Selecting a Company Essay Example | Topics and Well Written Essays - 250 words

Selecting a Company - Essay Example Business, first and foremost, is a commercial, industrial or mercantile activity by a person(s) or company. E-business refers to carrying out the above-mentioned activities via the internet; that is, online. E-commerce, however, is a narrower term-only referring to buying and selling goods and services online. This report will amicably evaluate gains made from e-business and any information and communication technologies. In the research, I will target the Google Corporation based in California-USA. The challenges facing the electronic business, in a nutshell, will be outlined. According to business world statistics, most of financial valuation of e-business is attributed to transactions that involve one business and another (Hinton and Barnes, 2005). Efficiency and effectiveness in terms of reaching out to consumers globally, market changes and information dissemination has been realized by the firm. Secondly, business to consumer growth was achieved in the corporation (Hinton& Barnes, 2005). According to the European Commission, 98% of the firms in the USA with e-business or e-commerce in infrastructures in place made up 14% of business turnover (Hinton& Barnes, 2005). Time taken to do business transactions was reduced in the Google Corporation. Receipts, according to the study, were generated accurately within in time. This was time saving compared to earlier times when done manually. Information on Google website, according to study spreads faster. This made it impossible for smaller companies using print-based catalogs to compete in disseminating information. This gave the firm a competitive advantage in business. The prices, for example, of consumer prices are among the items posted on the web. Despite all these benefits that accrue to the use, e-business is not without challenges. High-tech crimes such cyber-crime, threaten to jeopardize the business life of corporations in the US (Hinton& Barnes,

Warren E. Buffet 2005 Essay Example | Topics and Well Written Essays - 4750 words

Warren E. Buffet 2005 - Essay Example All along Buffett created his own rules in the game of investments in the stocks and has achieved a fair degree of success. This paper critically examines the investment philosophies and decisions of Warren Buffett while detailing the performance and investments of Berkshire Hathaway, the flagship company of Buffett including the second largest acquisition of Buffett of Pacific Corporation, a regulated energy producing company in the United States. Profession Benjamin Graham of Columbia University was the mentor of Warren Buffett, under whom he was trained in the art of investment in securities. Graham developed a method of identifying those shares whose prices are less than their intrinsic value and focused on other elements such as cash, net working capital, and physical assets. Buffett further modified this approach to include the focus on valuable franchises that do not go into the normal valuation of shares by the market. By the year 2005, on the basis of the letters written by Warren Buffett as chairperson to the shareholders of Berkshire Hathaway, the investment philosophy of Buffett has been expounded detailing the following important elements: The foremost p(1) Economic Realities Versus Accounting Realities The foremost philosophy is to recognize and consider the economic realities at business level rather than the accounting realities, as the accounting reality is considered to be backward looking and mostly governed by the Generally Accepted Accounting Principles (GAAP) .The rational behind adopting the economic reality at business level is that, it takes into account the value of intangible assets like patents, goodwill, trademarks and any special skills of managers, while the accounting reality does not consider the value of these assets. (2) Cost of Lost Opportunities 'Cost of lost opportunity' is another important phenomenon advocated by Buffett to be considered in any investment decision. For Buffett, the comparison of a proposed investment, against the returns from alternative opportunities available in the market is an important benchmark consideration for investments. (3) Value Creation The next philosophy advises that the investment should consider the intrinsic value of the shares as the present value of future expected performance. This aspect is not being considered for investment decisions in the other methods. According to Buffett intrinsic value is the only logical measure to decide on the attractiveness and worth of any business investment decisions. (4) Gain in Intrinsic Value Versus Accounting Profit Buffett strongly followed the principle that any investment should be capable of increasing the average annual rate of gain in intrinsic value of the business on performance-share basis, rather than, the increase in the accounting profits. Buffett advocated that the gain in intrinsic value should be considered as analogous to the economic gains made by the business which is a true measure of financial performance. (5) Risks and Discounted Cash Flows The traditional method of determining the discount rates like Capital Asset Pricing Model (CAPM) would add a risk premium to the long term risk free rate of