Ou B120 Tma01 - 960 Words

To Chris Pike Manager, Ottershaw Branch, Zinn’s Burgers and Pizza From Date 29 May 2012 REPORT ON CURRENT PROBLEMS AND POSSIBLE SOLUTIONS AT OTTERSHAW BRANCH OF ZINN’S BURGERS AND PIZZA Contents 1.0 Introduction Page 3 2.0 Analysis and Identified Problems Page 4 - 6 2.1 STEEP Analysis Page 4 2.2 SWOT Analysis Page 5 2.3 Discussion of Identified Problems Page 6 3.0 Recommendations Page 6 4.0 References Page 7 1.0 Introduction The Ottershaw branch of Zinn’s Burgers and Pizza is experiencing problems with declining sales, food wastage, high staff turnover, and low employee morale, along with difficult†¦show more content†¦3.0 Recommendations My recommendations are as follows:  · The Operations Manual needs to be used to train all staff and inform them of company policies, expectations and procedures in order to accomplish consistency in product and service standards.  · There needs to be an upgrade in the physical infrastructure in public areas as well as with kitchen equipment to improve the attractiveness of the restaurant and improve production and product quality.  · Menus need updating with the inclusion of healthy options to reflect changing eating trends.  · Salary improvements with the aim of attracting more mature and long-term staff.  · Consultation and communication with staff regarding changes and improvements in order to improve the relationship wi th management as well and the feeling of being involved.  · Offer incentives to the staff for reduction in wastage and improvement in sales similar to those offered to management. 4.0 References Preston, D. (2006) B120 Book 1 An Introduction To Business, Milton Keynes, The Open University, [p30 SWOT Analysis] TMA 01 PART II What I learnt in Activity 1.3 In TGF Activity 1.3 I learnt that the size of a business is an important factor to consider. The methods of implementing change within an international company with branches in different countries are different to that of a smaller company. It was also suggested that change should startShow MoreRelatedB120 Tma01 Essay670 Words   |  3 PagesB120 TMA01 Part 1 Dear Patricia Lodge, In this report, as requested,  I hope to help you understand the current situation, of the Lodge Bistro Chain. I believe the issues affecting the business are: staffing problems, growing competition, inconsistency in the approach of management, attracting lower spending customers, disagreement between managers and company standards lowering. Part (a) The staffing issue, more specifically the high staff turnover, is affecting the expenditure of the company

William Shakespeare’s Life Essay - 782 Words

Even with William’s fame, inadequate information was found about him and much of what is known is not entirely proved. It was assumed William Shakespeare was born in April 23, 1564 in a small town named Stratford-upon-Avon in England. He was the son of a tradesman who made and sold gloves, though was once known as the mayor of Stratford. His father’s name was John Shakespeare and his mother’s was Mary. William Shakespeare was the third oldest in his family. Out of seven siblings, only five survived to adulthood. He went to a grammar school in his town. You would think that a man as talented and as majestic as William Shakespeare would have at least gone to university, however, Shakespeare instead of attending university, had to help†¦show more content†¦The descendants of Joan Shakespeare Hart, who was William’s sister, possess the only genetic link to the great author. Shakespeare along with his family relocated to London, around 1588. Within a few years, he had accomplished some success as an actor, a poet and a playwright. In the course of 1589-95, Shakespeare’s plays were fairly new and untried. They comprised of recorded history plays, which was a popular genre in that era. The plays presented medieval tragedies played out in bloody piece, and a variety of comedies. Tragedies ended with death and comedies had a successful conclusion. Some tragedies that Shakespeare had written were Hamlet, Othello, King Lear and Macbeth. Shakespeare wrote his key romantic tragicomedies through 1608-13. The Tempest was one of them, which many thought was his most beautiful and poetic play. Tragicomedy meant a serious play with a happy ending. James Burbage was the proud owner of the earliest theatre, built at Shoreditch, London in 1576. He had gotten hold of a 21-year lease with permission to put together the first playhouse, appropriately named The Theatre. James, who was a carpenter and an actor and his brother-in-law, John Brayne, who was an investor, were the co-founders of the theatre. To avoid conflict with the authorities, it was located outside the city. Because of the fear of the ongoing epidemic at that time, spreading, they disapproved of drama on political grounds. The twoShow MoreRelatedThe Meaning Of Life In William Shakespeares Hamlet1430 Words   |  6 PagesHow does one find the meaning of life? There is no map with an X that marks the spot where life’s meaning is discovered. It takes a journey to truly discover it. As they say, it’s not about the destination it’s about the journey. In William Shakespeare’s Hamlet, Hamlet uncovers the purpose of life through his journey of a venging his father’s death. Hamlet’s compulsive thoughts toward vengeance cloud his mind from rational decisions. His mind is clouded with suicidal thoughts which make him perceiveRead MoreEssay about William Shakespeares Life in London763 Words   |  4 PagesWilliam Shakespeare spent the later years of his life in London, England. This part of his life deserves to be noted, because of his outstanding accomplishments towards society. A big part of Shakespeare’s accomplishments derive in the city of London. William Shakespeare’s life in London consisted of the lost years, involvements with the Globe Theater, creations of brilliant Early works, articulate writing styles that catch the eye, and controversies about whether Shakespeare was educated enoughRead MoreWilliam Shakespeares Life in Stratford on Avon Essay766 Words   |  4 PagesWilliam Shakespeare was a man who lived a very interesting life. Most people may not realize all the hard work he went through, to become so renowned and still be remembered today after hundreds of years. Although some of the happenings in his life are unknown or lost, there are portions that scholars been able to piece together. First, his birth and family are important, as well as his schooling and childhood, and finally his married life. First, Williams birth and family. It is said thatRead MoreEssay on The Unaccounted for Period of William Shakespeares Life1954 Words   |  8 PagesThe Unaccounted for Period of William Shakespeares Life William Shakespeare was born on April 26th 1564[1] in Stratford on-Avon to parents John and Mary. Growing up, he received a good education for a country boy of that period. He attended the village elementary school, was tutored by his mother and others, and learned a great deal by himself[2]. At the age of 18 he married Anne Hathaway, had his first child, Susanna in 1583 followed by twins Judith and Hamnet in 1585. DocumentationRead MoreWilliam Shakespeares The Life And Death Of Richard The Second1272 Words   |  6 PagesWilliam Shakespeare’s The Life and Death of Richard the Second, exhibits many notable monologues from predominantly male characters with the Bishop of Carlisle’s prophetic denouncing of Kind Richard’s legitimacy to the crown in Act IV Scene 1 being one of the most noteworthy; however, the incarcerated Richard’s penultimate speech, and the play’s last soliloquy, is arguably the most important speech of the play†™s namesake character. In it, Richard the Second describes his current state of affairsRead Moreâ€Å"To Be, Or Not To Be: That Is The Question:† (Shakespeare,935 Words   |  4 Pagesfrom William Shakespeare’s famous play Hamlet. However, what inspired Shakespeare to write such a play? What inspired Shakespeare to create any of his famous works? These questions can only be answered by looking into Shakespeare’s life and the events that came to pass when he wrote his plays. Therefore William Shakespeare wrote many of his plays derived from inspiration that came from events in his life whether they were tragic, political, or personal. There are no official records of William Shakespeare’sRead MoreWilliam Shakespeare s Life And Work Transcends Time1092 Words   |  5 PagesMany authors have had a lasting impact because of their literary work. During the Elizabethan time period, William Shakespeare began his remarkable career as a playwright changing/impacting blank. William Shakespeare’s life and work transcends time because of their relative relatability. William Shakespeare’s childhood was privileged in some ways. In â€Å"William Shakespeare; Life of Drama,† a documentary produced by by Rod Caird, Shakespeare was christened on April 26th in the year 1564. AccordingRead MoreWilliam Shakespeare s Life And Life1307 Words   |  6 Pages William Shakespeare s life was very interesting, to say the least about him. â€Å"An English playwright and poet, William Shakespeare is often considered the greatest dramatist the world has ever known and the most recognized poet in the English language† (Lindaman). From a very young age, William was a very bright kid, who had gained a love for theater. Ever since that love as a kid, it only grew stronger. Not only did he have a love for theater, but also poetry. Throughout Shakespeare’s life familyRead MoreTheme Of Tragedy In Shakespeares King Lear993 Words   |  4 Pagesit is found in many of Shakespeare’s plays and poems (e.g. Romeo and Juliet, Hamlet, and plen ty of other works). In specific, tragedy is found in one of William Shakespeare’s most popular plays named King Lear. King Lear was a tragedy that focused a lot on betrayal, however the play has plenty more important elements that define the play. There of the most noteworthy aspects that make up the play King Lear are: 1. The influence of many deaths in William Shakespeare’s life, 2. Historical context ofRead MoreEssay about The Life of William Shakespeare1274 Words   |  6 Pages William Shakespeare was a very talented man known for his various works of literature. His works include poems, plays, and sonnets. His works are then broken down into tragedies, comedies, and histories. Shakespeare left this world centuries ago, but his writings continue to live throughout the world today. He has greatly impacted the world of literature and his existence will forever be remembered. In 1564, William Shakespeare was born in Stratford-upon-Avon (Hazell 32). It seems that

Weapons of Mass Destruction Free Essays

The term Weapons of Mass Destruction has two indications. In its broader, literal sense, it is used to refer to weapons whose destructive power far surpasses that of guns or conventional explosives. However, the term is more often used in a narrower sense, to refer specifically to nuclear, biological, and chemical weapons. We will write a custom essay sample on Weapons of Mass Destruction or any similar topic only for you Order Now Since the September 11, 2001, terrorist attacks, which raised awareness of America’s vulnerability, the United States has greatly intensified its efforts to stop the spread of nuclear, biological, and chemical weapons. When the president and other officials refer to â€Å"weapons of mass destruction,† they usually mean NBC weaponry. An organism or toxin found in nature is used in them that is meant to kill or incapacitate an enemy. Though there are different types and they are made up of different ingredients, they are all meant to kill and do significant destruction. The United States Military refers to them as â€Å"weapons that are capable of high order destruction and being used to destroy large numbers of people. † Many countries posses weapons of mass destruction for one main cause. Because they â€Å"generate a culture of fear†, they are held in reserve by countries as a scare tactic. They are set aside to be used as a threat, if another country were to use them, they would in turn be bombed with weapons of mass destruction. During the Cold War, the term â€Å"weapons of mass destruction† was primarily a reference to nuclear weapons. At the time, in the West the euphemism â€Å"strategic weapons† was used to refer to the American nuclear arsenal, which was presented as a necessary deterrent against nuclear or conventional attack from the Soviet Union. The term â€Å"weapons of mass destruction† continued to see periodic use throughout this time, usually in the context of nuclear arms control; Ronald Reagan used it during the 1986 Reykjavik Summit, when referring to the 1967 Outer Space Treaty. Reagan’s successor, George H. W. Bush, used the term in an 1989 speech to the United Nations, using it primarily in reference to chemical arms. The end of the Cold War reduced U. S. reliance on nuclear weapons as a deterrent, causing it to shift its focus to disarmament. This period coincided with an increasing threat to U. S. nterests from Islamic nations and independent Islamic groups. With the 1990 invasion of Kuwait and 1991 Gulf War, Iraq’s nuclear, biological, and chemical weapons programs became a particular concern of the first Bush Administration. Following the war, Bill Clinton and other western politicians and media continued to use the term, usually in reference to ongoing attempts to dismantle Iraq’s weapons programs. After the September 11, 2001 attacks and the 2001 anthrax attacks, an increased fear of non-conventional weapons and asymmetrical warfare took hold of the United States and other Western powers. This fear reached a crescendo with the 2002 Iraq disarmament crisis and the alleged existence of weapons of mass destruction in Iraq that became the primary justification for the 2003 invasion of Iraq. However, no WMD were found in Iraq. Due to the indiscriminate impact of WMDs, the fear of a WMD attack has shaped political policies and campaigns, fostered social movements, and has been the central theme of many films. Support for different levels of WMD development and control varies nationally and internationally. Yet understanding of the nature of the threats is not high, in part because of imprecise usage of the term by politicians and the media. Fear of WMD, or of threats diminished by the possession of WMD, has long been used to catalyze public support for various WMD policies. They include mobilization of pro- and anti-WMD campaigners alike, and generation of popular political support. The term WMD may be used as a powerful buzzword, or to generate a culture of fear. It is also used ambiguously, particularly by not distinguishing among the different types of WMD. A television commercial called Daisy, promoting Democrat Lyndon Johnson’s 1964 presidential candidacy, invoked the fear of a nuclear war and was an element in Johnson’s subsequent election. More recently, the threat of potential WMD in Iraq was used by President George W. Bush to generate public support for the 2003 invasion of Iraq. Broad reference to Iraqi WMD in general was seen as an element of President Bush’s arguments. As Paul Wolfowitz explained: â€Å"For bureaucratic reasons, we settled on one issue, weapons of mass destruction, because it was the one reason everyone could agree on. To date, however, Coalition forces have found mainly degraded artillery shells. There was almost no dissent on the issue. Molly Ivins wrote : â€Å"the ONLY source to report skeptically on the administration’s claims about Iraq’s weapons of mass destruction before the war? Knight-Ridder and its terrific reporters Warren Strobel and Jonathan Landay. â€Å". On June 21, 2006, United States Senator Rick Santorum claimed that â€Å"We have found weapons of mass destruction in Iraq, chemical weapons. According to the Washington Post, he was referring to 500 such shells â€Å"that had been buried near the Iranian border, and then long forgotten, by Iraqi troops during their eight-year war with Iran, which ended in 1988. † That night, â€Å"intelligence officials reaffirmed that the shells were old and were not the suspected weapons of mass destruction sought in Iraq after the 2003 invasion of Iraq. † The shells had been uncovered and reported on in 2004. In 2004 Polish troops found nineteen 1980s-era rocket warheads, thwarting an attempt by militants to buy them at $5000 each. Some of the rockets contained extremely deteriorated nerve agent. Limits on WMD by the US scare allied countries. The US nuclear umbrella is the primary contributor to the security of Europe and for Asia. Lack of confidence in the US umbrella causes European nations to either build up their current arsenals, or embark on entirely new nuclear weapons programs. Nuclear proliferation in Europe causes massive instability there because of the threat it poses to Russia. Asian proliferation threatens conflicts with China. The odds that an asteroid that could potentially wipe out all life on earth are high. A massive asteroid may have been responsible for the extinction of the dinosaurs. The only defense earth has against these asteroids is nuclear weapons. Were we to disarm completely, we would be unable to shoot down an incoming asteroid, condemning all life to extinction. The military-industrial complex is a powerful constituency in the US. Limits on one type of WMD scare the military-industrial complex. They will feel frightened that the US will be unable to defend itself without its current array of weaponry. To compensate, they will develop new forms of WMDs that are even more destructive, like nanotechnology. Any arms control initiative requires a substantial outlay of money to implement. Decommissioning weapons systems takes funds. Verifiable agreements demand substantial investment in inspections and monitoring. The US cannot afford to spend more money, given the precarious situation its budget is in. Busting the budget could have a terrible effect on the economy, perhaps triggering an economic collapse How to cite Weapons of Mass Destruction, Papers

Principles of Corporate Finance for Hospitality-myassignmenthelp

Question: Write about thePrinciples of Corporate Finance for Hospitality Industry. Answer: Introduction Background and profile description of acquirer firm and its industry As our company is in hospitality industry, the name of our hotel is 18x hotel and currently ranking at top 10 five-star hotels in Malaysia. Our hotel boasts 43 eloquently decorated rooms equipped with everything to make your stay a special one. All rooms offer; flat screen TV's, Hair Dryers, Ironing Facilities and were designed with your comfort in mind. We also offer two Superior rooms that simply add that extra touch to your stay. Free Wi-Fi is available throughout the Hotel and free onsite car parking for all guests. Our main target market is tourist on holiday season because on holiday peak is where most of the people will travel; and thus we provide promotion and discount. Second, we also targeted business man, if they stay our hotel, we provide meeting room and package for business trip, for example, business related trip longer than 1month we provide lower rate compare to normal rate. Background and profile descriptions for the target firms In view of the success we achieve in the hospitality industry, our company intends to acquire a firm of different industry in order to venture in new market and risks diversify. So we target two company, they are caring pharmacy and nestle. Caring Pharmacy SdnBhd is a group of pharmacies under one banner collectively shares the same supply and inventory management similar to that of chain stores; however each outlet is independently owned and operated by pharmacists. Caring pharmacy provide 12 hours a day, 7 days a weekfull time pharmacist service. It also providing easily accessible pharmacist counseling service, free blood pressure checks and other health checks at a minimum fee. Besides that, Caring pharmacy designing the store with a modern, open concept to maximise interaction with customers and merchandise. As at April 2017, Caring has 97 pharmacies nationwide. In terms of number of outlets, Caring is ranked third after Cosway and Guardian, with an estimated market share of 4%. No single operator controls more than 7% of the market. Within the Klang Valley, Caring has a share of 8% (Annual Report 2017, Caring Pharmacy). Nestle is the biggest nutrition and foods company in the globe, established his headquarter in Vevey, Switzerland. As Nestle global business portfolio includes a wide range of brands from food and beverages to health care nutrition, skin health and petcare. Their portfolio covers almost every food and beverage category offering products and services for all stages of life, for example, NaturNes, Nesturn, Milo, Nestea and etc. Every moment of the day, helping people care for themselves and their families (Annual Report 2017: Nestle Group). Comparison of financial performance and position of the two target firms Financial Strengths and Weakness of the firms from various perspectives Ratio Analysis Profitability Analysis Profitability Ratios Ratios/Company Name Caring Pharmacy Nestle Group Years 2016 2017 2016 2017 Gross Profit Ratio 17.47% 23.30% 50.60% 49.97% Net Profit Ratio 1.86% 4.17% 9.54% 8.00% Return on Assets 3.87% 6.85% 6.47% 5.51% return on Equity 6.86% 12.39% 13.21% 11.68% Profitability analysis is carried out for determining the amount of profits generated from both the potential companies to be acquired. The profitability analysis of both the companies sis carried out through the use of the following ratios: Gross Profit Ratio: It depicts the relation between the gross profit and total net sale revenue and thus provides an analysis into the operational performance of the companies. It is calculated as follows: Gross Profit Ratio=Gross Profit/Net Sales (Brealey, Myers and Marcus, 2007) It can be stated from the calculation of gross profit ratio of both the companies that Caring Pharmacy gross profit has increased from the year 2016 to 2017 but has been declined for Nestle Group. Net Profit Ratio: It depicts the profitability position of a company after meeting all the operational expenses and is calculated as follows: Net Profit Ratio=Net Profit after tax/Net Sales The net profit ratio of Caring Pharmacy has increased from 1.86% to 4.17% between the financial years 2016-2017 but for nestle it has shown a decreasing trend from 9.54% to 8% for the same time period (Annual Report 2017: Nestle Group). Return on assets (ROA): The ratio provides an analysis of the efficiency of the company to realize profits from utilization of its assets and is calculated as follows: Return on Assets=Net Income/Total Assets The ROA ratio Caring Pharmacy has shown a positive trend from the financial year 2016 to 2017 from 3.87% to 6.85% and for Nestle has depicted a declining position from 6.47% to 5.51% for the same financial years. Return on Equity (ROE): It measures the ability of a corporation to generate profit from the money invested by shareholders. It is calculated as follows: ROE=Net Income/Shareholders Equity ROE ratio for Caring Pharmacy has depicted a positive growth from 6.86% to 12.39% and for Nestle has depicted a decreasing trend from 13.21% to 11.68% (Annual Report 2017: Nestle Group). Therefore, it can be said from the profitability analysis of both the companies that the financial strength of Caring Pharmacy is its good profitability position while the financial weakness of Nestle is its declining profits (Annual Report 2017, Caring Pharmacy). Liquidity Analysis Liquidity Ratios Ratios/Company Name Caring Pharmacy Nestle Group Years 2016 2017 2016 2017 Current Ratio 2.08 2.01 0.85 0.89 Quick Ratio or Acid Test Ratio 1.03 1.13 0.63 0.64 Working Capital Ratio 94236.00 102241.00 -5475.00 -3864.00 The liquidity analysis helps in predicting the ability of a company to meet its financial obligations. The following ratios are calculated for assessing the liquidity position of both the companies: Current Ratio: It provides a measure of the ability of a company to meet its liabilities with its assets and thus provides an estimate of its financial position. The ratio can be calculated through the use of the following formula: Current Ratio=Current Assets/Current Debts The current ratio for Caring Pharmacy has decreased somewhat from the year 2016 to 2017 but for Nestle Group has shown a positive growth (Annual Report 2017: Nestle Group). Quick Ratio: The ratio provides a measure of the ability of a company to meet its short-term liabilities and the formula used for its calculation is as follows: Quick Ratio= (Current Assets-Inventories)/Current Liabilities (Brigham and Michael, 2013) The quick ratio of both the companies is showing positive growth from the financial year 2016 to 2017. Working Capital Ratio: This liquidity ratio assesses the comparison of the current assets of a company in relation to the current liabilities and is calculated through the following formula: Working Capital ratio=Current Assets-Current Liabilities The working capital ratio for Caring Pharmacy has increased from the financial year 2016 to 2017 but the working capital position of nestle is not good as it is having negative working capital (Annual Report 2017: Nestle Group). It can be stated from the liquidity analysis that Nestle financially weakness is its negative working capital and that is it is not able to meet effectively its current assets from current liabilities. However, the financial strength of Caring Pharmacy is its positive working capital that means it is having good liquidity position in comparison to Nestle (Annual Report 2017: Nestle Group). Asset Management Efficiency Ratios/Turnover Analysis Asset Management Efficiency Ratios/Turnover Ratios Ratios/Company Name Caring Pharmacy Nestle Group Years 2016 2017 2016 2017 Inventory Turnover Ratio 5.04 4.52 10.65 9.91 Receivables Turnover Ratio 473.21 557.57 8.93 7.23 Total Asset Turnover Ratio 2.08 1.64 0.68 0.69 The asset management efficiency ratios are used for analyzing whether the companies are using their assets effectively for generating sales. It is analyzed through calculation of the following ratios: Asset Turnover Ratio: It is an efficiency ratio used for measuring the ability of a company to generate sale from the assets and is calculated through the use of following formula: Asset Turnover Ratio=Net Sales/Average Total Assets The asset turnover ratio of Caring Pharmacy has decreased from the financial year 2017 to 2016 but for Nestle group has been increased (Annual Report 2017, Caring Pharmacy). Inventory Turnover Ratio: It measures the efficiency of a company to replace its inventory and is calculated through the use of following formulae: Inventory Turnover Ratio=Sales/Average Inventory The inventory turnover ratio for both the companies has decreased from the financial year 2017 to 2016. Receivables Turnover Ratio=It is an activity ratio used for measuring the efficiency of a company to use its assets and is calculated through the following formulae: Receivable Turnover Ratio=Net Value of Credit Sales/Average Accounts Receivable The receivables turnover ratio for Caring Pharmacy has increased from the financial year 2016 to 2017 but has been decreased for Nestle for the same period. Thus, it can be said from the analysis of the asset management efficiency ratios that the financial strength of Caring Pharmacy is its higher efficiency in collecting the accounts receivables in comparison to Nestle. However, its financial weakness is that it is not able to utilize effectively its assets to generate sales in comparison to nestle. Also, the financial weakness of both the companies is their less capability to replace inventory that can increase their operational cost and decline profitability. Long Term Financing and investment decisions of target firms Every company depends upon two main type of financing source, debt and equity. Debt capital refers to those financing capitals that bears fixed charge on the profits of company and have to be paid at regular interval while equity capital refers to owners capital which is financed through issues of common equity shares. In order to evaluate the long term financing and investment decision it is important to look after the debt equity ratio, debt to total asset ratio and interest coverage ratio for both the firms for last two years. Long Term Financing Decisions Ratios/Company Name Caring Pharmacy Nestle Group Years 2016 2017 2016 2017 Debt equity ratio 0.60 0.65 0.17 0.26 Debt to total asset ratio 0.34 0.36 0.08 0.12 Interest coverage ratio 67.12 176.62 17.53 13.31 (Annual Report 2017: Nestle Group) and (Annual Report 2017, Caring Pharmacy) Debt-Equity Ratio: The ratio is used for measuring the proportion of debt and equity used by a company for financing its assets. The debt-equity ratio is calculated through the formula as follows: Debt-Equity Ratio=Debt/Equity The debt-equity ratio of both the companies is increasing and therefore it can be said that they are using larger proportion of debt in comparison to equity for financing their assets. Debt to total asset ratio: The ratio is used for assessing the proportion of debt used by the company in comparison to the total assets. The debt to total asset ratio has increased from 2016 to 2017 for both Caring Pharmacy and Nestle. Therefore, it can be said that both the companies are adopting high use of financial leverage in financing their assets. Interest Coverage Ratio: The interest coverage ratio is used for determining whether a company can easily meet their expenses on outstanding debt. It is calculated through the use of formula: Interest Coverage Ratio=EBIT/Interest Expenses The interest coverage ratio of Caring Pharmacy has increased from the financial year 2017 to 2016 whereas for Nestle has decreased significantly. Therefore, it can be said that Nestle is not able to meet its interest expenses on outstanding debt appropriately whereas Caring Pharmacy ability to meet interest obligations is appropriate. This is largely due to larger amount of debt used by the company for funding the opening of its new assets such as KIT KAT Chocolatory. Therefore, the presence of high debt on Nestle has caused a significant increased in its interest expenses to which the company has faced somewhat difficulty in meeting up appropriately at present. Distribution Decisions made of the target firms As both the firms belong to different industry and different target market, therefore there can huge differences between the distribution decisions of both firms. In order to evaluate the distribution decision it is important analyse the earning per share, dividend per share, payout ratio and other corporate exercises followed by both the companies. Following is the information of all the required data we need to make analyse: Distribution Decisions Ratios/Company Name Caring Pharmacy Nestle Group Years 2016 2017 2016 2017 Earnings Per share 0.03 0.06 2.75 2.32 Dividend Per share 0.02 0.01 2.23 2.29 Payout Ratio 60.60% 28.40% 79.80% 76.40% (Annual Report 2017: Nestle Group) and (Annual Report 2017, Caring Pharmacy) Earnings per Share: The EPS ratio ensures the amount of earning generated by a company in relation to the money invested by shareholders and therefore it can be said that Caring Pharmacy is generating more revue for its shareholders in comparison to Nestle. Dividend per Share: It provides an assessment of dividend paid out to shareholders by a company for it outstanding shares. The dividend per share ratio of Nestle has increased from 2016 to 2017 but for Caring Pharmacy has decreased for the same period. Therefore, it can be said nestle is providing more dividend to shareholders in comparison to Caring Pharmacy. Payout Ratio: It provides a comparison of the dividend paid out by a company in proportion to the total net income realized. The payout ratio for both the companies has been decreased from 2016 to 0217 which indicates that their ability to payout the dividend in comparison to the net income has decreased significantly (Bromwich and Bhimani, 2005). Valuation Technique to estimate the fair value of firms The discounted cash flow method is the best method to value the target firm offer price. The most appropriate free cash flow (FCF) used in this calculation is cash flow after the capital expenditures that is important for ongoing concern. In this method there is required to estimate the free cash flows using the pro forma financial statements. The main purpose of using DCF method is it allows changes in cash flow in future time period. The cash flow is purely based on future cash flows. So it can be said that DCF is best method to estimate the offer price of target firms. Recommendations Based on overall calculations it is advised to the 18x hotel to acquire the Caring Pharmacy as their target company because it has better profitability, highly efficient asset management as compare to Nestle Group and very liquidity performance in both the years (Lumby and Jones, 2007). Conclusion Merger and acquisition decision requires complete strategic and financial analysis of the target firm as well as acquirer firm so that best firm can be selected from the selected target companies. On the basis overall results and offer price, Caring Pharmacy has been suggested to 18x Hotel as best target company. References Annual Report 2017. Nestle Group. [Online]. Available at: https://www.nestle.com/asset-library/documents/library/documents/financial_statements/2017-financial-statements-en.pdf [Accessed on: 9 April, 2018]. Annual Report 2017. Caring Pharmacy. [Online]. Available at: https://caring.irplc.com/investor-relations.html [Accessed on: 9 April, 2018]. Brealey, R., Myers, S.C. and Marcus, A.J., 2007. FundamentalsofCorporate Finance. Mc Graw Hill, New York. Brigham, F., and Michael C. 2013.Financial management: Theory practice. Cengage Learning. Bromwich, M. and Bhimani, A., 2005.Management accounting: Pathways to progress. Cima publishing. Lumby,S and Jones,C. 2007. Corporate finance theory practice. Thomson.