Washington Mutuals Covered Bonds free essay sample

Wa ashingt Mu ton utuals C Covered Bond ds September of 20 was not a calm time fo the world’s capital mark 008 or s kets. On Sept tember 7 fede erallybacke mortgage loan compani Freddie M and Fann Mae were placed into c ed l ies Mac nie conservatorsh by hip the U. S. governme a move de ent, esigned to sta abilize the em mbattled lenders. On Mond day, Septemb 15, ber global investment bank Lehma Brothers filed for Cha an apter 11 bank kruptcy protection. Broa US ad equity market inde y exes dropped by as much as 5 percent as rumors s d h t spread about potential liqu uidity crises at other majo financial in or nstitutions. A slight marke recovery th following d was attrib et he day buted to rum mors that the Federal Reserve was wo e orking on a ba ailout for the insurance co e ompany Ame erican Intern national Grou (AIG). We will write a custom essay sample on Washington Mutuals Covered Bonds or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 1 up Ea arly on the morning of Sep m ptember 16, W Washington M Mutual’s cove ered bonds tr raded down to 75, from 83. 05 the pre evious day (see Exhibit 1 Washingto Mutual (W 1). on WaMu) was one of the la argest saving and loans in the Unite States. Its covered bon program, i gs ed nd initiated two years earlier just r, before the housing market had begun a precipitous slid consisted of â‚ ¬6 billion in covered b e g d de,bonds outsta anding. Like many large ba m anks, WaMu was now in c considerable d distress. Th situation at WaMu had deteriorated in recent mo he t onths, with th bank repor he rting $6 billion loss n for ye ear-to-date June 2008. By e early Septemb WaMu’s covered bond had dropp by around 13% ber, ds ped d from January, as investors fore i ecast a possib distressed acquisition or seizure o the bank b the ble d of by Feder Deposit Insurance Co ral I orporation (F FDIC). With the chaos of September 15-16, the b f bonds appea ared to have dropped fur rther. Yet, ev ven at these prices, the b bonds were s still at a prem mium  relativ to the bank unsecured debt, which was trading as low as 30 c ve k’s d cents on the d dollar. Co overed bonds were new instruments in the Unite States, hav s ed ving been iss sued by only two y dome estic banks to date (Bank of America and WaMu) Could the low prices o these bonds be o k ). of justifi by the poor fundamen outlook a WaMu? An even if the bonds were cheap, might they ied ntal at nd e t drop f further? Thes questions w se were on the m minds of many analysts stu y udying the situ uation at WaM Mu. Covered Bonds Co overed bonds were fixed i s income obligations issued by a financi institution and secured by a d ial n dpool o mortgages or other asse They diffe of ets. ered from mo ortgage backe securities ( ed (MBS), in whi an ich issuer would pool mortgages, p r pass them thr rough to a sp pecial-purpos vehicle, and then allocate the se d return from that vehicle to inv ns v vestors. In the case of cove e ered bonds, t underlyin mortgages were the ng kept o the balance sheet of the issuer. The m on e mortgages ser rved as collat teral for the covered bonds In a s. standard mortgage e-backed secu urity, the inve estor in the se ecurity had re ecourse only t the mortgag in to ges Professo Daniel B. Bergs ors stresser and Robin Greenwood and R Research Associate J James Quinn prepa ared this case. This case was develop from s ped publishe sources. HBS ca ed ases are developed solely as the basis for class discussio Cases are not in s on. ntended to serve as endorsements, so s ources of primary data, or illustratio of effective or in y ons neffective managem ment. ght nt Harvard College. T order copies or request permission to reproduce mat To n terials, call 1-800-545-7685, Copyrig  © 2009 Presiden and Fellows of H write Ha arvard Business Sc chool Publishing, Booston, MA 02163, o go to www. hbsp or p. harvard. edu/educators. This publica ation may not be digitized, photoco opied, or otherwise reproduced, poste or transmitted, w ed, without the permis ssion of Harvard Bu usiness School. 209-093 Washington Mutuals Covered Bonds the pool; an investor in a covered bond had recourse to the issuer, as well as a claim that was secured by the mortgages. 2 The mortg ages collateralizing the covered bond were called the â€Å"cover pool†. Covered bonds were typically structured so as to receive a rating of AAA or AA from the major rating organizations (AAA denoted instruments of the highest quality). One important difference between covered bonds and MBS was that the set of mortgages securing the covered bond were dynamic; in contrast, mortgages comprising a MBS remained static once the security was issued. In the case of a covered bond, mortgages that experienced delinquencies were generally substituted out of the pool, with performing mortgages replacing them. Just as the individual mortgages in the cover pool were dynamic, the total size of the cover pool was dynamic as well. The amount of overcollateralization (i. e., the extent to which the size of the cover pool would exceed the face value of the covered bonds) would adjust dynamically depending on the financial health of the issuer. Exhibit 6 shows how recently, as WaMu had been downgraded by the major rating agencies, the â€Å"Asset Percentage† used to calculate the sufficiency of the cover pool had been reduced from 86. 6% to 67. 0%. Thus with $7. 78 Billion in bonds outstanding under the covered bond program, the required size of the cover pool for the WaMu covered bonds had risen from roughly $8. 98 Billion (8. 98 x 86. 6% = 7. 78) up to $11. 61 Billion (11.61 x 67. 0% = 7. 78). Covered bond trustees usually relied on the ratings agencies to establish the quality of the underlying collateral. 3 In recent market turmoil, this task had become more difficult. As mortgage default rates increased, the ratings agencies became increasingly conservative in assigning value to mortgage pools, valuing them at substantial discounts to face value. A variety of models could be used to assess the market value of a mortgage pool, all considered measures of asset quality such as the loan-to-value ratio and the credit quality of the borrowers as summarized by their FICO scores. 4 In the event of a collateral downgrade, the trustee would ask the issuer to replenish assets in the pool. The inability or refusal to update assets at the trustee’s request would constitute issuer default. While new in the United States,5 covered bonds were a long-standing part of the housing finance system in Europe, dating back to bonds issued in 1769 in Prussia. In Continental Europe these bonds, called ‘Pfandbriefe’ or (‘Pledge letters’) in the German-speaking countries, amounted to â‚ ¬2. 1 trillion (see Exhibit 2). By 2008, covered bonds were the second largest fixed income market in Europe. 6 Part of the recent growth could be tied to Basel II banking regulations, coming into full effect in 2008. Torsten Althaus, head of the European covered bonds at credit rating agency Standard and Poors, explained: â€Å"With Basel II aligning regulatory with economical capital requirements, there are fewer incentives to use securitization for regulatory arbitrage. [†¦] Consequently, as there are fewer incentives to move assets off-balance-sheet, retaining assets on-balance-sheet allows issuers to fuel further covered bond issuance. †7 Covered bonds were predominately held by European investors and had generally been viewed as being extremely safe. This view derived in part from the high credit quality of the issuers, in part from the high value of the cover pool assets, and in part from the fact that the status of covered bonds in many European countries was enshrined in specific legislation. This gave covered bond investors a high level of confidence that, should an issuer default, they would be able to successfully enforce their legal claim to the assets in the cover pool. The low perceived risk of covered bonds had led many investors to view the bonds as a ‘rates-plus’ product – effectively a yield-enhanced substitute for sovereign debt. 8 2 Washington Mutuals Covered Bonds 209-093 Rating Covered Bonds The three major credit rating agencies all had specific approaches to rating covered bond issues. Broadly speaking, the ratings approaches focused on ‘notching’, or raising, the credit rating of the bond above the credit rating of the issuer in order to reflect the greater protection of the cash flows promised under the covered bond program. Although the methodologies differed by agency, all three implicitly linked the rating of the covered bond sponsor to the rating of the issue. Fitch Rating Methodology:9 Fitch started with credit quality of underlying sponsor. Fitch assumed that bonds had recourse to the underlying issuer, so the credit quality of the issuer would provide a floor for the credit quality of the covered bond. Starting from this floor, the credit rating was then ‘notched’ depending on the ‘discontinuity factor,’ which essentially reflected the bankruptcy remoteness of the assets in the covered pool. To calculate the discontinuity factor, Fitch looked at the strength of the asset segregation mechanism. One important factor was whether the overcollateralization of the covered bonds was kept out of reach of the unsecured creditors until the covered bonds had been fully repaid. In practice, this could be accomplished through the legislative framework under which the bonds were issued, or through protections built into the structure of the bond. In countries like Germany and France, covered bonds were governed by and issued under specific legislation. This legislation governed the structure of the instruments and the treatment of investors and collateral in the event of default. Covered bonds issued in the United States were issued under the general US contractual law environment, rather than any specific legal statute. In the Fitch rating approach, a low discontinuity factor implied complete separation; a high discontinuity factor implied that distress at the sponsor would result in delays or payment problems for the covered bond. In practice, very few covered bonds had a discontinuity factor of zero. Consider for example the case of Coreal Credit, a German Bank with a BBB- default rating, with a set of covered bonds that were 17. 8% overcollateralized by mortgage assets. Fitch calculated a discontinuity factor of 11. 7%, leaving the covered bond with a rating of AA, a notch below the highest rating. Another issue considered by Fitch was the difficulty bonds faced in replacing the swap agreement, which matched the payments on the bonds with the payments from the mortgages. This hedge could be disrupted by a default at the issuer level, and Fitch adjusted the discontinuity factor in line with the likelihood of disruption. These hedges were important because payments under the bonds often failed to match the currency, timing, or interest rate exposure of payments from the underlying mortgage. Moody’s Rating Methodology:10 Moody’s based their credit rating on a â€Å"joint-default analysis. † Moody’s model simulated the performance of the covered bond each month through maturity. The probability of issuer default in each month was based on the issuer credit rating. This probability in each month was multiplied by the relevant loss to give the expected loss to covered bond investors in each month. The resulting number was the expected loss on the covered bond, which was the source of the bond’s rating. The factors affecting the rating were divided into the issuer credit rating, which affected the issuer’s probability of default, the credit quality of the cover pool, the costs likely to be incurred in refinancing the cover pool in the event that the issuer defaulted, and market risks. Market risk was based on the likely impact of interest rate and currency movements during the period after the default, and reflected the possibility of disruptions in the swaps that were in place to hedge those risks. Standard and Poor’s Methodology:11 Standard and Poor’s focused on the probability of timely payment, rather than explicitly on default of the sponsor. Standard and Poor’s identified four 3 209-093 Washington Mutuals Covered Bonds contributors to the covered bond’s rating: (i) the legal framework, (ii) the quality of the collateral, (iii) the cash flows, especially losses due to credit, maturity, and currency mismatches, and payment delays and servicing costs imposed by disruption at the issuer, and (iv) the degree of overcollateralization. While it was possible that the covered bond was delinked from the rating of the issuer, in practice Standard and Poor’s recognized that default scenarios would likely impose significant payment delays, thereby linking the rating of the issuer with that of the issue. Washington Mutual Washington Mutual was the largest savings institution and 6th largest depository finance institution in the United States. Founded in 1889, the bank had survived the Depression and the savings and loans scandals of the 1980s. By late 2006, the bank had amassed assets of $346 billion, with $214 billion in deposits. Exhibits 3a and 3b show select financials. WaMu offered a range of financial services typical to savings and loan institutions, including: home and home equity loans; multi-family and other commercial real estate loans; credit facilities and cash management for small businesses; credit cards, annuities and insurance products; as well as securities and brokerage services. 12 Historically, WaMu had been a regional bank, with retail banking operations in California and the U. S. Northwest. However, starting in the 1990s, the bank undertook a major expansion initiative, led by CEO Kerry Killinger. Part of the expansion occurred through a series of acquisitions. In 1999, for example, WaMu purchased Long Beach Financial, a Californiabased lender specialized in subprime mortgages – loans to borrowers with poor credit. 13 Over the course of a few years, WaMu increased its retail banking network from 412 stores on the West Coast in 1996 to 1,700 locations across the country by 2003. 14 WaMu became known as a particularly aggressive lender, willing to extend loans even to clientswith low incomes or poor credit histories. 15 In 2003, as part of this WaMu’s expansion, the bank introduced an advertising campaign backed by the slogan â€Å"The Power of Yes. † While some of WaMu’s loans were financed by the bank’s large deposit base, the majority were securitized –i. e. , pooled and packaged – and then sold to the secondary market. Sustained by a buoyant housing market, Wamu shareholders collected substantial profits between 2000 and 2004 (see Exhibits 3a and 3b). In 2004, for example, U. S. home prices appreciated by nearly 20 percent. Urban areas in California, Florida, Nevada, and Arizona experienced particularly rapid price appreciation. In an environment of rapid housing price appreciation, a borrower who suffered a decline in household income could avoid default by selling or refinancing the home. As housing prices rose, WaMu expanded its product mix from home loans and home equity loans into lines of credit, subprime mortgages, and other real estate products. WaMu was an early seller of mortgage products known as â€Å"option ARMs,† which were adjustable rate mortgages that offered low initial payments designed to escalate over time. For WaMu, these loans were attractive because they carried high fees, and allowed the bank to state profits for interest payments that borrowers had not paid yet. In 2003, adjustable rate mortgages comprised about a quarter of WaMu’s lending portfolio; by 2006, about 70 percent. 16 Housing prices in most U. S. markets peaked in 2005, as shown in Exhibit 4. As housing prices leveled off in 2006 and began to fall in 2007, (see Exhibit 4), WaMu profits initially remained relatively flat. In 2006, WaMu posted profits of $3. 5 billion on $13. 5 billion in total revenue. Nevertheless, the bank took some precautionary measures, cutting jobs in an effort to contain costs. 17 It was in this environment of cooling home prices that WaMu turned to the covered bond market in late 2006. 4 Washington Mutuals Covered Bonds 209-093 WaMu’s Covered Bond Program WaMu entered the covered bond market in September 2006 with a dual-tranche 4B EUR issue. 18 One tranche followed closely by analysts was a â‚ ¬2 billion 5-year fixed rate issue, maturing on September 27, 2011. The bond paid a coupon of 3. 875 percent and was not callable.  19 At the time the bond was issued, WaMu was the only covered bond issuer outside of Europe. (The remaining covered bonds were issued in May 2007 and matured in 2014). WaMu’s covered bonds were popular with investors – the initial placement of the bonds was four times oversubscribed. 20,21 While it was impossible to tell the exact identities of the current holders of the bonds, it was widely speculated that the Euro-denominated bonds had ended up with European pension funds and banks. The covered bonds initially traded at a yield to maturity of 3. 90%, compared to the yield on a 5-year German government bond of 3.62%. LIBOR, the average dollar denominated interbank rate was 5. 40% and EUROIBOR, the average interbank lending rate denominated in Euros was 3. 06%. The covered bonds were issued by WM Covered Bond Program (WMCB), a statutory trust organized in the State of Delaware. The covered bonds were secured by a series of mortgage bonds issued by WaMu Bank and purchased by WMCB, who sold the bonds via a placement agent to institutional investors. The mortgage bonds, in turn, were secured by a pool of residential mortgage loans owned and serviced by WaMu Bank. The covered bonds could also be secured by â€Å"substitution assets† pledged by WaMu Bank. 22 Exhibit 5 summarizes the structure of Washington Mutual’s covered bond program. Under the terms of the covered bond program, each series of mortgage bonds was held as collateral for a separate series of covered bonds, and would secure only that series of covered bonds. However, if Washington Mutual Bank were to default on any of its mortgage bond obligations, each series of the covered bonds would share pro rata in any proceeds from the cover pool. As holder of the mortgage bonds, WMCB was required to use the proceeds to pay interest and principal on the related series of covered bonds. However, as the covered bonds were denominated in Euros, WMCB first had to swap the dollar proceeds from the mortgage bonds into Euros. The swap program, typical of covered bond programs, was used to manage timing and currency mismatches between payments to the covered bond holders and payments from the underlying portfolio of mortgages. The asset monitor of the cover pool periodically applied an â€Å"asset coverage test† to check that the mortgages in the pool would be sufficient to pay the interest and principal on the covered bonds. A breach of the asset coverage test would constitute default for WaMu Bank, which would then allow the monitor (who also, in this case, acted as a trustee) to enforce its interest over the cover pool. Provided that WaMu Bank preserved investment grade status, the asset coverage test would be performed annually or anytime that a substitution was made in the cover pool. But, as WaMu Bank had recently been downgraded, the program required that the asset coverage test be performed monthly. The Asset coverage test: If on any â€Å"determination date†23 the adjusted aggregate loan amount was less than the aggregate principal amount of all outstanding mortgage bonds, then WaMu Bank was required to add additional eligible mortgage loans. The adjusted aggregate loan amount was the lower of (a) the sum of the Loan-to-Value current balance of each mortgage loan in the cover pool, which was itself the lower of (i) the unpaid principal balance and (ii) the indexed valuation of the loan multiplied by 0.75; and (b) AP times the sum of the â€Å"adjusted current balance† of mortgage loans in the cover pool, which itself was the lower of (i) the unpaid principal balance of the respective 5 209-093 Washington Mutuals Covered Bonds loan, and (ii) the index value of the mortgage loan. Indexed valuations were based on regional housing indices. 24 AP deno ted the â€Å"asset percentage,† usually 93 percent, although this figure could be revised downwards if the ratings agencies felt that expected loss rates on the underlying mortgages could be higher. The expected losses would be based on Standard and Poor’s or Fitch, two of the three ratings agencies. Some analysts felt that the ratings agencies had been increasingly cautious in recent months, revising upwards loss rates on mortgage backed loans. As shown in Exhibit 6, the asset percentage had been lowered to 67 percent. Under the terms of the covered bond program, WaMu Bank was not allowed to merge or consolidate with any other persons or entity, or to change its bank holding company status, unless the new entity acquired all assets of the issuer and agreed to the punctual payment of principal and interest on the mortgages bonds. Distress at WaMu WaMu’s 2007 first-quarter profit, reported in April, showed a roughly 20% decline relative to Q1 2006. At the time, the U. S. economy was approaching a sharp decline in housing starts and sales, and the business press warned against an inevitable run of foreclosures. CEO Kerry Killinger spoke publicly of â€Å"unprecedented deterioration† in the subprime-mortgage market. Inventories of unsold homes were reaching their highest levels in eighteen years, with the supply of single-family homes on the market, which had averaged six months historically, reaching 10 months nationally. In California, the supply of single-family homes in inventory stood at 15 months. By December 2007, WaMu’s stock price reached a low of $13. 07,25 as the bank cut its dividend by 73%. 26 Throughout banking and financial services, evidence pointed to sector-wide failure: In February, leading London bank HSBC, whose American mortgage unit HSBC Finance had originated the majority of U. S. subprime mortgages, announced $11 billion in write-downs to offset anticipated losses related to failed loans. 27 In March, Bear Stearns shut down two of its hedge funds, in the midst of large losses.

Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essays

Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essays Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essay Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essay In investigating to what extent local, national and European economies impact on two contrasting organisations within the UK, Vauxhall Motors and JD Wetherspoon provide a interesting and informative perspective to base this on. An organisation has traditionally been defined as a group of people with a common purpose. According to this view, the organisation is a distinct entity separate from its environment. This means that if the organisations environment changes the organisations has to adapt. So in looking at economics, which is essentially an organisations environment, you need to understand what exactly economics are. The fact is economics affect our daily lives. Continually we are being made aware of local, national and international economic problems, and continually we are faced with economic problems and decisions of our own. Basically economics is essentially about money. This is measured by how much money people are paid, how much they spend, what it is costs to buy various items, how much moneys firms earn and how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. There are many areas such as the production and consumption of goods, demand and supply, which affect organisations. With this is mine two UK companies which have been affected heavily in recent years buy local, national and European Economies are Vauxhall Motors and JD Wetherspoon. They have been affected in very different ways and this report will try and demonstrate the ways in which these companies have been affected. Vauxhall Motors Firstly Vauxhall Motors is one of the longest established motor manufacturers in the world, and part of the worlds largest corporation General Motors. Founded in 1903 the company now employs 7,000 people directly, and supports an estimated 30,000 further jobs in the UK. It is estimated that approximately 100,000 people are employed throughout the entire supply chain to support Vauxhalls presence in the UK from raw material suppliers to dealership staff. One major manufacturing facility, UK parts warehouse and headquarters are located in the Luton area. The second major manufacturing facility where the Astra is produced was opened in Ellesmere Port in 1963, and in 1992 a major engine facility was added, exporting V6 engines and components throughout the world. Latest Position During 2001 car production continued at both the UK sites. As part of Europe-wide restructuring to stem losses and return GMs European operations to profitability, 2000 ended with the difficult announcement that car production at the Luton plant would cease in 2002. Throughout the year the manufacturing plant developed and implemented a strategy for a dignified end of production, scheduled for the end of March 2002. For a look at its current position please see appendix A. On the same site is Vauxhall Powertrain, which produces V6 engines for GM-Fiat Powertrain customers around the world. With increased sales volumes in 2001 the company became the leading supplier of UK-produced vehicles to the domestic market, and Vauxhall also boasts the widest range of UK-manufactured cars and vans, including Astra, Astravan Frontera, Vectra and Vivaro. Vauxhalls average total employment for the year was 8,362, excluding some 500 staff transferred to GM Fiat powertrain and purchasing joint ventures during 2001. With the plant at Ellesmere Port, Vauxhall is the largest private employer in Cheshire. Also for employees, Vauxhall have enhanced Family Friendly policies, offering a new industry-leading maternity and paternity benefit programme. Retail operations are provided by 507 franchised retailers throughout the UK. From looking at Vauxhall current position you can see its main aim to get back to profitability. (See appendix B) JD Wetherspoon JD Wetherspoon on the other hand is a fairly new company and has an organic growth in process. A 24-year-old law student named Tim Martin acquired his first ever pub in North London in December 1979, but he could never have envisaged how popular his style of operation was to prove. He is said to have been spurred on by the lack of good quality pubs in the area where he was living, he decided to take action by purchasing the outlet he drank in, which he named Wetherspoons. His first pub offered a good range of cask-conditioned beers in a music-free environment. Twenty years on, the range of beers and the absence of any music, form the twin cornerstones of the companys pubs, together with their all-day food and non-smoking areas. In the formative years of the company, Wetherspoon pubs were all located in North London. But, as the company grew, it began to open pubs across London and in the Home Counties. Following its successful Stock Market floatation in 1992, Wetherspoon began to expand rapidly. In 1994 it opened its first pub in the Midlands, The Square Peg in Birmingham, followed by others in major cities, including Bristol, Liverpool and Manchester. (See appendix C) Latest Position There are now more than 435 Wetherspoon outlets throughout the UK. The company aims to continue opening new pubs for the foreseeable future. Wetherspoon Chairman Tim Martin said: in the past 20 years Wetherspoon has grown from a single pub to a national company. However our commitment to comfortable, music-free pubs offering excellent beer, all-day food and first-class service has remained consistent, regardless of the size of the company. Wetherspoon is set to open approximately 80 new Pubs and Lloyds No.1 bars during the next 12 months as it builds on a record-breaking year. In the financial year ended July 28 2002, the companys turnover and pre-tax profits were at their highest levels ever. A total of 87 outlets opened across the UK in the year, including unprecedented numbers of Lloyds bars and Wetherspoon Lodges. (Please see appendix D) Types of Organisations There are many ways of classifying organisations: large, medium or small; local, national or international; primary, secondary or tertiary. However for the purpose of this report the best way to define them is either private, public, charitable and voluntary. Both Vauxhall Motors and JD Wetherspoon are Private organisations. Vauxhall is a larger company than JD Wetherspoon. Vauxhall has international links where JD Wetherspoon is UK based. Essentially both companies provide a service to its customers and would be considered large companies. The service they provide is very different and they dont have any link, or hopefully they shouldnt. The main thing to remember between the two from there latest positions are one is in decline (Vauxhall Motors) and the other is growing rapidly (JD Wetherspoon). Organisations Purpose, Aims and Objectives Organisations need to have aims and objectives to be able to focus on the clear direction needed for success in the modern business world. The aim is the overarching goal for the organisation, which can be broken down into a subset of objectives to achieve the aim. Business organisations aims usually relate to profit, market share, return on capital employed, sales, growth, levels of service and customer/user perception. In the case of both Vauxhall Motors and JD Wetherspoon this is no different. Vauxhall Motors In 2000 reported that the main economic challenge for Vauxhall was returning to profitability. Although economic performance in 2001 went some way to reversing the losses witnessed in 2000, a return to profitability remains the overriding economic challenge for the company. Following the launch of a record four new products in 2000, a further four new vehicles were launched in 2001 (Vivaro, Combo, Corsavan and Astra convertible) assisting sales through the year, and with the launch of New Vectra in 2002 and extensive cost saving and revenue building programmes in place, Vauxhall aims to break even in 2002 and return to sustained profitability in 2003. So using initiative and new ideas is an objective of Vauxhall to get back to profitability. But essential Vauxhall have much the same objectives as of any other company. JD Wetherspoon The organisation owns and operates pubs throughout the UK. Without the gimmies of profit, market share etc. The company aims to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices (See appendix E). The pubs are individually designed and excellently maintained. This has been an underpinning aim of JD Wetherspoon as they look to such areas of customer loyalty as a method of increasing profits. Some companies, especially pubs, have not had this in mine and there is not enough emphasis on customer service. JD Wetherspoon is said to be always committed to quality, choice and value. JD Wetherspoon has taken a simple idea that people go to pubs for good beer, food and service, in a clean and friendly environment and turned it into a major success story; one which is growing by two new openings each week. JD Wetherspoon is said to give as much back to our people as possible and have one of the best benefits packages in the business. The other major aim is to continue its rapid growth this is proving the country with jobs. Essential Vauxhall are trying to claw its way back where as JD Wetherspoon is onwards and upwards with its aims and objectives. Responsibilities Organisations have a range of responsibilities to their stakeholders. Both these organisations have many responsibilities. Social During 2001 Vauxhall developed an umbrella social policy, which summarises a number of existing policies into a single document. The aim of the policy is to communicate better with employees and the wider public on key issues to Vauxhall, including health and safety, human rights, equal opportunities, community involvement and supplier conduct. A look at the Vauxhalls social highlight and challenge can be seen in appendices F and G. Environmental Responsibility for environmental issues is delegated throughout the company, from the Managing Director, who is the main board environmental champion, to the shop floor. Corporate issues are discussed and agreed by the Environmental Issues Team, which comprises individuals with environmental responsibilities from various parts of the company. So essentially Vauxhall are meeting their responsibilities in designing schemes and methods to measure this. Vauxhall have also won many awards in this area (See appendix H).A look at the Vauxhalls environmental challenge can be seen in appendix I. JD Wetherspoon has more social responsibilities due to the area of the pub business. This is in the sense of the area of alcohol, which is not socially responsible in the first place. JD Wetherspoon is meeting its responsibilities by been profitable and providing excellent quality of service.

Everything You Need to Know About Anti-Vaxxers

Everything You Need to Know About Anti-Vaxxers Per the CDC, during January 2015, there were 102 reported cases of measles across 14 states; most linked to an outbreak at Disney Land in Anaheim, California. In 2014, a record 644 cases were reported across 27 states- the highest number since measles was considered eliminated in 2000. The majority of these cases were reported among unvaccinated individuals, with more than half  located in an Amish community in Ohio. According to the  CDC, this resulted in a dramatic 340 percent increase in measles cases between 2013 and 2014. Despite the fact that ample scientific research has disproven the falsely asserted connection between Autism and vaccinations, increasing numbers of parents are choosing to not vaccinate their children for a number of preventable and potentially fatal diseases, including measles, polio, meningitis, and whooping cough. So, who are the anti-vaxxers? And, what motivates their behavior? Pew Research Center found in a recent study of the difference between scientists and the publics views on key issues that just 68 percent of U.S. adults believe that childhood vaccinations should be required by law. Digging deeper into this data, Pew released another report in 2015 that sheds more light on views on vaccinations. Given all the media attention to the purported wealthy nature of anti-vaxxers, what they found might surprise you. Their survey revealed that the only key variable that significantly shapes whether one believes vaccinations should be required or be the decision of parents is age. Young adults are much more likely to believe that parents should have the right to choose, with 41 percent of those 18-29 years old claiming this, compared with 30 percent of the overall adult population.  They found no significant effect of class,  race, gender, education, or parental status. However, Pews findings are limited to views on vaccines. When we examine practices- who is vaccinating their children versus who is not- very clear economic, educational, and cultural trends emerge. Anti-Vaxxers Are Predominantly Wealthy and White Several studies have found that recent outbreaks among unvaccinated populations have been clustered among upper and middle-income populations. A study published in 2010 in  Pediatrics  that examined a 2008 measles outbreak in San Diego, CA found that  reluctance to vaccinate ... was associated with health beliefs, particularly among well-educated, upper- and middle-income segments of the population, similar to those seen in measles outbreak patterns elsewhere in 2008 [emphasis added]. An older study, published in Pediatrics  in 2004, found similar trends, but in addition, tracked race. The researchers found,  Unvaccinated children tended to be white, to have a mother who was married and had a college degree, [and] to live in a household with an annual income exceeding 75,000 dollars. Writing in  Los Angeles Times, Dr. Nina Shapiro,  Director of Pediatric Ear, Nose, and Throat at the Mattel Childrens Hospital UCLA, used data from Los Angeles to reiterate this socio-economic trend. She noted that in Malibu, one of the citys wealthier areas, one elementary school reported that just 58 percent of kindergartners were vaccinated, as compared to 90 percent of all kindergartners across the state. Similar rates were found at other schools in wealthy areas, and some private schools had just 20 percent of kindergartners vaccinated.  Other unvaccinated clusters have been identified in wealthy enclaves including Ashland, OR and Boulder, CO. Anti-Vaxxers Trust in Social Networks, Not Medical Professionals So, why is this predominantly wealthy, white minority choosing to not vaccinate their children, thereby putting at risk those who are under-vaccinated due to economic inequality and legitimate health risks? A 2011 study published in  Archives of Pediatrics Adolescent Medicine  found that parents who chose to not vaccinate did not believe vaccines to be safe and effective, did not believe their children at risk of the disease in question, and had little trust in the government and medical establishment on this issue. The 2004 study cited above found similar results. Importantly, a 2005 study found that social networks exerted the strongest influence in the decision to not vaccinate. Having anti-vaxxers in ones social network makes a parent significantly less likely to vaccinate their children. This means that as much as non-vaccination is an economic and racial trend, it is also a cultural  trend, reinforced through the shared values, beliefs, norms, and expectations common to ones social network. Sociologically speaking, this collection of evidence points to a very particular habitus, as elaborated by late French sociologist Pierre Bourdieu. This term refers, in essence, to ones disposition, values, and beliefs, which act as forces that shape ones behavior. It is the totality of ones experience in the world, and ones access to material and cultural resources, that determines ones habitus, and so cultural capital plays a significant role in shaping it. The Costs of Race and Class Privilege These studies reveal that anti-vaxxers have very particular forms of cultural capital, as they are mostly highly educated, with mid- to upper-level incomes. It is quite possible that for anti-vaxxers, a confluence of educational, economic, and racial privilege  produces the belief that one knows better than the scientific and medical communities at large, and a blindness to the negative implications that ones actions may have on others. Unfortunately, the costs to society and to those without economic security are potentially quite great. Per the studies cited above, those opting out of vaccines for their children put at risk those who are unvaccinated due to limited access to material resources and health care- a population composed primarily of children living in poverty, many of whom are racial minorities. This means that wealthy, white, highly educated anti-vaccination parents are mostly putting at risk the health of poor, unvaccinated children. Viewed this way, the anti-vaxxer issue looks a lot like arrogant privilege running rogue over the structurally oppressed. In the wake of the 2015 California measles outbreak, the American Academy of Pediatrics released a statement urging vaccination and reminding parents of the very serious and potentially fatal outcomes of contracting preventable diseases like measles. Readers interested in learning more about the social and cultural trends behind anti-vaccination should look to  The Panic Virus  by Seth Mnookin.

Simple Network Management Protocol Essay Example | Topics and Well Written Essays - 500 words

Simple Network Management Protocol - Essay Example For instance, network operating on SNMP will be associated with three components i.e. managed devices, agents and network management system (NMS). A managed device can be any node configured with SNMP within the network. The primary task of these managed devices is to perform information management in order to publish the information on the NMS (Protocols guide: TCP/IP protocols: Application layer protocols: SNMP: Simple network management protocol. 2007). Example of managed devices includes routers, hubs, switches etc. Moreover, an agent is considered as an application that is installed in a managed device. In addition, an agent also translates information that will be compatible with SNMP. Furthermore, NMS publish information related to performance, power and any conflict that may occur between these managed devices on the network. Currently, there are three versions of SNMP, these versions share some commands and features that are described in the below table (Protocols guide: TCP /IP protocols: Application layer protocols: SNMP: Simple network management protocol. 2007): Management information base (MIB) is a component of SNMP that assist network engineers and managers to monitor the network functionality via interfaces. For instance, if an organization is developing a new application that will be administered remotely, the developer will integrate a MIB within the application. The MIB will illustrate information and variables for generating alerts (SNMP overview, n.d). Moreover, RFC1213-MIB is also referred as MIB 2, it is compatible with all SNMP agents that may operate on TCP/IP supported devices. The MIB-2 management group is essential, as SNMP supported devices must support MIB-2, in order to work adequately (A closer look at MIB-II (essential SNMP, n.d)). The MIB file hosts a sketch that is associated with the object hierarchy on the network device along with ID of the object i.e. OID, permissions and syntax for every single variable.  

To design, conduct and report on a marketing research project of your Essay

To design, conduct and report on a marketing research project of your choice - Essay Example This paper seeks to find out what magic formula Red Bull has, making its competitors trail in its wake as well as the approach taken by Euroshopper to brand awareness. Apart from answering the two questions, this paper shall also seek to compare the above two products based on; taste, price, energy difference and their core markets. Red Bull is synonymous with the energy drink market. It is encountered in action sport. From the Red Bull air race, to the Red Bull cliff diving championship and even the Red Bull formula 1 team. It is keen to live up to its reputation as a drink that ‘gives you Wings’. As a result, brand awareness of Red Bull is vast among its fans (Jonny n.d). The taste of Red Bull is distinct from those of other products in the energy drink market. The same way Coca Cola is distinguishable from all other ‘Colas’ in the soft drinks market. On the other hand, the taste of Euroshopper has variously been referred to as ‘bitter’ and ‘not smooth’. This scenario calls for blind folding. Blind fold testing has been dismissed by critics as belonging to the ‘blind consumer,’ but its continued usage reliability can not be ignored. It is partly down to this distinct taste that Red Bull has kept its hold of the market (Mintel Press Release, 2011 ). The way both companies approach pricing leaves a lot to be desired. Red Bull charges a premium price for its product. Its high prices are necessitated by brand association. On the contrary, Euro shopper charges much lower prices for its product, precisely a third of what an equivalent amount of Red Bull costs. This is also a reasonable step since customers are never ready to pay expensively for a new product which they are not familiar with. Red Bull is better value for money, in terms of the energy levels that its products guarantee. Euroshopper is not far behind, but still the deficit is palpable when compared to its

Digital Forensic Computers Forensic Forensic Models Information Technology Essay

Digital Forensic Computers Forensic Forensic Models Information Technology Essay Today the increasing number of computer and electronics components has demanded the use of Digital forensic showing that the digital forensics can be implemented in specialized fields of law enforcement, computer security, and national defense. In the information technology period, information stored in the devices are digital as mostly the institution or organization use computer storage media as compare to paper used by writers, scholars, scientists, musicians, and public figures. This gives new challenges to these concern persons related to accessing and preserving information, data recovery and maintaining trust. In this article, review of the currently available investigation processes, methodologies, different tools used by forensics experts and finally a conclusion will be done. Keywords Digital Forensic, Computer Forensic, Forensic Models, Computer Forensic Investigation, Digital Forensic Methods, Forensic Techniques, Forensic Tools Introduction Digital forensics is the branch of forensic involving the recovery and investigation of material found in digital devices due to incident of computer crime occurrence. Digital forensic is a synonym for the computer forensic in early start but today it includes other area of investigation like computer, database, and network, mobile which are capable of storing digital data. Due to much advancement in various types of technology devices, media, digital forensics has defined the sub branches according to the investigation required. One of the digital forensics branches are Computer forensics, Mobile device forensics, Network forensics, Forensic data analysis and Database forensics. Computer forensics involves the examination of the digital media stored in the computers for investigation purpose, mobile forensic is recovery of digital evidence from a mobile device, network forensic is the getting evidence related to network traffic, information gathering or evidence collection of intrusion detection, forensic data analysis is investigate the pattern of fraudulent action using structure data while the final one is database forensic is the study of databases and their metadata including the its contents, log files and in-RAM data investigation. When the computer forensic is in consideration usually three different sets of people from Law Enforcement agencies, Military, Business Industry are involved with the intention of tracking down attackers/hackers and criminals who attack the security of systems and use computers for unauthorized activities. Computer Forensic address the issues of National and Information Security, Corporate Espionage, White Collar Crime, Child Pornography, Traditional Crime, Incident Response, Employee Monitoring, Privacy Issues. In the following this paper start with investigation phases, methods and techniques and tools how this information helps the novice in the computer, network, mobile and database forensic. Forensic Methodologies à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Phases of Computer Forensic Before discussing the forensic methodologies one should be familiar with the few terms of forensic terms. One of them is forensic evidence. A brief overview of evidence, categorization, rules, standard guide, and its basic principles in order to ensure the chain of custody will be outlined. Evidence is any item or information gathered at the scene of a crime, or at related locations, which is found to be relevant to an investigation. There are many different types of evidence, from DNA and tire marks, to bloodstains and fingerprints Evidence should be Admissible, Authentic, Complete, Reliable and Believable. Evidence chain of custody protects its integrity. It can be categorized as primary (best type evidence using documentation), secondary (Oral or eye witness), direct, conclusive, circumstantial, corroborative and opinion evidence. There are guides available for Computer Based Evidence e.g. By Association of Chief Police Officers. During evidence collection following principle should be strictly followed by investigator There should be no change of data on a computer or other media taken Person should be competent while accessing original data held on a target computer Audit trail or other record of all processes applied to computer-based evidence should be created and preserved. He will ensure the law and principles of possession and access to information contained in a computer. So many forensic investigation processes have been developed till now. The objective in this paper is to make the forensic investigation process or model with common phases of forensic to perform the intended investigation as compared to others model. Few models that exist are mentioned below. Computer Forensic Investigative Process (1984) Abstract Digital Forensics Model (ADFM) (2002) Enhanced Digital Investigation Process Model (EDIP) (2004) Computer Forensics Field Triage Process Model (CFFTPM) (2006) Scientific Crime Scene Investigation Model (2001) Common Process Model for Incident and Computer Forensics (2007) Network Forensic Generic Process Model (2010) Here is the generic investigation process namely the Generic Computer Forensic Investigation Model (GCFIM) proposed in this article that share the common phases with previously developed models. Figure below, demonstrate the proposed GCFIM. Model (GCFIM).JPG Pre Process is the first phase of Generic Computer Forensic Investigation Model. In this phase the tasks are linked to other tasks that required to be completed before the investigating and collecting the official data. These tasks are having the required approval from concern authority, preparing and setting up of the tools to be utilized, etc. Acquisition and Preservation is the second phase of Generic Computer Forensic Investigation Model. In this phase tasks performed related to the acquiring and collecting evidence in acceptable manner in which concern data is together base on the accepted methods utilizing a variety of recovery techniques, then the task is identifying the digital components from the acquired evidence, and finally in this phase the tasks are transporting, storing and preserving of data such as creating a good quality case management and ensuring an acceptable chain of custody. Overall, this phase is where all concern data are captured, stored and presented for the next phase. Analysis is the third phase of Generic Computer Forensic Investigation Model. This is the core and the heart of the forensic investigation process. It has the largest part of phases including the tasks such as evidence tracing and validation, recovery of hidden or encrypted data, data mining, and timeline etc. Different types of analysis are performed on the acquired data using the appropriate tools and techniques to recognize the source of crime and eventually discovering the person accountable of the crime. Presentation is the fourth phase of Generic Computer Forensic Investigation Model. The finding from analysis phase are documented and presented to the authority with expert testimony. The documentation presented also includes the adequate and acceptable evidence in order to understand by the concern party easily. The final outcome from this phase is either to prove or disprove the alleged criminal acts. Post-Process is the last phase of Generic Computer Forensic Investigation Model. This phase concerns only the appropriate finishing of the investigation work. Digital and physical evidence should be appropriately handed over to the authorize owner and kept in secure place, if required. Finally but not the last, if there is a need to review the investigative process in each phase it should be done for the perfection of the future investigations. Challenges during Forensic Investigation There are some technical, legal, resource as well as general and specific challenges during the investigators face. Technical challenges are faced in finding the criminals over the internet; legal challenges are the result of not competitive with the currently technology, social environment and structure while the challenges in resources that the support should be available in all levels. The challenges that are faced during computer forensic in general and specific are the tools or techniques limitation from the private sector, no standard definition and agreements of computer crime, no proper background availability to perform testing, huge number of Operating System platforms and file formats due to which unavailability of experts with true titles. Other than these challenges during investigation it may take large space of memory from Gigabytes to Terabytes or even may require the storage area network. For computer forensic expert it is also challenging to have the expertise in RA ID level, embedded system along with Network and Grid computing. Forensic Tools Now in the following few of the forensic tools in the domain of computer, network, mobile, database and some others are briefly described. Reason for Using Computer Forensics Tools There are multiple reasons for choosing the computer forensics tools like systems utilized by the defendants and litigants, to recover the lost data in case of hardware or software malfunction, to investigate about the computer usage in case of employee termination or when the system is attacked by an intruder. To investigate computer crimes different computer forensic tools like disk imaging software for the file structure and hard disk content can be used, for comparing the data between original and copy Hashing tools can be used which assigns unique number for violation verification and for recovery the lost data or deleted data recovery programs can be used. Similarly software and hardware write tools can be used to reconstruct the hard drive bit by bit as these tools generate the copy of hard disk. Encase is well know commercial tool that can perform various tasks like disk imaging and verification and analysis of data while PC Inspector File Recovery is a free tool helps in revealing and recovering the contents stored in any type of storage media that is connected with the computer even if the content is deleted. Network forensics Network forensics deals with the capture, recording or analysis of network events in order to discover evidential information about the source of security attacks in a court of law. There is a tool known as eMailTrackerPro that can track down the sender message by detecting the IP address in the header. If there is a need to view all information like IP address, country information or domain information SmartWhoIs can be used as free available network utility. To perform the web forensic famously known tool Mandiant Web Historian can help forensic examiner to verify how the intruders looked into the different sites by reviewing the history files of web site. Other tool Index.dat can be used to view the browsing history, the cookies and the cache as it gives the critical information about a cookie like its key-value pair, the website address associated with the cookie, the date/time the cookie was first created and last accessed and etc. Ethereal is network packet analyzer, WinPcap is the packet capture tool used to capture the packets and AirPcap is the packet capture tool for the IEEE 802.11b/g Wireless LAN interfaces. Mobile Forensics Mobile forensics as the name implies is to investigate data from mobile device for evidence purpose regardless of the mobile system of GSM / GPRS / WIFI technology. Investigator concentrate on either call data or SMS/Email data with the help of different commercial, non commercial, open source, command line or physical mobile forensic tools. The forensics process for mobile devices differ in these three main categories: seizure, acquisition, and examination/analysis while other aspects of the computer forensic process still apply. Some Commercial Forensic Tools include AccessDatas MPE+, FINALMobile Forensics by FINALDATA, Oxygen Forensic Suite, while Open source tools include iPhone Analyzer, the Mobile Internal Acquisition Tool, and TULP2G plug-ins. Performing mobile forensic using command line System commands, AT modem commands and Unix command dd can be used. Database Forensic Tools used for database forensic are ACL, Idea and Arbutus as it is the forensic study of databases and their metadata. These tools record action in the documented form about the forensic expert on the database as he uses database contents, log files and in-RAM data. Still there is need to do research in this field to perform database forensic that demands skill experts. Conclusion The information provided in this article helps the reader with basic understanding of digital forensic and its branches with the aim to do further research in specific area of this field. Different Forensic methodologies are outlined in order to give the choice to forensic expert to choose this methodology or design his own process model. Further the different tools especially the open source one can enhance the forensic expert skills. Today the technology is advancing very rapidly and developing skills in multiple areas enhances the professional career and money value of the individual.

Oklahoma Bombing Speech Analysis

One of the top 100 speeches of all time was said by Bill Clinton, when he was addressing the memorial of the Oklahoma Bombing. This was said In 1995 when tragedy struck the lives of hundreds. Innocent women, men, and children were murdered for no apparent reason, and people needed someone to turn to. This person was Bill Clinton, he responded In ways of composure and emotion that just added to his already powerful speech; he addressed the Issues the correct way. He was given the almost Impossible task to piece the nation back together after this ragged.HIS goal was to mourn with the audience, but not to dwell on It, he wanted to try and help them to move on. HIS use of pathos, logos, and ethos added to the effectiveness of the speech. He began his speech by addressing the ones that were most effected, and then by addressing the rest of the world. He establishes himself and his credibility by not only being the president, but also being a father, a husband, a person. When he says â₠¬Å"Hillary and I also come as parents, as husband and wife, as people who were your neighbors for some of the best years of our lives.This builds his pathos and ethos and allows the audience to connect with him on a more personal, deeper level, knowing that he is just like the rest of them, that they share a common ground. This allows Clinton to talk to them, not above them. Immediately after this he uses the emotions of the audience to his advantage, through the use of pathos. He grieves and mourns with the audience; this is shown when he says â€Å"You have lost too much, but you have not lost everything,† everything being America. Clinton uses a quotation from a widowed mother that only helped the rhetorical sense of the speech.He quotes her by saying, â€Å"The anger you feel is valid, but you must not allow yourselves to be consumed by it. The hurt you feel must not be allowed to turn into hate, but instead into the search for Justice. † These words are powerful a s is, but the fact that they were spoken by someone who has experienced what they are going through cause the words to mean so much more. They listen to her words more the Clinton in my opinion, because she has been In their shoes. Another use of quotations Is when he quotes Mr†¦ Keating â€Å"If anybody thinks that Americans are mostly mean and selfish, they ought to come to Oklahoma.If anybody thinks Americans have lost the capacity for love and caring and courage, they ought to come to Oklahoma†. This helps the audience feel closer to the situation, they may grieve together, but they will also fight together, for Justice. He also fortifies his speech by the use of parallel structure and repetition In order to add to the aspect of persuasion. His use of repetition is seen when he says â€Å"We mourn.. We share†¦ We thank.. We pledge. † The use of we signifies that Clinton, as the president and as a friend will mourn with them. It means that in these times o re than ever we must come together as a nation.He uses repetition and parallel inspirational kind of tone to it, because of this the audience feels the need to stand up to evil and hatred, because good trumps evil any day. Another time we see this is through the â€Å"Who worked† sequence. This plays to the emotion of the audience and puts what has occurred into a reality. Lastly when he talks about planting the tree in honor of the children, this makes the audience believe and understand that he does care. Bill Clinton brought the nation together, and helped them move on when it was thought impossible.