Discuss The Strategic Options And Provide Examples Marketing Essay

Discuss The Strategic Options And Provide Examples Marketing Essay Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. It involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation and infrastructure. http://hubpages.com/hub/Definition-of-Globalization Integration in globalization is either negative or positive depends breaking down of trade barriers. The removal of barriers can be beneficial for products that are important to the economy growth. An example of imported raw materials is very expensive but the cost will be down if the supply will increase and will make cheaper to produce the final products for export. 2STRATEGY Strategy is reflects decisions to offer particular products or services in the particular markets. The strategic options for the exploring opportunities in the new established market and existing product are good opportunity to use the availability resources. It is a tool in the direction of the firms objective in achieving business success in the long term. CORPORATE STRATEGY: This is the focus of an organization which products or service markets to compete and area to operate. This is because market definition is the domain of corporate level strategists, the responsibility for diversification, addition of new products or services to the existing product, also falls within the realm of corporate-level strategy. A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. Businesses use strategic alliances to: Achieve advantages of scale, scope and speed Increase market penetration Enhance competitiveness in domestic and/or global markets Enhance product development Develop new business opportunities through new products and services Expand market development Increase exports Diversify Create new businesses Reduce costs. 3How to enter Market The best mode of entry its broad choices are indirect exporting, direct exporting, licencing, joint ventures and direct investment. A joint venture is an agreement by two or more parties to form a single entity to undertake a certain project. Each of the businesses has an equity stake in the individual business and share revenues, expenses and profits. Joint ownership has certain drawbacks. The partners might disagree over investment, marketing, or other policies. One partner might want to reinvest earnings for growth, and the other partner might want to take out these earnings. Furthermore joint ownership can hamper a multinational company from carrying out specific manufacturing and marketing policies on a worldwide basis. Licensing is a simple way for a manufacturer to become involved in International business. The licensor enters an agreement with a licensee in the foreign market, offering the right to use a manufacturing process trademarks, intellectual property and trade secrets are licensed to an external firm. Its used mainly to manufacture and sell a certain product. Its a lower risk way of expanding the reach of product compared to building company manufacturing base and distribution reach. Coca-cola is an example of an international market by licensing bottlers around the world. Franchising is an excellent way of quickly rolling out a successful concept nationwide. Franchisees pays fixed fee and agree to ongoing payments so the process is financially risk-free for the company. However, downsides do exist, particularly with the loss of control over how franchisees run their franchise. It is thus an important form of vertical market integration. Potentially, the system provides an effective blending of skill centralization and operational decentralization. It permits the franchise to sell products or services under a highly publicized brand name and a well-proven set of procedures; it is a carefully developed and controlled marketing strategy. Examples of franchisers are hotels brands i.e. Hilton, Holiday in and Coco-cola. Advantages of forming strategic alliances Provide companies with the opportunity to gain new capacity and expertise Allow companies to enter related businesses or new geographic markets or gain new technological knowledge access to greater resources, including specialized staff and technology sharing of risks with a venture partner Disadvantages of strategic alliances It takes time and effort to build the right relationship and partnering with another business can be challenging. Problems are likely to arise if: There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners. Different cultures and management styles result in poor integration and co-operation. The partners dont provide enough leadership and support in the early stages. Success in a joint venture depends on thorough research and analysis of the objectives. Examples of strategic alliances companies   Sony-Ericsson is a joint venture by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. Virgin Mobile India Limited is a cellular telephone service provider company which is a joint venture between Tata Tele service and Richard Bransons Service Group. http://wiki.answers.com/Q/Examples_of_joint_ventures#ixzz1KAPliPOB Product Strategies Is the central focus of the marketing mix. It is fails to satisfy the needs of the consumers, no amount of promotion, price cutting, or distribution will persuade them to buy. The total product, which is what the customer buys, which also include the package, the brand name, accessories, after sales service, the warranty and instructions for use. Thus international product strategies and policies should include the following aspects. 4Strategies Matrix Ansoff Matrix has four strategies which an organization will be good to process for good foundation of the company future development. Ansoff matrix focused on the firms present and potential products and market, customers by considering ways to grow through existing products and new products and in existing market and new markets. It is one of the best tools for the companies to develop market and product expansion. Market Penetration, Product development, Market Development Diversification Diagram below indicate the Ansoff Matrix : faculty.msb.edu/homak/homahelpsite/webhelp 5MARKET PENETRATION Is a term that indicates how deeply a product or service has become entrenched with a given consumer market. The degree of penetration is often measured by the amount of sales that are generated within the market itself, increasing sales force, increase distribution and promotion of products, more expenditure in marketing and advertising activities will results in increasing sales. Market penetration can be considered in broader terms, and be used as a way of identifying a wider consumer base. Penetration expands the influence of the product to new consumers and thus increases the sales and general proportion of the consumer market that the manufacturer controls. http://www.wisegeek.com/what-is-market-penetration.htm Market penetration seeks to achieve four main objectives: The market share of current products should be maintained, this will be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps Dominance of growth markets should be secured Competitors should be driving to restructure a mature market, promotion campaign should be more aggressive for the same pricing strategy should be designed to make difficult to the competitors Implemented loyalty scheme for the existing customers. 6Examples of Market Penetration Dell Recognizing the software as a service can be a potent market penetration tool, also assembling a services portfolio that now includes e-mail disaster recovery, spam/virus filtering and archiving via its Message one acquisition. Airlines Easyjet Airline market was by offering flights for the small distance cities. Southwest Airline same as Easyjet were more profitable on operating small distances Pakistan State Oil penetrates in Pakistan market growth from 40% to 65% in the duration of 4 years by developing new retail outlets. Car Manufacturing Toyota Motor Corporation is the worlds largest automobile manufacturer by sales and production. Toyota and BMW good relationship in marketing in order to retain and have high profile for their value customers. Toyota Motor Corporation is the largest conglomerates in the world. Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. Banking HSBC Bank customers were very happy on internet banking that they can access their online account 24hrs a day wherever they are in the world. Telecommunication Airtel promoting its services to penetrate in the Indian market. It is the worlds fastest growing industry, they have couple of joint ventures with Alcatel in Indian, it is operates in 19 countries across South Asia, Africa and the Channel Islands. Airtel is the fifth largest telecom operator in the world. http://en.wikipedia.org/wiki/Market_penetration 7Advantage and Disadvantage of Market Penetration Benefits One of the successful penetration is pricing strategy may lead to large sales volumes/market shares and therefore lower costs per unit. Penetration strategies are often used by businesses that need to use up spare resources. A penetration pricing strategy may also promote complimentary and captive products. The main product may be priced with a low mark-up to attract sales. Risk The most obvious potential disadvantage of market penetration is the likelihood of competing suppliers following suit by reducing their prices, May lead to a price war with a competitor with the same strategy The effects of economies of both scale and experience lead to lower production costs, which justify the use of penetration pricing strategies to gain market share Low pricing could be detrimental to the perceived brand value and to the company reputation. Another potential disadvantage is the impact of the reduced price on the image of the offering, particularly where buyers associate price with quality. http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp 8MARKET DEVELOPMENT Market development is a marketing technique aimed at increasing a companys market in order to widen the customer base for the purpose of selling more products. This is an important aspect of helping a company grow. Small companies with limited marketing experience may turn to consultants for this, while experienced large companies have internal marketing departments that may be responsible for market development. It is an ongoing part of doing business for successful companies. Also will help to grow your market by understanding how your product is perceived in the marketplace and what areas of improvement are there. Using the Starbucks example This occurs when the market analyzing makes some sort of change, market development has occurred over the past couple of years as consumers are becoming more health conscience. Preferences are moving toward different types of teas/drinks and consumers are demanding more healthy alternatives. These factors have aided to market development, with different franchises popping up, such as Argo tea, which become direct competitors to Starbucks Benefits Another way would be to focus on the  Ã‚   technology base used to supply existing products and to identify other products needs, which customers might need to be produced using current facilities and know how. Here the organization tries to develop  Ã‚   new products or services and thereby makes similar existing products obsolete unlike product development strategy which extends an existing products life cycle. There could be radical innovations where the company tries to replace existing products or technologies in an industry. In the case of incremental innovations, the firm tries to put focus on new products or services that modify the existing  ones. Apart from such radical innovations firms, also carry out incremental innovations to differentiate their products. One example, is Toyotas multi-utility vehicle Qualis.   Although other Indian  Ã‚   companies had similar products, Toyota, more effectively combined the styling an engineering that resulted   in increased demand   for its product (a great hit compared) to Sumo, Disadvantages/Risks As per Ansoff framework of a Market Development strategy New Markets may be different then expected ( especially in new geographic market with cultural differences Costly modifications may be required Examples of Market Development Compact disc technology has virtually replaced long playing vinyl records in the recording industry, and high definition television is likely to replace regular television technology. McDonalds has couple of new markets in the wake of globalization with its existing products. This is because of the nature of the business and products, McDonald; implemented its burgers which helps the growth of the market. Nestle expanded the market for its product Milkmaid by advertising the new uses of the product aggressively in India. Chinese products developed new market for their product worldwide Toyotas multi-utility vehicle Qualis although there are same product in India,  Toyota, more effectively combined the styling an engineering that resulted  in increased demand   for its product than Indian. Close Up toothpaste was first gel toothpaste which was transparent with a red distinctive colour, all others pastes were white. The market was dominated by Colgate which promised that it  would fight tooth decay and bad breath.  Ã‚   Close up promised the dual benefit of being a toothpaste and mouthwash in one and thus delivered fresh breath and white teeth. 9PRODUCT DEVELOPMENT This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers. http://www.marketingteacher.com/lesson-store/lesson-ansoff.html Developing of new products and offering to the existing market is product development strategy which need capital and time to implement. The company has to do a market survey in detailed if it is feasible to introduce new product in the current market. Challenges Several things need to be checked in developing new products in the company this is including, Technology and Cost, by using latest technology the product performance or the quality of products will be on highest level of functionality although Cost will be challenge to the company in either buying the new equipments or conducting trainings. Benefits Company products will be extended by producing different variants, packaging in new ways. Service industries shorten time to market and improve customer service and quality. Risks Customers might be confused among the existed and developed products, if the analysis will not performed carefully, example is the new Coke, Customers liked the taste of the new Coke in the taste tests conducted by Coca Cola, customers of the brand favoured classic Coke over the new product. Another Examples of Market Development Google developed a new browser chrome for the existing internet user McDonalds is always within the fast food industry, but frequently markets new burgers 10DIVERSIFICATION STRATEGY Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. Diversification is very important into related and unrelated areas. http://www.coursework4you.co.uk/essays-and-dissertations/ansoff-analysis.php Diversification related in the form of backward, forward, and horizontal integration. Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. The company will focus to add more market share to launch a new product that helps the company earn more profit. An example technological related in concentric diversification is Tomato ketchup and sauce to the existing brand processed items of food specialties. Vertical diversification This is when the company is closer to the raw materials sources in production, in another words is backward vertical integration strategy. An example of Avons line on cosmetics business. Avon pursued a backward form of vertical integration by entering the production of cosmetics. Forward diversification occurs when Avon move closer to the consumer in term of production stages. Horizontal diversification, occurs when a company develops interests complementary to its current activities. For a company may integrate its activities to include all aspect of the value chain; design, manufacture, market and distribute. The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. In a competitive environment, this form of diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. For example, Avons move to market jewelry through its regular sales force involved marketing new products through existing channels of distribution. Conglomerate diversification (or lateral diversification) The company markets new products or services that have no technological or commercial synergies with current products but that may appeal to new groups of customers. The conglomerate diversification has very little relationship with the firms current business. Therefore, the main reasons of adopting such a strategy are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital markets as the company gets bigger. Even if this strategy is very risky, it could also, if successful, provide increased growth and profitability. For example a company whose core business is media services may diversify into provision of financial services. Advantages of diversification strategy Control markets by guaranteeing sales and distribution. This can arise through a combination of linkages in the value chain. For example where production and distribution channels are combined, or where a company uses its well-established brand names or corporate identity to gain benefits in new markets Take advantage of existing expertise, knowledge and resources in the company when expanding into new activities. This may result in transfer of skills, such as research and development knowledge and sharing of resources. Provide better risk control through no longer being reliant on a single market Spread risk by avoiding having all eggs in one basket Disadvantages of diversification strategy Adding bureaucratic complexity. In addition to direct financial costs, there may additional bureaucratic complexities necessitated by the need to coordinate and control core activities with additional activities. Diversification through acquisition across national boundaries may result in the organisation having to deal with varying intricacies of the political and legal requirements of the different countries in which the organisation has controlling interests. Diversification also acquisition May result in failure where there is a mismatch between core competencies Adding management costs. Adding bureaucratic complexity. In addition to direct financial costs, there may additional bureaucratic complexities necessitated by the need to coordinate and control core activities with additional activities. Examples Virgin Media moved from music producing to travels and mobile phones Walt Disney moved from producing animated movies to theme park and vacation properties Canon diversified from a camera making company into producing whole new range of office equipment CONCLUSION It is true for the world investment and business to move from national and domestic markets to a worldwide environment. Globalisation eliminates all boundaries, causing firms to engage in business worldwide. Consequently firms have to deal with couple of challenges if the management strategies will not help them to make the correct choices and decisions. Strategic options related to products and services which a firm may offer in which markets are critical to the success of companies. The differences in strategic choices of the firm can often be attributed to the type of market in which the company operates. Changes in business environment play a crucial role in the strategic options that an organisation may pursue over its future development. There are risks associated with all of the four strategic options entailed in the Ansoff matrix. Market penetration is generally considered as a low risk strategy while diversification, on the other hand, is deemed as a high risk growth strateg y as it involves moving simultaneously into new products and new markets. Diversification remains a popular strategic option for firms in todays competitive business arena, and if the diversification strategy is consistent and well throughout, like the case of IBM, significant improvements in profitability can be experienced.

The Host Chapter 20: Freed

Jeb let me cry myself out without interrupting. He didn't comment all through the following sniffles. It was only when I'd been completely silent for a good half hour that he spoke. â€Å"Still awake in there?† I didn't answer. I was too much in the habit of silence. â€Å"You want to come out here and stretch?† he offered. â€Å"My back is aching just thinking about that stupid hole.† Ironically, considering my week of maddening silence, I wasn't in the mood for company. But his offer wasn't one I could refuse. Before I could think about it, my hands were pulling me through the exit. Jeb was sitting with crossed legs on the mat. I watched him for some reaction as I shook out my arms and legs and rolled my shoulders, but he had his eyes closed. Like the time of Jamie's visit, he looked asleep. How long had it been since I'd seen Jamie? And how was he now? My already sore heart gave a painful little lurch. â€Å"Feel better?† Jeb asked, his eyes opening. I shrugged. â€Å"It's going to be okay, you know.† He grinned a wide, face-stretching grin. â€Å"That stuff I said to Jared†¦ Well, I won't say I lied, exactly, because it's all true if you look at it from a certain angle, but from another angle, it wasn't so much the truth as it was what he needed to hear.† I just stared; I didn't understand a word of what he was saying. â€Å"Anyway, Jared needs a break from this. Not from you, kid,† he added quickly, â€Å"but from the situation. He'll gain some perspective while he's away.† I wondered how he seemed to know exactly which words and phrases would cut at me. And, more than that, why should Jeb care if his words hurt me, or even if my back was aching and throbbing? His kindness toward me was frightening in its own way because it was incomprehensible. At least Jared's actions made sense. Kyle's and Ian's murder attempts, the doctor's cheerful eagerness to hurt me-these behaviors also were logical. Not kindness. What did Jeb want from me? â€Å"Don't look so glum,† Jeb urged. â€Å"There's a bright side to this. Jared was being real pigheaded about you, and now that he's temporarily out of the picture, it's bound to make things more comfortable.† My eyebrows furrowed as I tried to decide what he meant. â€Å"For example,† he went on. â€Å"This space here we usually use for storage. Now, when Jared and the guys get back, we're going to need someplace to put all the stuff they bring home with them. So we might as well find a new place for you now. Something a little bigger, maybe? Something with a bed?† He smiled again as he dangled the carrot in front of me. I waited for him to snatch it away, to tell me he was joking. Instead, his eyes-the color of faded blue jeans-became very, very gentle. Something about the expression in them brought the lump back to my throat. â€Å"You don't have to go back in that hole, honey. The worst part's over.† I found that I couldn't doubt the earnest look on his face. For the second time in an hour, I put my face in my hands and cried. He got to his feet and patted me awkwardly on the shoulder. He didn't seem comfortable with tears. â€Å"There, there,† he mumbled. I got control of myself more quickly this time. When I wiped the wet from my eyes and smiled tentatively at him, he nodded in approval. â€Å"That's a girl,† he said, patting me again. â€Å"Now, we'll have to hang out here until we're sure Jared's really gone and can't catch us.† He grinned conspiratorially. â€Å"Then we'll have some fun!† I remembered that his idea of fun was usually along the lines of an armed standoff. He chuckled at my expression. â€Å"Don't worry about it. While we're waiting, you might as well try to get some rest. I'll bet even that skinny mattress would feel pretty good to you right now.† I looked from his face to the mat on the floor and back. â€Å"Go on,† he said. â€Å"You look like you could use a good sleep. I'll keep watch over you.† Touched, new moisture in my eyes, I sank down on the mat and laid my head on the pillow. It was heavenly, despite Jeb's calling it thin. I stretched out to my full height, pointing my toes and reaching out with my fingers. I heard my joints popping. Then I let myself wilt into the mattress. It felt as if it were hugging me, erasing all the sore spots. I sighed. â€Å"Does me good to see that,† Jeb muttered. â€Å"It's like an itch you can't scratch, knowing someone is suffering under your own roof.† He eased himself to the floor a few yards away and started humming quietly. I was asleep before he'd finished the first bar. When I woke up, I knew that I'd been solidly asleep for a long time-a longer stretch than I'd slept since coming here. No pains, no frightening interruptions. I would have felt pretty good, except that waking on the pillow reminded me that Jared was gone. It still smelled like him. And in a good way, not the way I smelled. Back to just dreams. Melanie sighed forlornly. I remembered my dream only vaguely, but I knew it had featured Jared, as was usual when I was able to sleep deeply enough to dream. â€Å"Morning, kid,† Jeb said, sounding chipper. I peeled back my lids to look at him. Had he sat against the wall all night? He didn't look tired, but I suddenly felt guilty for monopolizing the better accommodations. â€Å"So the guys are long gone,† he said enthusiastically. â€Å"How 'bout a tour?† He stroked the gun slung through a strap at his waist with an unconscious gesture. My eyes opened wider, stared at him in disbelief. A tour? â€Å"Now, don't turn sissy on me. Nobody's going to bother you. And you'll need to be able to find your way around eventually.† He held out a hand to help me up. I took it automatically, my head spinning as I tried to process what he was saying. I would need to find my way around? Why? And what did he mean â€Å"eventually†? How long did he expect me to last? He pulled me to my feet and led me forward. I'd forgotten what it was like to move through the dark tunnels with a hand guiding me. It was so easy-walking barely took any concentration at all. â€Å"Let's see,† Jeb murmured. â€Å"Maybe the right wing first. Set up a decent place for you. Then the kitchens†¦Ã¢â‚¬  He went on planning his tour, continuing as we stepped through the narrow crevice into the bright tunnel that led to the even brighter big room. When the sound of voices reached us, I felt my mouth go dry. Jeb kept right on chatting at me, either missing or ignoring my terror. â€Å"I'll bet the carrots are sprouted today,† he was saying as he led me into the main plaza. The light blinded me, and I couldn't see who was there, but I could feel their eyes on me. The sudden silence was as ominous as ever. â€Å"Yep,† Jeb answered himself. â€Å"Now, I always think that looks real pretty. A nice spring green like that is a treat to see.† He stopped and held his hand out, inviting me to look. I squinted in the direction he gestured, but my eyes kept darting around the room as I waited for them to adjust. It took a moment, but then I saw what he was talking about. I also saw that there were maybe fifteen people here today, all of them regarding me with hostile eyes. But they were busy with something else, too. The wide, dark square that took up the center of the big cavern was no longer dark. Half of it was fuzzy with spring green, just as Jeb had said. It was pretty. And amazing. No wonder no one stood on this space. It was a garden. â€Å"Carrots?† I whispered. He answered at normal volume. â€Å"This half that's greening up. The other half is spinach. Should be up in a few days.† The people in the room had gone back to work, still peeking at me now and then but mostly concentrating on what they were doing. It was easy enough to understand their actions-and the big barrel on wheels, and the hoses-now that I recognized the garden. â€Å"Irrigating?† I whispered again. â€Å"That's right. Dries out pretty quick in this heat.† I nodded in agreement. It was still early, I guessed, but I was already sweaty. The heat from the intense radiance overhead was stifling in the caves. I tried to examine the ceiling again, but it was too bright to stare at. I tugged Jeb's sleeve and squinted up at the dazzling light. â€Å"How?† Jeb smiled, seeming thrilled with my curiosity. â€Å"Same way the magicians do it-with mirrors, kid. Hundreds of 'em. Took me long enough to get them all up there. It's nice to have extra hands around here when they need cleaning. See, there's only four small vents in the ceiling here, and that wasn't enough light for what I had in mind. What do you think of it?† He pulled his shoulders back, proud again. â€Å"Brilliant,† I whispered. â€Å"Astonishing.† Jeb grinned and nodded, enjoying my reaction. â€Å"Let's keep on,† he suggested. â€Å"Got a lot to do today.† He led me to a new tunnel, a wide, naturally shaped tube that ran off from the big cave. This was new territory. My muscles all locked up; I moved forward with stiff legs, unbending knees. Jeb patted my hand but otherwise ignored my nerves. â€Å"This is mostly sleeping quarters and some storage. The tubes are closer to the surface here, so it was easier to get some light.† He pointed up at a bright, slender crack in the tunnel ceiling overhead. It threw a hand-sized spot of white onto the floor. We reached a broad fork-not really a fork, because there were too many tines. It was an octopus-like branching of passageways. â€Å"Third from the left,† he said, and looked at me expectantly. â€Å"Third from the left?† I repeated. â€Å"That's right. Don't forget. It's easy to get lost around here, and that wouldn't be safe for you. Folks'd just as soon stab you as send you in the right direction.† I shuddered. â€Å"Thanks,† I muttered with quiet sarcasm. He laughed as if my answer had delighted him. â€Å"No point in ignoring the truth. Doesn't make it worse to have it said out loud.† It didn't make it better, either, but I didn't say that. I was beginning to enjoy myself just a little. It was so nice to have someone talk to me again. Jeb was, if nothing else, interesting company. â€Å"One, two, three,† he counted off, then he led me down the third hallway from the left. We started passing round entrances covered by a variety of makeshift doors. Some were curtained off with patterned sheets of fabric; others had big pieces of cardboard duct-taped together. One hole had two real doors-one red-painted wood, one gray metal-leaning over the opening. â€Å"Seven,† Jeb counted, and stopped in front of a smallish circle, the tallest point just a few inches higher than my head. This one protected its privacy with a pretty jade green screen-the kind that might divide the space in an elegant living room. There was a pattern of cherry blossoms embroidered across the silk. â€Å"This is the only space I can think of for now. The only one that's fitted up decent for human habitation. It will be empty for a few weeks, and we'll figure something better out for you by the time it's needed again.† He folded the screen aside, and a light that was brighter than that in the hallway greeted us. The room he revealed gave me a strange feeling of vertigo-probably because it was so much taller than it was wide. Standing inside it was like standing in a tower or a silo, not that I had ever been in such places, but those were the comparisons Melanie made. The ceiling, twice as high as the room was wide, was a maze of cracks. Like vines of light, the cracks circled around and almost met. This seemed dangerous to me-unstable. But Jeb showed no fear of cave-ins as he led me farther in. There was a double-sized mattress on the floor, with about a yard of space on three sides of it. The two pillows and two blankets twisted into two separate configurations on either half of the mattress made it look as if this room housed a couple. A thick wooden pole-something like a rake handle-was braced horizontally against the far wall at shoulder height with the ends lodged in two of the Swiss cheese holes in the rock. Over it were draped a handful of T-shirts and two pairs of jeans. A wooden stool was flush with the wall beside the makeshift clothes rack, and on the floor beneath it was a stack of worn paperback books. â€Å"Who?† I said to Jeb, whispering again. This space so obviously belonged to someone that I no longer felt like we were alone. â€Å"Just one of the guys out on the raid. Won't be back for a while. We'll find you something by then.† I didn't like it-not the room, but the idea of staying in it. The presence of the owner was strong despite the simple belongings. No matter who he was, he would not be happy to have me here. He would hate it. Jeb seemed to read my mind-or maybe the expression on my face was clear enough that he didn't have to. â€Å"Now, now,† he said. â€Å"Don't worry about that. This is my house, and this is just one of my many guest rooms. I say who is and isn't my guest. Right now, you are my guest, and I am offering you this room.† I still didn't like it, but I wasn't going to upset Jeb, either. I vowed that I would disturb nothing, if it meant sleeping on the floor. â€Å"Well, let's keep moving. Don't forget: third from the left, seventh in.† â€Å"Green screen,† I added. â€Å"Exactly.† Jeb took me back through the big garden room, around the perimeter to the opposite side, and through the biggest tunnel exit. When we passed the irrigators, they stiffened and turned, afraid to have me behind their backs. This tunnel was well lit, the bright crevices coming at intervals too regular to be natural. â€Å"We go even closer to the surface now. It gets drier, but it gets hotter, too.† I noticed that almost immediately. Instead of being steamed, we were now being baked. The air was less stuffy and stale. I could taste the desert dust. There were more voices ahead. I tried to steel myself against the inevitable reaction. If Jeb insisted on treating me like†¦ like a human, like a welcome guest, I was going to have to get used to this. No reason to let it make me nauseous over and over again. My stomach began an unhappy rolling anyway. â€Å"This way's the kitchen,† Jeb told me. At first I thought we were in another tunnel, one crowded with people. I pressed myself against the wall, trying to keep my distance. The kitchen was a long corridor with a high ceiling, higher than it was wide, like my new quarters. The light was bright and hot. Instead of thin crevices through deep rock, this place had huge open holes. â€Å"Can't cook in the daytime, of course. Smoke, you know. So we mainly use this as the mess hall until nightfall.† All conversation had come to an abrupt halt, so Jeb's words were clear for everyone to hear. I tried to hide behind him, but he kept walking farther in. We'd interrupted breakfast, or maybe it was lunch. The humans-almost twenty at a quick estimate-were very close here. It wasn't like the big cavern. I wanted to keep my eyes on the floor, but I couldn't stop them from flashing around the room. Just in case. I could feel my body tensing to run for it, though where I would run, I didn't know. Against both sides of the hallway, there were long piles of rock. Mostly rough, purple volcanic stone, with some lighter-colored substance-cement?-running between them, creating seams, holding them together. On top of these piles were different stones, browner in color, and flat. They were glued together with the light gray grout as well. The final product was a relatively even surface, like a counter or a table. It was clear that they were used for both. The humans sat on some, leaned on others. I recognized the bread rolls they held suspended between the table and their mouths, frozen with disbelief as they took in Jeb and his one-person tour. Some of them were familiar. Sharon, Maggie, and the doctor were the closest group to me. Melanie's cousin and aunt glared at Jeb furiously-I had an odd conviction that I could have stood on my head and bellowed songs out of Melanie's memory at the top of my lungs and they still would not have looked at me-but the doctor eyed me with a frank and almost friendly curiosity that made me feel cold deep inside my bones. At the back end of the hall-shaped room, I recognized the tall man with ink black hair and my heart stuttered. I'd thought Jared was supposed to take the hostile brothers with him to make Jeb's job of keeping me alive slightly easier. At least it was the younger one, Ian, who had belatedly developed a conscience-not quite as bad as leaving Kyle behind. That consolation did not slow my racing pulse, however. â€Å"Everybody full so quick?† Jeb asked loudly and sarcastically. â€Å"Lost our appetites,† Maggie muttered. â€Å"How 'bout you,† he said, turning to me. â€Å"You hungry?† A quiet groan went through our audience. I shook my head-a small but frantic motion. I didn't even know whether I was hungry, but I knew I couldn't eat in front of this crowd that would gladly have eaten me. â€Å"Well, I am,† Jeb grumbled. He walked down the aisle between the counters, but I did not follow. I couldn't stand the thought of being within easy reach of the rest. I stayed pressed against the wall where I stood. Only Sharon and Maggie watched him go to a big plastic bin on one counter and grab a roll. Everyone else watched me. I was certain that if I moved an inch, they would pounce. I tried not to breathe. â€Å"Well, let's just keep on movin',† Jeb suggested around a mouthful of bread as he ambled back to me. â€Å"Nobody seems able to concentrate on their lunch. Easily distracted, this set.† I was watching the humans for sudden movements, not really seeing their faces after that first moment when I recognized the few I could put names to. So it wasn't until Jamie stood up that I noticed him there. He was a head shorter than the adults beside him, but taller than the two smaller children who perched on the counter on his other side. He hopped lightly off his seat and followed behind Jeb. His expression was tight, compressed, like he was trying to solve a difficult equation in his head. He examined me through narrow eyes as he approached on Jeb's heels. Now I wasn't the only one in the room holding my breath. The others' gazes shifted back and forth between Melanie's brother and me. Oh, Jamie, Melanie thought. She hated the sad, adult expression on his face, and I probably hated it even more. She didn't feel as guilty as I did for putting it there. If only we could take it away. She sighed. It's too late. What could we do to make it better now? I didn't mean the question more than rhetorically, but I found myself searching for an answer, and Melanie searched, too. We found nothing in the brief second we had to consider the matter; there was nothing to be found, I was sure. But we both knew we would be searching again when we were done with this asinine tour and had a chance to think. If we lived that long. â€Å"Whatcha need, kid?† Jeb asked without looking at him. â€Å"Just wondering what you're doing,† Jamie answered, his voice striving for nonchalance and only just failing. Jeb stopped when he got to me and turned to look at Jamie. â€Å"Takin' her for a tour of the place. Just like I do for any newcomer.† There was another low grumble. â€Å"Can I come?† Jamie asked. I saw Sharon shake her head feverishly, her expression outraged. Jeb ignored her. â€Å"Doesn't bother me†¦ if you can mind your manners.† Jamie shrugged. â€Å"No problem.† I had to move then-to knot my fingers together in front of me. I wanted so badly to push Jamie's untidy hair out of his eyes and then leave my arm around his neck. Something that would not go over well, I was sure. â€Å"Let's go,† Jeb said to us both. He took us back out the way we had come. Jeb walked on one side of me, Jamie on the other. Jamie seemed to be trying to stare at the floor, but he kept glancing up at my face-just like I couldn't help glancing down at his. Whenever our eyes met, we looked away again quickly. We were about halfway down the big hall when I heard the quiet footsteps behind us. My reaction was instantaneous and unthinking. I skittered to one side of the tunnel, sweeping Jamie along with one arm so that I was between him and whatever was coming for me. â€Å"Hey!† he protested, but he did not knock my arm away. Jeb was just as quick. The gun twirled out of its strap with blinding speed. Ian and the doctor both raised their hands above their heads. â€Å"We can mind our manners, too,† the doctor said. It was hard to believe that this soft-spoken man with the friendly expression was the resident torturer; he was all the more terrifying to me because his exterior was so benign. A person would be on her guard on a dark and ominous night, a person would be ready. But on a clear, sunny day? How would she know to flee when she couldn't see any place for danger to hide? Jeb squinted at Ian, the barrel of the gun shifting to follow his gaze. â€Å"I don't mean any trouble, Jeb. I'll be just as mannerly as Doc.† â€Å"Fine,† Jeb said curtly, stowing his gun. â€Å"Just don't test me. I haven't shot anybody in a real long time, and I sort of miss the thrill of it.† I gasped. Everyone heard that and turned to see my horrified expression. The doctor was the first one to laugh, but even Jamie joined in briefly. â€Å"It's a joke,† Jamie whispered to me. His hand strayed from his side, almost as if he was reaching for mine, but he quickly shoved it into the pocket of his shorts. I let my arm-still stretched protectively in front of his body-drop, too. â€Å"Well, the day's wasting,† Jeb said, still a little surly. â€Å"You'll all have to keep up, 'cause I'm not waiting on you.† He stalked forward before he was done speaking.

Restructuring Debt Essay

One appreciates the recommendation of providing information on restructuring debt to help the company combat its recent financial troubles. Even though the company is in the process of reorganizing one believes this information will help a company in reporting the restructuring of debt. One will provide information on the requirements of reporting debt on bonds, notes, and capital leases. In performing this one will also provide the journal entries one would need to record to restructure the company’s debt along with a comparison of the debt for the company’s current reporting. One will also provide valuable information on the company’s postemployment benefits. Requirements for Reporting Debt Long-term debts for a company are present obligations that consist of probable future sacrifices of economic benefit, which â€Å"are not payable within a year or within the operating cycle of the company† (Kieso, Weygandt, & Warfield, 2007, p. 672). Generally long-term debt consists of three categories, which are bonds payable, notes payable, and capital leases. In financial reporting one of the most controversial areas is the reporting of long-term debt because this debt impacts the cash flows of a company (Kieso, Weygandt, & Warfield, 2007, p. 691). The reporting requirements of the debt must be both substantive and informative to the investor. Some long-term debt such as bonds, notes, and others may need approval by the board of directors and stockholders before a company acquires the debt. Most long-term debt a company acquires has certain ovenants or restrictions within its agreement. This helps protect both the lender and borrower. A company must disclose the features along with any covenants or restrictions in the agreement of long-term debt in the financial statements or in the notes of the financial statements. This is only if the information provides an investor a more â€Å"complete understanding of the financial position of the company and the results of its operations† (Kieso, Weygandt, & Warfield, 2007, p. 672). Bonds Payable  Bonds basically represent a contract of a promise to pay at a maturity date a sum of money plus a specified rate of periodic interest on the maturity amount. Bonds can be either secured or unsecured. Secured bonds have some pledge of collateral that backs up the bond. An example of this type of bonds is a â€Å"mortgage bond secured by a claim on real estate† (Kieso, Weygandt, & Warfield, 2007, p. 673). Unsecured bonds are bonds that do not have any collateral attach to them. Most bonds carry a specific rate of interest whereas others are sold with an implied interest rate at a discount. One can convert some bonds into other securities. No matter what bond a company acquires the terms and conditions of the bond must be disclosed along with the covenants or restrictions on the bond. A company must also disclose any violation on the covenant or restrictions of the bond. In reporting bonds a company must report the bond at its face value â€Å"of its expected future cash flows, which consists of interest and principal† (Kieso, Weygandt, & Warfield, 2007, p. 675). The company amortizes any discount or premium of a bond over the life of the bond. This basically is reporting the bond at its face value less the unamortized discount or plus the unamortized premium. General Accepted Accounting Principles (GAAP) requires a company to use the effective- interest method in determining the amortization of a discount or premium of a bond. A company reports the portion of the bond that matures within a year (current portion) as a current liability, and the remainder as a long-term liability on the balance sheet. Notes Payable Notes payable are generally an amount of money a company borrows with a romissory note. Long-term notes are similar and different from bonds in some ways. The similarity is notes payable also â€Å"have fixed maturity dates and carry either a stated or implicit interest rate† (Kieso, Weygandt, & Warfield, 2007, p. 685). The difference is notes payable are not easily tradable. A company reports notes payable in a similar fashion as it does bonds. In reporting a note payable a company records the note at its face value of its future interest and principal cash flows. The company amortizes any discount or premium of a note over its life. If a note has no-bearing interest rate the company should report the difference between the face value and the cash received as a discount on the note. This amount one amortizes over the life of the note to interest expense. Capital Leases A company may use capital leases to finance its acquisition of capital assets. In lease financing a company must met the criteria of the Financial Accounting Standards Board (FASB) on capital leases. In this a company must record both a liability, and a related asset on its balance sheet. In reporting capital lease a company reports the lease at its present value of the minimum lease payments. The company allocates these lease payments using the effective interest method to interest expense. This allocation using the effective interest method reduces the lease liability of the company. A company regardless of the type of liability it has must report the interest rate, maturity date, current interest expense, and future interest and principles payments of the liability in its financial statements or notes. A company should also disclose any restrictions or covenants on these liabilities. In disclosing this debt a company should present the debt by major category.

Background to the French Revolution Pre-1789