maintain that reason and the senses have a more connected or inter-twined relationship. It is important to stress that reason is only connected to 'necessary' types of truths like mathematical equations. That is, truths that are valid regardless of sense experience. Or, truths that are valid because of the rules themselves: â€Å"reason is the faculty judges of truth and falsehood† [Cahn and Markie, Ed., 687]. One of the effects or consequences of this model is that there are actually no irrational actions. If the actions or the relationship between passions and actions are separate or only interact with each-other rather than reason, then this interaction cannot be said to be one that has any rationality. As is summarized by Cahn and Markie: â€Å"If the only possibility Hume means to be putting forward here, is the possibility of action based on false belief about causes and effects, we get a curious result ... people never act irrationally † [Cahn and Markie, Ed., 687]. They cannot act irrationally, precisely because 'action' in-itself is not a rational thing either in its manifestation as an actual sensible activity or event, and not rational in the sense that it was motivated by an 'impulse' or a 'sensation'. It is the reaction to a sensation. 'General Statement' of the Role of Reason as subordinate to the Senses: Thus, for Hume, morality is inseparable from the sentiments or a form of sentimentality. The â€Å"only possible source of motivation† for Hume, is to â€Å"satisfy† a â€Å"passion† [Cahn and Markie, Ed., 685]. The role of reason is to evaluate only the rules that are abstracted from sense experience, which means that all human motivation and all human action is one driven by passions. Thus, Hume resolves that problem in his discussion of benevolence and justice by establishing a theory of sentiments at the core of moral decisions. Sentiments are measured in terms of the greater pleasure or conversely, the greater harm that results. And, therefore, a just society is one that functions in harmony with the avoidance of the sensation of pain and the increase of pleasure. Again, it is important to stress that this connection with justice is one that is grounded in 'sense experience' but also the reasoning about it to – as is the nature of laws. Finally, it is possible to put forward a straight forward example to illustrate the notion of 'benevolence' and 'justice'. Just as a sensation can cause an increase in pleasure, so too with

The Meaning of Life Essay Example for Free

The Meaning of Life Essay The meaning of life, defined by Victor E. Frankl, is the will to find your meaning in life. It is not the meaning of life in general, but rather the specific meaning of a persons life at a given moment. He believes that if you are approached with the question of what is the meaning of my life or in this case, life is meaningless, then you should reverse the question to that person asking the question. For example: What are you bringing to me? What are you as an individual contributing to this life? This forces the person in question to take a look at themselves and to ultimately be responsible. Frankl says that if you are a responsible member of society than the meaning of life transcends from yourself rather from your own psyche. He also says that if we for some reason cannot find meaning within ourselves it has to be from some outside source. This is referred to as service. And an example of this is love. Victor Frankl describes three ways in which we can discover the meaning of life; Creating work-doing a deed, experiencing something-someone, and by the attitude we take toward unavoidable suffering. There are several reasons why a person could be feeling that their life is meaningless or has no meaning. According to Victor Frankl these reasons could be existential frustration, existential vacuum, and the meaning of suffering. Frankl breaks down the meaning of existential frustration as so, it can be referred to as existence itself ? the specifically mode of being, the meaning of existence, and striving to find concrete meaning in personal existence, which is the will to meaning. Existence itself, in simpler terms is just existing and the human mode itself. The meaning of existence is the question in which we often ask ourselves; Why are we here? When we strive to find concrete meaning in personal existence, we are looking for the personal meaning for existence. Basically what Frankl is saying is that when we are dealing wit the existential frustration we are looking for given meaning that isnt there. (There is no meaning). On the other hand there is the existential vacuum, which is when you cannot find meaning in your life. Frankl says that the existential vacuum manifests itself mainly in the state of boredom. Its when you feel that you have no structure in your life, no one telling you what to do, your not learning anything, and basically your not doing anything with your life. Because of this youre going to become a conformist or a totalitarian, which is either doing what everyone else does or doing what people tell you to do. Youre not thinking for yourself. Youre also going to become bored. In the state of boredom the person can start to see life as meaningless, esp. the person questioning the meaning of their life. They start to question themselves and wonder what their purpose and meaning of their life is. This boredom can be a result of condition called Sunday Neurosis. Sunday Neurosis takes place when a person has worked hard all week long or for many days on end. (We know this as a result of tension; its what drives us and keeps us going. It promotes meaning and gives us goals. It is not the same as stress, because stress is an overabundance of tension. ) Then a day comes along when you have nothing planned, nothing going on and you dont know what to do with yourself. Therefore boredom results and when there is boredom there is no meaning. And when there is no meaning we fill that emptiness with negative things, like money, power, and pleasure, basically we get into trouble. The meaning of suffering is another reason why a person might be questioning the meaning of their life. Frankl says that one of the basic aspects of logotherapy that mans main concern is not to gain pleasure or to avoid pain, but to see the meaning of his life. This is why man is willing to suffer in order to find a meaning for his life. But he also says that suffering is not necessary to find meaning in life. Although suffering is inevitably unavoidable, and if it was it would be meaningful to remove it, because it wouldnt make much sense not to do so. Another aspect about suffering is that it stops being suffering the moment we find meaning in it. Now that possible reasons for why a person may be feeling that their life has no meaning has been addressed, here are some possible solutions that Frankl might suggest. Once the person has discovered why their life is meaningless they need to rediscover their meaning that they lost. They could ask themselves a question like, what was I born with and what is the greater meaning in that? Because it is believed that youre born with a meaning that every single person on this Earth is born with a meaning. Life doesnt owe you anything. Basically youre the responsible one for all the stuff you put out into the world during your life. Another thing that he might talk about is what the person does everyday. If they arent doing anything with their life he might suggest them getting involved with something to help create tension. Since tension drives us and pushes us to reach our goals, it helps give us meaning. Frankl also sees responsible-ness as the essence of human existence. He says that everyman has a specific, unique job in life that he is too fulfill an that no one else can do this or replace this one person in the same way. As each situation in life represents a challenge to man and presents a problem for him to solve, the question of the meaning of life may actually be reversed. Each man is questioned by life and he can only answer to life by answering for his own life; he can only respond be being responsible. Frankl also says, Live as if were living already for the second time, and as if you had acted the first time as wrongly as you were about to act now! If it was me taking this person, sitting them down, after analyzing what could have caused this sense of unmeaning in their life, I would look at the options of how to find meaning. I agree with Frankl when he talks about meaning as tension and responsibility. I also agree with him when he discusses his views on how everyone is born with meaning and that everyone has a set occupation or vocation on life. I believe that everyone is unique in his or her own way. Therefore why should everyones lives be the same and have the same meaning. They dont. We are born with meaning and we have to find that meaning through our actions and our drive to live life and our interactions with the people and the things around us. Usually when I am presented with material in school I tend to form my opinion by looking at both sides if an issue, because there are usually two sides to every story. But by looking at Frankl and examining what he has to say about the meaning of life, suffering, love, frustration, boredom, tension, etc, I have rally gained a lot of knowledge that almost is common sense. If you sit and take the time to read the material through thoroughly you can see exactly where he is coming from. Hell take a difficult situation, such as suffering, and turn it completely around. As far as suffering goes I try to do the same thing, in a way. When Mark Felice died last October it crushed me. But I tried to look at the positive side and say well, his suffering is over and he was here to teach us how to live to be stronger and better people. Through our suffering, over the loss of his life, we ended his suffering. This is kind of what Frankl does, he turns things around and makes you view things from a different perspective. I like his way of thinking because its not always something that I would think of off the top of my head. Overall, I enjoyed the book although it was difficult at times to read, but I think I gained knowledge from it and see different ways to look at things now.

Analysing Case Studies Of Mercedes Benz Tesco Marketing Essay

Analysing Case Studies Of Mercedes Benz Tesco Marketing Essay INTRODUCTION Extremely fierce and highly competitive globalised work environment has intensified the apprehensions of business organisations pertaining to the development and implementation of prudently designed business strategies that can ensure their long-term survival and enduring success in the market. It has been observed, that despite of designing smart strategic plans, many business organisations fail to maintain their survival in the market and this is only because of their inability to operationally devise and enact these strategic decisions (Mills, Platts, Bourne and Richards 2002, p. 112). Operation management is strategically important for the business organisations as myriad day-to-day operational activities are responsible for determining the extent to which the key strategic objectives are executed and thereby, constituting long-term organisational success. It has been studied that operation management is all about defining, organising and directing organisational aims and objecti ves through strategically employed operational procedures concerning the organisation (Slack et al 2004, p.67). Several constituting factors including price, quality, service, flexibility and tradeoffs are meant to develop the operational strategy (Slack and Lewis 2002, p. 221) and in order to improve quality, enhanced organisational receptiveness and cost-effectiveness, a wide-ranging operational paradigms have been emerged in recent times (Anderson 2006, p. 56). Supply chain strategy is the crucial element of operation management through which the core operational processes including transportation, logistics and procurement activities are integrated by pulling materials in response to demand patterns and hence, demand uncertainty is avoided and supply chains, inventories and service levels are significantly improved (Slack and Lewis 2002, p. 226). Business organisations also utilise optimum resources and systemic managerial approaches to support quality and innovation in their products and services for which they integrate key operational, procedural and functional systems. Organisations can achieve total quality within their business operations when positive cultural shift is established by knitting strong relational bonds between human capitals and maintaining long-term partnerships with suppliers (Hayes, Pisano, Upton and Wheelwright 2005, p. 119). Operation management paradigm also encompasses the concept of capacity planning through wh ich the organisational management exhibits its competency to foresee the unprecedented events and strategise in advance to circumvent the chances of protracted fiscal damages (Ferguson 2000, p. 65) whereas, the evaluating the extent of orders and thereby, monitoring and determining the required inventory levels and stock replenishment is covered by inventory management model (Anderson 2006, p. 59). The study is designed to illustrate these concepts in a report format by evaluating the comprehensive operation management paradigm. 1.1 Aims Objectives Organisations can achieve enhanced fiscal benefits and customer satisfaction by triggering the process of transforming inputs into outputs with intent to add value to the organisational goals in terms of producing improved products and services (Giannakis and Croom 2004, p. 28). This not only enables in gaining control over systemic planning and management activities but also results in attaining sustainable competitive advantage by maximising organisational productivity. The main objective of this study is to investigate the key concepts and theories of operation management which is considered as the core contributor to the long-term organisational success. The study aims to analyse the corporate and marketing strategies of one service-based and one manufacturing organisation i.e. Tesco and Mercedes by critically discussing the theoretical principles and frameworks covered in operation management paradigm. Moreover, the study also intends to evaluate the blend of theoretical concept s based on the case studies of each organisation in order to assess the relative impacts on their long-term competitiveness, innovation and sustainability. 1.2 Rationale of the Study Operation management is a multidisciplinary approach encompassing the decision making process pertaining to the design, planning and management of all the factors influencing the operational capacity of an organisation (Ferguson 2000, p. 68). Globalisation has shrunk the geographical boundaries and the consumer world has now been exposed to generous information and alternatives to the products and services which have made it extremely intricate for the business organisations to stand-out (Giannakis and Croom 2004, p. 30). The role of operation management becomes crucial in terms of creating, transforming and controlling the productive resources to generate saleable products or services. The scope of this study is to contribute some value to the existing literature pertaining to operation management as the theoretical underpinnings of the subject and the evaluation of case studies are designed to facilitate in developing advance understanding of managing the deployment of operational resources within the incessantly changing globalised business environment to gain competitive advantage. The significance of studying operation management paradigm is equally beneficial to the academia, operations practitioners and contemporary business organisations. Structure of the Report This segment is designed to explicate the structure of the report that is primarily based on comparing and contrasting the theoretical approaches of operation management by prudently evaluating the corporate and marketing strategies based on case studies of two selected organisations. The report is creatively structured and divided into five distinct segments. Initial segment of the report is the introductory part that is meant to develop the foundational grounds of the study by explaining the key objectives and scope of conducting the research. Second segment of the report begins with presentation of company profiles of two selected organisations i.e. Tesco and Mercedes by critically evaluating core operational and transformational processes to assess the adequacy of their strategically devised corporate and marketing initiatives for gaining competitive advantage in the market. Theoretical concepts and frameworks of operation management including supply chain management, capacity pl anning, inventory management and total quality management are appraised in the third segment of the report which intends to justify the arguments by linking the theoretical underpinning with the information extracted from case studies. Fourth segment assesses the application of theoretical concepts on the case studies of selected organisations, in order to investigate relative impacts on the organisational competitiveness, innovation and sustainability in a longer run. The report is terminated in the fifth segment which is designed to logically conclude the overall arguments in a consistent manner. OPERATIONAL TRANSFORMATIONAL PRACTICES Contemporary organisations ought to adapt with the consistently changing trends of the trade world and globalised economies as consumers buying behaviours are gravely affected by the modern operational and transformational procedures. Today, the entrenchment of innovativeness, technology and advance quality of products and services have become crucially significant to the operation management process for gaining competitive advantage in the market (Anderson 2006, p. 57). 2.1 Case Study I: Mercedes Benz The strategic alliance of Daimler-Benz with Chrysler in 1998 lead to establish DaimlerChrysler AG, which is now recognised as one of the leading and most promising automobile companies across the globe. The luxury German car manufacturing company enjoys its humungous presence by operating in 104 countries whilst selling its products in approximately 200 countries through more than 13,000 sales outlets within the globalised economic arena (Mercedes 2011). Mercedes is primarily engaged in the manufacturing, distribution and sales activities related to its wide range of uniquely designed and technologically advanced automotive products including passenger cars and commercial vehicles and on the other hand, the company also offers financing solutions (Mercedes 2011). In accordance with the key statistics as illustrated in its Annual Report (2002), the company has generated revenues of  £130.80 billion and employs more than 365,600 employees worldwide (Mercedes 2011). The world renowned BMW, Lexus, Toyota, Volkswagen and General Motors are amongst its core competitors. 2.1.2 Analysing the Corporate Marketing Strategies The corporate strategy of Mercedes Benz is focussed on enhanced quality and reliability of its products and services by stressing on The best or nothing strategy (Mercedes 2011). Presently, the company has been observed to raise its profile in fleet car sales by 17% in 2010 and further 11% by 2011 with intent to prevail over every operational segment unlike its premium rivals that are focussed on tax-cutting low CO2 models within market that is tightly up just under 2% (Mercedes Annual Report 2008). Studies suggest that the operations tasks can be articulated by identifying five operations performance objectives as for instance, lowering the pricing strategy necessitates substantial reduction in operational costs or speedy customer services require swift operational procedures and; as improving product quality demands for advancement in the areas concerning innovation, design and technology (Slack et al 2004, p. 119). Mercedes have been experiencing quality control problems due to it s batteries, alternators and brakes integrated in its several models made since 2001, that were quiet obvious especially after the biggest product recalls in 2005, indicating that the company is exceedingly losing its loyal consumer base (BBC 2006). The company has introduced technologically sophisticated gadgetry in its S-class cars range in parallel to its pledge for being the market leader in terms of quality and reliability however; several business analysts have identified the electronic gremlins might further impair companys image by alienating its existing consumer base (Mercedes Annual Report 2007). With respect to its marketing strategy, Mercedes is focussed on Ambition to lead by particularly emphasising on 6Ps of marketing i.e. product, price, promotion, place, people and process. Massive improvements have been observed in its product designs and technologies especially in E and S class ranges by introducing higher-rate springs, stabiliser audio, navigation, trip computer and telephone consoled steering wheels (Bilich and Neto 2000, p. 9). Pricing has also been revised to attract people from middle class and the strategy is complimented by moving its manufacturing and operational units in Asian countries to reduce the production and distribution costs. Aggressive promotional strategy has been embraced by the company whilst targeting wide-ranging consumer base through effective marketing campaigns that are focussed on product features including CLS or Blue-Efficiency campaigns and on the other hand, marketing campaigns are exceedingly supported by comprehensive print, TV, online and media communications (Holweg, Disney, Hines, Naim 2005, p. 514). 2.2 Case Study II: Tesco Plc. Deeply penetrated within the competitive retailing sector in UK, Tesco celebrates its substantial existence by covering approximately 90% of UK market alone with an annual turnover of more than $1 billion which makes it the largest online grocer across the globe (Palmer 2005, p. 25). In accordance with the Nielsen/Netrating audience panel for September (2007), that investigated 25,000 demographically representative households in the UK for the top supermarkets, Tesco leads the online market share by holding 27.1% followed by Asda, Sainsbury and Waitrose holding 10.1%, 6.9% and 4.2% shares respectively (Nielsen/Netrating 2007). On the other hand, Tesco was again spotted at the top position with 30.9% offline market share followed by Asda and Sainsbury having 16.9% and 16.4% shares respectively (Nielsen/Netrating 2007). The company principally deals with food and grocery items and has also diversified into non-food ranges including clothing, books, electronics, dieting clubs, flights a nd holidays, music downloads, gas and electricity (Palmer 2005, p. 27). Asda, Sainsbury and Waitrose are the core competitors of the company. 2.1 Analysing the Corporate Marketing Strategies Unlike others in UK, Tesco is the only retailer that has successfully managed to survive and expand in the contemporary globalised economies by maintaining its corporate strategy closely knitted by a six dimensional approach for enhanced growth in worldwide market (Data monitor 2003). Tesco embraces the strategy of designing its products by carefully analysing the local market needs and remain increasingly adaptive to the environment of indigenous markets. Tesco believes in highly focussed and long-term strategies with multi-format approach and shared knowledge structure. The most crucial aspect of its corporate strategy is the deployment of time and patience to build the brand image without being distracted by its growth pattern in its primary market. Followed by its corporate strategy of aggressively expanding in the international market, Tesco became the first UK retailer to break through the  £2 billion profit barrier (Data monitor 2004). The marketing strategy of Tesco is high ly innovative in terms of introducing reward points to the customers during shopping which can be later exchanged by valued products. In addition to this, the company has significantly acknowledged the need for integrating e-technologies within its marketing campaigns and thereby, launched Tesco applications that has made its products instantly accessible to the targeted consumer base through mobile phones and also keep them updated with new deals and discounted offers (Data monitor 2004). Tesco diet is another interactive web page which is meant to educate the consumers about healthy eating and thereby, unconsciously persuading them to buy the food items offered by the company. Tesco also improved its out-bound logistics by hiring cheerful and highly cooperative staff for online delivery orders, which serve as the face of the company and are also trained to market their products and new offers in a cataleptic manner (Kotler, Armstrong, Saunders and Wong 2001, p. 169). The company a lso employs print and electronic media for the marketing of its products and also utilises social networking websites and blogging as integral tools of promotions in the contemporary business world. The most significant aspect of Tescos marketing mix strategy is its personalisation strategy as the company has maintained a separate online marketing department that is meant to send personalised messages via emails and sms to ensure that their customers never miss their latest offers and new products (Palmer 2005, p. 33). THEORETICAL JUSTIFICATIONS BASED ON CASE STUDIES Operation management is all about interlinking a wide-range of processes and procedures including manufacturing, distribution, marketing and all other significant methods to maximise sales and achieve core organisational objectives. Size and nature of business operations are extremely significant in terms of determining the operational, functional and transformational capacity (Handfield and Bechtel 2002, p. 371). This segment of the report is aimed to critically analyse the theories and concepts pertaining to operation management paradigm whilst analysing the capacity planning, supply chains, inventory control and total quality management in each of the selected organisations. 3.1 Evaluating Supply Chains of Mercedes Tesco Closely knitted web of manufacturing, distribution and other production activities forms the supply chain of an organisation with intent to obtain the manufactured materials, modify them into finished products and distribute them in the targeted market in order to meet the consumers demand (Holweg, Disney, Hines and Naim 2005, p. 512). Literature suggests that business organisations can significantly benefit by creating four dimensional values in their supply chains including customers, planning and performances, processes and intangible resources (Kaplan and Norton 2004, p. 102). Whilst catering condense market segment, Mercedes has been focussed on creating value in its supply chain, primarily by embracing three main supply chain strategies including just-in-time, lean manufacturing and built-to-order strategy for a larger consumer base that is unwilling to wait for two to 3 weeks delivery time thereby, enhancing customer satisfaction (Holweg et al 2005, p. 512). On the other hand, the company has also adopted a plan for catering lower-income customers by producing affordable car ranges and espousing cost-effective manufacturing process. Tesco has also been vigilantly focussing on creating value in their supply chains by low-cost leadership, synchronisation and lean thinking, employee-empowerment initiatives and customer-centric approach (Griffith 2002). Capacity Planning by Mercedes Tesco The continuously evolving business trends of contemporary globalised economies have made it extremely significant for the business organisations to improve their aptitudes for capacity planning. Through capacity planning, organisations gather, maintain and analyse the optimum information regarding the utilisation of its tangible and intangible resources to meet and exceed their core organisational objectives (Anderson 2006, p. 93). However, it is crucially important to determine the investment required for capacity planning (Gox 2002, p. 62), as it has been studied that underinvestment in capacity can substantially reduce revenues whereas, an overinvestment might result in excess capacity which may produce serious consequential effects on the fixed costs (Henderson and Cool 2003, p. 397). Mercedes has successfully employed capacity planning initiatives by investigating North American region for the feasibility of producing luxury sports utility vehicle which significantly minimised c ombined labor, shipping, and components cost and further reduced the penalties associated with currency fluctuations (Holweg, Disney, Hines, Naim, 2005, p. 518). On the other hand, Tesco expanded its order-processing capacity by foreseeing its rapidly growing online sales and integrated BizTalk system that process 5,000 orders per hour which remarkably increased performance efficiency without the need to expand hardware configuration and also reduced system maintenance costs (Norris 2007). Mercedes Tescos TQM Strategies Quality has been recognised as the most critical element of the operation management and is considered to be a macro function of organisations that has to be entrenched within the decision making process, allocation of resources, definition of priorities and most importantly within service delivery (Bilich and Neto 2000, p. 5). It has also been studied, that survival of the organisations in the contemporary business world necessitates total quality management established at all levels (Djerdjour and Patel 2000, p. 26). Mercedes core organisational values heavily rely upon quality, safety and reliability however; the companys image was seriously threatened when its position dropped to 26th spot in quality segment of auto manufacturing (Business Week 2003). It has been observed that the Mercedes significantly deviated from its core strategies and was more inclined towards innovation and technology which has tremendously shaken its loyal consumer base indicating the unfavourable implica tions of undervaluing quality management approaches. The TQM strategy of Tesco is primarily focussed on two main areas including: (i) process improvement by systemic approach and; (ii) development and standardisation of management systems for functional activities throughout the organisation (Delaney-Klinger, Boyer and Frohlich 2003, p. 187). By analysing the TQM strategy of both the organisations it can be instituted that the benefits of TQM can be maximised by entrenching it within the internal and external organisational processes, resources and facilities (Djerdjour and Patel 2000, p. 34). Mercedes Tescos Approach towards Inventory Control The role of inventory management is extremely significant as lower inventory levels can increase the transportation outlays followed by smaller and irregular loads. Business organisations can effectively reduce the costs to logistics through supply chain optimisation by planning to meet the demands of consumer base. It has been studied that ineffective routing and scheduling of orders can adversely influence transport costs (Cooke 2000). In accordance with its inventory management approach, Mercedes identified approximately 100 sites in 35 state of US which is closer to its primary market and since major part of its products were intended to export therefore, the company chose the sites near seaports, rail lines, and major highways to control the costs for transportation (Holweg, Disney, Hines, Naim 2005, p. 523). Studies suggest that transportation is the single most prominent cost category in logistics which can dramatically facilitate in cost saving (Giblin 2001). On the other han d, Tesco being market leader of retail business in UK, necessitates embracing technological advancements in terms of maintaining its position within the extremely concentrate market. Therefore, Tesco has embraced smart shelf technology by adopting RFID system which enables the staff to locate the items in real-time and also improve the on-shelf availability by timely replenishments thereby, saving time and costs for additional staff (Thomas 2003). APPLICATION EVALUATION OF OM THEORIES ON STRATEGIC MIX This part of the report is aimed to highlight the strategic mix pertaining to the concepts and theoretical frameworks of operation management as applied on the competitiveness, innovation and sustainability of selected organisations. The effectiveness of operation management strategies is usually determined by evaluating the key factors like cost, quality, delivery and flexibility (Mills, Platts, Bourne and Richards 2002, p. 130) however, it is important to note that the contemporary business world that has now liberated from the limitations of geographical boundaries needs the integration of advanced technological solutions to stand-out in the global markets (Khamalah and Lingaraj 2007, p. 976). 4.1 Competitiveness Mercedes manufactures high-valued and technically advanced cars by particularly focussing on the development of car engines and producing wide-ranging transport facilities from cars to jeeps and other commercial vehicles which enables the company to cater almost every segment of the market. Merger of European and American companies makes Mercedes well acquainted by the consumer markets belonging to two different tastes and culture (Elvin, Hendricks and Singhal 2001, p. 274). The company continues its competitiveness by its remarkable supply change management as it maintains close ties with its key suppliers for instance, during the worldwide fiscal turmoil in early nineties when organisations were obligated to negotiate pricing strategy, it was quiet obvious that both the company and its suppliers shared equivalent dependability on each other (Hayes, Pisano, Upton and Wheelwright 2005, p. 133). Despite of operating in a highly concentrated market, Tesco has achieved a leading positio n as the company has radically improved its operation management strategies by adopting lower pricing and absolute quality control through compensating full costs of the product, if found damaged (Tesco 2010). The company also maintains its competitiveness by proffering secure transaction opportunities in case of online shopping, timely delivery of products at the door-step and efficient staff that is adequately trained to offer excellent customer services. 4.1 Innovation Mercedes allocates a humungous investment of more than $47billion on its research and development which substantiates its organisational objectives to meet and exceed the consumers expectations pertaining to advanced technology and innovative solutions. The company is also exhibiting keen interest in developing contemporary designs within competitive price whilst maintaining its assertive and risk-taking behaviour which indicates its thirst for improved quality in its products and services (Kaynak 2003, p. 426). The innovativeness of products characterised by radio frequency identification system of tagging its products or advanced data processing system; Tesco exhibits its commitment to enhance the consumer buying experience through innovation (Norris 2007). By introducing highly interactive and advantageous innovations like Tesco club cards, Tesco applications, talking Tesco and Tesco diet; the company has notably penetrated within diversified consumers market segments. 4.3 Sustainability The strong market presence characterised by more than 25-30 dealerships in each of its operational territories, Mercedes ensures that its within the consumers reach (Bilich and Neto 2000, p. 7). In addition to this, a luxurious brand image of Mercedes along with its quality standards, enhanced security and tremendous reliability for many years has established a loyal consumer base. The company principally operates in economies of scale and as the level of sales rises the unit cost decreases which substantially circumvent the threats of new entrants in the market thereby, accentuating its long-term sustainability (Bilich and Neto 2000, p. 13). On the other hand, Tesco has not refrained from diversifying into non-food categories and has expanded its operations into other market segments including clothing, electronics, financing and others which determines that the company has the aptitude to take risk and maintain its survival on long-term basis. Tesco maintains a strong brand value w hich has been indicated by its tremendous rise in profitability by 78% through successful operations in Europe, Asia and Ireland (Usunier 2000, p. 177). CONCLUDING REMARKS The report has critically appraised on the theoretical frameworks pertaining to operation management by explicating its key components including inventory control, supply chains, capacity planning and total quality management. Case studies of one manufacturing company i.e. Mercedes and one service-based company i.e. Tesco; have been profoundly investigated to evaluate the impacts of operation management theories and application; on the innovation, competitiveness and sustainability of these organisations. To conclude, it can be stated that both Mercedes and Tesco are market leaders within their territories and the analytical report suggests that their success lies within their strategic deployment of operational and functional processes.

The Scopes Monkey Trial Essay -- Clarence Darrow, teaching evolution

Ever since science began to explain the previously unexplainable, it has caused conflicts with religion. The Scopes â€Å"Monkey† Trial of Dayton, Tennessee was one of the most talked about trials in history because it was one of the first and most publicized times that this conflict occurred. The trial showed the schism between the faithful fundamentalists and the newly formed group of evolutionists. Although the jury was reminded that they only had to decide if Scopes had broken the law, the verdict was seen as much more than that. For one of the first times in history, it seemed as if the jury had to choose either religion or evolution. For the time being, there could not be both. The Scopes â€Å"Monkey† Trial revealed the ongoing conflict with faith and science and set a precedent for decades of conflict to come. The â€Å"Roaring Twenties† was a time period known for its innovation. Skirts got shorter, teens got bolder, and Prohibition was in full swing. These changes also gave way to a time period full of religious conflict. â€Å"In [religious] minds, Prohibition had always been about more than alcohol. It represented an effort to defend traditional American values against the growing influence of an urban, cosmopolitan culture† (Gillon 152). Charles Darwin had published his book, The Evolution of Species, in 1859 and The Descent of Man in 1871, detailing the evolution of man from ape-like creatures. When A Civic Biology, a biology textbook containing information on evolution, was published in 1914, teachers around the country began using it in their courses. By the twenties, these books had sparked all sorts of new ideas regarding the origin of man as well as opposition due to the creature from which he claimed we evolved and to the disagr... ...: Remembering the Scopes Monkey Trial : NPR." NPR : National Public Radio : News & Analysis, World, US, Music & Arts : NPR. Web. 20 May 2010. . France, Mary. ""A Year of Monkey War": The Anti-Evolution Campaign and the Florida Legislature." The Florida Historical Quarterly 54.2 (1975): 156-77. JSTOR. Web. 19 May 2010. Gillon, Steven M. "Scopes: The Battle Over America's Soul." Ten Days That Unexpectedly Changed America. New York: Three Rivers, 2006. Print. Scopes, John. "Reflections on the Scopes Trial by John Thomas Scopes." UMKC School of Law. Web. 19 May 2010. . "The Scopes Trial: Clarence Darrow." UMKC School of Law. Web. 20 May 2010. .

A&P and Greasy Lake

Greasy Lake by T. Coraghessan Boyle and A&P by John Updike are both stories about coming of age. Over the generations there have been many changes. In these two short-stories it proves that, although it takes place in different generations, coming of age is still a time to prove one’s self. A&P is about a nineteen-year-old boy that works at a local grocery store. The main character, Sammy, stands up against his manager in an attempt to defend and hopefully impress the girls he was attracted to, who were not â€Å"decently dressed. Greasy Lake on the other hand is told from the narrator’s point of view, about several nineteen years old boys who play a prank on a â€Å"bad† character and experience what bad characters are capable of doing. For the narrator and Sammy they realize their lack of infantility after their conflicts with other people in the stories. In Sammy’s case, â€Å"enraged that Lengel has humiliated the girls†, he quits his job tryin g to defend and impress the girls. The girls just ignore Sammy and leave the store after all of the arguing had died down. Sammy is then left by himself, without a job and without the girls. When he looks back at the store from outside, â€Å"[his] stomach kind of fell as [he] felt how hard the world was going to be to [him] hereafter. † Obviously, he is feeling a sense of regret when Sammy mentions the hardship in his life after he quits his job at the grocery store. The narrator in Greasy Lake also learns a lesson for the story. He learns that one’s appearance does not represent one’s true self. Three of the â€Å"dangerous characters†, including the narrator and his friends, â€Å"drive out to scum-and refuse-clotted Greasy Lake in search for action. †

Ratio Analysis

Though there are innumerable literatures available on the subject, the most appropriate studies have been reviewed. Dr. Promod Kumar published a book in 1991 â€Å"Analysis of financial statement of Indian Industries† The study covered the 17 private sector, 5 state owned public sector and 1 central public sector companies. He studied analysis of activities, assessment of profitability, return on capital investment, analysis of financial structure, analysis of fixed assets and working capital.In his research he revealed various problems of industries and suggested remedies for the problems. He also suggested for the improvement of profitability and techniques of cost control. 1Ahindra Chakrabati published an articles â€Å"Performance of public sector enterprises a Case study on fertilizers† in â€Å"The Indian journal of public enterprise† in the year 1988-89. He made analysis of consumption and production of fertilizer by public sector; he also made analysis of profit and loss statement. He gave suggestion to improve the overall performance of public enterprise. In the year of 2002, Dr. Sugan C. Jain has written a book on â€Å"Performance appraisal automobile industry† In his study he has analyses the performance of the automobile industry and presented comparative study of some national and international units. The operational efficiency and profitability had been analyzed using the composite index approach. He made several suggestions from the strengthening the financial soundness improving profitability, working capital the performance of fixed assets. 3 Recently in the year 1998 a study was made by S.J. parmar on â€Å"Financial Efficiency-Modern methods, tools & Techniques† for the period from 1998-89 to 1994-95. He had made an attempt to analyze financial strength, liquidity, profitability, cost and sales trend and social welfare trend by using various ratios analysis, common size analysis and value added analysis. He made several suggestions for the improvement of profitability of industry. In his analysis, he indicates various reasons for higher cost, low profitability, and inefficient use of internal resources. Dr Sanjay Bhayani published a book in 2003, â€Å"Practical financial statement analysis† The study covered 16 public limited cement companies in private sector. He made study of analysis of profitability, working capital, capital structure and activity of Indian cement industry. In his research he revealed various problems of cement industries and suggested remedies for the problems. He also suggested for the improvement of profitability and techniques of cost control. Ram Kumar,Kakani Biswatosh saha and V. N. Reddy has written research paper on Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era: An Exploratory Study. This paper attempts to provide an empirical validation of the widely held existing theories on the determinants of fi rm performance in the Indian context. The study uses financial statement and capital market data of 566 large Indian firms over a time frame of eight years divided into two sub-periods (viz. 1992-96, and 1996-2000) to study Indian firms' financial performance across various dimensions viz. , shareholder value, accounting profitability and its components, growth and risk of the sample firms. It reveals that even on the same data, the determinants of market-based performance measures and accounting-based performance measures differ due to influence of ‘Capital Market Conditions'. We found that size, marketing expenditure, and international diversification had a positive relation with a firm's market valuation.Apart from these firm attributes that reflect either operating parameters of firms or ‘strategic choice' of firm managers, we also found that a firm's ownership composition, particularly the level of equity ownership by Domestic Financial Institutions and Dispersed Pu blic Shareholders, and the leverage of the firm were important factors affecting its financial performance. The different implications of the findings for various stakeholders of a firm are also discussed. 6Dutts S. K has written an article on â€Å"Indian tea industry an appraisal† which was published in Management accountant in the year of March 1992.He analyzed the profitability, liquidity and financial efficiency by using various ratios. 7 Objectives of the study  · To evaluate the financial performance of the selected units of Pharmaceutical industry  · To compare the financial results of the Pharmaceutical industry as Dr Reddy's Laboratories Ltd and Lupin Ltd  · To enquire the adequacy or the accounting information desired from the statement in conformity with laid down accounting statements by the institute of Chartered Accountants of India (ICAI).  · To study the growth of the said companies To give suggestion for best financing method and efficient utilizatio n of fixed assets METHODOLOGY OF THE STUDY: Source of the data: â€Å"Comparative Financial statement Analysis & Innovation in Private sector Pharmaceutical Companies in India† has been made by using data from financial statements of all five major players in cement industry, they are – Dr Reddy's Laboratories Ltd. (Dr. RDL), Ambuja Lupin Ltd. (LL), the period of the study was ten years from 2001 to 2010. The data was collected from cpitaline database and from the annual reports of the respective companies.Hypothesis for the study: For the present study tested following null hypotheses are tested-  · Ho1: The Dr Reddy's Laboratories Ltd. did not achieve better profitability than Lupine Ltd.  · Ho2: The Dr Reddy's Laboratories Ltd. did not achieve better liquidity than Lupine Ltd.  · Ho3: The Dr Reddy's Laboratories Ltd. did not achieve better turnover than Lupine Ltd. Scope of the study: the study Comparative Financial statement Analysis & Innovation in Private s ector Pharmaceutical Companies in India.The study therefore includes financial structure performance, working capital performance, and Profitability performance but excludes non-financial areas such as production, marketing, personnel and R& D from its purview. Techniques used for analysis: The data have been analyzed with the help of ratio analysis, trend analysis, common size analysis-T test to test the relation among different ratios of two selected companies. Limitation of the study: In order to facilitate uniformity in data, years have been readjusted and the data have been recast as on 31st March of each year.The figure taken from the annual reports have been rounded off to two decimals of rupees in crores. The data available in financial statements have been translated in to a pre-designed structure format so that a meaningful interpretation could be made through inter-firm and intra firm comparisons. The format in which the data have been classified is selected after careful consideration of the operation Pharmaceutical Companies. Nevertheless, the limitations do in no way act as a deterrent in drawing effective and meaningful inferences from the studyAnalysis of the data: for knowing Comparative Financial statement Analysis & Innovation in Private sector Pharmaceutical Companies in India the commonly used ratio: fixed Gross profit, Net profit, Return on capital employed, Return on Net worth and Earning per share, Current ratio, Debtors Velocity (Days), Creditors Velocity (Days), Debt equity ratio and Interest coverage ratio, Inventory turnover Ratio, Debtors Turnover Ratio and Total Assets Turnover Ratio Analysis and interpretation: Table-1 Profitability Ratios of Dr Reddy's Laboratories Ltd & Lupine Ltd. Gross profit Net profit ROC RON EPS Year Dr. RDL Lupin Ltd. Dr.RDL Lupin Ltd. Dr. RD Lupin Ltd. Dr. RD Lupin Ltd. Dr. RD Lupin Ltd. 2001 22. 16 9. 25 19 6. 65 31. 5 23. 02 29. 23 31. 13 45. 32 201. 66 2002 33. 1 12. 49 32. 39 7. 54 42. 06 16. 64 45. 71 22. 07 59. 56 17. 42 2003 30. 78 12. 2 28. 34 7. 3 26. 44 16. 05 24. 02 20. 3 50. 6 17. 44 2004 21. 55 19. 07 20. 4 12. 48 15. 61 27. 1 14. 7 36. 14 36. 37 23. 76 2005 7. 9 9. 77 9. 19 6. 96 2. 19 12. 75 2. 77 17. 79 7. 85 20. 09 2006 16. 27 16. 29 14. 12 11 9. 24 20. 86 8. 57 31. 93 26. 82 44. 61 2007 37. 06 16. 27 32. 39 10. 53 35. 94 19. 39 35. 47 27. 89 69. 45 36. 75 2008 21. 63 19. 27 18. 47 13. 53 12. 01 23. 85 10. 35 32. 02 27. 2 52. 31 2009 21. 77 18. 28 17. 8 14. 17 13. 55 22. 29 11. 14 30. 97 32. 25 48. 22 2010 28. 77 21. 56 23. 52 17. 7 17. 79 25. 6 15. 14 33. 23 48. 25 70. 7 Total 240. 99 154. 45 215. 62 107. 86 206. 33 207. 55 197. 1 283. 47 404. 09 532. 96 Average 24. 099 15. 445 21. 562 10. 786 20. 633 20. 755 19. 71 28. 347 40. 409 53. 296 Min 7. 9 9. 25 9. 19 6. 65 2. 19 12. 75 2. 77 17. 79 7. 85 17. 42 Max 37. 06 21. 56 32. 39 17. 7 42. 06 27. 1 45. 71 36. 14 69. 45 201. 66 Sources: Data has been taken from annual reports The gross profit ratio of Dr. RDL was 22 . 16 % in 2001 which went down in to 7. 9% in 2005 but it rose up to 28. 7% in last years of the study period. The ratio ranged between 7. 9% in 2005 to 37. 06% in 2007. The ratio showed highly fluctuated trend during the study period. The average gross profit ratio was 24. 09% indicated. The gross profit ratio of Lupin Ltd. showed highly fluctuated trend during the study period with an average of 15. 45%. The ratio was the highest in the year of 2010 and very lowest 2001. T-test T-Test: Calculated value of gross profit ratio is 2. 86 Tabulated value at 5% significant value=1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. The Net profit ratio of Dr.RDL was 19% in the year of 2001 and increased to 32. 39% in the year of 2002. The ratio went down to 28. 34% in year of 2003. The ratio was very low of 9. 19% during the year of 2005 and very highest during the year of 2002. The average ratio was 21. 56% with fluctuated trend. The Net profit r atio of Lupin Ltd. was 6. 65 % in 2001 which went down in to 6. 96% in 2005 but it rose up to 17. 7% in last years of the study period. The ratio ranged between 6. 65% in 2001 to 17. 7% in 2010. The ratio showed highly fluctuated trend during the study period. The average gross profit ratio was 10. 78% indicated. T-testCalculated value of net profit ratio is 4. 01 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. The return on capital employed ratio was 31. 5% in 2001 which went down to 9. 24 % in the year of 2006 and also went down to 13. 55% and 17. 79 during the years of 2009 and 2010 respectively. The ratio ranged between 2. 19% in year of 2005to 42. 06% in the year of 2002. The ratio showed down ward trend with an average of 20. 63%. The return on capital employed of Lupin Ltd was showing much fluctuated trend during the year study period.The average ratio was 20. 76 in the Lupin Ltd which sho wed fluctuated trend during the study period. The ratio was 23. 02% in year of 2001 and 20. 86% in year of 2006 and 25. 6% during the last year of study period. The ratio has gone down due to decreased in volume of sales. The sales have gone down since price rise took place in market. T-test Calculated value of return on capital employed ratio is 0. 028 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is accepted. The Return on net worth ratio of Dr. RDL was 29. 3% in 2001 which went down in to 8. 57% in 2006 but it rose up to 15. 14% in last years of the study period. The ratio ranged between 2. 77% in 2005 to 45. 71% in 2002. The ratio showed highly fluctuated trend during the study period. The average gross profit ratio was indicated19. 71%. The Return on net worth ratio of Lupin Ltd. showed highly fluctuated trend during the study period with an average of 28. 347%. The ratio ranged between 17. 79% in 2005 to 36. 14% in 2004. T-test Calculated value of Return on net worth ratio is 1. 84 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance cal ; t tab Hence hypothesis is rejected. Earnings per share of Dr. RDL were Rs. 45. 32 in the year of 2001 and Rs 59. 56 in the year of 59. 56. The EPS went down to 50. 6 in the year of 2003 and Rs 36. 37 in the year 2004 and Rs. 7. 85 in the year of 2005. The EPS rose to 69. 45 in the year 2007and again went down to 27. 62 in 2008. The EPS Rs. 48. 25 during the last year of study period. The average ESP was 40. 41 with downward trend during the study period. The EPS was 201. 66 in Lupin Ltd. and went down to 20. 09 in the year of 2005 and reached down to 70. 7 during the last year of study period.The EPS showed lower level of EPS due to less utilization of financial leverage. T-test Calculated value of Earnings per share is 0. 70 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of s ignificance t cal ; t tab Hence hypothesis is accepted. Table-2 Liquidity ratio of Dr. RDL and Lupin Ltd. Current ratio Debtors Velocity (Days) Creditors Velocity (Days) Year Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. 2001 1. 69 1. 82 48 47 76 27 2002 3. 09 1. 74 54 61 79 35 2003 4. 86 1. 58 60 62 82 36 2004 3. 73 1. 34 60 66 85 38 2005 2. 49 1. 1 60 56 90 34 2006 1. 5 1. 38 59 57 94 35 2007 2. 21 1. 68 66 63 105 38 2008 3. 05 1. 53 85 69 109 42 2009 3. 15 1. 24 79 77 110 45 2010 2. 44 1. 27 100 81 120 52 Total 28. 56 14. 68 671 639 950 382 Average 2. 856 1. 468 63 62 92 37 Min 1. 69 1. 1 48 47 76 27 Max 4. 86 1. 82 100 81 120 52 Sources: Data has been taken from annual reports In year 2001 Dr. RDL has 1. 69 as its current ratio and after that it continuously increased from 3. 09 to 4. 86 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negative changes but it moves from 2. 21 to 3. 05 in year 2007 and 2008 respectively.In the yea r 2009 and 2010 it shows again little fluctuated with an average of 2. 85. In year 2001 Lupin Ltd has 1. 82 as its current ratio and after that it continuously decreased from 1. 74 to 1. 58 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negative changes but it moves down from 1. 68 to 1. 53 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuated with an average of 1. 46. T-test Calculated value of current ratio is 4. 50 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance cal ; t tab Hence hypothesis is rejected. In year 2001 Dr. RDL has 48 days as its Debtors Velocity (Days) and after that it continuously increased from 54 (Days) to 60 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negative changes but it moves down from 66 days to 85 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctua tions with an average of 63 days. In year 2001 Lupin Ltd. has 47 days as its Debtors Velocity (Days) and after that it continuously increased from 61 (Days) to 62 in the year of 2002 and 2003 respectively.But in year 2004, 2005 & 2006 it also showed negative changes but it moves up from 63 days to 69 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 62 days. T-test Calculated value of Debtors Velocity (Days) is 0. 3 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is accepted. In year 2001 Dr. RDL 76 days as its Creditors Velocity (Days) and after that it continuously increased from 79 (Days) to 82 in the year of 2002 and 2003 respectively.But in year 2004, 2005 & 2006 it also showed negative changes but it moves down from 105 days to 109 days in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with a n average of 92 days. In year 2001 Lupin Ltd. 27 days as its Creditors Velocity (Days) and after that it continuously increased from 35 (Days) to 36 days in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed positives changes but it moves down from 38 days to 42 days in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 37 days.T-test Calculated value of Creditors Velocity (Days) is 10. 83 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. Leverage Ratios of Dr. RDL & Lupin Ltd. Table-3 Leverage Ratios of Dr. RDL & Lupin Ltd. Debt equity ratio Interest coverage ratio Year Dr. RDL Lupin Ltd. Dr. RD Lupin Ltd. 2001 0. 56 1. 79 5. 05 2. 09 2002 0. 19 1. 88 34. 27 2. 55 2003 0. 01 1. 77 72. 27 2. 53 2004 0. 02 1. 24 72. 71 4. 89 2005 0. 08 0. 86 3. 82 4. 12 2006 0. 28 1. 18 10. 39 8. 6 2007 0. 19 1. 16 27. 29 8. 65 2008 0. 09 0. 83 40. 74 13. 99 2009 0. 11 0. 71 27. 62 2. 35 2010 0. 11 0. 47 68. 8 25. 97 Total 1. 64 11. 89 362. 96 85. 74 Average 0. 16 1. 19 36. 30 8. 57 Min 0. 01 0. 47 3. 82 2. 09 Max 0. 56 1. 88 72. 71 25. 97 Sources: Data has been taken from annual reports The Debt equity ratio of Dr. RDL was 0. 56 in 2001 which went down in to 0. 28 in 2006 but it went down to 0. 11 in last years of the study period. The ratio ranged between 0. 01 in 2003 to 0. 56 in 2001. The ratio showed highly fluctuated trend during the study period. The average Debt equity ratio was indicated 0. 16. In year 2001 Lupin Ltd. 1. 79 as its Debt equity ratio and after that it continuously decreased from 1. 8 to 1. 77 days in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed positives changes but it moves down from 1. 16 to 0. 83 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 1. 19 days. T-test Calc ulated value of Debt equity ratio is 6. 28 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. Interest coverage ratio of Dr. RDL was 5. 05 in the year of 2001 and Rs 3. 82 in the year of 2006. The Interest coverage ratio went up to 72. 7 in the year of 2003 and 72. 71 in the year 2004 and 3. 82 in the year of 2005. The Interest coverage ratio rose to 27. 29 in the year 2007and again went up to 40. 74in 2008. The Interest coverage ratio was 68. 8 during the last year of study period. The average Interest coverage ratio was 36. 30 with upward trend during the study period. In year 2001 Lupin Ltd. 2. 09 as its Debt equity ratio and after that it continuously decreased from 2. 55 to 2. 53 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negatives changes but it moves down from 8. 65 to 13. 99 in year 2007 and 2008 respectively.In the year 2009 and 2010 it shows aga in little fluctuations with an average of 8. 57. T-test Calculated value of Interest coverage ratio is 3. 13 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. Table-4 Turnover ratio of Dr. RDL and Lupin Ltd. Inventory Turnover Ratio Debtors Turnover Ratio Total Assets Turnover Ratio Year Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. 2001 8. 65 11. 3 4. 76 5. 39 1. 03 1. 6 2002 9. 01 6. 61 4. 29 3. 06 0. 99 1. 32 2003 7. 44 7. 02 3. 64 2. 75 0. 92 1. 29 2004 6. 99 6. 74 3. 97 3. 89 0. 88 1. 7 2005 5. 79 5. 23 3. 78 5. 37 0. 85 1. 31 2006 5. 64 5. 95 4. 21 5. 69 0. 82 1. 28 2007 8. 69 5. 7 4. 94 4. 9 0. 75 1. 14 2008 6. 11 5. 08 3. 53 4. 7 0. 65 1. 09 2009 6. 16 4. 39 3. 66 4. 39 0. 64 0. 99 2010 5. 57 5. 13 3. 66 4. 51 0. 59 0. 94 Total 70. 05 63. 15 40. 44 44. 65 8. 12 12. 23 Average 7. 005 6. 315 4. 044 4. 465 0. 812 1. 223 Min 5. 57 4. 39 3. 53 2. 75 0. 59 0. 94 Max 9. 01 11. 3 4. 94 5 . 69 1. 03 1. 6 Sources: Data has been taken from annual reports In year 2001 Dr. RDL 8. 65 as its Inventory Turnover Ratio and after that it continuously decreased from 9. 01 to 7. 44 in the year of 2002 and 2003 respectively.But in year 2004, 2005 & 2006 it also showed negatives changes but it moves down from 8. 69 to 6. 11 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 7. 01. In year 2001 Lupin Ltd. 11. 3 as its Inventory Turnover Ratio and after that it continuously increased from 6. 61 to 7. 02 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with ups and downs but it moves down from 5. 7 to 5. 08 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 6. 2. Calculated value of Inventory Turnover Ratio is 0. 72 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is accepted. In year 2001 Dr. RDL. 4. 76 as its Debtors Turnover Ratio and after that it continuously decreased from 4. 29 to 3. 64 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with upward movements but it moves down from 4. 94 to 3. 53 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 4. 04.In year 2001 Lupin Ltd. 5. 39 as its Debtors Turnover Ratio and after that it continuously decreased from 3. 06 to 2. 75 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with upward movements but it moves down from 4. 9 to 4. 73 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 4. 47. Calculated value of Debtors Turnover Ratio is 1. 21 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hy pothesis is accepted. In year 2001 Dr. RDL. 1. 3 as its Total Assets Turnover Ratio and after that it continuously decreased from 0. 99 to 0. 92 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with downward movements but it moves down from 0. 75 to 0. 65 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 0. 81. In year 2001 Lupin Ltd. 1. 6 as its Total Assets Turnover Ratio and after that it continuously decreased from 1. 32 to 1. 29 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with upward movements but it moves down from 1. 4 to 1. 09 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 1. 22. Calculated value of Total Assets Turnover Ratio is 5. 34 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hyp othesis is rejected. Summary findings and Conclusion The liquidity ratio of Lupin Ltd is highly threatening when compared with Dr. RDL. Thus Lupin Ltd has to control the current liabilities or to increase the current assets so that they can cover all the current liabilities and be in safer position.Thus slightly fluctuations in sales in that situation can not affect the paying capacity of the concern and thus maintain the credibility. The profitability ratio of Dr. RDL is better when it is compared with Lupin Ltd. It can be inferred from the result that Lupin Ltd can expand the business or can move further in newer directions as it is experiencing continuously growth in the profitability. Lupin Ltd has to give a fairer thought to reduce cost in providing services and increasing the turnover so that sustained growth in profitability can be seenReturn on Net Capital Employed is the best test of overall profitability and efficiency of the business firm. A company with high rate of retu rn on capital employed would be in a position to capitalize; e. g. it can take advantage of all favorable market opportunities. The study shows that returns on capital employed in selected units in India had marked a fluctuated trend. The average was 17. 79 and 25. 6 percent in units in India respectively. This ratio was satisfactory. On the whole Dr. DRL had the highest return net on capital employed of As compared to the Lupin ltd.In the light of the above discussion it is suggested that Lupin ltd should undertake cost control measure so that increase net profit before interest and taxes of the company might enhance the return on net capital employed. The solvency ratio also reveals the same track record of an upper hand over Lupin ltd. This position depicts the financial soundness or good financial health of the DR. RDL. In this sector Lupin ltd. has to work hard for providing the financial health in terms of capital also. The turnover ratio of Lupin Ltd. is showing better positi on when compared to DR. RDL. This fact proves that the market size in Lupin Ltd. s far more better than the DR. RDL which in turn is gearing its growth in all the stream. Thus DR. RDL has to work for increasing the market size and customer base so that it can achieve the trend of continuous growth. It can be inferred from the overall financial analysis that Lupin Ltd ltd. has to rethink and device the strategies so that it can lead towards positive way and become the major players. Innovation though financial statement analysis can be seen though mergers and acquisitions and launching of new products and schemes so that enterprise can be proud of being major market players and setter newer and newer goals in the future.Cost accounting and cost audit should be made mandatory for this units and cost sheet along with annual financing statement should be prepared. The policy of borrowed financing in selected Parma group of companies under study was not proper. So the companies should us e widely the borrowed funds and should try to reduce the fixed charges burden gradually by decreasing borrowed funds and by enhancing the owner’s fund. For this purpose companies should enlarge their equity share capital by issuing new equity shares. There has been too much of government interference in policy and day-to-day working and decisions.This leads to delays in decision-making. This should be abolished. There is no incentive to the employees to perform better. Also there is no accountability because no one is held responsible for a failure in achieving targets for this kind of problem responsibility centre should be created. Improper planning and delays in implementation of projects lead to rise in their cost. So properly planning should be made. To regularize and optimize the use of cash balance proper techniques may be adopted for planning and control of cash. The investments in inventories should be reduced and need to introduce a system of prompt collection of de bts.Selected pharma companies should try to use properly their operating assets and should try to minimize their non-operating expenses. To conclude the study, it can be said that the adoption of above measures will doubtlessly help the selected companies to improve their overall performance in the management. With the efficient management of long term fund, selected companies can utilized their capacity optimally and accelerate economic growth of India by increasing the production of pharma product at reasonable cost. References. 1. Dr. Promod Kumar. â€Å"Analysis of financial statement of Indian Industries†Saujaniya Publication Ltd. 1992 2. Ahindra Chakrabati: â€Å"Performance of public sector enterprises a Case study on fertilizers† The Indian journal of public enterprise. 1988-89 3. Dr. Sugan C. Jain: â€Å"Performance appraisal automobile industry† Raj Publishing House, c2002. Jaipur, India 4. Parmar S. J. :â€Å"Financial Efficiency-Modern methods, tool s & Techniques† Raj publication year of publication-2001 5. Dr Sanjay Bhayani: â€Å"Practical financial statement analysis† Raj publication,2003 6. Kakani, Ram Kumar, Saha, Biswatosh and Reddy, V. N.Nagi, Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era: An Exploratory Study (November 2001). National Stock Exchange of India Limited, NSE Research Initiative Paper No. 5. 7. Dutts S. K has: â€Å"Indian tea industry an appraisal† Management accountant, March-1992 8. Brigham, Eugene. F and Joel F. Houston. â€Å"Fundamentals of Financial Management, Ninth Edition, Harcourt College Publishers, Fort Worth, 2001. 9. Review of Business Research, 2007 by Tarun K. Mukherjee, Prakash Deo. 10. Gitman, L. J. , â€Å"Principles of Management finance,† New York: Harper & Row publishers,1982,p. 81 11. Paton & Paton. , â€Å"Corporation Accounts and statements†, New York: Macmillan Company, 1964, p. 362. 12. Kulshresh tha, N. K. , â€Å"Analysis of Financial statements of Indian Paper industry†, Aligarh: Navman Publishing House, 1972, p. 133. 13. Kulshreshtha, N. K. , Op. cit. , p. 134. 14. Hunt W. and Donaldson, G. , â€Å"Business Finance-text and cases†, Illinois: Richard D. Irwin, 1965, Pp. 114-115. 15. Roy Chowdhar, A. B. , â€Å"Analysis and Interpretation of Financial statements†, New Delhi Orient Longmans, 1970, p. 24. 16. Bogen, J. J. , â€Å"Financial Handbook† New Delhi: The Ronald press, 1957,p. 53. 17. Weston, J. F. and Brigham, E. F. , â€Å"Management finance†, New York: Holt, Rinehart and Winton, Inc, . 1972, p. 88. 18. Hingorani, N. L. and Raman than, A. R. , â€Å"Management Accounting†, New Delhi: Sultan Chand & Sons, 1977,p. 115. 19. Srivastava, R. M. , â€Å"Financial Management†, Meerut India: Pragati Prakasjan, 1979, p. 476. 20. Westiwick, C. A. , â€Å"Management: How to use ratios†, Epping Essex: Grower Press Ltd. 19 73,p. 5 21. Bogen, J. J. , Op. cit. Pp. 751-752. 22. Mohsin, M. , â€Å"Financial Planning and Control†; NewDelhi: Vikas publishing House Pvt. Ltd. , 1980, p. 174. 23.Kulshrestha, N. K. Op. cit. , 139. 24. HENDERSON, G. V. , Gurry, J. R. Trnnep Oh. , James E. Wirt. , â€Å"An Introduction to financial Management†, California: Addition-Wesley publishing company, 1984, p. 122. 25. Anthony, R. N. and Reece, J. S. , Op. , cit. , p. 198. 26. Information obtained through unstructured interviews from financial managers of the sample units though telephone. 27. Annual reports of selected cement company from 2003-04 to 2008-09 28. Kennedy, R. D. and Mcmullen, S. Y. , â€Å"Financial statements: Forms analysis and interpretation†, Illnois: Richard D. Irwin inc. 1964, p. 404. Information about this Article Peer-review ratings (from 2 reviews, where a score of 100 represents the ‘average’ level): Originality = 175. 00, importance = 162. 50, overall quality = 16 2. 50 This Article was published on 14th March, 2012 at 18:41:24 and has been viewed 2635 times. This work is licensed under a Creative Commons Attribution 2. 5 License. The full citation for this Article is: Kakkad, R. (2012). Comparative Financial statement Analysis & Innovation in Private sector Pharmaceutical Companies in India-An empirical Analysis. PHILICA. COM Article number 318. Ratio Analysis Though there are innumerable literatures available on the subject, the most appropriate studies have been reviewed. Dr. Promod Kumar published a book in 1991 â€Å"Analysis of financial statement of Indian Industries† The study covered the 17 private sector, 5 state owned public sector and 1 central public sector companies. He studied analysis of activities, assessment of profitability, return on capital investment, analysis of financial structure, analysis of fixed assets and working capital.In his research he revealed various problems of industries and suggested remedies for the problems. He also suggested for the improvement of profitability and techniques of cost control. 1Ahindra Chakrabati published an articles â€Å"Performance of public sector enterprises a Case study on fertilizers† in â€Å"The Indian journal of public enterprise† in the year 1988-89. He made analysis of consumption and production of fertilizer by public sector; he also made analysis of profit and loss statement. He gave suggestion to improve the overall performance of public enterprise. In the year of 2002, Dr. Sugan C. Jain has written a book on â€Å"Performance appraisal automobile industry† In his study he has analyses the performance of the automobile industry and presented comparative study of some national and international units. The operational efficiency and profitability had been analyzed using the composite index approach. He made several suggestions from the strengthening the financial soundness improving profitability, working capital the performance of fixed assets. 3 Recently in the year 1998 a study was made by S.J. parmar on â€Å"Financial Efficiency-Modern methods, tools & Techniques† for the period from 1998-89 to 1994-95. He had made an attempt to analyze financial strength, liquidity, profitability, cost and sales trend and social welfare trend by using various ratios analysis, common size analysis and value added analysis. He made several suggestions for the improvement of profitability of industry. In his analysis, he indicates various reasons for higher cost, low profitability, and inefficient use of internal resources. Dr Sanjay Bhayani published a book in 2003, â€Å"Practical financial statement analysis† The study covered 16 public limited cement companies in private sector. He made study of analysis of profitability, working capital, capital structure and activity of Indian cement industry. In his research he revealed various problems of cement industries and suggested remedies for the problems. He also suggested for the improvement of profitability and techniques of cost control. Ram Kumar,Kakani Biswatosh saha and V. N. Reddy has written research paper on Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era: An Exploratory Study. This paper attempts to provide an empirical validation of the widely held existing theories on the determinants of fi rm performance in the Indian context. The study uses financial statement and capital market data of 566 large Indian firms over a time frame of eight years divided into two sub-periods (viz. 1992-96, and 1996-2000) to study Indian firms' financial performance across various dimensions viz. , shareholder value, accounting profitability and its components, growth and risk of the sample firms. It reveals that even on the same data, the determinants of market-based performance measures and accounting-based performance measures differ due to influence of ‘Capital Market Conditions'. We found that size, marketing expenditure, and international diversification had a positive relation with a firm's market valuation.Apart from these firm attributes that reflect either operating parameters of firms or ‘strategic choice' of firm managers, we also found that a firm's ownership composition, particularly the level of equity ownership by Domestic Financial Institutions and Dispersed Pu blic Shareholders, and the leverage of the firm were important factors affecting its financial performance. The different implications of the findings for various stakeholders of a firm are also discussed. 6Dutts S. K has written an article on â€Å"Indian tea industry an appraisal† which was published in Management accountant in the year of March 1992.He analyzed the profitability, liquidity and financial efficiency by using various ratios. 7 Objectives of the study  · To evaluate the financial performance of the selected units of Pharmaceutical industry  · To compare the financial results of the Pharmaceutical industry as Dr Reddy's Laboratories Ltd and Lupin Ltd  · To enquire the adequacy or the accounting information desired from the statement in conformity with laid down accounting statements by the institute of Chartered Accountants of India (ICAI).  · To study the growth of the said companies To give suggestion for best financing method and efficient utilizatio n of fixed assets METHODOLOGY OF THE STUDY: Source of the data: â€Å"Comparative Financial statement Analysis & Innovation in Private sector Pharmaceutical Companies in India† has been made by using data from financial statements of all five major players in cement industry, they are – Dr Reddy's Laboratories Ltd. (Dr. RDL), Ambuja Lupin Ltd. (LL), the period of the study was ten years from 2001 to 2010. The data was collected from cpitaline database and from the annual reports of the respective companies.Hypothesis for the study: For the present study tested following null hypotheses are tested-  · Ho1: The Dr Reddy's Laboratories Ltd. did not achieve better profitability than Lupine Ltd.  · Ho2: The Dr Reddy's Laboratories Ltd. did not achieve better liquidity than Lupine Ltd.  · Ho3: The Dr Reddy's Laboratories Ltd. did not achieve better turnover than Lupine Ltd. Scope of the study: the study Comparative Financial statement Analysis & Innovation in Private s ector Pharmaceutical Companies in India.The study therefore includes financial structure performance, working capital performance, and Profitability performance but excludes non-financial areas such as production, marketing, personnel and R& D from its purview. Techniques used for analysis: The data have been analyzed with the help of ratio analysis, trend analysis, common size analysis-T test to test the relation among different ratios of two selected companies. Limitation of the study: In order to facilitate uniformity in data, years have been readjusted and the data have been recast as on 31st March of each year.The figure taken from the annual reports have been rounded off to two decimals of rupees in crores. The data available in financial statements have been translated in to a pre-designed structure format so that a meaningful interpretation could be made through inter-firm and intra firm comparisons. The format in which the data have been classified is selected after careful consideration of the operation Pharmaceutical Companies. Nevertheless, the limitations do in no way act as a deterrent in drawing effective and meaningful inferences from the studyAnalysis of the data: for knowing Comparative Financial statement Analysis & Innovation in Private sector Pharmaceutical Companies in India the commonly used ratio: fixed Gross profit, Net profit, Return on capital employed, Return on Net worth and Earning per share, Current ratio, Debtors Velocity (Days), Creditors Velocity (Days), Debt equity ratio and Interest coverage ratio, Inventory turnover Ratio, Debtors Turnover Ratio and Total Assets Turnover Ratio Analysis and interpretation: Table-1 Profitability Ratios of Dr Reddy's Laboratories Ltd & Lupine Ltd. Gross profit Net profit ROC RON EPS Year Dr. RDL Lupin Ltd. Dr.RDL Lupin Ltd. Dr. RD Lupin Ltd. Dr. RD Lupin Ltd. Dr. RD Lupin Ltd. 2001 22. 16 9. 25 19 6. 65 31. 5 23. 02 29. 23 31. 13 45. 32 201. 66 2002 33. 1 12. 49 32. 39 7. 54 42. 06 16. 64 45. 71 22. 07 59. 56 17. 42 2003 30. 78 12. 2 28. 34 7. 3 26. 44 16. 05 24. 02 20. 3 50. 6 17. 44 2004 21. 55 19. 07 20. 4 12. 48 15. 61 27. 1 14. 7 36. 14 36. 37 23. 76 2005 7. 9 9. 77 9. 19 6. 96 2. 19 12. 75 2. 77 17. 79 7. 85 20. 09 2006 16. 27 16. 29 14. 12 11 9. 24 20. 86 8. 57 31. 93 26. 82 44. 61 2007 37. 06 16. 27 32. 39 10. 53 35. 94 19. 39 35. 47 27. 89 69. 45 36. 75 2008 21. 63 19. 27 18. 47 13. 53 12. 01 23. 85 10. 35 32. 02 27. 2 52. 31 2009 21. 77 18. 28 17. 8 14. 17 13. 55 22. 29 11. 14 30. 97 32. 25 48. 22 2010 28. 77 21. 56 23. 52 17. 7 17. 79 25. 6 15. 14 33. 23 48. 25 70. 7 Total 240. 99 154. 45 215. 62 107. 86 206. 33 207. 55 197. 1 283. 47 404. 09 532. 96 Average 24. 099 15. 445 21. 562 10. 786 20. 633 20. 755 19. 71 28. 347 40. 409 53. 296 Min 7. 9 9. 25 9. 19 6. 65 2. 19 12. 75 2. 77 17. 79 7. 85 17. 42 Max 37. 06 21. 56 32. 39 17. 7 42. 06 27. 1 45. 71 36. 14 69. 45 201. 66 Sources: Data has been taken from annual reports The gross profit ratio of Dr. RDL was 22 . 16 % in 2001 which went down in to 7. 9% in 2005 but it rose up to 28. 7% in last years of the study period. The ratio ranged between 7. 9% in 2005 to 37. 06% in 2007. The ratio showed highly fluctuated trend during the study period. The average gross profit ratio was 24. 09% indicated. The gross profit ratio of Lupin Ltd. showed highly fluctuated trend during the study period with an average of 15. 45%. The ratio was the highest in the year of 2010 and very lowest 2001. T-test T-Test: Calculated value of gross profit ratio is 2. 86 Tabulated value at 5% significant value=1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. The Net profit ratio of Dr.RDL was 19% in the year of 2001 and increased to 32. 39% in the year of 2002. The ratio went down to 28. 34% in year of 2003. The ratio was very low of 9. 19% during the year of 2005 and very highest during the year of 2002. The average ratio was 21. 56% with fluctuated trend. The Net profit r atio of Lupin Ltd. was 6. 65 % in 2001 which went down in to 6. 96% in 2005 but it rose up to 17. 7% in last years of the study period. The ratio ranged between 6. 65% in 2001 to 17. 7% in 2010. The ratio showed highly fluctuated trend during the study period. The average gross profit ratio was 10. 78% indicated. T-testCalculated value of net profit ratio is 4. 01 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. The return on capital employed ratio was 31. 5% in 2001 which went down to 9. 24 % in the year of 2006 and also went down to 13. 55% and 17. 79 during the years of 2009 and 2010 respectively. The ratio ranged between 2. 19% in year of 2005to 42. 06% in the year of 2002. The ratio showed down ward trend with an average of 20. 63%. The return on capital employed of Lupin Ltd was showing much fluctuated trend during the year study period.The average ratio was 20. 76 in the Lupin Ltd which sho wed fluctuated trend during the study period. The ratio was 23. 02% in year of 2001 and 20. 86% in year of 2006 and 25. 6% during the last year of study period. The ratio has gone down due to decreased in volume of sales. The sales have gone down since price rise took place in market. T-test Calculated value of return on capital employed ratio is 0. 028 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is accepted. The Return on net worth ratio of Dr. RDL was 29. 3% in 2001 which went down in to 8. 57% in 2006 but it rose up to 15. 14% in last years of the study period. The ratio ranged between 2. 77% in 2005 to 45. 71% in 2002. The ratio showed highly fluctuated trend during the study period. The average gross profit ratio was indicated19. 71%. The Return on net worth ratio of Lupin Ltd. showed highly fluctuated trend during the study period with an average of 28. 347%. The ratio ranged between 17. 79% in 2005 to 36. 14% in 2004. T-test Calculated value of Return on net worth ratio is 1. 84 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance cal ; t tab Hence hypothesis is rejected. Earnings per share of Dr. RDL were Rs. 45. 32 in the year of 2001 and Rs 59. 56 in the year of 59. 56. The EPS went down to 50. 6 in the year of 2003 and Rs 36. 37 in the year 2004 and Rs. 7. 85 in the year of 2005. The EPS rose to 69. 45 in the year 2007and again went down to 27. 62 in 2008. The EPS Rs. 48. 25 during the last year of study period. The average ESP was 40. 41 with downward trend during the study period. The EPS was 201. 66 in Lupin Ltd. and went down to 20. 09 in the year of 2005 and reached down to 70. 7 during the last year of study period.The EPS showed lower level of EPS due to less utilization of financial leverage. T-test Calculated value of Earnings per share is 0. 70 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of s ignificance t cal ; t tab Hence hypothesis is accepted. Table-2 Liquidity ratio of Dr. RDL and Lupin Ltd. Current ratio Debtors Velocity (Days) Creditors Velocity (Days) Year Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. 2001 1. 69 1. 82 48 47 76 27 2002 3. 09 1. 74 54 61 79 35 2003 4. 86 1. 58 60 62 82 36 2004 3. 73 1. 34 60 66 85 38 2005 2. 49 1. 1 60 56 90 34 2006 1. 5 1. 38 59 57 94 35 2007 2. 21 1. 68 66 63 105 38 2008 3. 05 1. 53 85 69 109 42 2009 3. 15 1. 24 79 77 110 45 2010 2. 44 1. 27 100 81 120 52 Total 28. 56 14. 68 671 639 950 382 Average 2. 856 1. 468 63 62 92 37 Min 1. 69 1. 1 48 47 76 27 Max 4. 86 1. 82 100 81 120 52 Sources: Data has been taken from annual reports In year 2001 Dr. RDL has 1. 69 as its current ratio and after that it continuously increased from 3. 09 to 4. 86 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negative changes but it moves from 2. 21 to 3. 05 in year 2007 and 2008 respectively.In the yea r 2009 and 2010 it shows again little fluctuated with an average of 2. 85. In year 2001 Lupin Ltd has 1. 82 as its current ratio and after that it continuously decreased from 1. 74 to 1. 58 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negative changes but it moves down from 1. 68 to 1. 53 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuated with an average of 1. 46. T-test Calculated value of current ratio is 4. 50 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance cal ; t tab Hence hypothesis is rejected. In year 2001 Dr. RDL has 48 days as its Debtors Velocity (Days) and after that it continuously increased from 54 (Days) to 60 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negative changes but it moves down from 66 days to 85 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctua tions with an average of 63 days. In year 2001 Lupin Ltd. has 47 days as its Debtors Velocity (Days) and after that it continuously increased from 61 (Days) to 62 in the year of 2002 and 2003 respectively.But in year 2004, 2005 & 2006 it also showed negative changes but it moves up from 63 days to 69 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 62 days. T-test Calculated value of Debtors Velocity (Days) is 0. 3 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is accepted. In year 2001 Dr. RDL 76 days as its Creditors Velocity (Days) and after that it continuously increased from 79 (Days) to 82 in the year of 2002 and 2003 respectively.But in year 2004, 2005 & 2006 it also showed negative changes but it moves down from 105 days to 109 days in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with a n average of 92 days. In year 2001 Lupin Ltd. 27 days as its Creditors Velocity (Days) and after that it continuously increased from 35 (Days) to 36 days in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed positives changes but it moves down from 38 days to 42 days in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 37 days.T-test Calculated value of Creditors Velocity (Days) is 10. 83 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. Leverage Ratios of Dr. RDL & Lupin Ltd. Table-3 Leverage Ratios of Dr. RDL & Lupin Ltd. Debt equity ratio Interest coverage ratio Year Dr. RDL Lupin Ltd. Dr. RD Lupin Ltd. 2001 0. 56 1. 79 5. 05 2. 09 2002 0. 19 1. 88 34. 27 2. 55 2003 0. 01 1. 77 72. 27 2. 53 2004 0. 02 1. 24 72. 71 4. 89 2005 0. 08 0. 86 3. 82 4. 12 2006 0. 28 1. 18 10. 39 8. 6 2007 0. 19 1. 16 27. 29 8. 65 2008 0. 09 0. 83 40. 74 13. 99 2009 0. 11 0. 71 27. 62 2. 35 2010 0. 11 0. 47 68. 8 25. 97 Total 1. 64 11. 89 362. 96 85. 74 Average 0. 16 1. 19 36. 30 8. 57 Min 0. 01 0. 47 3. 82 2. 09 Max 0. 56 1. 88 72. 71 25. 97 Sources: Data has been taken from annual reports The Debt equity ratio of Dr. RDL was 0. 56 in 2001 which went down in to 0. 28 in 2006 but it went down to 0. 11 in last years of the study period. The ratio ranged between 0. 01 in 2003 to 0. 56 in 2001. The ratio showed highly fluctuated trend during the study period. The average Debt equity ratio was indicated 0. 16. In year 2001 Lupin Ltd. 1. 79 as its Debt equity ratio and after that it continuously decreased from 1. 8 to 1. 77 days in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed positives changes but it moves down from 1. 16 to 0. 83 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 1. 19 days. T-test Calc ulated value of Debt equity ratio is 6. 28 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. Interest coverage ratio of Dr. RDL was 5. 05 in the year of 2001 and Rs 3. 82 in the year of 2006. The Interest coverage ratio went up to 72. 7 in the year of 2003 and 72. 71 in the year 2004 and 3. 82 in the year of 2005. The Interest coverage ratio rose to 27. 29 in the year 2007and again went up to 40. 74in 2008. The Interest coverage ratio was 68. 8 during the last year of study period. The average Interest coverage ratio was 36. 30 with upward trend during the study period. In year 2001 Lupin Ltd. 2. 09 as its Debt equity ratio and after that it continuously decreased from 2. 55 to 2. 53 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed negatives changes but it moves down from 8. 65 to 13. 99 in year 2007 and 2008 respectively.In the year 2009 and 2010 it shows aga in little fluctuations with an average of 8. 57. T-test Calculated value of Interest coverage ratio is 3. 13 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is rejected. Table-4 Turnover ratio of Dr. RDL and Lupin Ltd. Inventory Turnover Ratio Debtors Turnover Ratio Total Assets Turnover Ratio Year Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. Dr. RDL Lupin Ltd. 2001 8. 65 11. 3 4. 76 5. 39 1. 03 1. 6 2002 9. 01 6. 61 4. 29 3. 06 0. 99 1. 32 2003 7. 44 7. 02 3. 64 2. 75 0. 92 1. 29 2004 6. 99 6. 74 3. 97 3. 89 0. 88 1. 7 2005 5. 79 5. 23 3. 78 5. 37 0. 85 1. 31 2006 5. 64 5. 95 4. 21 5. 69 0. 82 1. 28 2007 8. 69 5. 7 4. 94 4. 9 0. 75 1. 14 2008 6. 11 5. 08 3. 53 4. 7 0. 65 1. 09 2009 6. 16 4. 39 3. 66 4. 39 0. 64 0. 99 2010 5. 57 5. 13 3. 66 4. 51 0. 59 0. 94 Total 70. 05 63. 15 40. 44 44. 65 8. 12 12. 23 Average 7. 005 6. 315 4. 044 4. 465 0. 812 1. 223 Min 5. 57 4. 39 3. 53 2. 75 0. 59 0. 94 Max 9. 01 11. 3 4. 94 5 . 69 1. 03 1. 6 Sources: Data has been taken from annual reports In year 2001 Dr. RDL 8. 65 as its Inventory Turnover Ratio and after that it continuously decreased from 9. 01 to 7. 44 in the year of 2002 and 2003 respectively.But in year 2004, 2005 & 2006 it also showed negatives changes but it moves down from 8. 69 to 6. 11 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 7. 01. In year 2001 Lupin Ltd. 11. 3 as its Inventory Turnover Ratio and after that it continuously increased from 6. 61 to 7. 02 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with ups and downs but it moves down from 5. 7 to 5. 08 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 6. 2. Calculated value of Inventory Turnover Ratio is 0. 72 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hypothesis is accepted. In year 2001 Dr. RDL. 4. 76 as its Debtors Turnover Ratio and after that it continuously decreased from 4. 29 to 3. 64 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with upward movements but it moves down from 4. 94 to 3. 53 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 4. 04.In year 2001 Lupin Ltd. 5. 39 as its Debtors Turnover Ratio and after that it continuously decreased from 3. 06 to 2. 75 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with upward movements but it moves down from 4. 9 to 4. 73 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 4. 47. Calculated value of Debtors Turnover Ratio is 1. 21 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hy pothesis is accepted. In year 2001 Dr. RDL. 1. 3 as its Total Assets Turnover Ratio and after that it continuously decreased from 0. 99 to 0. 92 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with downward movements but it moves down from 0. 75 to 0. 65 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 0. 81. In year 2001 Lupin Ltd. 1. 6 as its Total Assets Turnover Ratio and after that it continuously decreased from 1. 32 to 1. 29 in the year of 2002 and 2003 respectively. But in year 2004, 2005 & 2006 it also showed trend with upward movements but it moves down from 1. 4 to 1. 09 in year 2007 and 2008 respectively. In the year 2009 and 2010 it shows again little fluctuations with an average of 1. 22. Calculated value of Total Assets Turnover Ratio is 5. 34 Tabulated value at 5% significant value= 1. 73 d. e. f. = 18 at 5% of level of significance t cal ; t tab Hence hyp othesis is rejected. Summary findings and Conclusion The liquidity ratio of Lupin Ltd is highly threatening when compared with Dr. RDL. Thus Lupin Ltd has to control the current liabilities or to increase the current assets so that they can cover all the current liabilities and be in safer position.Thus slightly fluctuations in sales in that situation can not affect the paying capacity of the concern and thus maintain the credibility. The profitability ratio of Dr. RDL is better when it is compared with Lupin Ltd. It can be inferred from the result that Lupin Ltd can expand the business or can move further in newer directions as it is experiencing continuously growth in the profitability. Lupin Ltd has to give a fairer thought to reduce cost in providing services and increasing the turnover so that sustained growth in profitability can be seenReturn on Net Capital Employed is the best test of overall profitability and efficiency of the business firm. A company with high rate of retu rn on capital employed would be in a position to capitalize; e. g. it can take advantage of all favorable market opportunities. The study shows that returns on capital employed in selected units in India had marked a fluctuated trend. The average was 17. 79 and 25. 6 percent in units in India respectively. This ratio was satisfactory. On the whole Dr. DRL had the highest return net on capital employed of As compared to the Lupin ltd.In the light of the above discussion it is suggested that Lupin ltd should undertake cost control measure so that increase net profit before interest and taxes of the company might enhance the return on net capital employed. The solvency ratio also reveals the same track record of an upper hand over Lupin ltd. This position depicts the financial soundness or good financial health of the DR. RDL. In this sector Lupin ltd. has to work hard for providing the financial health in terms of capital also. The turnover ratio of Lupin Ltd. is showing better positi on when compared to DR. RDL. This fact proves that the market size in Lupin Ltd. s far more better than the DR. RDL which in turn is gearing its growth in all the stream. Thus DR. RDL has to work for increasing the market size and customer base so that it can achieve the trend of continuous growth. It can be inferred from the overall financial analysis that Lupin Ltd ltd. has to rethink and device the strategies so that it can lead towards positive way and become the major players. Innovation though financial statement analysis can be seen though mergers and acquisitions and launching of new products and schemes so that enterprise can be proud of being major market players and setter newer and newer goals in the future.Cost accounting and cost audit should be made mandatory for this units and cost sheet along with annual financing statement should be prepared. The policy of borrowed financing in selected Parma group of companies under study was not proper. So the companies should us e widely the borrowed funds and should try to reduce the fixed charges burden gradually by decreasing borrowed funds and by enhancing the owner’s fund. For this purpose companies should enlarge their equity share capital by issuing new equity shares. There has been too much of government interference in policy and day-to-day working and decisions.This leads to delays in decision-making. This should be abolished. There is no incentive to the employees to perform better. Also there is no accountability because no one is held responsible for a failure in achieving targets for this kind of problem responsibility centre should be created. Improper planning and delays in implementation of projects lead to rise in their cost. So properly planning should be made. To regularize and optimize the use of cash balance proper techniques may be adopted for planning and control of cash. The investments in inventories should be reduced and need to introduce a system of prompt collection of de bts.Selected pharma companies should try to use properly their operating assets and should try to minimize their non-operating expenses. To conclude the study, it can be said that the adoption of above measures will doubtlessly help the selected companies to improve their overall performance in the management. With the efficient management of long term fund, selected companies can utilized their capacity optimally and accelerate economic growth of India by increasing the production of pharma product at reasonable cost. References. 1. Dr. Promod Kumar. â€Å"Analysis of financial statement of Indian Industries†Saujaniya Publication Ltd. 1992 2. Ahindra Chakrabati: â€Å"Performance of public sector enterprises a Case study on fertilizers† The Indian journal of public enterprise. 1988-89 3. Dr. Sugan C. 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Information about this Article Peer-review ratings (from 2 reviews, where a score of 100 represents the ‘average’ level): Originality = 175. 00, importance = 162. 50, overall quality = 16 2. 50 This Article was published on 14th March, 2012 at 18:41:24 and has been viewed 2635 times. This work is licensed under a Creative Commons Attribution 2. 5 License. The full citation for this Article is: Kakkad, R. (2012). Comparative Financial statement Analysis & Innovation in Private sector Pharmaceutical Companies in India-An empirical Analysis. PHILICA. COM Article number 318.