The Scarlet Letter The Use Of Hester free essay sample

The Scarlet Letter: The Use Of Hester Essay, Research Paper In The Scarlet Letter, Nathaniel Hawthorne makes Hester Prynne the cardinal figure in the narrative much like Susanna Rowson does with Charlotte in Charlotte Temple. The secret plans of the books are centered on these adult females ; the plot lines on occasion move elsewhere to inform the reader of the occurrences of other characters, but ever returns to their several female supporter. The writers? usage of their prima ladies differs when supplying a subject, however.Susanna Rowson uses Charlotte Temple as an illustration for the reader. By taking the reader on a journey through Charlotte? s life of ageless wretchedness, Rowson? s storyteller is able to indicate out where Charlotte makes hapless determinations. With the reader now cognizant of the misdirected picks of Charlotte, the storyteller warns the reader that any immature miss could stop up in the same type of quandary. We will write a custom essay sample on The Scarlet Letter The Use Of Hester or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page She so teaches the immature female reader how she should respond in a similar state of affairs and the? sober matron? reader how to forestall such a quandary from go oning to her girl. In drumhead, Charlotte Temple? s actions are used to straight learn the subject as Rowson wishes.Nathaniel Hawthorne uses his chief character in a wholly different manner. It is common for a reader of The Scarlet Letter to find that the subject of the narrative is that criminal conversation is bad, but that is non the instance. Hawthorne is non promoting criminal conversation ; that is true: As Darrel Abel provinces in his essay, ? Hawthorne? s Hester, ? ? Although we are expected to love and commiseration Hester, we are non invited to excuse her mistake or to interpret it as a virtuousness. ? 1 Hester Prynne and her lecherous wickedness are Hawthorne? s means of conveying a different message ; Hawthorne is more interested in bring outing the defects of puritan society and the lip service of their rea ctions to Hester. The character of Hester Prynne is created as to work these defects indirectly.The Puritan civilization is one that recognizes Protestantism, a religious order of Christianity. Though a basic of Christianity is forgiveness for one? s wickednesss, this has long been forgotten amongst the adult females of Boston: ? Morally, every bit good as materially, there was a coarser fiber in those married womans and maidens of old English birth and genteelness, than in their just decendants. ? 2 When Hester is foremost brought out of her prison cell, the dish the dirting goodwives recommend much harsher penalties, from a trade name on her brow to decease. Hester, who had done small incorrect prior to this wickedness of criminal conversation, is no longer seen as a human being, but simply as a symbol of evil and shame upon the town. The Puritans, one of the most devoted groups of bible bookmans, bury one of Jesus? most celebrated of quotation marks, ? He that is without wickedne ss among you, allow him foremost cast a rock at her. ? The adult females forget to look inside themselves before they cast their sentiments upon Hester. It is non these people? s right to find Hester? s penalty, non the adult females? s nor the magistrates? ; such a right is reserved merely for God.When the ordeal at the market-place eventually ends, Hawthorne reverses the functions as Hester is the lone individual in town without wickedness while the townsfolk are conceited and holier-than-thou. Hester continues her life, ostracized on the outskirts of town. She is evidently penitent, as she chooses to stay in Boston, even when she is free to travel elsewhere and get down her life anew. ? Here? had been the scene of her guilt, and here should be the scene of her earthly penalty ; and so, pe rchance, the torture of her daily shame would at length purge her soul, and work out another purity than that which she had lost; more saint-like because the result of martyrdom? (SL 57). She has become a modest woman, seeking ?not to acquire any thing beyond a subsistence, of the plainest and most ascetic description? (SL 58). Hester takes up the occupation of seamstress, a job that, as shown by the golden embroidery around the scarlet letter, suits her well. Her creations become the fashion of the town: ?Her needle-work was seen on the ruff of the Governor; military men wore it on their scarfs, and the minister on his band; it decked the baby?s little cap; it was shut up, to be mildewed and moulder away, in the coffins of the dead. But it is not recorded that, in a single instance, her skill was called in aid to embroider the white veil which was to cover the pure blushes of a bride. The exception indicated the ever relentless vigor with which society frowned upon her sin? (SL 58 ). The preceding quotation is important to understanding Hawthorne?s opinion of Puritanism. These ?morally perfect? people are committing the sin of vanity without a second thought, and their hypocrisy shines through, as they have no problem wearing anything of Hester?s creation except for a wedding veil. With this in mind, Hester now appears to be the only wholly pious person in town. She spends her free-time making clothes for the poor as a form of penance, rejecting the joy she gains from her needlework as a sin, but even the needy who receive the gifts of Hester Prynne ?often reviled the hand that was stretched forth to succor them? (SL 59).Years later, this negative treatment of Hester no longer takes place. She is well respected by the townspeople for her philanthropic and virtuous ways: ?Her breast, with its badge of shame, was but the softer pillow for the head that needed one? (SL 110). People began to interpret her scarlet A as Able, rather than by its initial meaning. Hes ter refuses to embrace this new opinion of her, however; she performs these benevolent acts and then leaves, refusing to accept any form of gratitude.The conclusion of the townspeople?s arrogant attitudes towards her allows Hawthorne to put Hester to a new task. Her thematic job, as provided by Hawthorne, of revealing the hypocrisy of the Puritans is finished; her new role is that of a secondary character. She is used to aid in showing the allegorical significance of the actions of Pearl, Chillingsworth, and most importantly, Reverend Dimmesdale. Hester Prynne is never truly the theme?s center of attention like Charlotte Temple is; she simply helps to promote Hawthorne?s arguments about Puritanism and metaphorical ideas about the other characters. Therefore, it is never of great importance how Hester should turn out in the conclusion; it is merely for the benefit of the reader?s interest that she becomes a friendly ear to the women of Boston in the end. Hawthorne does use her to imp art his final words of wisdom though: ?at some brighter period, when the world should have grown ripe for it, in Heaven?s own time, a new truth would be revealed, in order to establish the whole relation between man and woman on a surer ground of mutual happiness? (SL 177). Also, the narrator leaves a final unanswerable question amidst the words of Hester ? was she herself actually the destined prophetess, ?lofty, pure, and beautiful; and wise? (SL 177) that Hester had envisioned?

Mary Lyon essays

Mary Lyon essays In the nineteenth century there was a growing demand for womens education. Many reformers changed the education system, but perhaps none more than Mary Lyon. Lyon was the most prominent advocator of womens education in the 1800s and she took many steps to improve the type of schooling females could receive. Many people were involved in this reform. A great majority of supporters were women who sought a higher education. While Mary Lyon was the main leader of the movement, she might have accomplished little without the backing of several wealthy male investors who put finances into the college she founded, the Mt. Holyoke Female Seminary. The movement took place in the early nineteenth century leading up to the establishment of Mt. Holyoke in 1837 and continuing for many years afterward. While Mary Lyon did pioneer education for women, it is important to note that reform did not end with her. Lyon simply was one of the first to put force behind the movement and others picked up her cause as the years went by. Born in Buckland, Massachusetts, Lyon focused the reform movement in her home state. Lyon had not only been a student, but was a teacher in her adulthood. Having struggled to finance her own education, she wanted to ensure that other women in her home state and throughout New England, no matter what economic group they were part of, could receive an education comparable to that of men. At this time, women were limited to being prepared only for homemaking and teaching. Defying conventional behavior, Lyon traveled and fundraised in the public eye to win support for her ideas. In 1837 Mt. Holyoke Female Seminary opened with 80 students. This was in South Hadley, and located in her native state of Massachusetts. It was an immediate success, and was overwhelmed by more students than the school could accommodate for. Lyon headed the organization for twelve years, which was until her death in ...

A Essay Example | Topics and Well Written Essays - 1000 words

A - Essay Example The essay on King Abdulla Scholarships was more liberal in details since it set its focus on the consequences of the cultural interaction between the Saudi students and the Americans. The two essays presented unique challenges connected with the appropriateness of content involved. Organizing the essays involved some kind of research because much of the details were beyond my immediate experience and grasp of knowledge. In the entirety, the writing was a form of learning experience because I interacted with various sources that provided resourceful and engaging information on multiple factors that connect with the subjects of the essays. It was fulfilling to arrange these sources into logical explanations, analyses, and elaborations on healthy eating and the impact of King Abdullah Scholarships on the Saudi students. Time management was one of the challenges encountered in the process of writing these essays. A significant amount of time was spent in the reading and analysis of the information from the various sources required a depth of insight and quick processing of information in order to achieve quality essays within the right kind of time. The planning stages of the essay entailed the organization of the introduction of the subject matter in a way that would ease the understanding of the readers. I acknowledged the fact that I was not writing the essays for my own reading. They were intended for particular audiences. As such, planning involved the choice of language and the organization of sentences. Furthermore, these essays dealt with matters of general interest. Such matters can generate boredom if handled clumsily without regard to the element of beauty and creativity, which many readers seek in any piece of writing. As such, it was necessary to organize this piece of writing in a way that would enhance the understanding of the reader without placing any kind of

Annotated Bibliography on The Peloponessian War

On The Peloponessian War - Annotated Bibliography Example Flory Stewart is professor in classical history having developed interest in Latin while at a tender age. He taught at private boarding school in Athens, before returning to Yale to undertake his PhD. In this book, Flory recounts Thucydide’s hypothesis of the Peloponnesian War. By referring to the wars Greeks fighting each other, Athenians against the Spartans, the author gives a radical analysis of the factors that led to the war basing on accounts already presented by Thucydides. Notable in his argument is that the war must have arisen from the progressive rise of a powerful Athenian empire. The radical nature in which Flory uses Thucydide’s hypothesis seems to exemplify his theory even amidst critical remarks from other scholars. Generally, the book is important for any reader who would like to understand the ancient work by Thucydides in details. The classical nature of the book and simple language used makes it appropriate for a modern researcher. This book was written by Donald Kagan, who is an American historian at Yale University having specialized in ancient Greece. The four volume book gives vivid account of destructive war of Greeks against each other, and Athenians against the Spartans. It is a distinguished historical account meant for general readers, providing a new dimension to the examination of Western civilization. The author spent a great deal of time or re-examine the factors that instigated the conflict by reviewing both the ancient texts and accounts of modern scholars. The entire book seems to be informed by the question: Was the war inevitable, or could it have been avoided? Something unique about the author is that he courageously confronted and argued either in favour or against some historical figures, hence giving his view a balanced argumentative structure. Kagan particularly takes an issue with Thucydides’ view

What Is the Best Motivational Package for Philadelphia Co. to Enhance Research Paper

What Is the Best Motivational Package for Philadelphia Co. to Enhance Employee Productivity - Research Paper Example The present study would analyze the case of Philadelphia Company with regards t addressing the issue of lack of motivation among the employees of the organization. The study would mainly be based on a primary research that would try to collect primary data from the customers, employee as well as the managers of the organization in order to understand the underlying reasons behind the lack of motivation among the employees of the organization. The results of the survey would be used to suggest plausible recommendations for the organization. Implication of strategies like a 360 degree appraisal and initiating free and fair appraisal apart from career development programs like training and development can help in restoring and enhancing the motivation levels of the employees of the organization. Introduction The age of competition has necessitated an urgent need for business organizations to go beyond analyzing the sales figures and business strategies but also ensure organization excel lence. In this regard the role of human resource management becomes utmost important as human resources are the most valuable assets for any organization. It has also been stated in numerous researches that an efficient human resource base should be essentially motivated so as to ensure job satisfaction.These aspects involve considerable importance as de-motivated and unsatisfied employees’ leads to high turnover rates and also lead to inefficiencies in the organization. In order to ensure greater productivity it is necessary to ensure that workers and employees are consistently rewarded. It is also very necessary to ensure that there is career development of the employees. The present study would analyze the reasons behind the de-motivation of the employees of Philadelphia Co that is a housekeeping company and has a small employee base of which most of the workers are from other nations like Sri Lanka, Indonesia and Philippines. The study would try to analyze the reasons beh ind their de-motivation and would also suggest plausible recommendations in order to ensure better productivity and increased motivation among the workers. Research Question The research question for the present study is stated below: To analyze the effects of motivation of workers on organization’s productivity To analyze the reasons behind the de motivation of workers at Philadelphia Co To find possible solutions towards ensuring motivation of employees at Philadelphia Co The three research questions would try to first analyze the effects of employee motivation on the levels of productivity of the employees. It would also try to analyze the possible reasons for the de-motivation of the employees by conducting an in depth analysis of the research question and finally the research would also try to find possible solutions for imparting greater motivation among the employees of the organization so as to help generate competitive advantage. Procedure and Methodology The researc h methodology would be a mix of primary and secondary research techniques that would help in analyzing the research questions and also enable in the formulation of plausible recommendations that would help in ensuring organizational excellence. The secondary research would try to analyze the research question as to the effects of employee de-motivation on the job satisfaction levels and the impact on the overall

J.P. Morgan Essay -- essays research papers

J.P. Morgan   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  When people talk about J.P. Morgan, they often refer to one man. The J.P. Morgan dynasty was in fact a combined effort of three generations of Morgans. In 1838, American businessman George Peabody opened the London merchant banking firm that would establish the roots of the House of Morgan. In 1854, Junius S. Morgan became the partner of George Peabody and eventually took over the firm in 1864, renaming it J.S. Morgan & Co. At the age of twenty four, J. Pierpont Morgan inherited his father’s business, renamed the business to J.P. Morgan & Co., and made a point to consolidate the firm’s American and European interests. Under Pierpont’s authority, J.P. Morgan & Co. had a great impact on enterprises such as railroads, steel, mining, and other utilities that helped establish the United States as an industrial power. The personality of J. Peirpont Morgan is best described in a statement he made to the U.S. Congressional banking committee in 1912. à ¢â‚¬Å"The first thing is character†¦before money or anything else. Money cannot buy it†¦because a man I do not trust could not get money from me on all the bonds in Christendom.†   Ã‚  Ã‚  Ã‚  Ã‚  It should also be noted that in 1868, the Paris banking firm Drexel, Harjes & Co. was formed. Pierpont became a partner in 1871 and the firm was later renamed Morgan, Harjes & Co.   Ã‚  Ã‚  Ã‚  Ã‚  Five years after his father’s death, ...

Berkshire Hathaway

Berkshire Hathaway Overview Before Warren Edward Buffett, Berkshire Hathaway was a textile company. Buffet acquired stocks and before long he was the largest shareholder (1963). He became part of the board and appointed the chairman so he would have someone he trusted running the company. With the funds from Berkshire Hathaway coming in, Buffett used it to invest in National Indemnity. The company was bought but he left it the way it was: left previous Ringwalt in charge, kept current employees, shareholder benefits and so on. Insurance companies are a perfect way to get a lot of capital up front because you can then use this money to purchase other companies or stocks, like what Buffet did. Buffet was involved with several companies and bought GEICO(Jayanti), General Re and other manufacturing and service companies. Today Berkshire Hathaway is one of the largest holding companies in America. It owns different companies from retail to jewelry to electric companies. These companies run separate from Berkshire Hathaway. It does not produce the goods or provide the services but serves as an umbrella that owns shares or the whole of the companies that are underneath it. Many of these companies were purchased by the company’s many insurance options. Big names include GEICO, Borsheim, PacifiCorp and Vanity Fair. (Jayanti). Porter Five-Force Model Porter’s Five-Forces Model of Industry Competition pertains to the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry. These five forces can determine the stature of a market. In the case of Berkshire Hathaway there is a low threat of new entrants for the multi-businesses in one industry. It is significantly hard to own various different companies, have them operate to full potential and still remain a leader on the industry board. Although competitors cannot directly compete with Berkshire Hathaway, they still take a nice chunk from its potential market. As a matter a fact, there are only two direct competitors in the industry that are above Berkshire Hathaway, it is Motors Liquidation Co and Ford Motor Co. As more self-made businesses(which is what Warren Buffett likes to acquire) open competition is created through price, increase in advertisement, and suppliers. This competition benefits buyers by giving them more options or bargaining power in where they choose to shop. For Instance like what happened to Berkshire’s textile business, after a while competition increased prices dropped and textile had simply became another commodity. So as you can see from the example, this affects Berkshire directly because of their higher quality products but premium prices makes it hard to compete with low cost leaders. This takes valuable time and effort away from internal operations because in cases like these the opposition has to be constantly analyzed. Consequently, if neither competitor decreases their prices to a consumer’s expectation this may result in the consumers going to the suppliers directly; once again giving the bargaining power to the buyer. As far as bargaining power to the suppliers, they wouldn’t really have any edge in increasing their prices or power unless it is a scarce resource and demand is high. Substitutes on the other hand, limit the potential returns of an industry by putting a ceiling on the prices industries can profitably charge. Finally, the only reason why rivalry is intense is because when you have large companies like Motors Liquidation, Ford and Berkshire rivalry heats up and everyone fights for the number one spot, and usually does whatever it takes to get it. The rivalry forces a constant close monitoring of competitors, which entails unnecessary excessive expenditure. For example, they would have to ask and analyze questions such as, where are they opening their stores? Are they using the same criteria in choosing locations? How much are they charging for similar products? And can we compete with their price? In Summary, Berkshire needs to be aware that intensive rivalry will increase costs, such as constantly competing with prices, having to offer bargains which will lead to high exit barriers. In the end if the company is doing everything right and it is focusing on their company and how to improve it then it is a win-win situation because the biggest edge any company has is that: NO TWO FIRM ARE EXACTLY THE SAME. SWOT Analysis â€Å"Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of business activities. Co. ‘s key businesses are its insurance businesses, which are conducted on a primary and reinsurance basis. Co. s insurance businesses provide insurance and reinsurance of property and casualty risks world-wide and also reinsure life, accident and health risks world-wide. At Dec 31 2008, Co. ‘s insurance and reinsurance activities were conducted through about 60 domestic and foreign-based insurance entities. Co. also owns and operates other businesses, including utilities and energy businesses, manufacturing, service and retailing, as well as finance and financial products businesses†. (mergent online, business synopsis) S trengths |Weaknesses | |Top management reputation & leadership |Over dependence on Warren Buffett's leadership | |Strong capital position and superior financial ratings |Slower growth in certain investments (Coke, P, Shaw industries) | |Diversified portfolio ranging from property and casualty insurance and|Diversification – McLane accounts for almost 1/3 of Berkshire's | |reinsurance, utilities, energy, finance, manufacturing, services and |revenues and 1/3 of McLane's business is tied to one single company | |retailing |(Wal-Mart) | |Strong and consistent top and bottom line growth |Company's stock inaccessible to most people | |Integrated Insurance Operations |Volatile Investment Portfolio | |Distinct Business Strategy |Declining Investment Returns | Funding Resources |Decline in Profitability | |Diversity of Businesses | | | | | | | | | | | |Opportunities |Threats | |Acquisitions – given current market conditions the company has |Financial & economic ma rkets turmoil | |identified areas of investment (ie Goldman Sachs) |Potential capital requirement changes both in the US and Europe | |Alternative energy investments |Worldwide weak consumer environment | |Favorable Phase for Life and Annuity Market |Unstable Political Conditions in Certain Regions | |Growing MidAmerican Business Identity |Governmental Investigations | |Opportunity for Acquisitions |Competition in the Insurance Industry | | |Impact of Economic Slowdown | Industry Property and Casualty Insurance – ? Through its 51 subsidiary companies, it engages primarily in insuring and reinsuring property and casualty risks business. Berkshire Hathaway, Inc is a publicly owned investment manager. It invests in the United States and Canada’s public equity markets. Competition Berkshire Hathaway’s top competitors, based on its insurance businesses are: ? The Blackstone Group L. P. (BX) – a company with subsidiaries as well that was founded in 1985 and is headquartered in New York. ? HM Capital Partners LLC (Pvt1) is a privately held company with diversified investments located in Dallas, Texas. ? KKR & Co. L. P. (Pvt2), also a privately held company located in New York, New York. |DIRECT COMPETITOR COMPARISON |   | ? | | ? | |BRK-A | |BX | |Pvt1 | |Pvt2 | |Industry | | | |Market Cap: | |158. 43B | |3. 90B | |N/A | |N/A | |885. 31M | | | |Employees: | |246,000 |1,340 | |N/A | |N/A | |718 | | | |Qtrly Rev Growth (yoy): | |-1. 60% | |14. 80% | |N/A | |N/A | |2. 0% | | | |Revenue (ttm): | |104. 91B | |-320. 00M | |N/A | |N/A | |808. 84M | | | |Gross Margin (ttm): | |11. 6% | |N/A | |N/A | |N/A | |18. 38% | | | |EBITDA (ttm): | |7. 06B | |-4. 3B | |N/A | |N/A | |40. 44M | | | |Oper Margins (ttm): | |3. 86% | |1,375. 92% | |N/A | |N/A | |16. 0% | | | |Net Income (ttm): | |2. 94B | |-1. 15B | |N/A | |N/A | |N/A | | | |EPS (ttm): | |1893. 645 | |-4. 48 | |N/A | |N/A | |0. 95 | | | |P/E (ttm): | |53. 94 | |N/A | |N/A | |N/A | |13. 6 | | | |PEG (5 yr expected): | |4. 14 | |2. 82 | |N/A | |N/A | |0. 97 | | | |P/S (ttm): | |1. 9 | |N/A | |N/A | |N/A | |0. 94 | | | Company Financials Balance Sheet (in the thousands) from 2006 – 2008: Total Assets: 248,427,000273,160,000267,399,000 Total Liabilities: 137,756,000149,759,000153,820,000 Total Stockholders’ Equity: 108,419,000120,733,000109,267,000 The retained earnings were at a loss: 58,912,00072,153,00078,172,000 Assets and Liabilities has separate sections for Insurance & other businesses, Utilities & energy, and Finance & financial products Income Statement (in the thousands) from 2006 – 2008: Income Statement has separate sections for Insurance & other businesses, Utilities & energy, and Finance & financial products. Total Revenues: 98,539,000118,245,000107,786,000 Total Costs and Expenses: 81,761,00098,084,000100,212,000 Earnings before Income Taxes: 16,778,00020,161,0007,574,000 Net earnings (loss): 11,015,00013,213,0004,994,000 Total number of Stockholders: 19,10018,50018,100 Common Stockholders are split into 2 groups: class A and class B Class A Stockholders: 5,1004,6004,200 Class B Stockholders: 14,00013,90013,900 Earnings per Share (at a loss): 7,1448,5483,224 Statement of Cash Flows (in the thousands) from 2006 – 2008: Cash from finances has separate sections for Insurance & other businesses, Utilities & energy, and Finance & financial products. Net Cash from Operations: 10,195,00012,550,00011,252,000 Net Cash from Investments: (14,077,000)(13,428,000)  (32,066,000) Net Cash from Finances: 2,607,0001,366,0002,286,000 Cash and cash equivalents at the beginning of the year: 45,018,00043,743,00044,329,000 Cash and cash equivalents at the end of the year: 43,743,00044,329,00025,539,000 Financial Ratios from 2006 – 2008: Profitability Ratios:200620072008 Return on Assets: 4. 93%5. 07%1. 84% Return on Equity:11. 02%11. 53%4. 33% Loss Ratio:61. 28%71. 72%70. 91% Debt Management: Debt to Equity Ratio:0. 290. 270. 34 Asset Management: Asset Turnover:0. 440. 450. 4 Property, Plant, and Equipment Turnover: 4. 833. 42. 64 Cash & Cash Equivalents Turnover: 2. 232. 693. 08 Industry/Market comparison data from 2008: CompanyIndustry MedianMarket Medium Net profit margin:2. 37%–5. 53% Price/Sales ratio:1. 483. 416. 55 Price/Earnings ratio:62. 50(11. 98)23. 81 Price/Book ratio:1. 521. 466. 30 Price/Cash Flow ratio:12. 4724. 9440. 65 12-Month EPS growth:(62. 3%)–(50. 0%) 36-Month EPS growth:(16. 5%)–(14. 7%) Bibiliography: Source Berkshire Hathaway pda file from Harvard Business School Mergent Online Hoover’s Online Berkshire Hathaway Berkshire Hathaway Overview Before Warren Edward Buffett, Berkshire Hathaway was a textile company. Buffet acquired stocks and before long he was the largest shareholder (1963). He became part of the board and appointed the chairman so he would have someone he trusted running the company. With the funds from Berkshire Hathaway coming in, Buffett used it to invest in National Indemnity. The company was bought but he left it the way it was: left previous Ringwalt in charge, kept current employees, shareholder benefits and so on. Insurance companies are a perfect way to get a lot of capital up front because you can then use this money to purchase other companies or stocks, like what Buffet did. Buffet was involved with several companies and bought GEICO(Jayanti), General Re and other manufacturing and service companies. Today Berkshire Hathaway is one of the largest holding companies in America. It owns different companies from retail to jewelry to electric companies. These companies run separate from Berkshire Hathaway. It does not produce the goods or provide the services but serves as an umbrella that owns shares or the whole of the companies that are underneath it. Many of these companies were purchased by the company’s many insurance options. Big names include GEICO, Borsheim, PacifiCorp and Vanity Fair. (Jayanti). Porter Five-Force Model Porter’s Five-Forces Model of Industry Competition pertains to the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry. These five forces can determine the stature of a market. In the case of Berkshire Hathaway there is a low threat of new entrants for the multi-businesses in one industry. It is significantly hard to own various different companies, have them operate to full potential and still remain a leader on the industry board. Although competitors cannot directly compete with Berkshire Hathaway, they still take a nice chunk from its potential market. As a matter a fact, there are only two direct competitors in the industry that are above Berkshire Hathaway, it is Motors Liquidation Co and Ford Motor Co. As more self-made businesses(which is what Warren Buffett likes to acquire) open competition is created through price, increase in advertisement, and suppliers. This competition benefits buyers by giving them more options or bargaining power in where they choose to shop. For Instance like what happened to Berkshire’s textile business, after a while competition increased prices dropped and textile had simply became another commodity. So as you can see from the example, this affects Berkshire directly because of their higher quality products but premium prices makes it hard to compete with low cost leaders. This takes valuable time and effort away from internal operations because in cases like these the opposition has to be constantly analyzed. Consequently, if neither competitor decreases their prices to a consumer’s expectation this may result in the consumers going to the suppliers directly; once again giving the bargaining power to the buyer. As far as bargaining power to the suppliers, they wouldn’t really have any edge in increasing their prices or power unless it is a scarce resource and demand is high. Substitutes on the other hand, limit the potential returns of an industry by putting a ceiling on the prices industries can profitably charge. Finally, the only reason why rivalry is intense is because when you have large companies like Motors Liquidation, Ford and Berkshire rivalry heats up and everyone fights for the number one spot, and usually does whatever it takes to get it. The rivalry forces a constant close monitoring of competitors, which entails unnecessary excessive expenditure. For example, they would have to ask and analyze questions such as, where are they opening their stores? Are they using the same criteria in choosing locations? How much are they charging for similar products? And can we compete with their price? In Summary, Berkshire needs to be aware that intensive rivalry will increase costs, such as constantly competing with prices, having to offer bargains which will lead to high exit barriers. In the end if the company is doing everything right and it is focusing on their company and how to improve it then it is a win-win situation because the biggest edge any company has is that: NO TWO FIRM ARE EXACTLY THE SAME. SWOT Analysis â€Å"Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of business activities. Co. ‘s key businesses are its insurance businesses, which are conducted on a primary and reinsurance basis. Co. s insurance businesses provide insurance and reinsurance of property and casualty risks world-wide and also reinsure life, accident and health risks world-wide. At Dec 31 2008, Co. ‘s insurance and reinsurance activities were conducted through about 60 domestic and foreign-based insurance entities. Co. also owns and operates other businesses, including utilities and energy businesses, manufacturing, service and retailing, as well as finance and financial products businesses†. (mergent online, business synopsis) S trengths |Weaknesses | |Top management reputation & leadership |Over dependence on Warren Buffett's leadership | |Strong capital position and superior financial ratings |Slower growth in certain investments (Coke, P, Shaw industries) | |Diversified portfolio ranging from property and casualty insurance and|Diversification – McLane accounts for almost 1/3 of Berkshire's | |reinsurance, utilities, energy, finance, manufacturing, services and |revenues and 1/3 of McLane's business is tied to one single company | |retailing |(Wal-Mart) | |Strong and consistent top and bottom line growth |Company's stock inaccessible to most people | |Integrated Insurance Operations |Volatile Investment Portfolio | |Distinct Business Strategy |Declining Investment Returns | Funding Resources |Decline in Profitability | |Diversity of Businesses | | | | | | | | | | | |Opportunities |Threats | |Acquisitions – given current market conditions the company has |Financial & economic ma rkets turmoil | |identified areas of investment (ie Goldman Sachs) |Potential capital requirement changes both in the US and Europe | |Alternative energy investments |Worldwide weak consumer environment | |Favorable Phase for Life and Annuity Market |Unstable Political Conditions in Certain Regions | |Growing MidAmerican Business Identity |Governmental Investigations | |Opportunity for Acquisitions |Competition in the Insurance Industry | | |Impact of Economic Slowdown | Industry Property and Casualty Insurance – ? Through its 51 subsidiary companies, it engages primarily in insuring and reinsuring property and casualty risks business. Berkshire Hathaway, Inc is a publicly owned investment manager. It invests in the United States and Canada’s public equity markets. Competition Berkshire Hathaway’s top competitors, based on its insurance businesses are: ? The Blackstone Group L. P. (BX) – a company with subsidiaries as well that was founded in 1985 and is headquartered in New York. ? HM Capital Partners LLC (Pvt1) is a privately held company with diversified investments located in Dallas, Texas. ? KKR & Co. L. P. (Pvt2), also a privately held company located in New York, New York. |DIRECT COMPETITOR COMPARISON |   | ? | | ? | |BRK-A | |BX | |Pvt1 | |Pvt2 | |Industry | | | |Market Cap: | |158. 43B | |3. 90B | |N/A | |N/A | |885. 31M | | | |Employees: | |246,000 |1,340 | |N/A | |N/A | |718 | | | |Qtrly Rev Growth (yoy): | |-1. 60% | |14. 80% | |N/A | |N/A | |2. 0% | | | |Revenue (ttm): | |104. 91B | |-320. 00M | |N/A | |N/A | |808. 84M | | | |Gross Margin (ttm): | |11. 6% | |N/A | |N/A | |N/A | |18. 38% | | | |EBITDA (ttm): | |7. 06B | |-4. 3B | |N/A | |N/A | |40. 44M | | | |Oper Margins (ttm): | |3. 86% | |1,375. 92% | |N/A | |N/A | |16. 0% | | | |Net Income (ttm): | |2. 94B | |-1. 15B | |N/A | |N/A | |N/A | | | |EPS (ttm): | |1893. 645 | |-4. 48 | |N/A | |N/A | |0. 95 | | | |P/E (ttm): | |53. 94 | |N/A | |N/A | |N/A | |13. 6 | | | |PEG (5 yr expected): | |4. 14 | |2. 82 | |N/A | |N/A | |0. 97 | | | |P/S (ttm): | |1. 9 | |N/A | |N/A | |N/A | |0. 94 | | | Company Financials Balance Sheet (in the thousands) from 2006 – 2008: Total Assets: 248,427,000273,160,000267,399,000 Total Liabilities: 137,756,000149,759,000153,820,000 Total Stockholders’ Equity: 108,419,000120,733,000109,267,000 The retained earnings were at a loss: 58,912,00072,153,00078,172,000 Assets and Liabilities has separate sections for Insurance & other businesses, Utilities & energy, and Finance & financial products Income Statement (in the thousands) from 2006 – 2008: Income Statement has separate sections for Insurance & other businesses, Utilities & energy, and Finance & financial products. Total Revenues: 98,539,000118,245,000107,786,000 Total Costs and Expenses: 81,761,00098,084,000100,212,000 Earnings before Income Taxes: 16,778,00020,161,0007,574,000 Net earnings (loss): 11,015,00013,213,0004,994,000 Total number of Stockholders: 19,10018,50018,100 Common Stockholders are split into 2 groups: class A and class B Class A Stockholders: 5,1004,6004,200 Class B Stockholders: 14,00013,90013,900 Earnings per Share (at a loss): 7,1448,5483,224 Statement of Cash Flows (in the thousands) from 2006 – 2008: Cash from finances has separate sections for Insurance & other businesses, Utilities & energy, and Finance & financial products. Net Cash from Operations: 10,195,00012,550,00011,252,000 Net Cash from Investments: (14,077,000)(13,428,000)  (32,066,000) Net Cash from Finances: 2,607,0001,366,0002,286,000 Cash and cash equivalents at the beginning of the year: 45,018,00043,743,00044,329,000 Cash and cash equivalents at the end of the year: 43,743,00044,329,00025,539,000 Financial Ratios from 2006 – 2008: Profitability Ratios:200620072008 Return on Assets: 4. 93%5. 07%1. 84% Return on Equity:11. 02%11. 53%4. 33% Loss Ratio:61. 28%71. 72%70. 91% Debt Management: Debt to Equity Ratio:0. 290. 270. 34 Asset Management: Asset Turnover:0. 440. 450. 4 Property, Plant, and Equipment Turnover: 4. 833. 42. 64 Cash & Cash Equivalents Turnover: 2. 232. 693. 08 Industry/Market comparison data from 2008: CompanyIndustry MedianMarket Medium Net profit margin:2. 37%–5. 53% Price/Sales ratio:1. 483. 416. 55 Price/Earnings ratio:62. 50(11. 98)23. 81 Price/Book ratio:1. 521. 466. 30 Price/Cash Flow ratio:12. 4724. 9440. 65 12-Month EPS growth:(62. 3%)–(50. 0%) 36-Month EPS growth:(16. 5%)–(14. 7%) Bibiliography: Source Berkshire Hathaway pda file from Harvard Business School Mergent Online Hoover’s Online