Saturday, April 25, 2020
The 60s And Freedom Essays - Counterculture Of The 1960s, New Left
The 60s and Freedom Most of the time, when thinking back to the sixties, people remember hearing about things such as sex, drugs, and racism. However, what they often tend to overlook is the large emphasis "freedoms" had on the era. This does not just refer to the freedoms already possessed by every American of the time. This focuses on the youth's fight to gain freedom or break away from the values and ideas left behind by the older generation. While some authors when writing about the sixties give serious accounts of the youths' fights to obtain these freedoms, others tend to take a different and more dramatic approach to showing the struggles involved in these fights. Yet, all of the authors have the same basic values and messages in mind. They all, more or less, aim to show the many freedoms which their generation was fighting for. These fights were used to help push for freedoms from areas such as society's rules and values, competition, living for others first, and the older generation's beliefs as a whole including the freedom to use drugs. The younger generation just wanted a chance to express their own views rather than having to constantly succumb to the values and rules left behind by the older generation. The two different approaches used by authors to express these views are often representative of the two main systems used by youths to help gain their freedoms. The first approach, taken by the Port Huron Statement and authors such as Gerzon, Reich, Revel and Gitlin, follows the ideals of the New Left. The New Left represents youths striving for political change through cultural means. People are encouraged to work for their ideals. In contrast, the second approach, taken by Rubin and Didion, reflect the ideals and mannerisms of the "Be-in" society. The "Be-ins" represent another group of youths who attempt to gain freedoms through more radical means. This group focuses on more idealistic goals. The members yearn for a utopian society. However, both groups feel that the youth in society should be able to express themselves and live their lives in their own way, not some way left behind by the previous generation. The way left behind by the older generations is greatly influenced by events which occurred during that time. Unfortunately, because of many of these events, Americans lost their sense of hopefulness in the American society. The reasons are various: the dreams of the older left were perverted by stalinism and never recreated; the congressional stalemate makes men narrow their view of the possible, the specialization of human activity leaves little room for sweeping thought; the horrors of the twentieth century, symbolized in the gas-ovens and concentration camps and atom bombs, have blasted hopefulness (Port Huron Statement 166) Unfortunately, however, these feelings possessed by the previous generation seemed to contribute to their views of man as "a thing to be manipulated, and that he is inherently incapable of directing his own affairs" (Port Huron 166). Supporters of the New Left disagree strongly with these views. In fact, the Port Huron Statement makes a point of cutting down these beliefs, claiming that the New Left will not support the idea of human beings as things or objects. Then the document takes it one step further in saying that the incompetence attributed to humans is, in fact, caused by the society in which they live. They have been manipulated into thinking they were incompetent by their surroundings (166). Reich even goes as far as to say that "it is a crime to allow oneself to become an instrumental being" (Reich 56). The older society, by viewing man as incapable of controlling his own life, has also led their generation to concentrate primarily on institutions, public interest, and society as the basic reality. However, the younger generation deals more with the self. One should be able to create their own values, lifestyle, and culture (Reich 56). Rubin seems to claim, in a more vocal manner, that the older generation has not left a place in the world for the younger generation to live. The older society has already done everything which can be done. Instead of helping the youth in society to learn about being themselves, they seem insistent on controlling the youth. They place them in schools to keep them off the streets, they send them away to Vietnam. The older members of society are only trying to keep the youth from spoiling what already exists. They are intent on molding the
Wednesday, March 18, 2020
Nutritional assessment- a vital component The WritePass Journal
Nutritional assessment- a vital component Introduction Nutritional assessment- a vital component IntroductionCase scenarioNutritional assessmentMedical history collection approachesPhysical examinationBiochemical dataDiscussionConclusionReferenceRelated Introduction Malnutrition and undernourishment pose a major healthcare problem in the care of hospitalized patients in different care units in developed countries. There are numerous studies in health care literature reporting frequent malnutrition of patients in acute hospitals on admission and deterioration of nutritional status during hospitalization, particularly older people (Inge.K, 1999). Malnutrition can be defined in older people as faulty or inadequate nutritional status; undernourishment characterized by insufficient dietary intake, poor appetite, muscle wasting and weight loss (Carole S. Mackey, 2004). The cause of malnutrition is commonly contributed to medical, social and environmental as well as individual factors, such as poor appetite and disinterest in food, unpalatable or inadequate food, and lack of assistance with eating, poor skills in recognizing malnourished patients or those at risk of malnutrition and the low priority given to patientsââ¬â¢ nutrition by doctors and nurses. Undetected and untreated, malnutrition is found to be detrimental to the quality of life and can lead to severe consequences such as prolonged hospital stays, high risk of infection, pressure ulcers, reduced wound healing, increased morbidity and mortality as well as increased costs for care, therefore, it is vital that hospital wards for older people have a nutritional care policy to prevent and/or treat malnutrition (Carole S. Mackey, 2004). Case scenario In 2010 August, Mr. Wong complained dizzy and fell in the morning and initially presented to orthopedic ward for collapse of L1 after fall. On admission, Mr. Wongââ¬â¢s ear temperature was 36.8, blood pressure was 100/ 50 mmHg, pulse was 75 /min, oxygen saturation was 93% on 2 L/min oxygen. During the acute state, he was developed hospital acquired pneumonia and put on Augmentin for one week course. In same year of November, Mr. Wong was transferred to rehabilitation ward for recovery and physiotherapy. Mr. Wong was retired. He has a 30-yr smoking history with one pack per day. He tries to quit smoking several times, but does not succeed. He lives in a 4-bedroom house with his wife and two sons and one daughter. He attended a Tai-Chi course with his wife in nearby park every day and had balanced diets prepared by Mrs. Wong. Mr. Wong had past history of Parkinsonââ¬â¢s disease, hyperlipidaemia and gout followed up by Princess Margaret Hospital medical. On 2008 he had old lacunar infarct on computer tomography scan. In the rehabilitation ward, Mr. Wong had some exercise or limbs training with physiotherapists on the bed, as he could not have enough energy to stand up or walk with or without any support. Therefore, Mr. Wong always lied on the bed and then subsequently suffered from bed sore at his sacral. Firstly, he just suffered from stage one pressure sore, which was redness at the site without any discharge, and protected from duoderm. The health care workers provided daily normal saline dressing, frequent turning and pillows to relieve the pressure at the sacral. However, the pressure sore still became worse. At first, when the health care workers assessed Mr. Wong had high risk of worsening pressure sore; there are six risk factors including mobility, continence, nutritional, skin integrity, physical condition and medication common leading to developing pressure ulcers (Sharp CA, 2006). All possible preventions such as maintenance of well personal hygiene, frequent turning, and use of ripple bed had been provided. Also, wound nurse had assessed Mr. Wongââ¬â¢s situation and recommended the nurses for continuously providing dressing care and frequent skin observation. However, all recommendations and protections were given under strict supervision, but there is one criteria area missing in dealing pressure sore, this is nutrition. Poor nutritional status has been reported by several studies to be contributing factor to pressure ulcer development and malnutrition is positively correlated with pressure ulcer incidence and severity (Sharp. CA, 2006). Inadequate nutrition can increase the r isk of developing pressure ulcers and infection as well as impede the healing process of all wounds. Also, adequate dietary protein is absolutely essential for proper wound healing, and tissue levels of the amino acids may influence wound repair and immune function. As a result, a nutritional support should be given to patients with identified nutritional deficiency and any support be based on nutritional assessment using a recognized tool, general health status, patient preference or expert dietician (Ulrika Soderhamn, 2008). Moreover, nursing staff play an important role in the detection of the patient at risk and the implementation of sufficient preventive strategies. However, a comprehensive nutritional assessment is seldom performed on geriatric patients as routine and very few at-risk patients have a nutritional care plan. And some studies pointed that nurses in geriatric care feel they have a great responsibility for nutritional assessment and care but lack of sufficient knowledge for the tasks as well as of support from physicians (Ulrika Soderhamn, 2008). It is recommended that the health care workers should take the responsibility for informing, ordering, serving food and observing food intake and securing sufficient intake. These require the health care workers have sufficient knowledge and appropriate tools for screening and assessment of the older patients (Sharp. CA, 2006). Nutritional assessment A nutritional assessment is an in-depth evaluation of both objective and subjective data to define a personââ¬â¢s nutrition status. Specific data are obtained to create a metabolic and nutritional profile of the patient. The goals of the nutritional assessment are identification of patients who have, or at risk of developing malnutrition; to quantify a patientââ¬â¢s degree of malnutrition and to monitor the adequacy of nutrition therapy. It includes gathering information from the patientââ¬â¢s careful medical history, dietary history, a physical examination and laboratory tests (Weber, J, 2009). Medical history collection approaches Foremost in nutritional assessment is the patient interview for determining clinical history. Health care workers have recognized the way in which various diseases and conditions affect a personââ¬â¢s nutritional status. Attention should be focused on the disease state, duration of illness, intake of nutrients and presence of such gastrointestinal systems as nausea, vomiting and diarrhea. Also, the natural aging process can lead to increased nutritional problems among the elderly. Nearly 65% of elderly patients are calorie-protein undernourished or nutritional deficits developed while in the hospital (Vanderwee K, 2010). There some risks that are related with poor nutrition on the elderly such as normal aging changes in the senses of smell and taste, the effects of chronic diseases on food intake, psychological factors, social isolation, side effects from multiple medications or diminished function that subsequently limits their ability to shop or prepare meals. Choosing a dietary approach to nutritional status assessment The most valid or accurate dietary methods are prospective methods. These involve keeping records of foods consumed over the period of time of interest. This can be done by individuals themselves, or by health care workers observing them. Sometimes the foods are weighed before eating and then plate waste is weighed and subtracted. A similar method is to prepare two duplicate meals; one is consumed by the subject and the other is analyzed for nutrient content. Another method is the dietary record, in which the subject records estimated amounts of foods consumed. In any case, these methods are highly reactive because individuals may alter usual behavior to make their diet more socially desirable or to simplify the process of record keeping. Recall methods are the most widely used type of dietary data collection method. They are less reactive, but also less accurate than record methods. Twenty-four hour recalls, in which the previous days intake is queried in detail, for instance, foods , amounts, preparation techniques, condiments, are easiest for health care workers to complete (Sharp. CA, 2006). The data reported are converted from foods to nutrients with the use of food composition tables. Because a single day is not representative of usual intake, multiple twenty-four hour recalls are frequently used. Besides, the twenty-four hour recall of food intake record are used, the health care workers should observe the patientsââ¬â¢ food preference, history of eating pattern and eating ability such as mood changes or swallow problem that might affect their eating. Physical examination Evaluation of the patientââ¬â¢s overall appearance and thorough physical examination of the skin, eyes, mouth, hair, and nails provide a clue the presence of malnutrition. Weight is one of the most useful elements of the physical examination for the assessment of nutritional status (Inge.K, 1999). Body weight is expressed as a relative to established norms in the general population. For adults, body weight and height are used to evaluate overall nutritional status and to classify individuals as at healthy or non-healthy weights. The most recent classification is to use body mass index (BMI, in kg/㎠¡). BMI, regardless of age or population, is normal at 18.5-25.0 kg/㎠¡, overweight at 25.0 to 19.9 kg/㎠¡, and obese at over 30.0 kg/㎠¡. In general BMI greater than 30 is assumed to be due to excessive adiposity (World Heart Federation, 2005). Weight loss is often the first clue to an underlying cause of malnutrition. The loss of more than 10% of the patientââ¬â¢s usual weight necessitates a thorough nutritional assessment. Recent unintentional loss of 10% to 20% of the patientââ¬â¢s usual weight indicates moderate protein-calorie malnutrition, and loss of more than 20% indicates severe protein-calorie malnutrition (Ulrika Soderhamn, 2008). In addition to weight and height, anthropometric approaches are for most part relatively noninvasive methods that assess the size of body composition of an individual. Anthropometric measures, such as mid-arm muscle circumference and triceps skin-fold thickness, estimate fat and lean tissue mass respectively (Carole S. Mackey, 2004). Anthropometric measures of nutritional status can be compromised by other health conditions. For example, edema characteristic of some forms of malnutrition and other disease states can conceal wasting by increasing body weight. Anthropometric data are used in nutritional assessment to compare measured values with standardized controls and to compare serial measurements over time in the same patient. These are useful in identifying the most severely malnourished patients, especially those with fluid retention as a result of disease (Inge.K, 1999). Biochemical data Laboratory tests based on blood urine can be important indicators of nutritional status, but they are influenced by non-nutritional factors as well. Measurements of serum protein levels are used in conjunction with other assessment parameters to determine the patientsââ¬â¢ overall nutritional status. Serum proteins used in nutritional assessment include albumin and transferrin and preablumin. Albumin is a complex, high-molecular-weight protein produced by the liver and decreased albumin levels have been shown to correlate with increased morbidity and mortality in hospitalized patients; therefore it is often used as a prognostic indicator. If the patientââ¬â¢s serum albumin concentration lower then 3.5g/dL and the total lymphocyte count lower than 1500 cells/mm3, it should be take more concern with them (Carole S. Mackey, 2004). Also lab results can be altered by medications, hydration status, and disease states or other metabolic processes, such as stress. As with the other are as of nutrition assessment, biochemical data need to be viewed as a part of the whole. Discussion Before utilization of the nutritional assessment, the health care workers might only concern how the pressure sore can be healed and provided further treatment or protection. The nutritional issue related to wound healing might be ignored. The health care workers should have knowledge and be conscious of nutritional issues and know the importance and relevance of these issues for the particular patient promoted the nutritional nursing assessment. Identifying, assessing and treating older patientsââ¬â¢ nutritional problems is a challenge for all staff groups involved in the patientsââ¬â¢ care, therefore, it need to collaboration between other caregivers and professionals and sufficient knowledge about nutrition among the staff groups (C. E. Weekes, 2009). For example, the nurse can organize one person into performing specific tasks like serving food to Mr. Wong to highlight his eating ability and facilitate the assessment process. There is also collaboration between the nurse an d physician, speech therapist or dietician who can help with the estimation of the nutritional requirements and get suggestions of food supplements. The first priority for the nurses is to let Mr. Wong know their nutritional needs and current problems, as he might think that he ate enough every day, but the situation perhaps was adverse. They should have an individual holistic patient view and discuss with Mr. Wong about his situation and then find out how and why the identified nutritional problem influenced the pressure sore. And the four assessment techniques in a nutritional assessment can perform at the same time. The health care workers always perform the twenty-four hours intake and output record with Mr. Wong for calculating the fluid balance and energy intake in the daily nursing routine. Also, it can be recognized Mr. Wongââ¬â¢s nutritional status from physical examination like Body mass index reading and mid-arm circumference to determine the specific needs and problems. And then collaboration with physicians to taking his blood for further laboratory assessment. The laboratory results like protein level and albumin level provide information for the nursing diagnosis. Using the clinical, biochemical and dietary data, influences on the nutritional status can be determined. A nutritional intervention which includes dietary guidance and exercise recommendations is then formulated and discussed with the individual. Further dialogues with and observations of Mr. Wong are used promoting for a continuous assessment process, because it can supply the nurse with information about the effects of the interventions and how the nutritional status of Mr. Wong changed, The nurse then feels a responsibility for him having a continuous and proper nutritional intake (C. E. Weekes e, 2009). If all the possible preventions and nutritional problem can be treated, the rate of getting infection should be minimized and the wound healing should be better. Conclusion Malnutrition becomes a considerable problem among hospitalized patients. The use of nutritional care practices and nutrition assessment of elderly patients is necessary and optimal in hospitals. Nutrition assessment involves a combination of examinations and patient history, and as such, no single laboratory test or finding should be used to indicate poor nutrition. An increased consciousness of the importance of nutritional care and assessment among health care professionals will contribute to further improvement of the quality of nutritional care. Reference Carole S. Mackey. (2004). Nutritional Assessment. Retrieved 19 February, 2011, from diet.com/store/facts/nutritional-assessment Ho. S Lee. S. ( 2011, March 18).à Slow food culture on stress-city menu. The Standard, p. A4 Inge.K, Simon. S Wood. J (1999). Nutritional care of the patient: nursesââ¬â¢ knowledge and attitudes in an acute care setting. Journal of clinical nursing, 8, 217-224 Sharp CA McLawa M.L (2006). Estimating the risk of pressure ulcer development: it is truly evidence based?. International Wound Journal, 3(4), 344-353 Ulrika Soderhamn. Olle Soerhamn. (2008). A successiveful way for performing nutritional nursing assessment in older patients. Journal of clinical nursing, 18, 431-439 Vanderwee K, Clayse E, Bocquaert I, Verhaeghe S, Lardennois M, Gobert M Defloor T. (2010). Malnutritiona and nutritional care practices in hospital wards for older people. Journal of advanced nursing, 67(4), 736-746 Weber, J. Kelley, J. H. (2009). Health assessment in nursing. Philadephia: Lippincott Williams Wilkins Weekes, C. E, Spiro, A, Baldwin, C, Whelan, K, Thomas, J. E, Parkin, D Emery, P. W. (2009). A review of the evidence for the impact of improving nutritional care on nutritional and clinical outcomes and cost. Journal of Human Nutrition and Dietetics, 22, 324-335 World Heart Federation (2005). Body Mass Index [Leaflet]. World Heart Day 2005 Leaflet
Monday, March 2, 2020
Temperature Definition in Science
Temperature Definition in Science Temperature is an objective measurement of how hot or cold an object is. It can be measured with a thermometer or a calorimeter. It is a means of determining the internal energy contained within a given system. Because humans easily perceive the amount of heat and cold within an area, it is understandable that temperature is a feature of reality that we have a fairly intuitive grasp on. Consider that many of us have our first interaction with a thermometer in the context of medicine, when a doctor (or our parent) uses one to discern our temperature, as part of diagnosing an illness. Indeed, temperature is a critical concept in a wide variety of scientific disciplines, not just medicine. Heat Versus Temperature Temperature is different from heat, although the two concepts are linked. Temperature is a measure of the internal energy of a system, while heat is a measure of how energy is transferred from one system (or body) to another, or, how temperatures in one system are raised or lowered by interaction with another. This is roughly described by the kinetic theory, at least for gases and fluids. The kinetic theory explains that the greater the amount of heat is absorbed into a material, the more rapidly the atoms within that material begin to move, and, the faster atoms move, the more the temperature increases. As atoms begin to slow down their movement, the material becomes cooler. Things get a little more complicated for solids, of course, but thats the basic idea. Temperature Scales Several temperature scales exist. In the United States, the Fahrenheit temperature is most commonly used, though the International System of Units (SI unit) Centigrade (or Celsius) is used in most of the rest of the world. The Kelvin scale is used often in physics and is adjusted so that 0 degrees Kelvin is equal to absolute zero, which is, in theory, the coldest possible temperature and at which point all kinetic motion ceases. Measuring Temperature A traditional thermometer measures temperature by containing a fluid that expands at a known rate as it gets hotter and contracts as it gets cooler. As the temperature changes, the liquid within a contained tube moves along a scale on the device. As with much of modern science, we can look back to the ancients for the origins of the ideas about how to measure temperature back to the ancients. In the first century CE, the Greek philosopher and mathematician Hero (or Heron) of Alexandria (10ââ¬â70 CE) wrote in his work Pneumatics about the relationship between temperature and the expansion of air. After the Gutenberg Press was invented, Heros book was published in Europe in 1575, its wider availability inspiring the creation of the earliest thermometers throughout the following century. Inventing the Thermometer The Italian astronomer Galileoà (1564ââ¬â1642) was one of the first scientists recorded to have actually used a device that measured temperature, though it is unclear whether he actually built it himself or acquired the idea from someone else. He used a device called a thermoscope to measure the amount of heat and cold, at least as early as 1603. Throughout the 1600s, various scientists tried to create thermometers that measured temperature by a change of pressure within a contained measurement device. English physician Robert Fludd (1574ââ¬â1637) built a thermoscope in 1638 that had a temperature scale built into the physical structure of the device, resulting in the first thermometer. Without any centralized system of measurement, each of these scientists developed their own measurement scales, and none of them really caught on until Dutch-German-Polish physicist and inventorà Daniel Gabriel Fahrenheit (1686ââ¬â1736) built his in the early 1700s. He built a thermometer with alcohol in 1709, but it was really his mercury-based thermometer of 1714 that became the gold standard of temperature measurement. Edited by Anne Marie Helmenstine, Ph.D.
Friday, February 14, 2020
Wal-Marts Sustainability Strategy Essay Example | Topics and Well Written Essays - 3250 words
Wal-Marts Sustainability Strategy - Essay Example However, this proves to be more complex, considering that continuous supply of the seafood is the greatest challenge faced by Wal-Mart, according to Peter Redmond, who is its vice President (Wal-Mart, n.d. p1). Since some of the fish are found seasonally, for example the Salmons, which are only available between May and September of every year, maintaining their coViceuous supply is a big challenge. Additionally, the availability of these types of fish is, still low even during their season, and thus Fishinââ¬â¢ Company, based in the US has been contracted to supply Wal-Mart with frozen fish fillets. Commercial fishing of the Salmons is also regulated by the law, where it is allowed only to operators with permits, and during specified seasons. Thus, Wal-Mart has to seek a strategy for obtaining the certification of its boat operators from the Marine Stewardship Council, to enhance a sustainable channel of maintaining regular supply of the Salmons, and thus meet the growing seafood demand. The major challenge that Wal-Mart is facing is the shortage of supply of the seafood. The output of the worldââ¬â¢s fisheries es had declined by 3% since 1900, yet the demand for the seafood from Wal-Mart is constantly growing at the rate of 25% every year (Wal-Mart, n.d. p1). Therefore, the looming scenario in this case is that; while the demand for the products seem to be continuously growing, its supply seems to be consistently reducing, which raises the concern of how Wal-Mart will be able to meet the needs of its customers, while at the same time taking advantage of the growing seafood business. Several alternatives are available through which this gap can be minimized, considering that Wal-Mart can liaise with the boat operators and the suppliers to ensure increased supply of the seafood.
Saturday, February 1, 2020
Critical Assessment Of The Future Of Coffee As A Commodity Trade Essay
Critical Assessment Of The Future Of Coffee As A Commodity Trade - Essay Example This issue has been addressed by a diverse array of institutions with different approaches in order to find adequate solutions to short-term and long-term conditions of the coffee market as a commodity that is mainly produced in LCDs and developing countries where the levels of poverty are pretty high. The Food and Agriculture Organization (FAO). (2004) published a report entitled "The state of agricultural commodity markets 2004" with the main concern of addressing the issue of agricultural commodity economies with the intention of finding workable solutions to the challenges ahead. Jacques Diouf, FAO Director-General, stated the following in the Foreword: "The price of coffee plummeted 70 percent between 1997 and 2001, threatening the livelihoods of an estimated 25 million people who depend on coffee and triggering food emergencies in several countries in Africa and Central America." (Food and Agriculture Organization, 2004). This is really a very critical situation. There are several reasons behind it. It is a complex problem that has to be assessed from a multi-lateral perspective taking into account all the stakeholders, especially the small farmers in LDCs and developing countries. In its report, FAO acknowledges the greater productivity of the coffee sector. At the same time it points out that the main beneficiaries are the developed countries producers and consumers: "Advances in agricultural productivity th... ers in better-endowed and more-developed regions that have been able to take advantage of productivity gains to strengthen their position on world markets." (Food and Agriculture Organization, 2004). The FAO report also addresses the issue of concentration of a few big companies in the global market. This troublesome factor in the overall scenario of commodity trading is stated as follows: "Another development in agricultural commodity markets has been the increasing concentration of market power in the hands of a few transnational corporations. Just three companies now control almost half the coffee roasting in the world, for example, and the 30 largest supermarket chains control almost one-third of grocery sales worldwide." (Food and Agriculture Organization, 2004). Daniele Giovannucci, Bryan Lewin and Panayotis Varangis published a report for the World Bank entitled "Coffee markets: New paradigms in global supply and demand". Among their findings, the following statements picture a negative situation for producers in LCDs and developing countries regarding coffee economic viability: "Most of the world's coffee is produced by smallholders utilizing just a few hectares of land. In the past year, many reports have confirmed the heavy toll on farmers that have had to sell below cost or even give up their coffee farms because current prices do not even cover the most basic costs of harvesting and transport to market, and estimate economic losses for small coffee farmers at US$4.5 billion per year." (Giovannucci, Lewin, & Varangis, 2004). These losses are extremely burdensome for small farmers who mostly live in LDCs and developing countries. Finding a solution by raising prices has its ups and downs as can be seen in an article about commodity trade published
Friday, January 24, 2020
Minimum Wage is The Bare Minimum Essay example -- Argumentative Persua
Minimum Wage: The Bare Minimum "They work hard every day; they stock our store shelves, wash dishes at our restaurants, clean our offices at night, care for our kids during the day...They have in common the minimum wage. And they need a raise, and as you saw, they deserve a raise" (Clinton). President Clinton made this speech on the south lawn of the White House at 10:30 a.m. on the 8th of March 2000. He argued for the minimum wage hike to go into effect. He argued for the population of the United States who worked at the federal minimum wage. But was his argument feasible? Would it be practical to raise the federal minimum wage from its current status of $5.15 an hour, to $6.15 an hour? President Roosevelt instated the first minimum wage on June 25, 1938. It created a law which made it illegal for employers to pay their workers under .25 cents an hour. While this law made it easier for workers, businesses and industries of the time found themselves lower on their supply of money, and higher on demand of workers. Economists predicted that the Great Depression (already in its ninth year) would get worse, and that Roosevelt would lose popularity among his peers. Little did we know Roosevelt lost 80 seats in the house that year, and the Depression worsened (Folsom). Now, the economics of raising the minimum wage has seen many more positive effects, or according to our president and the National Economic Council. "Since the minimum wage was raised in 1996, our economy has created over 10 million new jobs. The unemployment rate is at its lowest point in 30 years" (Clinton). The figures seem to be all in the right to just raise the minimum wage once again. On March 10, 2000 the House passed a m... ...eop.gov.us/2000/3/8/11.text.1 March 8, 2000. Folsom, Burton W. Minimum Wage Causes Maximum Pain. "Mackinac Center for Public Policy." [online]. Available: June 1, 1998. Golway, Terry. Life in the 90's. (increases in minimum wage are socially just and economically beneficial). "America Press Inc." [online]. Available: October 24, 1998. House Passes Minimum Wage Increase With Tax Cut Package. "About.com" [online]. Available: http://usgovinfo.about.com/newsissues/usgovinfo/library/news/aa031000a.htm March 10, 2000. Lehman, Joseph G. Minimum Wage Hurts Teenagers and Minorities. "The Mackinac Center for Public Policy." [online]. Available: June 1, 1998 Reed, Lawrence W. Minimum Wage is Lousy Economics. "The Mackinac Center for Public Policy." [online] Available: March 5, 1990.
Thursday, January 16, 2020
Mcdonaldââ¬â¢s Business Strategy Essay
, Inc. 11410 N. E. 124th Street #223 Kirkland, Washington 98034 USA O: 425-822-3106 C: 206-257-9839 Timothy@McDonaldManagement. com Table of Contents Page 3 Page 5 Page 6 Page 9 Page 11 Page 12 Page 16 Page 18 Page 21 Executive Summary Our Business Plan The Market Defined World View Pilot Program (Ethiopia) Projected Market Share Market Strategy Promotion Competition The Bottled Water Industry Product Development ââ¬â Four Keys Norit Ultra-Filtration System (Perfector ââ¬â E) Solar Powered Modules Prototype configuration and assembly The Patented 20-liter Tamper-proof Bottle Organizational Development USAgua Partnership Program US Home Office East Africa Central Assembly Distribution (Operators to Owners) Mile Stones Financial Statements Sales Projections Personnel Budgets Cash Flow Projections Income Statements ââ¬â Projected Expense Statements ââ¬â Projected 2 Executive Summary W e are now in a position to profitably enter into the lucrative and expanding worldwide market for pure, clean, safe drinking water. We have developed and will introduce to the world, the concept of small community commercial water purification systems. We call our systems ââ¬ËUSAguaâ⠢ Pure Water Kiosksââ¬â¢. Each of our Kiosks is capable of taking in 8,000 liters of dangerously polluted raw water every day and, through the technologically phenomenal process of ultra-filtration, they process that unhealthy water into safe, clean, purified drinking water. Our systems are containerized, modular, solar powered and ultra-filtered ââ¬â they function completely ââ¬Ëoff-the-gridââ¬â¢. Our markets are the vibrant, sophisticated, newly emerging middle-classes of the developing world. These middle-class niches represent over one billion people and their numbers are growing daily. These people realize the importance of safe drinking water for themselves and their families but, at the same time, they know that their governments are incapable of providing this most basic need. What is important to our program is that these middle class families are financially capable of paying for our water. The proof is the fact that they now consume literally tens of millions of gallons of bottled water every year. Our competition is the bottled water industry and, very soon, we will have a substantial piece of that market. The product we sell is clean, pure, safe drinking water. How we produce, market and sell our product is through our USAgua Pure Water Kiosks Program. Our Kiosks are a melding of two wonderful technologies just now coming into their own. The first is called ââ¬Ëultra-filtrationââ¬â¢. Picture a bundle of spaghetti sized perforated tubes through which polluted water is pumped under pressure. The perforations are so small that they block viruses, bacteria and parasites down to a ââ¬ËLog 2-4ââ¬â¢ EPA rating. This means that the water we sell is 99. 99% pure or better when it leaves our system. And, because the filters require only ââ¬Ëback-flushingââ¬â¢ instead of costly filter replacements, the long-term costs are minimized. The second basic technology we have employed is Solar Power. Our Kiosks, including all the necessary pumps, batteries, electronics and lighting requirements run perfectly using a Solar Power package designed specifically for our needs. The initial costs of the solar option are steep, but the long term reliability, the fact that we donââ¬â¢t depend on any outside sources of energy and the nearly-maintenance-free specifications we have developed, make them a perfect fit in developing countries. Our ultra filtration systems and our solar power systems have been rigorously field tested by their manufacturers. Our own design engineers have melded the two technologies together, combined them with our storage tanks and lab gear and integrated them seamlessly into our retail USAgua Kiosks. After a final prototype development program, our manufacturer s will ship their modules to our USAgua Central Assembly Plants in our target markets. We will use local technicians to retrofit universally available freight containers and perform final installation and assembly. Once our Kiosks are complete, they will be delivered to our ââ¬ËOperatorsââ¬â¢ in the field. Our Management Team will locate, recruit and train local ââ¬ËOperatorsââ¬â¢ in our various ââ¬ËTarget Marketsââ¬â¢. In time, our Operators will be given the opportunity to own their own USAgua Kiosk, thus allowing us to tap the entrepreneurial energy and spirit that can be found within individuals in every corner of the world. Our USAgua Operator program will ensure our market position and stability through world-wide name branding, equipment standardization, standardized maintenance routines and universally accepted accounting procedures. With the help of some very smart engineers we have developed the concept of our USAgua Pure Water Kiosks. At the same time, we have put together a business model that takes the best of the American business concepts we are so proud of and we, very carefully, introduce them into the potentially lucrative new middle-class markets of the developing world. Our ââ¬Ëfinancial packageââ¬â¢ is strong. Our assumptions and our projections are conservative, our research is up to date and our key players are heavy on both education and real world experience. We are ready to take the next giant step forward. To that end, we are asking to secure a US $2,200,000 Investment package so that we can bring our USAgua International Program to fruition. Please, feel free to call me anytime for more information or clarifications. Sincerely, Timothy McDonald 4 Our Business Plan The World Wide Market Defined: Of the 6 billion people in the world today, over 3 billion1 live either totally ââ¬Ëoff-the-gridââ¬â¢ or in communities not serviced by safe, dependable water systems. Families within this demographic, no matter their economic level, are left vulnerable to water borne diseases including viruses, parasites and bacteria. The negative social and economic repercussions of not having access to safe, clean drinking water are immense. Some United Nations reports have gone so far as to predict that safe drinking water will be as economically significant as oil within the next decade2. We intend to be a big player in solving the drinking water problem. We have designed both our USAgua Water Purification System and our Business Model to be universally adaptable. Our equipment and our business model will function beautifully in the suburbs of Nairobi, along the Yangtze River in China and in the mountains of northern India. Anywhere there is both a source of water (no matter how polluted) and an open view of the sun, our USAgua water purification systems will work. Anywhere there are energetic and entrepreneurial individuals who aspire to a better life for their families, our USAgua Operator network will prosper. At the ââ¬ËMacroââ¬â¢ scale, our market is unlimited. Good business practices, however, dictate that we start small and grow carefully. We will introduce our program to a small, representative market we are familiar with. One that can be easily documented and controlled. In our ââ¬ËPilot Marketââ¬â¢ we will learn a great deal from both our successes and our mistakes. Once we have field proven both our equipment and our business model, we will enter additional markets with much greater knowledge and enthusiasm. _________________________________ It is very important to understand that we are in competition with the ââ¬ËBottled Water Industryââ¬â¢ in all aspects of our program. The statistics and the markets for bottled water, world wide, are the statistics and markets relevant to USAguaâ⠢. _______________________________________ 1 2 United Nations Development Program Report ââ¬â August 2008 United Nations Development Program Report ââ¬â August 2008 5 Our Ethiopian Pilot Program and Our Share of the Market For several reasons, including a thirty year professional involvement in East Africa, we have chosen the country of Ethiopia to establish our ââ¬ËPilot Programââ¬â¢. The Ethiopian Market Defined: Population (millions) 2007 Population growth (annual %) Life expectancy at birth (years) Literacy rate GNI (US $ billions) GNI per capita (US $ ) 78. 6 2. 6 55. 0 38. 5 19. 4 220. 0 The United Nations Childrenââ¬â¢s Fund (UNICEF) acquired these statistics: Health of population using improved drinking-water sources, 2006, total 42 (cut and paste from the UNICEF 2008 Report) These UNICEF statistics show us that there is a large segment of the Ethiopian population that understands the need for safe water. The definition of ââ¬Ëimproved drinking-water sourcesââ¬â¢, however, does not address the quality of the water. It only documents the fact that the water has been drawn from a centralized source and is conveyed to the end user via an established distribution network; either municipal water systems, tanker trucks or bottled water. The water may or may not be processed. It may or may not be safe. The quality of both the tap water and the bottled water in Ethiopia is suspect due to poor infrastructure maintenance and a lack of Health Department regulation enforcement. 3 3 UNICEF Annual Report ââ¬â 2006 6 The Ethiopian Central Statistical Agency (CSA) estimates that currently 4. 18% of the households, nationwide, have access to community water systems and taps within their homes. Ethiopia Total 2004 2. 2 2006 2. 7 2008 3. 3 Current 4. 18 (cut and paste from the 2008 CSA Report) This means the vast majority of people considered to have access to ââ¬Ëimproved drinking water sourcesââ¬â¢ are using tanker truck delivery (very dangerous) or bottled water. (78. 6 million X 42%) ââ¬â 4. 18% ) = 31. 4 million people drink non-tap water. ) The CSA also publishes a quarterly retail price listing for nearly every commodity found in Ethiopia. In 2008 the average cost per liter of bottled water was 6 birr. (Ethiopian currency) BEVERAGES ââ¬â NON ALCOHOLIC Ambo Mineral Waterâ⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦ 500cc 3. 00 3. 00 3. 00 3. 17 3. 00 3. 00 2. 50 3. 00 2. 96 2. 50 3. 00 3. 00 2. 50 2. 5 Bure Mineral Waterâ⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦ 500cc ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â ââ¬â (cut and paste from the 2008 CSA Report) ! (Or â⬠¦ US $0. 48/liter at the current exchange rate) The CSA has not been able to estimate a total volume of bottled drinking water produced or con sumed. We have been told many reasons for this lack of statistical documentation. The most plausible is the lack of government oversight and a huge black market for recycling local water in used plastic bottles. This is a very dangerous practice and one the central government has taken action to stop. 4 A few assumptions: W e are going to assume, in the interest of simplifying our Business Plan, that within and near the cities of Addis Ababa, Mekele, Bahra Dar, Nazerit and Awassa ( a total population of over 27 million ) there is a need for 27,000,000 liters of pure, safe drinking water every day. (27,000,000 X 365 days = nearly 10 Billion liters per year) (One liter of safe drinking water per day is the World Health Organizationââ¬â¢s minimum requirement. ) 4 Ethiopian Health Ministry ââ¬â 2008 7 Our Pilot Program Cities: 10% Purchase Vicinity of Population Addis Ababa 15,375,000 15% Purchase 20% Purchase 5% Purchase Bottled Water at US $0. 50/liter Bottled Water at US $0. 40/liter Bottled Water at US $0. 30/liter Bottled Water at US $0. 20/liter 1,537,500 2,306,250 3,075,000 3,843,750 Nazerit 3,580,000 358,000 537,000 716,000 895,000 Bahri Dar 1,790,000 179,000 266,850 355,800 447,500 Awasa 1,430,000 143,000 214,500 286,000 357,500 Mekele 4,825,000 482,500 723,750 965,000 1,206,250 27,000,000 2,700,000 4,050,000 5,400,000 6,750,000 $1,350,000 $1,620,000 $1,620,000 $1,350,000 $492,750 ,000 $591,300,000 $591,300,000 $492,750,000 Population Market Value Market Value Per Day Per Year Our Pilot Program Market Our Pilot Program Market focuses on five major cities in Ethiopia. We can take a very conservative but educated guess that 15% of the 27 million population is capable of purchasing 1 liter of drinking water every day for US 0. 40/liter. (about a billion and a half liters per year demand) 1,248,000 liters (62,400 20-Liter USAgua Bottles) is the annual sales figure we have projected for each of our USAgua Kiosks. Or less than one tenth of one percent (. 001%) of our Pilot Program Middle-class Market Demand. Our Kiosks are actually capable of physically producing ,920,000 liters of safe, clean drinking water annually, but for budgeting and logistical reasons as well as a conservative margin of safety, we are building our Business Model on a 1,248,000 liters/year basis or a 4,000 liters per day sales capacity, six days per week. ! The total cost to our USAgua Kiosk Program to produce, bottle and sell safe, clean drinking water is less than $0. 10 per liter The un iversal laws of supply and demand would tell us that we could completely dominate the ââ¬ËBottled Drinking Water Industryââ¬â¢ in our Pilot Program Market. By assuring two things ââ¬â Highest Quality, Lowest Price ââ¬â we should expect to capture a substantial share of this huge market while at the same time realizing a very profitable return on investment very quickly. It is not difficult to imagine 40 USAgua Kiosks working profitably within Ethiopia within two years of start-up. 8 Market Strategy The Market for pure, clean, safe drinking water already exists. It is large, growing and lucrative. Our dominant piece of that worldwide market is what we will develop. Brandingâ⬠¦ W e own the internet web domain and the trade marked name, USAguaâ⠢. We are now in the process of building a comprehensive website that will address everything from the biology of parasites, bacteria and viruses to the science of removing those contaminants from our drinking water. It will show how important safe drinking water is to individuals, societies and economies. It will differentiate our USAgua Water Purification Kiosks from our competition, the bottled water industry. Our website will play very well in East Africa. Since the election of President Obama, a new, very pro-American, attitude has emerged. America and all things American are now very popular. Our USAgua Kiosks provide safe drinking water at standards equal to or better than our American EPA standards for domestic drinking water. In East Africa, they trust our standards and want that same high quality for their families. Our Kiosks are painted in American national colors. The USA in USAgua is meant to emphasize our American roots and our American standards. When a USAgua Kiosk is delivered to an African community our customers will feel that part of America has arrived. Our USAgua 20-liter plastic bottles are designed to be used and re-used and re-used by the family to which they are assigned. The boldly branded bottles can not be refilled by anyone other than our Kiosk operator. Our branded one-liter personal bottles will be carried with pride on the streets of our communities. The name, USAgua, will be synonymous with American high quality and good health. Lower retail pricingâ⬠¦ W e know there is a large and growing demand for safe, pure drinking water. On the macro scale this is evidenced by the rise of the bottled water industry in every city and village in the world. In Ethiopia, our Pilot Program Market, we know the retail price of a liter of bottled water is US$0. 48. The laws of supply and demand dictate that as the price is lowered, the demand rises. The cost of our water, including all business related expectations, is less than US $0. 10 per liter. We will price our product to maximize both the quantity sold and the profit generated. 9 Flyers and Brochures Distributed Locally â⬠¦. And a billboard or two Because each of our USAgua Kiosks are designed to satisfy the drinking water demand of only 400 families per day, (we are saying 10 liters per family per day) the geographic market area for each of our Kiosks is small, (by design) less than one square kilometer. Prior to our Kiosks arriving at their final destinations, a local flyer and brochure campaign will saturate the area to introduce our program. Community meetings will be held to educate members of our market and sell our products. A large colorful bill-board will be erected so that people will begin identifying our branding. 10 Competition: The Competition for our Pilot Program Market (and every other market in the developing world, for that matter) consists of a handful of legitimate Centralized Water Bottling and Distribution Companies as well as black-market water bottle recycling scams. The government is now in the process of both adopting new quality standards for all bottled water plus they are developing the means to enforce those standards. Because none of the major international bottled water producers (Danone, Nestle, and Coca-Cola) have entered the African markets, statistical documentation is lacking for total production and demand. We do know a few things, however. First is that the existing legitimate bottled water industry depends on centralized plants that are, by definition, saddled with the tremendous costs associated with transporting heir product to market. Plus, they must purchase plastic bottles that will be used only once, but then become potential competition as those same bottles are refilled on the black-market and resold. We also know that the end user of bottled water is becoming much more sophisticated. They know full well the problem with boot-legged water and in most cases have gone back to boiling local water (at a tremendous expense in f uel) rather than purchase suspect bottled water. The Bottled Water Industry is not the answer for the Developing World. 11 Product Development â⬠¦.. some history For generations, scientists around the world have known that viruses, parasites and bacteria are present in much of the water we drink. They have also known that these tiniest of creatures are the source of the water borne diseases that have plagued humanity since Lucy stood up on her two legs and peered over the tall grasses of the African Savannah. Personal Note: McDonald was stationed in the Awash Valley of Ethiopia in 1973-75 only 20 miles from where Lucy ââ¬â Australopithecus afarensisr ââ¬â was discovered. On several occasions his Agricultural School and Farm hosted Lucyââ¬â¢s rcheologists. They appreciated the water system he had developed that pulled water from the muddy Awash River and provided them safe, pure drinking water. In the developed world, from our largest cities to our smallest villages, our technology has solved the problem of purifying our waters. In America, we long ago realized the importance of safe water to the overall health and well being of our society. It was so important to previous generations that they mandated our government to set and enforce the highest water standards in the world. Our municipal and community water systems now process and distribute a dependable flow of amazingly inexpensive water to the homes of every citizen. The success of America is due, in no small part, to the overall health of our people. And, the overall health of our people is, in no small part, due to our wonderful communal water systems. On the macro scale, the per gallon cost of water in America is very small; a penny or two a gallon at the most. The reality is, however, that a water purification plant and a distribution network are tremendously expensive to develop and operate; tens of millions of dollars. And, the technical sophistication necessary to maintain these systems is overwhelming to any but the most advanced economies. For so many reasons (economic, political, cultural, technical) there is little hope that the vast majority of people in the second and third worlds will ever be able to build and maintain the water systems necessary to provide safe water for their people. Even now, as a burgeoning middle class emerges, the central governments are powerless to act. The problem is just too large and the costs too high. 12 Product Development â⬠¦. the Stars Line Up The USAguaâ⠢ Pure Water Kiosk Program isâ⬠¦Ã¢â¬ ¦Four Components. The product we sell is clean, pure, safe drinking water. How we produce, market and sell our product is through our USAgua Pure Water Kiosks Program. Our Kiosk Program brings together four independent but equally important physical components. Namely: Ultra-Filtration, Solar Power, Retro-fitted Freight Containers and Keyed, Tamper-proof 20-liter Bottles. 1. Ultra-Filtrationâ⬠¦ This is a water filtration method developed and patented by Norit X-Flow, a member of the global Norit Companies. Norit is headquartered in the Netherlands with sales offices throughout the world including one just outside of Chicago. Ultra-filtration is easy to visualize. Picture a bundle of spaghetti sized perforated tubes through which polluted water is pumped under pressure. The perforations are so small that they block viruses, bacteria and parasites down to a ââ¬ËLog 2-4ââ¬â¢ EPA rating. This means that the water they process is 99. 99% pure or better when it leaves their system. And, because the filters require only ââ¬Ëback-flushingââ¬â¢ instead of costly filter replacements, the long-term costs are minimized. Noritââ¬â¢s filters can be used for months and then ââ¬Ëback-flushedââ¬â¢ to remove all contaminants. The actual filters will last for years. Ultra-filtration is truly a marvelous breakthrough. One of the first applications that Norit X-Flow developed for its Ultra-filter technology was a very clever machine they call the Perfector-E Mobile Water Purification System. It was originally designed for emergency responders to be used in the aftermath of devastating natural disasters; earthquakes, floods and hurricanes. The systems are small, strong and highly mobile. They can be transported and set up in any disaster area within hours. They are totally self contained and can draw and purify water from almost any source including exposed surface waters, local lakes, rivers, ponds and irrigation systems. The Perfector-E System can provide literally thousands of gallons of pure, safe drinking water per day to a disaster area under the most extreme conditions. And, there is another very positive aspect to Noritââ¬â¢s system. It is not a big energy user. With some adaptations, we can actually run the systems exclusively on solar power. 13 2. The second basic technology we have employed is Solar Power. Our Kiosks, including all the necessary pumps, batteries, electronics and lighting requirements run perfectly using a Solar Power package designed specifically for our needs. Our solar energy system was designed by H-Dot Logic, a solar engineering company here in Seattle. The initial costs of the solar option are steep, but the long term reliability, the fact that we donââ¬â¢t depend on any outside sources of energy and the nearlymaintenance-free specifications we have developed, make them a perfect fit in developing countries. . Our Kiosks ââ¬â Our Containers. We have chosen to utilize universally available, standard steal 20 foot cargo containers as the physical basis of our Kiosk system. Containers are strong and secure. They are easily transported on any flatbed truck in the world, and once they are delivered to our overseas locations, they will serve as the actual retail Kiosk facility. Our in-house engineers ha ve designed the retro-fit of the containers to comfortably house all the various components in and around the retail shell. The solar panels, the gravel pre-filters, the external raw water storage tank, the internal finished water storage tank with the UV sterilizer, the Ultra-filter modules, the pumps, the battery packs, all the electronics and a water testing system are all neatly configured inside the container. In addition to designing the retrofit, our Kioskââ¬â¢s will have a copy written exterior color and graphic scheme. The graphic scheme, once painted on our containers will provide a great advertising platform for our USAgua Brand. A prototype unit still needs to be assembled. USAgua Kiosk # 0001, the prototype, will be assembled in Seattle, Washington. A careful documentation video of the specifications and assembly methods will be produced. This process will take about four months to accomplish. Once the first Kiosk is ready it will be shipped from the Port of Seattle to Ethiopia. Once in Ethiopia, USAgua #0001 will be delivered to our Central Assembly ; Fabrication facility. Our local Management will use it to train a team of assembly mechanics. We will then begin purchasing containers on the local market and preparing them for the arrival of our Filter and Solar modules. Within a four month period, we will be assembling and delivering two complete USAgua units per month. 4. The Keyed-Tamper Proof Bottle Program: One of the reasons the bottled water industry is not a good fit for the developing world is because the plastic bottles are disposable. Each new bottle, when discarded becomes a potential competitor as people refill the bottle and sell it on the black market. Our USAgua bottles are specially designed to discourage re-use by anyone but the family to which it was assigned. The bottles will have a tamper proof valve and seal that can only be refilled at USAgua Kiosks. This makes the bottles un-usable outside our network and assures our customers that the water inside our stamped and sealed bottles has not been counterfeited on the black market. Our prominent USAgua Logo on each bottle will help promote our brand where ever it is found. 14 Organizational Development Thirty years of experience working in developing countries has taught us many things. One of the most important is that without a very involved and powerful Management presence ââ¬Ëon the groundââ¬â¢, no program can succeed. For the success of any project in the developing world, including ours, it is vitally important that we back-up our 21st century technology with an equally robust Management and Operations Program based on centuryââ¬â¢s old tried and true Business Practices. We call our In-Country USAgua International Management and Operations Program ââ¬ËOur Partnership Programââ¬â¢. It is based on five powerful strategies: 1. Recruiting the best and the brightest. Every developing country in the world has vibrant, honest, well educated, hardworking, entrepreneurs looking for an opportunity to improve themselves, their families and their communities. Our Country Director will identify and recruit these individuals. We will offer them a good basic family wage with the added incentive of merit-based pay raises. 2. In-Country Training for our Operators Our USAgua in-country Management Staff will train every recruit in Kiosk system functions, maintenance procedures, program hygiene, local marketing and program bookkeeping. Trainees will work with seasoned Operators during a six month apprenticeship program. If they prove themselves capable, they will be offered a position as an Operator or Operatorââ¬â¢s Helper for one of our USAgua Kiosks. . In-Country Operations Management. We will have one Project Manager for every 10 USAgua Kiosk Operators. These Project Managers will visit each Kiosk Operator every month to make sure that the extremely high USAgua standards are being met and maintained. The PMââ¬â¢s are also in charge of auditing and banking functions. There will be zero tolerance for bookkeeping errors. In addition to our Project Managers, we have a Maintenance ; Repair team that routinely visits each Kiosk making sure that no small maintenance problem becomes a big repair problem due to lack of Operator vigilance. 4. Advertising and Marketing Support Each Kiosk comes with an introductory advertising budget for local marketing. We will saturate any new locale with USAgua literature. In addition, our Staff will visit each Kiosk to conduct community seminars in water quality and family hygiene. 15 5. Operators to Owners Program After two years as a USAgua Operator we will offer some of our most gifted and hardworking employees the opportunity to purchase their own USAgua Kiosk. We are wholly convinced that there exists a universally powerful business strategy that assures the success of a program such as ours. This is called ââ¬Ëpride in ownershipââ¬â¢ and we intend to tap that strategy to its fullest. Our US Office The home office of McDonald Management is in Seattle, Washington as will be the home offices of USAgua International, Inc. At the top of our organizational chart is the President and CEO, Timothy McDonald. Mr. McDonald has a BS in International Economics (minor in Civil Engineering) with Masters work in International Economics all from the University of Washington. He has been in and out of East Africa for over thirty years with our State Department as both an employee and an independent contractor. He will oversee day to day operations both in the US and overseas. Norit X-Flow International will provide the Ultra-filtration modules. H-Dot Logic will provide the solar package design and modules. R. L. Clark and Associates of Redmond, Washington will be in charge of Investor Relations, financial program development and implementation. Bahiru G. Egziabiher will be the Country Director in Ethiopia for our Pilot Market Program. He holds a Masters in Electrical Engineering from the University of Washington and has worked for Seattle City Light for over twenty years. Bahiru holds duel US and Ethiopian citizenship. Dalrymple and Associates will be in charge of our Kiosk design and equipment coordination. In addition his company has designed our logo, the graphic presentation of our USAgua name and our color schemes and themes. RedRover Marketing will be in charge of our website design, maintenance and hosting. Our Office in Ethiopia W e will lease a centralized office/warehouse facility in Addis Ababa where we will identify, recruit and train a team of assemblers and fabricators to retrofit our containers, install our filtration systems, our solar modules and our storage tanks. Our paint shop will brand each Kiosk with our name, our logo and our color scheme. 16 Bahiru Egziabiher, our Country Director, will be in charge of our Ethiopia operations including the central warehouse and assembly facility. He will oversee the assembly of two complete USAgua Kiosks per month once we get underway. McDonald and Exziabiher and, eventually, a small team of Project Managers, will identify, recruit and train a Network of USAgua Operators. These Project Managers will be responsible for assuring the high standards of training, maintenance, product quality and accounting standards for each of their Network Operators. Within two years there will be 40 Kiosks producing pure water in Ethiopia. There will be one Project Manager for every ten Kiosks. Our Operator Network is the key to our program. Once our USAgua Operators are identified and recruited, they will go through a thorough training program. They will serve a two year apprenticeship and then, if they have proven themselves capable of maintaining our extremely high standards, they will be given the opportunity to own their own Kiosk. In this way we will tap the entrepreneurial spirit of those who will make our entire program a success. How Hard is it to Enter the Ethiopian Market? The World Bank ranks countries world wide by their ââ¬ËEase of Doing Businessââ¬â¢. Of the 183 countries rated, Ethiopia ranks #107. In comparison, Egypt is #106 and Kenya is #95. Since 1993 when the people of Ethiopia removed their previous communist government and replaced it with one decisively more moderate and business friendly, the new leadership has striven to open its economy to a more capitalistic model. In the past 10 years, Ethiopia has been gradually re-writing its constitution in an attempt to open new markets and stabilize its business community. These efforts have paid off. In 2008-9 the World Bank ranked Ethiopia at #122 for ââ¬Ëease of starting a businessââ¬â¢. This year they are ranked # 93. And, they are getting better every year. The following statistics are all from the World Bank. Ease of doing Business 107 Starting a Business 93 Dealing with Construction Permits 60 Employing Workers 98 Registering Property 110 Getting Credit 127 Protecting Investors 119 Paying Taxes 43 Trading Across Borders 159 Enforcing Contracts 57 Closing a Business 77 Summary of Indicators ââ¬â Ethiopia Starting a Business Procedures (number) 5 Time (days) 9 Cost (% of income per capita) 18. 9 Min. capital (% of income per capita) 492. 4 17 Dealing with Construction Permits Procedures (number) 12 Time (days) 128 Cost (% of income per capita) 561. 3 Employing Workers Difficulty of hiring index (0-100) 33 Rigidity of hours index (0-100) 20 Difficulty of redundancy index (0-10) 30 Rigidity of employment index (0-100) 28 Redundancy costs (weeks of salary) 40 Registering Property Procedures (number) 10 Time (days) 41 Cost (% of property value) 2. 2 Getting Credit Strength of legal rights index (0-10) 4 Depth of credit information index (0-6) 2 Public registry coverage (% of adults) 0. 1 Private bureau coverage (% of adults) 0. 0 Protecting Investors Extent of disclosure index (0-10) 4 Extent of director liability index (0-10) 4 Ease of shareholder suits index (0-10) 5 Strength of investor protection index (0-10) 4. 3 Paying Taxes Payments (number per year) 19 Time (hours per year) 198 Profit tax (%) 26. 8 Labor tax and contributions (%) 0. 0 Other taxes (%) 4. 3 Total tax rate (% profit) 31. 1 Trading Across Borders Documents to export (number) 8 Time to export (days) 49 Cost to export (US$ per container) 1940 Documents to import (number) 8 Time to import (days) 45 Cost to import (US$ per container) 2993 Enforcing Contracts Procedures (number) 37 Time (days) 620 Cost (% of claim) 15. 2 Taking into account the above information provided by the World Bank, it will take McDonald Management about 90 days to secure all the necessary permits, licenses, patent protection registrations and lease agreements in Ethiopia. This will all be done prior to our first Kiosk leaving the US. 8 Mile Stones First Three Months Investors have been identified and securedâ⬠¦ A US $2,200,000 credit line is opened â⬠¦ Dalrymple ; Associates secures a short term warehouse lease where the prototype Kiosk will be assembled and the process documented. Norit X-Flow, H-Dot Logic and USAgua finalize specifications for the prototype filter/solar modules The USAgua Prototype is completed and Unit #0001 is prepared for shipment to Africa In Month One, Mc Donald and Exziabiher leave for East Africa to secure business licenses and leases. While in Africa McDonald and Exziabiher identify and recruit a team of mechanics and fabricators as well as a Project Manager. They identify the first five individuals for the USAgua Operators Network. Months 4 and 5 USAgua Kiosk number 0001 is shipped from Seattle to Addis Ababa USAgua ââ¬â Seattle begins producing and shipping filter/power modules to Ethiopia at the rate of 2 units per month. Containers are purchased and retrofitted in our Addis Ababa facility at the rate of 2 units per month. Assembly begins and the first delivery of a unit is accomplished. Months 6 -12 All elements of our program are coordinated and we are assembling and placing USAgua Kiosks in client communities at the steady rate of 2 units per month. Project Managers and Operators are continuing the training, quality control and apprenticeship programs. Month 13 W e achieve income/expense financial Break Even Month 24 The first 40 USAgua Kiosks are in place and working. The first USAgua Operator recruits are offered ownership of their Kiosks. 19 Business Plan Summary W e are confident that a vibrant and lucrative market for safe, clean drinking water exists in every country of the world. We are also confident that we have the right Technology and Business Model to enter and eventually dominate those markets. To prove this, we are going to introduce 40 of our USAgua Kiosks into the Ethiopian market. There we will show that our technology is exactly right; that each of our Kiosks can be operated and maintained profitably for years. And, that our Business Model is sound and worthy of the trust our investors have shown. We have developed a set of financial projections. These itemize the key elements of our program and put a dollar figure on their implementation. They show that an initial two year investment of US $2,200,000 will produce an operating income/expense breakeven within a year and actual profit by the end of the 40 Unit 2 Year Pilot Program. Anyone interested in viewing our Financial Report, please, call Timothy McDonald. He will be more than happy to send along our spreadsheets. Many Thanks, Timothy McDonald 206-257-9839 20
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