Article Abstract 8 Essay Example | Topics and Well Written Essays - 250 words

Article Abstract 8 - Essay Example The empirical analysis is carried out on a racial basis. The conclusion of the research is that race has no significance whatsoever where the price of a rookie baseball card is concerned. This conclusion was reached after lack of evidence of customer discrimination on racial basis for the blacks or Hispanics research subjects (Gabriel, Curtis and Timothy 228). The estimation of the results of the research analysis has been well broken down and articulated well. This is especially so after the results being differentiated for the hitter and pitchers and the composite indexes of the prices well indicated. The estimated results also differentiate between the card price of Hispanics and that of the blacks in the descriptive statistics. The researchers did not clearly explain the sample size, population or even the sampling technique used in this particular research. The other thing that should have been present but lacked in this research is more literature review. The researchers only dwelt on literature by one group of researchers and hence making the research not

Financial and Investment Opportunity Essay Example | Topics and Well Written Essays - 2750 words

Financial and Investment Opportunity - Essay Example When assessing investment suitability, most advisers and investment managers take into consideration customer’s attitude to risk, but they fail to account appropriately for their capacity for loss. Therefore, this calls for financial consultants to assess the clients’ attitude towards risks during the evaluation of investments process using the most suitable tools. Discussion While assessing the individual’s attitude towards risks, the use of gender, age, parental background and even height is used to measure the willingness to take risks in general (Newell, Chan & Goodridge 2011, p 210-19). To better understand the attitude to risk by investors, data from previous research as well as field experiment, are used to assess these attitudes. The previous review is done in order to know the gaps to be filled while determining the attitudes towards risks. A random sample of clients that come to the bank as well as online banking clients are requested to fill in questionnaires. In this quest, to fill gaps, there are things that need to be taken in to consideration as the process of assessment is taking place. According to Mowbray (2011), gaps are bridged by focusing on some key themes such as the risk that a client is willing and able to tolerate, the client’s capacity for loss and identifying clients who are neither willing nor able to accept the risk of loss. Apart from that, the client’s requirements must be considered, and this involves collecting of information that includes the client’s investment knowledge, risk tolerance, investment horizon and the capacity to make regular contributions and meet extra collateral requirements where appropriate. Thereafter, every client’s information should be documented and appropriately updated on a continuous basis. In case a client does not give full information, it does not mean that the advisor cannot assess the client’s attitude towards risk. If the same advisor is not able to make the assessment, an explanation has to be made to the client on the limitation of assessment due to lack of information or the assumptions made in relation to advice given. After having the information of various clients, a hierarchy is developed to clarify their needs and the firm’s products. The upper levels of the hierarchy are solved to give a weighting scheme that determines the relative importance of each factor while determining the applicable portfolio. The lowest level of the hierarchy evaluates assets to give a portfolio applicable for a single investor’s problem (Bolster, Janjigia & Trahan, 1995). The most suitable portfolio is chosen by combining the local weights deri ved for every asset and weights given by the higher levels of the hierarchy (Saaty, 1980). The figure 1 below explains the hierarchy of needs and its possible matching products. Investment opportunities There are different types of investments and each work differently. The most common list of investments usually includes ISA, shares, unit trusts, property and shares and much more. This section describes the opportunities as well as giving advice to the clients while choosing investment that best suits their finances and other needs. The firm, as an investment bank, seeks to assist clients in raising capital by acting as the client’s agent in the securities issuance. The firm, also, can manage mergers and acquisitions for companies as well as provide subsidiary services, for example, derivatives trading, instruments of fixed income, foreign exchange, commodities equity securities and market making. Figure 1: Analytical Hierarchy

Influences Of Greek And Roman Theatre

Influences Of Greek And Roman Theatre Desire Under the Elms published in1924 is one of Eugene ONeills American classic plays. This play is written in three parts with each part divided into four scenes. It is based of Greek mythology and Roman tragedy. The setting is farmhouse in New England in 1850s with characters Ephraim Cabot 76 year old father, Simeon and Peter sons of the first wife, Eben son of the second wife, Abbie Putnam 35 year old third wife, young girl, two farmers, the fiddler, a sheriff, and other folk from the neighboring farms. This play portrays many elements of day to day life ambiences passion, betrayal, love, lust, hate, infanticide, tragedy, haunting past, persuasion, and sacrifice for love. Hamlet is a revenge tragedy written in the line of Roman Seneca tragedy. Passion; eroticism; pomposity; persuasiveness; incest; betrayal: partners in sin who go on a redemption, tragic and strong love, forbidden desire, rebellion against a father figure, complex love and hate, sacrifice of a child, the haunting past, determinism of the characters and their inner struggle. The elm serves as a catalyst to sensing, feeling and even seeing that which is not always visible. Elm tree meaning includes strength of will and intuition. During the 18th and 19th centuries, elms were popular as ornamentals by virtue of their rapid growth and variety of foliage and forms. This popularity lasted until World War I when the consequences of hostilities, notably in Germany, and the outbreak of Dutch elm disease saw the elm slide into horticultural decline. Elm wood is valued for its interlocking grain, and consequent resistance to splitting, with significant uses in wheels, chairs and coffins. The wood is also resistant to decay when permanently wet, and hollowed trunks were widely used as water pipes during the medieval period in Europe. Elm trees grow inhardiness zones 2 through 6. Buy an Elm New Horizon tree from Nature Hills Nursery. Elm is thought to be the tree of old Family and family tradition. Elm is often associated with Mother and Earth Goddesses, but it wou ld be completely wrong to say that it represents a female spirit. The main aspect of Elm symbolism is strength; and in that quality it leaves behind even the most powerful trees, such as Oak, Alder or Yew. Elm strength is dark and heavy; it feeds on primary instincts rather than conscious decision. This tree is quite inert and rigid, and its power is not rash; but when Elm gets ready, its strike will completely smash an enemy. Despite such prominent warrior qualities, Elm is not always good in battle. The matter is that this tree has much too passion for classic war activity and in its anger may become totally unmanageable. It personifies a mad berserker, blinded by his rage of blood, who kills everyone on his way, even if it makes no sense. Due to this blindness Elm, though strong and active, is usually not a leader, but a follower (and a very devoted follower!). As appears from the above, Elm is not an easy tree. Nevertheless, it should not be seen as completely evil, and no other tree should either. Some of Elm spiritual qualities are very valuable. For example, rare tree can do better than Elm in defending interests of family or close group. It stands to the last, and will continues to fight even in hopeless situation. Elm loyalty is unquestionable; and it will despise everyone, who shows a sight of weakness or hesitation. Elm is good for any magic workings, which are involving strength; and it also has the ability to add stability and grounding to a spell. Elm does well in dark practices, especially in spells that can bring irreversible material damage. It is known to dull the senses and cause depression or darkness, and is often used in dealing with shadows. Keywords: strength, stability, grounding, foundation, rigid structure, darkness, pressure, blind rage, devotion, loyalty to family, dark passion, fighting to the last. In The monumental tragic consequences of the incest passion that flares between a coquettish, seductive woman and her stepson, and the romantic rhetoric both use while entrapped in their sexual ecstasy. The two infatuated lovers before, while and after they commit the sin of incest, and attempts to measure their romantic rhetoric against such incestuous lust. The two lovers incest takes place in an ominous house teeming with family tensions, intense lust, hatred, and betrayal. In Desire Under the Elms (1924), a domestic peasant tragedy set in New England, Eugene ONeill portrays the grave consequences of the tragic incestuous passion that flares between a coquettish, seductive, young woman and her stepson. Abbie Putnam, a newly widowed young woman and is now old Cabots third wife, is a wicked, lusty, and extremely beautiful woman. ONeill portrays her as a woman who has a captivating and sexy figure full of lust, Abbie is thirty-five, buxom, full of vitality with a sensual face revealing her intense lust, Her round face is pretty, but marred by its rather gross sensuality (Desire Under the Elms 335). Hartman remarks that Abbie embodies the eternal earth spirit in whom all streams of desire converge (361). Abbie is a vivacious woman who lives only on lifes physical level, and once she tries to live on the spiritual level, she destroys others and destroys herself as well. In marrying an old man, the age of her father and maybe against her will, she was plannin g to seize the farmhouse and disinherit her stepsons. It is quite ironical that both Cabot and Eben patronize the same local prostitute. Though Eben hates his father for his immorality and sensuality, he himself is immoral and corrupt. He keeps visiting a whorehouse to sleep with the same prostitute his father sleeps with. He is involved in an incestuous love affair with his stepmother and fathers a son by her, thus disgracing himself and the entire family. Eben even takes after his father in some aspects of his personality. Both are lusty, deceitful, infidel, rash, stubborn, vengeful, and arrogant. Above all they are both the victims of seething animal passions. Their conflict over the possession of both the farm and the mother, the catalyst Abbie, and the incestuous relationship between the son and his stepmother all result in a great tragedy. The stock oedipal conflict between father and son over the possession of the mother runs throughout the course of Desire Under the Elms and takes different shapes, all of which culminate in the tragic destruction of the house and its dwellers. Hartman (1961) views the incestuous love affair that unites Abbie and Eben as a tragic involvement in the mother-image (361). Hartman argues that the oedipal desire for the mother is ruinous, Desire for, and identification with, the mother can cause evil to spread (367). The influence of Greek tragedy on the content of Desire Under the Elms is clearly manifest, however such influence is charged with a mystical view of the forces at work in and through human beings (Gelb 539). In their oedipal complex- based deconstructive analysis of the play script of Desire Under the Elms Murray and Bowman (1987) argue that although the plays locale is quite American, and is spiritually and emotionally tied to the puritan society, it is deeply rooted in structures found in Greek mythology (4). Murray and Bowman maintain that Ebens desire for his stepmother does not subvert his structuring superego and therefore he becomes a victim to his unconscious oedipal complex. the play is not based solely on the Greek Hippolytus myth linking Eben with Hippolytus , Abbie with Phaedra and Cabot with Theseus, but is based on this myth along with the Freudian Oedipus complex and the Nietzschean philosophy (5). Racey classifies Desire Under the Elms as a New England domestic tragedy since the Cabot family is disintegrated in a time and place when family was supposed to be the backbone of love, solidarity and labor (5). According to Racey, The Cabots tragedy is the result of a familial structure that could not sustain their sexual and materialistic desires (5). Despite the fact that Cabot did not commit any horrible sins like those committed by his son Eben and his wife Abbie, Racey argues that Cabot is the tragic hero in the play and its main character (95). Newlyn argues that the mutual physical attraction between the son and his stepmother reflects ONeills heavy reliance on the classical myths of Oedipus and Phaedra as a raw material for his domestic farm tragedy. Cabots tragic flaw that has ultimately lead to his downfall and that of all his family members is his excessive greed for property, hypocrisy, the delusion of his faith and his lust for women. Still he remains the plays only tragic figure. Cabots New England theodicy, as Presley states, gives him a towering tragic stature and an inward reality far greater than that of any other character in the play (27). Like an Aristotelian tragic figure Cabots downfall is the result of his hubris which not only causes his destruction, but also the ruin of the lives of his sons, new wife and even his former dead wives. Cabot, as Presley notes, is materially blessed but morally dissolute, blinded by a cage of greed (25). Ephraim Cabot represents what McVeigh (1990) calls the archetype of the senex amans or ridiculous old lover figure of Roman comedy (qtd. in Saur 106). Miller (1965) states that It is Ephraims self-delusions that drive his family each to their tragic ends ONeills prolix language and describes it as a vehicle for enveloping the extravagant plots and psychological formalism that owed much to Greek drama (22), and Cohn asserts that ONeill was the first American playwright whose dialogue gave his audience a feeling of observed life rather than books read as a result of committing the horrible crimes of incest and infanticide Eben and Abbie will live forever as sexual and social outcasts. They will never be respected in the community where they live, and they will always live under the curse of the crimes they committed, for evil means and deeds always result in evil ends. It is ironical that Abbie in killing the child was thinking that she, as Ditsky puts it, was sacrificing a future generation to ensure the present sensual enjoyment with her lover (qtd. in Hays 436). To prove her genuine love for Eben and to enjoy his crimson love, Abbie murdered the child. However, she did not know that in killing the child, she would be sent to jail, and would therefore no more enjoy her present love. It is also ironical on the part of Eben when he sacrifices his own youth which he would spend in prison for Abbie mistakenly believing that in sharing the guilt with her, he would join her in prison. He failed to realize that both would be sent to different prisons and might both be hanged. Their sacrifice is hopeless and their crimes are so tragic and beyond repentance. Greek tragedy by utilizing Freudian and Jungian psychology mixing them with some elements of Greek and American mythology. love and hatred, attraction and repulsion, desire and murder, incest and faith, and softness and hardness. The two elm trees resemble evil that is haunting the Cabots homestead, and they suggest the likelihood of the coming misfortune. Evil haunts the Cabots farmhouse and tempts its dwellers to commit dreadful sins. Cabot is a sinner and though he keeps praying for God to cruse his disobedient sons, he himself is an unbeliever. The Cabots feel the presence of an evil spirit in the house, but fail to understand the mysterious nature of such a spirit. They fail to unravel the mystery that drives them to their ominous ends. Cabot can feel the curse, but does not know what it is and why it is permeating the farmhouse. Even during the merry making scene, he can feel the presence of evil dominating the entire house. Desire is part of nature which is portrayed as an abiding absolute throughout the play (Carpenter 109).The play abounds with references to nature, and the characters express their admiration of nature on several occasions. The Cabots farmhouse is towered by two elm trees that reflect the image of Ebens dead mother and the entire protective feminine spirit that hovers over and redeems the Cabot farm from its hard masculine rocks (Going 386). In this context, desire, the mother and nature are seen as one entity reflecting the three constituent elements collectively. New England was far from being stereotyped as the new Eden for the puritans, but rather it was disapprovingly depicted as a land of hypocritical faith and greed for property.

How Miller Uses Reverend Hale in The Crucible Essay -- Arthur Miller T

How Miller Uses Reverend Hale in The Crucible Arthur Miller describes Reverend Hale as nearing forty, a tight-skinned, eager-eyed intellectual. An intellectual is usually thought of as someone with his head in the clouds, who spends so much time thinking great thoughts that he's inept in the real world of human emotions. There is some truth in this image of John Hale. He knows a lot about witchcraft; but he knows almost nothing about the people of Salem or the contention that is wracking the town. How pompous and arrogant he must sound when he says, â€Å"Have no fear now--we shall find [the Devil] out if he has come among us, and I mean to crush him utterly if he has shown his face!† And yet he has every reason to be confident. To Hale, demonology is an exact science, for he has spent his whole life in the study of it. â€Å"We cannot look to superstition in this. The Devil is precise.† But he is not just a bookworm, he is a minister of God. His goal is light, goodness and its preservation, and he is excited by being called upon to face what may be a bloody fight with the Fiend himself. All his years of preparation may now finally be put to the test. He fails, and the evil that follows his first appearance totally overwhelms him. Is the fault in his character? Is he not as smart as he thinks he is? Is he a fool, whose meddling lit the fuse to the bomb that blew up the town? Much of the play supports this answer. What looks like success at the end of Act I soon carries Hale out of his depth, and every time he appears after that he is less sure of himself. At the end of the play he has been completely crushed: he, a minister of the light, has come to do the Devil's work. â€Å"I come to counsel Christians they should be... ...ocence. In October 1692 someone accused his wife of witchcraft and where Hale had been rather forward in the prosecution of the supposed witches he now came to believe that spectral evidence was not enough to convict on. He then began to argue against the trials. The effects of Hale’s character and action helped progressed the play and spark off the witch trials. By his arrogance in the beginning of Act 1 where â€Å"he feels the pride of the specialists whose unique knowledge has at last been publicly called for. This also goes to show that Hale has one of the tragic hero’s flaws, which is arrogance. Hale does try to redeem himself by changing his view about witchcraft. Hale tried to save John Proctor’s life giving him advice and reasoning him, but to avail. Proctor was hung. Hale became the audience’s voice in the end saying the witch trials were wrong. How Miller Uses Reverend Hale in The Crucible Essay -- Arthur Miller T How Miller Uses Reverend Hale in The Crucible Arthur Miller describes Reverend Hale as nearing forty, a tight-skinned, eager-eyed intellectual. An intellectual is usually thought of as someone with his head in the clouds, who spends so much time thinking great thoughts that he's inept in the real world of human emotions. There is some truth in this image of John Hale. He knows a lot about witchcraft; but he knows almost nothing about the people of Salem or the contention that is wracking the town. How pompous and arrogant he must sound when he says, â€Å"Have no fear now--we shall find [the Devil] out if he has come among us, and I mean to crush him utterly if he has shown his face!† And yet he has every reason to be confident. To Hale, demonology is an exact science, for he has spent his whole life in the study of it. â€Å"We cannot look to superstition in this. The Devil is precise.† But he is not just a bookworm, he is a minister of God. His goal is light, goodness and its preservation, and he is excited by being called upon to face what may be a bloody fight with the Fiend himself. All his years of preparation may now finally be put to the test. He fails, and the evil that follows his first appearance totally overwhelms him. Is the fault in his character? Is he not as smart as he thinks he is? Is he a fool, whose meddling lit the fuse to the bomb that blew up the town? Much of the play supports this answer. What looks like success at the end of Act I soon carries Hale out of his depth, and every time he appears after that he is less sure of himself. At the end of the play he has been completely crushed: he, a minister of the light, has come to do the Devil's work. â€Å"I come to counsel Christians they should be... ...ocence. In October 1692 someone accused his wife of witchcraft and where Hale had been rather forward in the prosecution of the supposed witches he now came to believe that spectral evidence was not enough to convict on. He then began to argue against the trials. The effects of Hale’s character and action helped progressed the play and spark off the witch trials. By his arrogance in the beginning of Act 1 where â€Å"he feels the pride of the specialists whose unique knowledge has at last been publicly called for. This also goes to show that Hale has one of the tragic hero’s flaws, which is arrogance. Hale does try to redeem himself by changing his view about witchcraft. Hale tried to save John Proctor’s life giving him advice and reasoning him, but to avail. Proctor was hung. Hale became the audience’s voice in the end saying the witch trials were wrong.

Premature Specialization in Medicine

A medical doctor in today†s world is educated and trained in a traditional manner that seeks to insure the well being of his or her patients. Practicing medicine requires a strong science background and rigorous training; it is in the interest of clients and medical boards across the world to assure this. Thus, education in the science field is extremely important, even at the undergraduate level. Being a doctor is not just a job, nor is it solely a career. The medical profession is saturated with risk, for both the patient as well as the doctor. Doctors need early specialization in their education in order to acquire the skills necessary to handle delicate situations that occur on a daily basis. Malpractice must come to an end. The education that a doctor receives is a tool that he or she will use his or her whole life, (unlike a person who majored in something contrary to what their field of work is). A doctor†s experience is a vital instrument. Medical skill is a demand for certain practicing procedures and should be taken seriously. Knowing the legal system requires a doctor to have a good amount of experience can ease the concerns of family and loved ones, and also gives confidence to a doctor that he or she can do his or her work correctly. In order for doctors to get the best experience and education needed, training must take place early on in education. An abundance of science courses in college is a good start to prepare for medical school. Even though medical schools might cover the material that is offered in undergraduate biology and chemistry courses, repeat exposure to the material can only be beneficial to the student. The more experience that a student has in science and related subjects ultimately helps the future doctor in the long run. To ensure the level of maturity of a doctor, it is necessary to educate them on a broad level. According to Thomas, English, History, the literature of at least two foreign languages, and philosophy should come near the top of the list, just below Classics, as basic requirements, and applicants for medical school should be told that their grades in these courses will more than anything. (Thomas 115) Educating premed students in these courses is important, but science is the most significant part in an undergraduate program. It requires thought and practice as well as research, which are all fundamental keys to being a doctor. If a MD were certified with the least amount of experience allowed in the science field as possible, malpractice could be expected. On the other hand knowing two foreign languages is not vital to ones life. In fact, if a patient speaks another language translators can be brought in to fit certain needs. Doctors that focus on science and health are achieving what the profession requires. Understanding science to its full capacity ought to be the goal for premeds and medical students. To ensure the well fare of a patient, over achievement of science courses is necessary. Looking at the medical educational setup that is present in today†s Universities, premed students work hard at science and put forth the effort to make these classes their number one priority. According to Thomas, † If there are any courses in the humanities that can be taken without risk to class standing they will line up for these, but they will not get in to anything tough except for science.† (Thomas 114) Comprehending science can be hard and exhilarating, students should space out these courses while maintaining a level of understanding of other fields, but it is serious to make focus on science. Any student in the undergraduate level maintaining a good grade point average while taking 300, and 400 level science classes is bound for success. The risk factor for a doctor practicing medicine that has thoroughly been educated and has completed all necessary science classes, whether it be premature specialization or courses in medical school, will ultimately be a safe doctor and will create a more secure atmosphere in the field.

Burroughs Wellcome Company Essay

In 1982, the Center for Disease Control and Prevention (CDCP) labeled the acquired immune deficiency syndrome (AIDS) and began to warn the public of the disease. In 1983 and 1984, the virus that causes AIDS was isolated and in 1988 it was named the human immunodeficiency virus (HIV). Burroughs Wellcome Company is a subsidiary of Wellcome PLC. Wellcome PLC is a pharmaceutical firm that employs 20,000 people in 18 countries. Wellcome PLC produces both ethical and over the counter medication. Zovirax, which treats herpes infections, accounted for $492 million in sales in 1989 (Kerin & Peterson, 2013). Retrovir, an AIDS treatment, was the second largest seller with $225 million in sales (Kerin & Peterson, 2013). Wellcome PLC also produces over-the-counter Actifed and Sudafed with $253 million in sales in 1989 (Kerin & Peterson, 2013). In 1981, there were 305 reported cases of AIDS, and by 1989 there were 35,198 reported cases of AIDS with numbers expected to continue to rise, although at a much slower rate (Kerin & Peterson, 2013). The majority of victims, almost 90%, were gay men or intravenous drug users, and almost one half of reported cases were in major metropolitan areas, such as San Francisco, Los Angeles, Houston, and New York. Not enough was known about the disease in the early 80’s to create a reliable way to predict its’ rate of growth. Economically, treating AIDS patients was proving to be very expensive, averaging between $70,000 and $141,000 per patient according to a 1987 study by the RAND Corporation (Kerin & Peterson, 2013). Treating some forms of cancer averaged less than half of that cost. Since the income level of many AIDS patients was low, Medicaid covered treatment costs for approximately 40% of the patients, resulting in an Burroughs Wellcome Company,   estimated annual cost to the Medicaid system of between $700 and $750 million in 1988 (Kerin & Peterson, 2013).  Several pharmaceutical companies, including Burroughs Wellcome, were in the  race to produce an effective drug to combat HIV and AIDS. Burroughs Wellcome began research in 1984, developed Retrovir and began clinical trials on humans in 1985 (Kerin & Peterson, 2013). The FDA cleared Burroughs to market Retrovir in 1987, as the first and only authorized treatment for AIDS. Bristol Myers developed a drug called DDI, which appeared to slow the progress of the AIDS virus and lessen the damage it causes (Kerin & Peterson, 2013). Hoffman-LaRoche developed a similar drug called DDC that began clinical trials in 1989 (Kerin & Peterson, 2013). As soon as Burroughs Wellcome was given the authority to market Retrovir in March of 1987, public protests began regarding the perceived high price of the drug. Wholesale price for Retrovir was set at $188 for one hundred 100-mg capsules. The recommended dosage was twelve 100-milligram capsules per day. The average annual treatment for an AIDS patients on Retrovir averaged approximately $8,528-$9,745 (Kerin & Peterson, 2013). The public, media, and advocacy groups compared the price of Retrovir to the cancer drug Interferon. The annual cost to a patient taking Interferon was only $5,000. In December of 1987, due to increased pressure, Burroughs Wellcome, reduced the price of Retrovir by 20%, and again by 20% in September of 1989 (Kerin & Peterson, 2013). The first price reduction was due to a cost savings in the production of synthetically manufactured thymidine while the second was due to an increase in potential patients. By 1989 sales had increased from $24.8 million in 1987 to $2 25.1 million (Kerin & Peterson, 2013). As postulated by industry analysts, the direct cost of research and development (R&D) for Retrovir was estimated at $50 million. Burroughs Wellcome spent an additional $30-50 million in indirect costs to establish a new plant and equipment to produce Retrovir (Kerin & Peterson, 2013). They also donated $10 million worth of Retrovir to 4,500 AIDS patients. Pharmaceutical R&D of a new drug in the US averages around $125 million, so with direct and indirect cost to develop Retrovir was on the low side. Prior to Retrovir, Burroughs Wellcome had spent a reported $726 million for R&D in  the previous five years without producing a single commercial winner (Kerin & Peterson, 2013). Retrovir was designated as an â€Å"orphan drug† in 1985 under the Orphan Drug Act of 1983. This enabled Burroughs Wellcome to gain marketing exclusivity for a sevenyear period after its initial introduction. When Burroughs Wellcome was faced with the task of pricing Retrovir they had to account for many factors. They had to consider the demand for Retrovir. Since they were developing a drug for a fairly new disease, with relatively few patients, they had no way to predict what the demand would be in the next five years. They had to recoup their cost with the known numbers of AIDS in 1987, which were still fairly low. Burroughs Wellcome had to take into account both the direct and indirect cost spent on the R&D of Retrovir that totaled approximately $100 million. With an unknown market and $100 million to recoup they had to price Retrovir fairly high at the beginning. Looming competition was another important aspect for Burroughs Wellcome. They knew other pharmaceutical compan ies were researching drugs to treat AIDS and analysts believed there would be one or more of these drugs on the market by 1991 (Kerin & Peterson, 2013). Burroughs Wellcome still had an ethical obligation to maintain fair pricing while trying to recoup their cost, as well as having an existing obligation to its employees, shareholders, and stakeholders. Most importantly however, is their responsibility to patients that rely on Burroughs Wellcome’s products for their health and well-being With an increasing number of AIDS cases, Burroughs Wellcome had a social and financial responsibility to make the drug Retrovir accessible to those who needed it, while remaining financially viable. It would be socially irresponsible to exploit people with an illness for mass profit gains. Like most other industries, the health care industry is competitive and no business is immune to failure. Because of this, Burroughs Wellcome must remain profitable in order to protect its employees and shareholders as well as to ensure that the company  can continue its research while providing the medical community with effective medicine. As previously mentioned, Burroughs had dropped the price of Retrovir twice: first on December 15, 1987 when a price drop of 20% was justified by synthetically produced thymidine and a second 20% cut due to a further expansion of HIV from 600,000 to one million estimated potential patients, at which point Burroughs’ gross profit margin (70.6%) and return on sales (20%) were comparable to other competitors in the industry (Kerin & Peterson, 2013). When pressured by outside entities about further reducing the price, Sir Alfred Shepard of the Board of Directors said, † There is no plan for another price cut† (Kerin & Peterson, 2013). As a result of this balance between sustainability, profitability, and social responsibility, it was important that Burroughs Wellcome maintained its margins and success, but continued to remain sensitive to price concerns. Furthermore, it would benefit both Burroughs and patients in need of the drug, if  insurance companies provided ade quate coverage on the drug Retrovir, as private insurance companies only covered $250 million annually compared to the $750 million covered by Medicaid (Kerin & Peterson, 2013). In January of 1990, congressional lobbyists began campaigning to reduce excessive profits in the drug industry. This set off a new round of pressure from the U.S. Congress, the media, and AIDS advocacy groups to again reduce the price of Retrovir. In 1987 sales of Retrovir were $24.8 million and net profit before tax was $8 million. Considering the $100 million dollar investment for the development, as well as new plant and equipment, the Return on Investment (ROI) was only 8%; meaning they only recovered about 8% of their initial investment for Retrovir. By fiscal year 1988 the ROI for Retrovir had increased to 52% but the initial investment had still not been recovered. In the five years prior to the sale of Retrovir, Burroughs Wellcome as a whole spent $726 million in R&D with no significant new drug.  The ROI for Retrovir was still less than the company as a whole when considering the investment in R&D. See figure 1 Figure 1 According to Industry analysts it was estimated that the cost of Retrovir was between 30 and 50 cents per capsule (Kerin & Peterson, 2013). Using 40 cents for estimates, it can be determined that in 1987 when the drug first became available for sale the return on sales (ROS) was 28%. Realistically, the cost was probably more towards  the 50 cent per capsule higher end, as producing the AZT required a biological chemical harvested from herring sperm and took months and over 20 chemical reactions to produce (Kerin & Peterson, 2013). Using the high-end estimate the ROS in 1989 was only 23.3%. This is very close to the 23.5% ROS industry average. By 1989 the price of Retrovir had been reduced by 20% twice. Burroughs Wellcome stated the first price reduction in December of 1987 was due to a synthetically manufactured Thymidine becoming available. At this time, ROS was 23.0% using the 40 cent COGS estimate. Due to public pressure for an affordable AIDS treatment Burroughs Wellcome reduced its price again by 20% in September of 1989. At the 40 cent estimated cost this reduced the ROS to16.4%. Even using the low 30 cent estimate the ROA was only 24% which was is still very comparable to the 23.5% industry average. Burroughs Wellcome overall company ROS in 1989, while they were selling Retrovir at the $1.20 price per 100mg, was only 20%, which is over 3% lower than the industry average. Continued pressure to reduce the price again is not warranted. The figures show that to reduce the price another 20% would show at best a low 18% ROS and a possible negative ROS. Comparing Burroughs Wellcome to 1989 industry average shows all their current  ratios are well within what is normal for the industry. They are not the highest or the lowest of Return on Sales, Return on Assets, or Return on Equity. Burroughs Wellcome has two choices at this point. Do not reduce the price or reduce the price. The advantage of not reducing the price is the ability to maintain their current ratios that will allow them to continue their R&D for new drugs. The disadvantage of not reducing price is dealing with the public, media, Congress, and advocacy groups that may continue to increase pressure on Burroughs Wellcome and create further negative publicity. The advantages of reducing the price would be the reduced pressure from the groups mentioned before and the claim of being ethically responsible. The disadvantage of reducing the price would be losing the current ratios. They take the chance to lose profit margin therefore lose some ability to develop new drugs. Although there is public unrest in regards to the price of Retrovir we do not recommend Burroughs Wellcome reduce the price further. Reducing the price of Retrovir without another new drug would further reduce their current ratios, which are all within industry averages. Drug companies need profits as incentive to continue their  research. Especially when there is the very real possibility of going several years without the discovery and approval of a new drug. Although, on the surface, it seems very unfair for a patient to have to spend close to $10,000 per year for treatment, it would be far worse if they didn’t have the treatment as an option at all. Drug companies such as Burroughs Wellcome would avoid trying to develop â€Å"orphan drugs† if they had no chance of recovering cost. This is why government offers subsidies, tax benefits, and grants extending patents for drugs that qualify. In 1989 there were only 35,189 reported cases of AIDS in America and due to prevention awareness and HIV treatments, AID’s numbers were leveling off. Drug companies are taking a  huge risk investing millions of dollars in cures and treatments for rare diseases. In part, the cost for â€Å"orphan drugs† is so high because so few people are consumers of them. While it would be socially conscious for Burroughs Wellcome to drop the price further, they have to remain a viable company. Profits will ensure the financial future of the company as well as all the shareholders and stakeholders of the company. Maintaining the ROI percentages will allow Burroughs to remain viable and competitive allowing them to continue to develop new drugs that may provide further benefit. If they were to drop their prices it would be benefit public relations as they put the needs of the consumers before profits, however in such a competitive environment this could prove to be to a liability in the pharmaceutical industry, therefore, it is advisable that they do not drop their price by another 20%. References Kerin, R.A & Peterson, R.A. (2003) Strategic Marketing Problems: Cases and Comments England: Pearson Education Limited

Financial Accounting by Dr. Ebenezer

Financial Accounting by Dr. Ebenezer Discoveries, Revelations and Impressions A presentation concerning accounting and finances was provided by Dr. Ebenezer. In his presentation, Dr. Ebenezer provided a brief overview of the phenomenon of financial accounting, as well as the process known as operational accounting. The presented identified the key functions of FA and the means of carrying out the procedure within an organisation.Advertising We will write a custom critical writing sample on Financial Accounting by Dr. Ebenezer specifically for you for only $16.05 $11/page Learn More Though the issues related to finances and accounting are traditionally perceived as â€Å"dry,† the lecture provided by Dr. Ebenezer seemed really enthralling to me. I was literally captured by the new and exciting facts about the phenomenon of accounting, the possibilities that it opens for a businessman, and the benefits that a company may obtain with the choice of a proper accounting strategy. Particularly, the fact that financial accounting is opposed to operational accounting was quite a surprise for me. Before reading the lecture, I had no idea that the concept of FA had any phenomenon to oppose it to begin with. The resulting discovery of to two phenomena and the way, in which they completed the concept of accounting, made me feel that eventually some light has been shed on the issue. The consequences of understanding the specified detail are beyond impressive – by using only FA in my practice, I would suffer considerable losses because of the lack of focus on the internal users1. The idea of taking huge losses, which may even exceed an organisation’s revenues (e.g., around $ 500,000 from the lack of attention to the knowledge management issues), literally made be relieved that I have acquired this essential piece of information. The concept of financial accounting can be related to the Positive Accounting Theory. Allowing for an identification of the methods of acco unting that lead to maximising the company’s profits, the specified theory strikes me as truly brilliant. Suggested in 1990s as the means to explore the methods of accounting further and increase revenues, the specified theory, in fact, allows for improving the performance of a company to an impressive extent. The theory in question seems especially viable once the material covered in the lecture is integrated into it. Indeed, by including both the processes related to the financial transactions, and the ones that concern organisational behaviour, into the accounting strategy, one will be able to predict the efficacy of specific actions taken by the company with huge precision.2Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The presentation in question has clearly affected my decision-making strategies. Impressed beyond belief by the information concerning two types of accounting, I will necessarily make sure that the methods for both are well developed in the organisation that I will work for. The possibilities, which the use of efficient accounting strategies with regard to the two accounting types opens, enthral me, and I feel very enthusiastic about my future professional progress. Though the challenges, which I may face in the course of these strategies implementation, frighten me and make me feel somewhat uncertain, I am positively sure that I will be able to come up with a viable approach for addressing them. I have strong doubts that the two types of accounting described in the lecture occur in reality in a manner just as distinctive and obvious as Dr. Ebenezer represents them in his lecture; nevertheless, the fact that I already know so much about the financial issues in general and the process of accounting in particular fills me with hope for achieving success. Bibliography Ebenezer, S. â€Å"ChE 423 Process Economics Managem ent. Introduction to Financial Accounting.† Presentation for Project Management Decision Analysis School of Chemical Petroleum Engineering, 2014. Mourik, Carien van and ‎Peter Walton. The Routledge Companion to Accounting, Reporting and Regulation. New York, NY: Routledge, 2013. Footnotes 1. S. Ebenezer, â€Å"ChE 423 Process Economics Management. Introduction to Financial Accounting† (presentation, Project Management Decision Analysis School of Chemical Petroleum Engineering, 2014). 2. Carien van Mourik and ‎Peter Walton, The Routledge Companion to Accounting, Reporting and Regulation (New York, NY: Routledge, 2013), p. 104.Advertising We will write a custom critical writing sample on Financial Accounting by Dr. Ebenezer specifically for you for only $16.05 $11/page Learn More