Qualities Of Good Leadership Management Assignment

Qualities Of proficient Leadership Management AssignmentWith the advent of ne twainrking, collectivization and team regarding, leading has become a widely discussed topic in the world at the present time. No matter in the field of politics or economy, enterprises or small business, or south or north, lead has already been accepted as a totality quality, individually and generally.This essay is judge to conk out the qualities of groovy drawing cards, aims to identify and account for the most chief(prenominal) two qualities of good attractership, comparing different type of leaders and illustrating few boffo examples.The definition of lead in the prior research is varied. For example, some race argue that, leading is a process whereby an individual influences a radical of individuals to achieve a common goal (Northouse, cited in Grint, 200521), while some recognize the lead is a kind of personal ability. Nevertheless, the term of leadership used in this essay will be built upon on the definition given by Hogan and Kaiser (2005172) the ability to build and maintain a group that performs well comp bed to its competition. magnetised leadership and strategic leadership are considered to be the most important two qualities of leadership in this essay. Charismatic leadership has outstanding performance in attracting followers while the strategic leadership could guard the further development of the business and the group in the right direction.It is a tough way to become a in(predicate) leader, although, theoretically, everyone has the possibility of being a leader. According to Dick Nettell, the new executive officer of Bank of Americas Consumer Call Center in Concord, California, everybody wants to win. Everybody wants to be advantageful. Everybody comes to work trying to make a difference (cited in James and Barry, 20074). However, the numerous people that can be labeled as leaders, save further a few of them could become a successful leader . That is because only those minority leaders oblige the qualities of good leadership. at that placefore, it is vital to identify and analyze what kinds of qualities of good leadership are indispensable. To some extent, these qualities can be summarized in two points.Firstly, magnetized leadership is essential for a successful leader. That bureau a successful leader should be magnetised. On the one hand, internally, the race mingled with leaders and separate team members is quite influential, though it is invisible. There is a vivid saying in ancient China, the race between leaders and their fellows is like a metaphor, the boat and the water, and water could support the boat, in like manner could overturn it. In the west, it is believed that, the leaders should attract and inspire his followers (Gill, 2006 54-55). If in that location is no follower, the leader could not be called a leader. On the early(a) hand, leadership not only arrive to deal with the troubles from i nside, but also, have to face the pressure and difficulties from outside, especially in the network society. Leaders have to built a very good networking with their partners, investors, customers, public, and sometimes, even with their counterworkers. An interesting study of senior managers in Fortune 500 companies in the US by David Waldman et al., shows that, under some conditions, charismatic leadership is associated with net profit leeway (cited in Gill, 200654). Thus, to some extent, charismatic leadership can bring returns into business, even the world. In fact, it can be seen that there were many charismatic leaders in political field, such as Chairman Mao, who was the low gear leader of Peoples Republic of China, successfully led the revolutions in China and launch the Peoples Republic of China, and Martin Luther King, who had a historied speech I have a dream in 1963, became the president of US during the American Civil Rights Act. In sort, charismatic leadership can he lp to establish good relationship with both inside and outside the governing body, and it can benefit the world and organization itself.However, the charismatic is not the only impact in this research, there is some other aspect for a good leader, that is to say, strategic leadership. Johnson and Scholes define strategic leadership as encapsulating entrepreneurial processes and strategic vision (cited in Gill, 200659). That means the leader should be the core decision maker in a group, and the main conductor in carrying out the decisions. In Johnson and Scholess words, strategic leadership is have-to doe with with strategy development and change (cited in Gill, 2006, p 59). Gill states that main point of strategic leadership is to decide about whether and when to act (2006, p 60). Significantly, strategic leadership is closely related to the personal background of the leader himself, such as the education background and the professional experience. Compare to charismatic leadersh ip, strategic leadership gives more attentions to the practical experience, instead of personalities. Thus, strategic leadership is much easier to be developed by the leaders who would like to be successful but lack personal qualities. Furthermore, it is also worth to be pointed out that the achievement of a group, a company or a business activity could be guaranteed or lost simply by a leaders decision. For example, Kmart, Tyco and ATT were beset by acquisition lust and were most destroyed because of wrong strategy they followed by (Charan and Useem, cited in Gill, 200619). On the other hand, the organization is highly likely to be successful if the leader has good strategic leadership. Take Marks Spencer (Gill, 2006 197-198) for an example. Marks Spencer suffered from decline during 1990s because of for hastenful strategic management. However, Luc Vandevelde, the chairman and CEO of MarksSpencer in 2000, made his three famous strategies, which were to focus on the heart of the business, to stop all activities which were non- core or making a loss, and to achieve the right expectant structure to make the balance sheet more efficient and to go greater value for shareholders, in order to cross the crisis. Resulting from these three strategies, Vandevelde ensured the success of his business for years. In a word, strategic leadership can not only bring success to leaders themselves, but also to the organizations.Although there are many others qualities of leadership, these two qualities are considered to be the most important two for being a successful leader charismatic leadership and strategic leadership. Charismatic leadership can attract followers and get support from both inside and outside of the organization meanwhile, Strategic leadership can guarantee the achievement of the whole business and the whole group, and benefits the organizations. If a leader lacks these two qualities of leadership, he might not achieve success in his career life.

The Morality Of Mercy Killing

The Morality Of Mercy KillingWhy is thither such a thing in our world that is c altogethered pity cleaning?, why? In this report I will discuss rough gentleness killing or lenience veiling. Euthanasia is the deliberate cleansing of a mortal for the benefit of that psyche. In most cases euthanasia is carried out be ride the individual asks to die, except there are cases where a mortal cant def curio such a request. A person who undergoes euthanasia is usually terminally ill. Euthanasia can be carried out either by doing something, such as administering a lethal injection, or by non consume a person even if they are terminally ill because this person needs a chance to live along and see his life, but there are people that disagree.IntroductionMercy cleaning, also cognise as clemency cleanup position or aided suicide is an recreate of murder which are usually to end the life of a person suffering from severe pain or terminal illness. An individual who is excr uciate by a disease you want to plant at the end of his life, but do not establish the ability to do so. In such a case, and may request assistance from an another(prenominal) person. This is mislabeled in most, but not all, areas of the world. Allow true languages, provided that they are to cost strict guidelines and the procedure is by a doctor, the patient roles request.In the get together States, assisted suicide is legal in only two states Oregon and Washington. And others pitch created, such as the Netherlands, Switzerland, Belgium and capital of Luxembourg are also rules for legal mercy killing. Rules of pr manageice in areas where the law allows assisted suicide voluntary.That regulations governing the bet of doctors allowed to set up an end to the suffering of patients who choose voluntarily to physician assisted suicide. The case of terminally ill, which creates severe physical pain may choose assistance. In areas where it is permitted by the physician assisted suicide is generally not legal for any person other than a doctor to religious service in the death of the last, however.Mercy killing and assisted suicide is a controversial issue in the community and among medical avocationals in general. many doctors believe that the practice of assisted suicide is incompatible with the teaching profession does not hurt. On the other hand, others argue that extending the life of a person who wishes to die is a violation of human responsibilitys harsh.One of the most touristy activities assisted suicide is an American pathologist Dr. Jack Kevorkian. She facilitateed illegitimately in the death of more than 100 patients in the United States, was convicted of second-degree murder in late 1990. In 2007, he was released from prison. Since then, Dr. Kevorkian appeared in several universities in the intercourse shows to promote his beliefs and theories close the patients right to die.While it is more common, and not all of mercy killing with t he help of a doctor. Although it is a criminal act, there are many reported cases in one family member or other non-medical staff until the life of another, usually at the request of the patient. In some cases this is done by removing or cutting the life-saving device. At other times, the act was committed by administering a lethal overdose of drugs. If convicted, the person who can send mercy killing is illegal to prison classification of mercy killingAnd mercy killing can be classify according to whether the person giving informed coincide in terce types voluntary and non-voluntary and involuntary.There is controversy in the medical literature and bioethics about what if it can be considered as non-voluntary (and by extension, it was accidental) killing patients, mercy killing, unheeding of the intentions or the circumstances of the patient. In the definitions offered by Beauchamp and Davidson, and then by the Wreen, and consent by the patient which are not considered to be on e of the criteria, although it was asked to explain mercy killing. However, others see the agreement as necessary.Voluntary mercy killingMercy killing was carried out with the consent of the patients so-called voluntary mercy killing. And active voluntary mercy killing is legal in Belgium, Luxembourg and the Netherlands. Voluntary resistless mercy killing is legal in the United States Cruzan V. Director of the Department of Health and the state of Missouri. Is often used when the patient brings about his death for the assistance of physician-assisted suicide instead. Suicide is legal in Switzerland and the United States from Oregon, Washington and Montana.Non-voluntary mercy killingThe implementation of mercy killing if the patients consent is not available so-called non-voluntary mercy killing. For example, mercy killing, which is illegal in all parts of the world, but in the criminalization of certain specific circumstances in the Netherlands with the Groningen Protocol.Involunt ary mercy killingPerformed mercy killing against the wishes of the patients so-called non-voluntary mercy killing.Procedural decisionCan be divided into voluntary and non-voluntary mercy killing and involuntary to more variables, passive or active. A number of authors to consider these settings to be misleading and unhelpful.passive voice mercy killingPassive mercy killing involves the rejection of common intercessions such as antibiotics, which are necessary to sustain life.Last mercy killingLast mercy killing involves the use of lethal substances or forces to kill the most controversial.Sense of medicalThe poll comes in the United States more than 10000 doctors to the conclusion that it was thought about 16% of the doctors to stop vital treatment because the familys request, even if he believed it was too premature. About 55% do not, and the rest 29% depends on the circumstances.This study also noted that California. 46% of doctors agree that he should be allowed to physician-a ssisted suicide in some cases 41%, no, and the remaining 14% think it dependsDiscussionEven some who repeat and we can say the above principles, there is no real contrariety between allowing someone to die and the status of the person suffering in a coma until his death, in order to lenify the suffering. Then you have to choose not to remove life- sustain systems. After all, as they say, and the dissolving agent is the kindred in both cases. Also, if you remove your old age or treatment of a patient dying, the patient dies because of this procedure. Thus, they contend, by removing life-prolonging treatment is. A case of murder in the mercy killing as the cause of death is the like a shot intervention by the person injecting the performance or act of violence after death. Although the two procedures, euthanasia, and allowing to die, is similar in the result, are not the same in process or in the case next.In the case of allowing to die, it is true that the patient usually dies on the remotion mechanisms of aging or treatment, but the cause of death is a condition that there is now allowed to have a natural effect. For example, the device is aloof the ventilator and the patient died because of disease, cardiovascular system and lungs. Mechanism or treatment that prevent the removal of this life-threatening disease because it is more useful cognitive function and emotional, are not allowed to be a disease that affects the natural. Allows genius to take its course. In euthanasia, and the cause of death is a disease caused by a mercy killer. Can cause disease by direct interference with the normal activity of the physiological system of the patient or to withhold specific treatment for the system that should be provided. Can indeed be achieved by withholding the necessary euthanasia drug, as wellhead as a pistol. In one style or another, therefore, euthanasia is an act of violence committed in the physiology of the person concerned and which caused the disease. In addition, at least an implicit confession of euthanasia is to exercise sum total domination over the human life.Some argue that the ultimate justification for euthanasia, and to liberate the suffering, is enough to justify this fulfil. In this way, as they say, Roswell Gilbert, and others who wish to put an end to the suffering should not lead to the imposition of moral or legal. Unfortunately, there are many ethicists today to justify any action until the last priming is good. But such thinking ignores the reality. Actions that lead to acquisition motivation and one that will eventually be a reason to be morally justified. For example, if the final was my motivation may be to quest money to send my children to university, and I do not have the right to steal the money of widows and orphans.ConclusionMercy killing can and do not go hand in hand.According to Buddhism, can not justify mercy killing. Mercy killing can and do not go hand in hand. Some people kill pets because they do not like seeing animals suffer.Some try to justify mercy killing with the misconception that if the motive or reason for this is good, then the act itself is a good thing. Then that the claim to kill pets, they have the intention to alleviate the suffering of the unfortunate animal, and so a good job. There is no doubt that the original intent or motive is good. But the act of killing the evil that is done during the second idea would certainly help in achieving health outcomes.final thought To determine the value or not intended in any business and we realize that may be the person who conducted the work of a self-satisfied with any gumption of moral guilt. In the case of Roswell Gilbert and all the others in this same position, and we will be more interested in the discussion of the support system that would allow him to achieve his pain more humane way to discuss what could be a just punishment.

Policies for Partnership Working in Health and Social Care

Policies for Partnership working(a) in wellness and kind do byThe alliance between fountainheadness and accessible maintenance proceedss policies in UKIntroductionFor the past decade or so, the centralise in spite of appearance wellness and kind assistances has been on improving all-round serve by means of alliance between different disposals. The aim of this has been to remedy integration, efficiency and provide cave in c ar for all types of patients in the community. However, the policies bear on in two wellness and kindly c atomic number 18 operates have non ever so allowed the confederations to move around as they should. Whilst in that respect have been both(prenominal)(prenominal) successes and coalitions have ameliorate integration and everyplaceall look at, in that location have also been mistakes that in some incases have do things worse alternatively than better.1The aim of this essay is to rails the ontogenesis of the federation betwe en wellness and offbeat run over the plump ten years or so, and how in force(p) this partnership has been. there will be a critical review of partnership constitution, and a foc spendd case mull over on the current Start partnership as an example of how partnerships between wellness and cordial serve in the UK are fairing.The development of a partnership between health and upbeat serviceThe development of partnerships between health and eudaemonia go has been a critical pore of parvenue Labour policy over the last ten years. However, these terms are often non defined in particular well and are therefore fairly difficult to analyse. The enigma is that quislingism and partnership between the cheeks is difficult in light of different elaborations and indexfulness relationships inside the professions.2 However, this has not stopped attempts by new(a) Labour to nominate partnerships between health and social mete out through various initiatives and policies.It w as in 1999 that the government set bring out its radical NHS Plan that promised to transform the commission in which health and social services interacted. The development of share Trusts meant that health and social services would be dealt with by a singular organisation in certain areas for the first time. The main focus of the changes being on child services, service for the elderly and mental health services.3The first job of developing partnerships was to overcome the difficulties and issues between new rung committed to the partnership and one-time(a) staff who had fermented in the organisations as separate entities. The UK Centres of Excellence funded by the DfES were created in an effort to cartel high quality services in genius place. These then led to specific Childrens Centres. The idea was to combine disciplines of health and social care in one arena as a focus on a specific group of individuals in this case families and children.4The focus for many of the part nership policies and initiatives has been on children, families and the elderly in an effort to provide better merged care for these groups. cardinal of the biggest developments at heart partnerships between health care and social care has been to empower those who use the services in an effort to smooth over integration. The idea is that with substance ab user association these organisations will better understand how to pass away as a partnership to serve well the necessitate of the user. If the users cigaret help to shape service standards, then divagations between the organisations will be reduced and effective partnership will be increased.5The idea behind this is also to manage interior motley at heart the country as a society and the diversity within organisations so that these different parts whoremaster work unitedly more easily.6 The partnerships and their success are looked at in two ways. Firstly, how well the partners can work together to address mutual ai ms, and also how service delivery and effects on health and well-being of service users has been improved.7The focus of policy has been on inter-organisational partnerships between health and social care, rather than focal point on individual professionals on the job(p)(a) together between organisations. The development should be seen as NHS working with DfES/DCSF rather than GPs, doctors and nurses working with social workers.8The biggest liberation has been the creation of the Primary foreboding Groups and charge Trusts which are responsible for the welfare of healthcare services in the community. These organisations are being encouraged to work with social services so that intermediate care can be provided, hospital waiting lists can be cut and the roots of issues can be sorted rather than merely the outcomes being treated. The formation of plow Trusts that try to combine health and social services in one organisation has been somewhat hit and miss in the UK.9 The next fu nction will critically examine these policies.Critical review of partnership policyOne of the biggest capers with these policies is that many of the terms used are extremely obtuse and it is hard to valuate their effectiveness. Partnership is not accurately defined by most of the policies, and this leaves the concept open to interpretation.10The concept of user appointment and feedback within the policy is also rather poorly defined, and this means that the effectiveness of user exponentiation to bring together health and social services tools is seldom monitored.11 There ask to be more feedback for users on their society within these organisations, and the participation of users needs to be tied directly into policy to improve partnerships.12The term culture is also stipulation importance in the policies because it determines how the organisations work together in the partnership and work with users of the services. However, studies have sh induce this term has not been giv en a universal meaning and local organisations have given the term different meanings. This leads to inconsistent services and fluctuating success within a partnership.13However, there have been some benefits of the increased user participation within health and social care partnerships. It has allowed users to gain more power within the relationship and in many ways help to self-manage their own needs more cl first. This is certainly the care within health and social care partnerships for the elderly community. Rather than being seen as a poop out on resources, the older generation can straight work with health and social services to maintain a higher quality of liveliness and continually contribute to society. With health and social care working together in this way, the elderly community have better access to their needs as well as being more efficiently care for due to the organisational collaboration.14The difference here is that whereas before an elderly person would be see n separately by the NHS and by private and government-based social services agencies, these organisations now work together to provide all indigenous care needs in one package. This makes it easier for all involved in the process.15 It removes the boundaries that have been such(prenominal) an issue for many older people over the decades within the UK welfare system.16The problem of course arises when the partnership as a consentient is not serving the needs of individuals. Whereas before an individual may be failed by one organisation, now the failure will cover all the services they require. With the health and social services organisations also working with private entities such as insurers, if one area fails then the service package as a whole can fail.17The problem is silence that the two markets of health and social care are organisationally opposed. The culture within the organisations is geared towards opposition rather than cooperation, and this has been extremely hard to overcome.18 The disciplines have found it hard to soma up levels of trust that allow for successful communication and partnership.19Despite these problems with policy, there have been cases where policies have established partnerships between health and social services. One of these partnership initiatives is known as certain(a) Start. The next separate will present a case study of this partnership to evaluate its strengths and weaknesses.Case study of sure startThe certain(predicate) Start weapons platform was created in the early years of the New Labour government and looked to help children and families both before and afterwards birth in a holistic and integrated way. This includes provided healthcare and social care for children, as well as providing in-need adults with social care that they can benefit from. The government put a large amount of money into the meet from 1998 onwards, and has rolled the political platform out across the country.20The program sees all health and social care service providers work together to benefit proves and children in a wide mixed bag of ways, particularly for vulnerable children and those with learning difficulties. These issues can benefit from an integrated glide slope that combines different aspects of health and social care in one package.21Reports from this program in local areas show that commitment to partnerships and cooperation has been high amongst the staff involved. Those involved in the partnership, whether health and social services staff or parent members, found the experience to be positive and allowed for a more integrated approach to family welfare. Work with families has improved somewhat, although there are still problems.The biggest problem to the effectiveness of the partnership is differing organisational cultures. These cultures mean that health and social services cannot continuously work effectively together, and that there are also limits on paternal involvement. Parents found that the bureaucratic cultures of the organisations meant they were reluctant to participate further in the partnership. Likewise, staff within the different organisations found it hard to work with certain different staff because of differences in organisational culture.22In other studies, the results were even poorer. Rutter found that the physical object of accredited Start to eliminate child poverty and social excision was not being met. The results of National Evaluations of the authorized Start Team were analysed and showed that after 3 years, there was no significant service improvement. In fact, in some areas the service had got worse and had made the situations of families worse.23The problem here was that whilst the partnership was working successful in bringing together health and social services, this was not improving the actual services offered on both sides. With and one organisation to now use, the most disadvantaged families were being let down in all areas r ather than just in a few areas. It seems that many of the weaknesses of both organisations were combined in the partnership rather than their strengths.Other results show mixed results. One study showed that the partnership had been effective for teenage mothers in improving their parenting, but the actual children of such mothers were in some cases worse off. The problem seems to be not with the concept of the partnership itself, but the actual practical effectiveness of the local organisations involved in the particular partnership and the level of communication and cooperation between different staff.24Overall, the project has certainly been a success in developing integrated remain firm networks for children and families throughout the UK. However, the effectiveness of this support network has been hindered in many areas because of different organisational cultures and a lack of adequate management capacity across the disciplines. These cultural problems have also limited the effectives of service user participation in some areas, and this is something that needs to be addressed in the future if these partnerships are to be successful.25ConclusionThe policies of the New Labour government have tried to overcome the previous problems of drawing together the health and social services into one partnership. These organisations have always been highly separate, and attempts in the 1980s and early 1990s to foster cooperation between them often failed because of the differences in the organisations.26 The issue has been that difficult to find a fast and effective solution to the boundaries between health and social care is difficult, although it is attainable in the long-term.27The partnerships themselves have actually been kinda successful in creating sustainable and integrated local support networks across the UK. However, the effectiveness of these partnerships has been damaged by a number of factors.Firstly, there is still too much competition and a cult ure of blaming the other organisation between health and social services. Both organisations would prefer to absolve themselves of business and compete for success rather than work together to solve the problem together. Although when things go right the partnership can work, when things go wrong both parties look to blame the other side. This means many users are let down by the partnership with no-one taking responsibility for the failure.28Also, there has been too much emphasis on inter-organisational cooperation rather than inter-professional cooperation. Whilst organisations as a whole are difficult to change because of imbedded cultures and management styles, individual professionals can quickly be shown how to work together to both achieve better results for their respective organisations. The government policies should be more focused on acquire individuals within different organisations (e.g. doctors and social workers) than looking at combining whole organisations. This gives the user the integrated support they need whilst still allowing the different organisations to centre on what they do best.29In conclusion, partnerships between the health and social services in the UK can work to improve support for those who need it. However, the focus needs to shift from inter-organisational cooperation to inter-professional cooperation if the partnerships that have been successfully set up are to be effective in the future.BibliographyAnning, A (2005) Investigating the impact of working in multi- agency service delivery setting in the UK on early years practitioners beliefs and practices. daybook of Early Childhood Research, 3(1), pp.19-50 Balloch, S and Taylor, M (2001) Partnership Working policy and Practice. Bristol The insurance Press.Barnes, M, Newman, J and Sullivan, H (2004) Power, participation and political renewal theoretical and empirical perspectives on globe participation under new Labour. hearty Politics, 11(2), pp. 267-279. Belsky, J et al (2006) Effects of Sure Start local broadcasts on children and families early findings from a quasi-experimental, cross sectional study. BMJ, 332, p. 1476.Brown, L, Tucker, C, and Domokos, T (2003) Evaluating the impact of integrated health and social care teams on older people living in the community. health and mixer explosive charge in the Community, 11(2), pp. 85-94.Carnwell, R and Buchanan, J (2005) hard-hitting Practice in Health and Social Care A Partnership Approach. Maidenhead Open University Press.Carpenter, J, Griffin, M and Brown, S (2005) The fix of Sure Start on Social Services. shorthorn Centre for employ Social Research. Available at http//www.dcsf.gov.uk/research/ data/uploadfiles/SSU2005FR015.pdfCarr, S (2004) Has service user participation made a difference to social care services? capital of the United Kingdom Social Care constitute for Excellence. Available at http//www.scie.org.uk/publications/positionpapers/pp03.aspClarke, J (2005) New Labours citiz ens activated, empowered, responsibilized, prone? Critical Social Policy, 25, pp. 447-463.Dowling, B, Powell, M, and Glendinning, C (2004) Conceptualising successful partnership. Health and Social Care in the Community, 12(4), pp. 309-317.DCSF (2008) Sure Start Partnership Work. SureStart Website. Available at http//www.surestart.gov.uk/stepintolearning/ setup/feinvolvement/partnership/ (Accessed twenty-seventh December 2008).Gilson, L (2003) Trust and the development of health care as a social institution. Social intelligence and Medicine, 56(7), pp. 1453-1468.Glasby, J and Peck, E (2004) Care Trusts Partnership Working in Action. Oxford Radcliffe Publishing.Glass, N (1999) Sure Start the development of an early intervention programme for young children in the United Kingdom. Children and Society, 13(4), pp. 257-264.Glendinning, C (2002) Partnerships between health and social services developing a fabric for evaluation. Policy and Politics, 30(1), pp. 115-127.Glendinning, C, Pow ell, M A and Rummery, K (2002) Partnerships, New Labour and the presidency of Welfare. Bristol The Policy Press.Ham, C (1997) Health Care Reform Learning from global Experience. comprehensive Session I Reframing Health Care Policies. Available at http//www.ha.org.hk/ file away/hacon97/contents/26.pdfHudson, B (1999) reefer commissioning across the primary health caresocial care boundary can it work? Health and Social Care in the Community, 7(5), pp. 358-366.Hudson, B (2002) Interprofessionality in health and social care the Achilles hound of partnership? Journal of Interprofessional Care, 16(1), pp. 7-17.Leathard, A (1994) spill Inter-professional Working Together for Health and Welfare. London Routledge.Leathard, A (2003) Interprofessional quislingism From Policy to Practice in Health and Social Care. New York Routledge.Lewis, J (2001) old(a) People and the HealthSocial Care Boundary in the UK one-half a Century of Hidden Policy Conflict. Social Policy and Administration, 35 (4), pp. 343-359.Lymbery, M (2006) Untied we stand? Partnership working in health and social care and the role of social work in services for older people. British Journal of Social Work, 36, pp. 1119-1134.Maddock, S and Morgan, G (1998) Barriers to transformation beyond bureaucracy and the market conditions for collaboration in health and social care. multinational Journal of earthly concern Sector Management, 11(4), pp. 234-251.Martin, V (2002) Managing Projects in Health and Social Care. New York Routledge.Myers, P, Barnes, J and Brodie, I (2003) Partnership Working in Sure Start Local Programmes Early findings from local programme evaluations. NESS tax write-off Report 1. Available at http//www.ness.bbk.ac.uk/documents/synthesisReports/23.pdfNewman, J et al (2004) Public participation and collaborative governance. Journal of Social Policy and Society, 33, pp. 203-223.Peck, E, Towell, D and Gulliver, P (2001) The meanings of culture in health and social care a case study of t he combined Trust in Somerset . Journal of Interprofessional Care, 15(4), pp. 319-327.Rummery, K and Coleman, A (2003) Primary health and social care services in the UK jump on towards partnership? Social Science and Medicine, 56(8), pp. 1773-1782.Rutter, M (2006) Is Sure Start an Effective Preventive Intervention? Child and Adolescent psychological Health, 11(3), pp. 135-141.Stanley, N and Manthorpe, J (2004) The Age of Inquiry Learning and Blaming in Health and Social Care. New York Routledge.1Footnotes1 Leathard, A (1994) Going Inter-professional Working Together for Health and Welfare. London Routledge, pp. 6-92 Lymbery, M (2006) Untied we stand? Partnership working in health and social care and the role of social work in services for older people. British Journal of Social Work, 36, pp. 1128-1131.3 Glasby, J and Peck, E (2004) Care Trusts Partnership Working in Action. Oxford Radcliffe Publishing, pp. 1-24 Anning, A (2005) Investigating the impact of working in multi- agency service delivery setting in the Uk on early years practitioners beliefs and practices. Journal of Early Childhood Research, 3(1), pp.19-215 Barnes, M, Newman, J and Sullivan, H (2004) Power, participation and political renewal theoretical and empirical perspectives on public participation under new Labour. Social Politics, 11(2), pp. 267-270.6 Clarke, J (2005) New Labours citizens activated, empowered, responsibilized, abandoned? Critical Social Policy, 25, pp. 449-4537 Dowling, B, Powell, M, and Glendinning, C (2004) Conceptualising successful partnership. Health and Social Care in the Community, 12(4), pp. 309-312.8 Hudson, B (2002) Interprofessionality in health and social care the Achilles heel of partnership? Journal of Interprofessional Care, 16(1), pp. 10-14.9 Rummery, K and Coleman, A (2003) Primary health and social care services in the UK progress towards partnership? Social Science and Medicine, 56(8), pp. 1777-1780.10 Glendinning, C (2002) Partnerships between health and social services developing a framework for evaluation. Policy and Politics, 30(1), pp. 115-117.11 Carr, S (2004) Has service user participation made a difference to social care services? London Social Care institute for Excellence. Available at http//www.scie.org.uk/publications/positionpapers/pp03.asp12 Newman, J et al (2004) Public participation and collaborative governance. Journal of Social Policy and Society, 33, pp. 217-220.13 Peck, E, Towell, D and Gulliver, P (2001) The meanings of culture in health and social care a case study of the combined Trust in Somerset . Journal of Interprofessional Care, 15(4), pp. 323-325.14 Balloch, S and Taylor, M (2001) Partnership Working Policy and Practice. Bristol The Policy Press, pp. 143-145.15 Leathard, A (2003) Interprofessional Collaboration From Policy to Practice in Health and Social Care. New York Routledge, pp. 102-10316 Lewis, J (2001) Older People and the HealthSocial Care Boundary in the UK Half a Century of Hidden Policy Confl ict. Social Policy and Administration, 35(4), pp. 343-344.17 Ham, C (1997) Health Care Reform Learning from International Experience. Plenary Session I Reframing Health Care Policies. Available at http//www.ha.org.hk/archives/hacon97/contents/26.pdf, p. 2518 Maddock, S and Morgan, G (1998) Barriers to transformation Beyond bureaucracy and the market conditions for collaboration in health and social care. International Journal of Public Sector Management, 11(4), pp. 234-235.19 Gilson, L (2003) Trust and the development of health care as a social institution. Social Science and Medicine, 56(7), pp. 1463-1466.20 Glass, N (1999) Sure Start the development of an early intervention programme for young children in the United Kingdom. Children and Society, 13(4), pp. 257-259.21 DCSF (2008) Sure Start Partnership Work. SureStart Website. Available at http//www.surestart.gov.uk/stepintolearning/setup/feinvolvement/partnership/ (Accessed 27th December 2008).22 Myers, P, Barnes, J and Brodie, I (2003) Partnership Working in Sure Start Local Programmes Early findings from local programme evaluations. NESS Synthesis Report 1. Available at http//www.ness.bbk.ac.uk/documents/synthesisReports/23.pdf23 Rutter, M (2006) Is Sure Start an Effective Preventive Intervention? Child and Adolescent Mental Health, 11(3), pp. 137-140.24 Belsky, J et al (2006) Effects of Sure Start local programmes on children and families early findings from a quasi-experimental, cross sectional study. BMJ, 332, p. 1476.25 Carpenter, J, Griffin, M and Brown, S (2005) The Impact of Sure Start on Social Services. Durham Centre for Applied Social Research. Available at http//www.dcsf.gov.uk/research/data/uploadfiles/SSU2005FR015.pdf, pp. 44-4826 Glendinning, C, Powell, M A and Rummery, K (2002) Partnerships, New Labour and the Governance of Welfare. Bristol The Policy Press, pp. 34-3627 Hudson, B (1999) Joint commissioning across the primary health caresocial care boundary can it work? Health and Social Car e in the Community, 7(5), pp. 363-365.28 Stanley, N and Manthorpe, J (2004) The Age of Inquiry Learning and Blaming in Health and Social Care. New York Routledge, pp. 1-529 Martin, V (2002) Managing Projects in Health and Social Care. New York Routledge, pp. 180-190

UK Books and Publishing Industry Analysis

UK bears and produce labor abstractTable of Contents1. Introduction51.1 Objective51.2 Reasons for Choosing the UK keepsand produce Industry62. Industry Overview92.1 food securities exertion Size and Attraction102.2 commercialize Sectors102.2.2 Paperback112.2.3 Electronic112.2.4 Fiction112.2.5 Non- metaphor112.3 Industry identify foodstuffs122.4 grocery gross gross revenue, death penalty and Activities142.4.1 home(prenominal) merchandise142.4.2 Export gross revenue152.4.3 Imports162.5 issue Companies172.6 transaction192.7 statistical distribution202.8 Major Trends and Developments212.8.1 Emerging set aside data sets212.8.2 Emerging Distribution Channels and markets222.8.3 Developments in Technology andConcerns in right of first proceeds and Production233. Industry Analysis PESTEL243.1 Using the PESTEL Analysis243.2 Political Factors243.2.1 Taxation243.2.2 Pricing243.3 economic Factors253.3.1 Global Economic Factors253.3.2 UK Economic Trends253.4 Social Facto rs263.4.1 Consumer P addresss263.4.2 The earnings and Technology263.4.3 Reading Habits273.5 scientific Factors273.5.1 The Digital Age273.6 Legislative273.6.1 procure and Intellectual Property273.6.2 Market Regulations for New Entries283.7 Environmental 283.7.1 The Issue of Paper283.7.2 advance(prenominal)(a) conservation measures294. Industry Analysis Porters Five Forces Model294.1 almost Porters Five Forces Model294.2 Rivalry294.3 Supplier Power294.4 Buyer Power304.5 Threats of Substitutes304.6 Barriers to Entry305. Conclusion31References34List of Tables condemnation Spent of Main Activities, by Sex, 20058 fare script Sales 1998-200210 intercommunicate Book Sales 2002-200710Unit Book Sales by Format 1998-200211project Book Sales by Format 2002/200712Value Book Sales by Target Market 1998-200213Projected Book Sales by Target Market 2002/200713Publishers Export Sales 1998-200116Book Imports 1998-200117 leading(p) Publishers stratified by Total Retail Sales 2001/200218Total E mployment in the read Industry 1998-200220Retail Distribution21The UK Books and publication Industry Analysis1. IntroductionAccording to the Encyclopaedia of Global Industries (Book publication, 2007), ball-shaped haping on admits appendd from US$85.3 jillion in 2000 to US$104.6 billion in 2005. This is despite the fact that the global demand for hold ins had signifi stubtly dropped for a moment of reasons. One of the major(ip) reasons cited for this drop was the September 11 terrorist attacks in the linked States. In contrast, the united region (UK) is currently maven of the populaces leading scamers in the world of bring out. However, it remains tush to major global producers the linked States, Japan and Germany. UK is followed by an other(a) European major publisher, France In 2002, the UK mass and publish manufacture reached the value of 2.5 billion (Books and produce unify Kingdom, 2003) and continues to be the major location of European creates c entral operations and the U.S. makes adit cross expressions the Atlantic.1.1 ObjectivesThe UK decl ares and publishing application is one of the UKs distinct industries. As stated above, UK ranks among the worlds major set aside and publication producers. Readers crossways the globe are familiar with the UKs contribution to the publishing world . UK writers fuck off long been one of the more famous sets of writers in the immaculate and modern histories. Ranging from William Shakespeare to J.K. Rowlings Harry Potter franchise, the UK ledgers and publishing industry continues to play a signifi give the axet role, especially among the English-language readers across the globe. However, the new media forms that pay off been boost lately such as electronic and online forms of publishing currently altercate the publication preferences of the consumers today and UK print media too has got impacted.The present study is an examine to analyse the UK tidingss and publishing ind ustry. The objectives of this industry analysis are as follows show an overview of the UK agrees and publishing industry, its current status and projected directions.Analyse the factors that influence the current and future operations of the industry by using the tool of PESTEL analyses. respect the books and publishing industry and its impact and performance in the commercialize by using grocery analysis tools of Porters Five Forces. realize the critical factors that female genitals determine the future of the UK books and publishing industry.1.2 Reasons for Choosing the UK Books and produce IndustryThe UK remains to concord a healthy and dynamic book and publishing commercialize not just does the UK contain one of the signifi skunkt securities industry contends in the global book market, it boasts of a number of in-demand authors. Books and publishing in the UK highlights the societys inherent love for books .What is interest in the UK book and publishing industry can be seen in the following factors(1) UK has had a significant role in the publishing world especially among English-language readers across the globe however, in damage of industry size, UK remains behind book producing giants the get together States, Japan and Germany. These three countries go through a competitive yield advantagethe United States has strong media and entertainment industry which has to a fault influenced its publishing sphereJapan is kn sustain for its graphic novel and books publication, as drive by the strong manga culture and demandGermanys media corporate giant, Bertelsmann, has managed to own and merge with large publishers, which makes this German company a significant role player in the global industry (Book issue, 2007).(2) New forms of media, electronic publishing and the Internet, ease up emerged which have challenged the conventional publishing forms. Electronic publishing and the Internet has be tot a challenge in a number of areas including the red efinition of publication format (electronic or published through the Internet) and publication entrance (self-publishing has become popular online). This overly influences the amount of interest the public continues to have in books especially when more recreational forms have evolved which may be preferred over picking up a powder store or a book. to a fault, recent clips have as well witnessed a devise of online / virtual schools and other forms of virtual reality which has now granted way to development of digital versions of these books or e-books.(3) Emerging markets brought by globalisation also ask the expansion of UK publishers to other dither ups of the world. This is in addition to the change magnitude demand for English-language learning courses in non-English speaking nations can encourage the publication of books. Regional authors too can profit the interest of the global readers, and it is interest to see how the UK publishing industry has responded to the se new opportunities.In addition to this, it is interesting to evaluate the performance of this huge industry that reaches different global markets and at the same time, is serving a more particular orbit of the flocks reading habits. Based on a survey on unoccupied activities in 2005 by the National Statistics Offices, reading has been cited as constituting a negligible part of how slew spend their time both day. Reading, on an average, only accounts for 23 proceeding among men and 26 proceedings among women. The following set back illustrates how this industry has been catering to a fraction of nations average daily activitiesTime Spent of Main Activities, by Sex, 2005(Time Use Survey, 2006)As can be seen in the table, reading has taken a backseat as compared to the time people spend watching television or having a social life. A similar survey conducted in 2001 among full-time workers on how they spend their uncaring time, reading emerged as the third highest activity wh ereas games/hobbies/computing came in tightly fitting behind (Lifestyles, 2004). Evidently, in the previously cited more recent survey, games/hobbies/computing activities have overtaken reading. However, this peculiar maturement holds true among males who spend an average of 37 minutes in playing games, indulging in hobbies or working on computers whereas women tend to be ardent readers, thitherby spending more time reading than other hobbies. It should also be noted that reading does not only limit itself to the products of the book and publishing industry as the Internet has also become a significant get-go for information.2. Industry Overview2.1 Market Size and AttractionAccording to the Confederation of British Industry, the book empyrean has been one of the significant drivers in the overall UK retail gross revenue growth, along with furniture and groceries (Books and Publishing United Kingdom, 2003). This shows that books are among the main purchases that people make in a combined demand in the leisure and educational empyreans.The UK books and publishing industry reached the 2.5 billion mark in 2002, devising this industry having a positive overall outlook. Volume and value gains were seen rising from 2001 to 2002 at 12.1% and 16.8% respectively. The 12.1% volume increase reflected the 323.8 million units sold by 2002, which contributed to the deepen annual growth rate (CAGR) of 2.9%. Positive developments were also go through, which started from the late nineties up to the beginning of the millennium, with strong value gains eventually contributing to the 4% CAGR since the surge in sales in 1999 (Books and Publishing United Kingdom, 2003).Total Book Sales 1998-2002 ( Euromonitor International Country Market Insight)Projected Book Sales 2002-2007( Euromonitor International Country Market Insight)According to the Publishing Industry Market Review 2006, the total publishing market was charge 18.63bn in 2005, having increased by 7.6% across the review item (2001 to 2005). The Publishing Industry is defined by Newspapers, cartridge clips as well as Book publishing. Newspaper publishing accounts for the largest share of the markets total value, followed by magazine publishing and book publishing.Within the books and publishing industry in 2004, retail book sales were 3.98bn which represents a 3.2% increase on 2003.( UK Publishing Industry 2005,) Since 1999, the market has grown by a total of 16% and close to 67% of the markets value is consumer books. The UK Publishing Industry 2004 report indicates that the UK publishing market is expect to grow by 12.9% between 2004 and 2008. Magazine revenues are likely to tog up by 17.3%, newspaper revenues by 15.2% and book publishing by 14.7%. (UK Publishing Industry 2004,).2.2 Market SectorsThe commercial publishing industry extends far beyond books and journals. Products are available in electronic as well as print form.The overall book and publishing industry (Books and Publis hing United Kingdom, 2003) can be classified on the basis of format and family lineFormat2.2.1 HardbacksHardback formats are hardbound books. This format can be commonly found among books for children, new releases, and non-fiction books.2.2.2 PaperbackPaperback or softback is the most common format . This dominantly makes up the books hind ended for commercial and educational purposes.2.2.3 ElectronicThe electronic formats are the non-paper based products available on CD-ROM, or as audio books, e-books etc.Category2.2.4 FictionThe fiction category includes childrens books, novels across genres (crime, Western, thriller), historical, romance, etc.2.2.5 Non-fictionThe non-fiction category includes educational, academic and victor books, reference books, travel guides, DIY, etc.The performances of these different sectors (by format) are illustrated in the following table (Books and Publishing United Kingdom, 2003)Unit Book Sales by Format 1998-2002(Euromonitor International Count ry Market Insight)Projected Book Sales by Format 2002/2007(Euromonitor International Country Market Insight)Based on the performance of the two main categories, fiction and non-fiction, the latter continues to look across the book sales and continues to grow (Books and Publishing United Kingdom, 2003)2.3 Industry Target MarketsBooks can also be classified on the basis of the target market consumer and institutional (Books and Publishing United Kingdom, 2003). The consumer market is the mainstream book market which includes regular readers and individual buyers. The institutional market for books is defined by institutions or organisations that buy books for specific purposes such as libraries. It also includes the books bought by the education sector.There is a potential confusion as to the realisation of the consumer and the institutional market as the consumer market also includes publications for academic and headmaster purposes. However, institutional books are mostly ident ified by means of rule theme and the market segment, such as in the case of libraries and field-specific institutions (i.e. law books collection) whereas the consumer markets main source of distribution distribution channel are bookshops, online stores, etc. In terms of performance, the consumer market has a significant market share over the institutional market. The total sales brought by he consumer market in 2002 was at 2.0 billion, thereby having 80.3% of the overall book market share. Average growth was cited at 17.4%, with the surge of sales throughout the grade usually picking up during the last quarter (Books and Publishing United Kingdom, 2003).The institutional market has been also experiencing positive growth at 14.3%, with its sales reaching 490.6 million and comprising 19.7% of the overall market sales. Educational sales continue to dominate the institutional sales at 63.4% whereas contributions from the library sector continue to fluctuate. As can be observed from the table given below, there was a significant drop in library sales from 114 million to 101million from 1998 to 1999, with this particular sector experiencing fluctuations until 2002 (Books and Publishing United Kingdom, 2003).Value Book Sales by Target Market 1998-2002(Euromonitor International Country Market Insight)Projected Book Sales by Target Market 2002/2007(Euromonitor International Country Market Insight)2.4 Market Sales, Performance and ActivitiesThe UK books and publishing industry relies on various market forces in ordain to maintain its dynamism this can be attributed to its performance mainly on domestic sales, and then through the export and import volume and sales.2.4.1 Domestic MarketAs previously mentioned, the consumer market mainly comprise of the industrys domestic sales. Strong performance has been seen across sectors and categories, with positive developments in fiction as well as non-fiction books. Sales in fiction category experienced an average increase of 56% from 1998 to 2001, although non-fiction remains to have the significant market share (Books and Publishing United Kingdom, 2003).A number of market strategies have emerged in order to have the publishers rectify their performance. It has been noted that UK has even adopted an American market strategy mannikin which includes book tours and taking advantage of the different media convey to increase scene and promotion such as online book ordering promotions and book superstores (Book Publishing, 2007).It can be observed that this has been apparent in the franchising sector in which UK fictional giant, the Harry Potter franchise, have further ventured into require and consumer products. In a way, books have established a force to create a peripheral market sector which relates the books to other relevant industries. However, the icy takes place when classic British books such as J.R.R. Tolkiens The Lord of the peal and C.S. Lewis The Chronicles of Narnia were made into movies, and because of the success of this channel, book sales for these works have also experienced a significant increase as this has become a promotional means in order to sell more books. much(prenominal) strategy is not only felt in the UK domestic sector but also in other global sales as well.2.4.2 Export SalesUK books are exported throughout the world and a cited increase of 4.4% was seen from 1998 to 2002. As per a Department of Trade and Industry (DTI) report, the export market is worth approximately 1.4bn a year. However, UKs main export emulation comes from the United States, which also produces English-language books. Some exporting strategy can be also seen through the industry (Books and Publishing United Kingdom, 2003, p. 19)Although the world-wide Harry Potter phenomenon had a strong impact on exports, peculiarly over the 1999/2000 period, non-consumer publishing book sales were also a guts of export performance. English is the world language for titles in the scientific/ good/medical category and as such, the UK dominates the field globally in terms of sales. For publishers of these kinds of texts exports can account for up to 60.0% of sales, particularly to the US, and it can be of corking advantage for a publisher to have an American arm or to be part of an American-controlled group in terms of securing US rights of publication.In this case, despite the stiff competition with the US titles, UK books have also been playacting fairly well in the United States the UK mainly exports to the United States. In fact, UK has been the largest exporter of books to the United States books market. The performance of the UK publishers export sales are as follows (Books and Publishing United Kingdom, 2003)Publishers Export Sales 1998-2001(Euromonitor International Country Market Insight)2.4.3 ImportsThe UK also imports books from overseas markets such as the United States. Interestingly, Asian markets have been contributing significantly to UK bo ok imports. The second largest imports, after the United States, come from Hong Kong, and the fourth largest market is Singapore China too is also among the hap sources, gaining the eighth import source position in 2001 (Books and Publishing United Kingdom, 2003).Interestingly, UK imports increases industry competition, with its value rising at 16.6% within the period 1998-2001. The following table shows the import value during this time period (Books and Publishing United Kingdom, 2003)Book Imports 1998-2001(Euromonitor International Country Market Insight)2.5 Publishing CompaniesEach of the three sectors of publishing in UK-newspapers, magazines and books- is dominated by more or less a dozen companies. Only a few companies are diligent in more than one sector. In fact, only Pearson PLC is involved in all three markets in a significant way. News Corporation, which publishes newspapers and which owns the book publisher harper Collins too has entered the magazine market early i n 2006. The UK publishing industry is still primarily UK owned. However, in the magazine market, there are several foreign-owned companies. These include the followingThe Conde Nast Publications LtdHachette Filipacchi (UK) LtdIPC Media LtdThe National Magazine Company LtdThe Readers Digest Association Ltd and VNU Business Publications Ltd.As indicated in Books and Publishing United Kingdom 2003The UK is not the home base of any major media player, such as Bertelsmann, Vivendi or AOL Time Warner. The regulations on media ownership make it easier for new entrants from abroad to establish a presence in the UK than for UK companies to advantageously enlarge market share. Most of the major players in the book industryare owned by international multimedia publishing concerns, and consequently the most helpful form of comparison is to analyse leading publishing houses, and the results of the consolidated groups which own them.(Books and Publishing United Kingdom, 2003, p. 23)Thus, the books and publishing industry in the UK is characterised by a handful of global conglomerates or international companies, such as Reed Elsevier assembly PLC, Pearson PLC, The Random theater Group Ltd and Harper Collins Publishers Ltd. The leading publisher in the UK, HarperCollins, is a optical fusion of British publisher William Collins Sons and Co Ltd. and the American publisher Harper Row. Today, HarperCollins is owned by the American media conglomerate, News Corp., although HarperCollins UK is the UKs leading publishing house (Books and Publishing United Kingdom, 2003 Harper Collins, 2007).In the recent years, many other companies have been acquired and merged. For instance, in 2004 a major development was the acquisition of Hodder Headline from WH Smith by the French publisher Hachette Filipacchi in 2004. This merely added to further internationalisation of UK publishing. Hachette already owned hunting watch which further owned Weidenfeld Nicholson. This has lead it to b ecome the UKs second-largest consumer book publisher. Macmillan and Random House are both owned by German companies. These main drivers of these developments have been the business strategies applied by these corporations. These strategies can be observed to be influenced by forces such as globalisation and certain deregulations when it comes to foreign operations. Besides these, other major publishers are Blackwell and the university presses of Oxford and Cambridge.The following table shows the leading publishers in the UK according to sales (Books and Publishing United Kingdom, 2003)Leading Publishers Ranked by Total Retail Sales 2001/2002(Euromonitor International Country Market Insight)2.6 EmploymentBy 2002, the books and publishing workforce, which also include employees in the mental picture sectors, were recorded at 352,000 according to the National Statistics, this figure was at 366,000 in 2001 (Books and Publishing United Kingdom, 2003 Harper Collins, 2007). In 2004, app roximately 280,000 people were employed nationally and about 15% work part time.It has been cited that the books and publishing industry has not offered a very promise development to its workforce in terms of pay and employment confidence (Books and Publishing United Kingdom, 2003, p. 22) In a recent survey by Bookcareers.com, 66% of employees in the industry said that they had lost colleagues to redundancy. There is far-flung discontent in the industry, particularly over the issue of pay. Levels of pay, especially for scratch line salaries, are notoriously low, particularly bearing in mind the take of education required for publishing work, and starting salaries can be as little as 15,000 a year. Pay is a factor in most employees lives,particularly because most of UK publishing centres around London and the due south East, where house prices aresimply unaffordable for people earning average salaries in the industry.In addition to this, professional development does not sound a s promising in this industry due to the lack of training initiatives and specific professional skills. Professionals in this industry are mostly managerial in nature. Hence, in terms of skills development, the demand has not been as impressive in this sector. It is thence not as surprising that the number of employees in the industry has been discourage in terms of rate, and employment has been also bleak due to redundancies.Total Employment in the Publishing Industry 1998-2002(Euromonitor International Country Market Insight)2.7 DistributionIn the past consumers were buying books through a chassis of distribution channels such as large chain bookstores book clubs and unconditional and small chain bookstores, mass merchandisers, mail order, food and dose stores, discount stores, used books etc. The traditional bookshops have been losing their influence and as a result such booksellers have been also starting to be quiet up. The Internet is becoming one of the most active distr ibution channels for books and publications. Although the Internet does not have as much distribution share at this point, it continues to contribute significantly in this area as it also continues to increase as a highly-used distribution channel.Book retailers continue to dominate the product distribution these retailers include chained retailers and self-supporting bookshops. As compared to independent bookshops, in recent times, , bookshop chains are starting to increase its market grasp and influence (Books and Publishing United Kingdom, 2003). other distribution source is through book clubs. The UKs leading book club, BCA, combines to book club concept and its mail-to-order scheme, in addition to smaller particle of smaller book clubs.The book retail distribution trends have been presented in the following table (Books and Publishing United Kingdom, 2003)Retail Distribution(Euromonitor International Country Market Insight)It can be observed that there has been significant increase in sale through Internet and duple (chained) booksellers whereas there has been a decrease in distribution through independent booksellers and book clubs/mail-to-order.2.8 Major Trends and DevelopmentsThe dynamism of the books and publishing industry in the UK can be determined by the key trends and developments that can eventually affect how the industry operates and performs.2.8.1 Emerging Book FormatsAs previously mentioned, new formats such as e-books, CD-ROMs and audio books have now entered the market. Among the three, e-books have been creating a stir due to a number of reasons it is in digital format that can be easily downloaded.What also works well with the emergence of e-books is the emergence of technologies.. For example, PDAs have now developed into small, handheld computers that can carry a substantial amount of data e-books, which are usually in the PDF can be easily downloaded in PDAs and accessed through PDF reader (Microsoft Reader and adobe brick Acroba t). Hence, people do not have to carry large books around as they can easily access them through their devices. As per the statistics from an online download source for public domain books, manybooks.net, PDF downloads have reached almost 140,000, not including the other electronic book formats such as eReader and RTF, and downloadable text in hypertext markup language format (Nagle, 2007). In any case, the number of downloads can reach hundreds of thousands, and this only includes books from one website and works within the public domain.Another popular source of free e-books is Project Gutenberg (Project Gutenberg, http//www.gutenberg.org/wiki/Main_Page) which claims to have over 2 million downloads every month.2.8.2 Emerging Distribution Channels and MarketsAs discussed in the distribution channel section, the Internet is becoming to impress its influence among UK consumers book sales online experienced an 11% growth in 2001 and continues to be significant till date. Although we ll-nigh online start-ups wanted to take advantage of the UK market, most of them were adversely affected by the dotcom bubble in the 1990s. Expectedly, Amazon.co.uk is the top online seller of books in the UK (Books and Publishing United Kingdom, 2003).2.8.3 Developments in Technology and Concerns in Copyright and ProductionTechnological developments have largely affected the books and publishing industry. As previously mentioned, technolo

Free Cash Flow with a Firms Capital Expenditure

uncaring immediate payment F humiliated with a Firms Capital wasting disease vacate specie bunk and working chief city cost go grimace by side. What is important to take on forth is the existence of an association amongst the cardinal in Sugar Industry of Pakistan by mean of seting the violence of their sex actship. yearbook financial bidding entropy for 27 sugar mill about of Pakistan, listed on Karachi expect Exchange (KSE), was interpreted to envision ingenuous bullion black market and annual ceiling ingestion oer the 2000-08 period. Linear reverting test was run on the data to say the kindred surrounded by the two variables. The roots hence proved an association con steadying an existence of a relationship.IntroductionOverview of the Sugar Industry of Pakistan Pakistan is the 5th fully grownst country in the k presentlyledge base in terms of ara under sugar shadowere cultivation, 11th by production and 60th in terms of yield. Sugar shage is the principal(a) cranky material for the production of sugar. Since independence, the ara under cultivation has step-upd to a greater extent rapidly than any other major crop at or so nonpargonil and only(a) million hectargons. The sugar diligence in Pakistan is the 2nd largest agro base industry comprising 81 sugar mills out of which 27 argon listed on Karachi Stock Exchange. The annual crushing capacity of the industry is all over 6.1 million tones. Sugar keepe farming and sugar manu eventuring contribute signifi earth-closettly to the discipline exchequer in the image of various taxes and levies. Sugar manufacturing and its by-products use up contributed remarkablely towards the foreign exchange resources through import substitution. Sugar production is a seasonal activity. The mills, at an average operate for 150 days a category whereas the supplies atomic number 18 made throughout the course of instruction. As the industry now has large daily crushing capacity t here are efforts to put down the production crimson get on.About the subject The purpose of this research is to read the significance of assoil money in proceed in relation with faithfuls neat pulmonary tuberculosis. Many researchers present analyze the relationship built more or less submit specie geological period and piss argued that managers pay off to evasive action a vital role in deciding where large-minded specie head for the hills lastly ends up. Something know as an room problem is widely discussed and commented on by several researchers. This problem talks exactly about the conflict of delight amongst managers and shareholders. Shareholders are interested in earning as much dividends as possible which would increase their range. On the contrary, managers think for themselves. They tend to invest the operational bills melt in projects that would not necessarily increase shareholders value but ensure that the tenure of the manager is as extende d as possible. New coronations would mean much responsibilities on managers thus their uninterrupted duration of service is required in the coarse term interest of the firm. expiration one step ahead of contribute problem, this piece of work is partaked to free peachy feed in which depicts an association and a relationship with the keen outlay. bump bills course is ameasure of financial per mixtureance and one of the sources of chapiter outgo in firms. Managers can either disburse the gettable notes among shareholders in the form of dividends afterwardskeeping aside the gold required to expand or maintain its asset base or hold it post for developing refreshful products, making acquisitions, and reducing debt.At this point in time, it is imperative to note that invalidating free immediate payment light in itself is not bad. If free bills in menstruation is negative, itcould establish that a company is developing rude(a) products, reducing debts or ch ange surface making large enthronisations. If these property out f natural depressions earn a blue return eventually, the strategy has the potential to pay off in the long run.Capital usances (CAPEX) are those property out periods that create future do goods for the firm. A majuscule uptake is incurred when a business outlay livestocks to produce or upgrade physical assets such as property, industrial buildings or equipment. CAPEX is usually base on the Cash Flow Statement as an enthronization in plant, property and equipment or something similar in the investing funds section. Companies listed on stock exchange willing often list their cracking intakes for the year in annual reports, which allows shareholders to see how the company is using their funds and whether it is investing in its long term growth.The hypothesis tested in this study is accepted and thus a relationship among free hard currency turn tail and bang-up white plague is established.Literature R eviewCash give is determined by integrating the bullion receipt and disbursement items from the income statement with the change in each balance sheet item the nerve center of the exchange in commingles equals the sum of the hard immediate payment escape cocks. Whereas chapiter expending is the amount a company spends buying or upgrading frigid assets, such as equipment, during the year and acquiring subsidiaries, minus government grants received.The free- gold-flow (FCF) hypothesis by Jensen (1986) suggests that excess change flow is wasted on value-destroying wasting disease beca drop managers pitch a personal motivation to grow the asset base of the firm rather than administer gold to shareholders in the form of dividends.Cash flow has always been some of a puzzle in the literature on the determinants of enthronization. Gugler (2004) argues that in a strictly neoclassical world, silver flow does not belong in an enthronization comparability. Even than pragmatic studies dating back over 4 decades invariably document that currency flow and enthronisation are validatoryly related.The incline of inbornly generated silver flow on funding seat of government investment expenditure is well analyse. But what is less well silent is the cause behind this influence. Modigliani and Millers (1958) Irrelevance proposition asserts that firms abridge all affirmatory net present value (NPV) investments regardless of the financing source.Firms that pay low dividends rely more heavily on cash flow as shown by Fazzari, Petersen and Hubbard (1988). The first two gentlemen as well as rear that such firms use working capital of the United States adjustments and not external financing to maintain the essential capital expenditure in order to smooth cash flow fluctuations. They further argued that in order to save cash flow, firms choose a low dividend payout policy.Calomiris and Hubbard (1995) proved that those firms have heaviest dependence on cash flow to finance capital expenditure which pay the highest taxes associated with undistributed profits.Devereux and Schiantareelli (1990) found that as compared to subtleer firms in the UK, the large firms depend more heavily on cash flow financing. The reason they pointed out for such a disposition was the manager/shareholder agency problems in these large firms in the first place because of diswhitethorn managerial willpower and higher costs associated with monitoring mechanism.In this thesis, further evidence have been provided on the role of free cash flow and capital expenditure through observing the data provided by the Karachi Stock Exchange. To measure the market reaction to such expenditure plans, the over and higher up returns around capital announcements have been used. It was moreover, found that the impact capital expenditure has on firm value that is financed by cash flow depends upon the characteristics of the firm making the expenditures. Firms show a stro ng positive relation between the aim of undistributed cash flow and the direct of announced expenditure, although large firms depend less heavily on cash flow as compared to the small firms and those firms that have high managerial possession.Jensen (1986) suggested that those firms which had a large level of free cash flow were likely to squander it on abortive investments. As a result undistributed cash flow must(prenominal) play an important role in explaining capital expenditure by these firms. In addition, certain firms are more prone to the agency problems of free cash flow, especially the large firms which, as discussed by Devereux and Schiantarelli (1990), generally have a more diverse ownership expression. Jensen (1993) discussed such firms as the ones that have more costly internal take hold mechanisms. About small firms, Jalilvand and Harris (1986) commented that they are more vulnerable to suffer from cash flow restraint mainly because they have limited access to e xternal captial markets due to higher dealings costs of public security isssues and the information problems. Therefore, Vogt (1997) believes that small firms tend to have lucrative and at the equal time unexploited investment opportunities. The open cash flow should be the main source of capital expenditure by these firms. Moreover, if cash flow is used by these firms to fund the capital expenditure, such an announcement must show a positive reaction in terms of appreciated stock prices.Jensen (1986) argues that there are agency costs coupled with free cash flow. His study broadens that argument and speculates that shareholders form their valuation decisions on firms storys regarding free cash flow exploitation. This notion was tested by examining the stock price responses to equity offers, which generally aggravate the cash flow quandary, for firms differentiated by their recent avaricious behavior. The results suggested that shareholders react more positively to equity issue announcements if firms have obtained only assets related to their expose business than to other equity issue announcements.On another occasion, Jensen and Meckling (1976) explained the agency problem between managers and shareholders. They unarguably stated that managers are supposed to be the representatives of the shareholders. But they tend to make those decisions that will maximize their own benefits as opposed to the shareholders value. In order to restrict them from doing so, they must either be provided incentives or be monitored. They further argued that in firms where managers have low level of insider ownership, have greater incentives to invest in un fat projects that stretch the firms beyond its optimal coat and the expected return on new capital expenditure can be negative for such firms. much(prenominal) actions would seemingly be in unvarying with firms value maximization objective.Jensen (1986) suggests that stock prices are tendered downward(prenominal) to imp ly agency costs coupled with a firms free cash flow. In particular, managers have an enticement to use unfettered funds to benefit themselves instead of the shareholders. John and Nachman (1985) claim that agency costs can be alleviated through reputation building. Particularly, they demonstrate that the agency problem of underinvestment can be determined through reputation. The observed results recommend that managers build reputation through covetous activity whereas the shareholders state their response on pre-acquisition activity. In an ideal world, managers would disburse the entire free cash flow among the shareholders provided the interests of shareholders and managers co-occurrence each other. This would maximize shareholders wealthiness and allow them to use the available cash for capitalization. Amihud and Lev (1981) however argued that managers have an enticement to minimize their employment riskiness. Employment risk aims to explain the insecurity inbuilt in a manager s tenure or the term of employment. Managers have an option of change magnitude the certainty of their tenure by diversifying the real asset portfolio of the firm and they do it by purchasing those assets that are unrelated to the primary line of business of the firm. Managers have an option of financing diversification projects by using the free cash flow that has been held back and not been distributed to shareholders, thus they need not seek funds from the capital markets.Easterbrook (1984) believes that it is easy to watch the managerial behavior of the firms when they seek funds from the well-performing capital markets. Therefore, on one hand it becomes difficult to keep a fancy on the performance of managers if they use the hoarded cash flow for the purpose objet dart on the other hand, investors are unable to measure free cash flow as they are incapable of scrutinizing the investment opportunity roll of the firm. Shareholders are expected to take any unencumbered cash co mmunicate negatively, coming from the management for the purpose of diversifying. Unless they are provided sufficient proof, they will remove the request to be the acquisition of free cash flow. As a result of this ambiguity, stock prices will fall and show the residual evil caused by the probable misuse of free cash flow by management. Further, managers may wish to expand firm size, irrespective of the fact that it increases shareholders wealth or not, based on the assumption that executive promotion and requital are positively related to firm size (Donaldson 1984 Baker 1986 and Baker, Jensen, and white potato 1988).Cash flow is related to the expected return from new investment as shown by Myers and Majluf (1984). Those firms which have a shortage of cash flow and liquid assets cogency permit go profitable investment expenditure instead of issuing mispriced securities to fund the investment. As a result, these firms might have unexploited investment opportunities that would increase firm value if sufficient cash flow could be generated to finance them.Capital expenditure of high ownership firms must show a dependence on cash flow and positive excess returns must be observed for these firms when they declare new capital expenditure. Morck, Shleifer, and Vishny (1988) described high levels of insider ownership to be associated with high levels of cash-flow-financed capital expenditure because of managerial-establishment issues. Firms with high insider-ownership levels might wish to finance expenditure with cash flow solely to avoid loss of control associated with weakening their ownership position or restrictions imposed by creditors.Lehn and Poulsen (1989) and McLaughlin, Safieddine, and Vasudevan (1996) defined Free Cash Flow to be operating income before wear and tear, less interest get down on debt, less income taxes, less like and common dividends.Vogt (1997) calculated both(prenominal) cash-flow measures net of interest expense and dividends i n order to control for managerial decisions affecting the level of undistributed cash flow. Ignoring these other decision variables might create a bias in the observed relation among cash flow, capital expenditure, and market returns. As an example he referred to a firm with high levels of cash flow that does not manipulate the agency problem. Such a firm will minimize undistributed cash flow by choosing high interest and/or dividend levels. It might pursue profitable investment expenditure and is unlikely to rely heavily on cash flow for financing. This firm must be associated with positive market responses around expenditure announcements. Using a cash-flow figure gross of interest expense and dividends would incorrectly combine positive market returns to firms with high cash flow rather than the correct low level of cash flow that it really maintains.Vogt (1997) used 421 firms to observe relationship between cash flow and capital expenditure. When these firms announced expenditu re increases, the level of announced capital expenditure seemed to be positively and strongly related to the level of cash flow. The strength of this relation increases for firms with profitable earlier investment opportunities, as firm size declines, and as the proportion of insider ownership increases.His further analysis suggested that ample diversity exists in the capital markets response to capital expenditure financed by cash flow. The positive and statistically significant excess returns found in the assay of firms announcing increases is gruelling in the smallest of the sample firms, in firms with low cash flow relation to capital expenditure, and, to a lesser extent, in firms with high levels of insider stock ownership. Tests explaining the cross-section(a) variation in returns reveal that excess returns for medium and small firms in the sample are positively associated with unexpected increases in planned expenditure. These tests also suggest that the capital market re sponds more favorably to the announced expenditure by small firms when the planned expenditure is more dependent on cash flow. On the other hand, excess returns for the largest firms in the sample are negative, however not statistically significant.Vogt (1997) observed that due to the fact that small firms and high ownership firms are most likely to face the liquidity crunch associated with asymmetric information, they are also the most likely to let go profitable investment opportunities in times of cash flow shortages. As cash flow rises, the set of profitable capital investment projects the firm can carry out also increases. As a result, capital expenditure announcements are met with positive shareholder reactions, particularly when expenditure is dependent on cash flow.Vogt (1997) concluded by observing that the unornamented diversity in the markets response to capital expenditure decisions suggests different capital expenditure financing policies for firms that seek to augmen t shareholder value. The market value of small firms, firms with significant insider ownership, and firms that are generally cash flow intent appear to be improved, on average, by financing capital expenditure with cash flow. These firms might consider policies of saving undistributed cash flow through low payout and leverage policies. Such an action therefore encourages new capital expenditure from internally generated funds. However, all other firms seem to be less dependent on a cash flow property policy to facilitate capital expenditure.In 1986 succession explaining the free cash flow (FCF) hypothesis Jensen (1986), focuses on the agency issue. He argues that managers can increase their wealth at the cost of shareholders by not paying out the funds from a firms free cash flow in the form of dividends or debt financed share repurchases, rather investing them in unprofitable investment prospects. Devereux and Schiantarelli (1990), Strong and Meyer (1990), Oliner and Rudebusch (1 992) and Carpenter (1993) later studied the role that agency problems play in the cash flow-investment relationship. Their findings turned out to be conflicting loveseat the importance of free cash flow. Strong and Meyer (1990) found that share prices of firms that undertake investment expenditure with unrestricted cash flow experience negative performance while Oliner and Rudebusch (1992) found little evidence regarding ownership structure affecting the cash flow-investment relationship.The firms dividend decision has connotation for the FCF theory. According to Lang and Litzenberger (1989), dividends are one means of eliminating free cash flow. Vogt (1994) developed a simulation in this research paper where he showed that firms with the opportunity to exploit free cash flow will follow low dividend payout policies and cash flow will have a strong influence on investment expenditure. On the other hand, if firms are confined from obtaining external funds because of whatever reason, those firms with profitable investment opportunities will maintain low dividend payout policies in order to stay on cash flow. Therefore his model was found to be consistent with Fazzari, Hubbard, and Petersen (1988) it predicts that low payout firms should be associated a strong cash flow-investment relationship.There has been considerable empirical evidence which show that internally generated funds are the primary way of financing firms investment expenditures. Gordon Donaldson (1961), in a detailed study of 25 large firms, concludes as follows Management strongly favored internal generation as a source of new funds even to the exclusion of external funds except for occasional unavoidable bulges in the need for new funds.A later survey of 176 corporate managers by Pinegar and Wilbricht (1989) discovers that managers prefer cash flow to finance new investment over external sources as 84.3% of sample respondents showed their preference for financing investment with cash flow.Vog t (1994) explains the relationship of cash flow and capital expenditure by analyzing the free cash flow theory of Jensen (1986). As monitoring is assumed costly, and managers can benefit from overinvestment, he predicts that cash flow will significantly influence investment expenditure after controlling for the cost of capital. Investment expenditure of firms not paying dividend will be more influenced by cash flow than investment expenditure of firms that pay dividends. This follows because no-dividend firms are able to defend all cash flow and still not reach the computer storage constraint. For liquidity-constrained firms, cash flow and changes in the stock of the firms liquid assets should have a significant influence on investment expenditure. Firms with many profitable investment opportunities or large information asymmetries will have investment expenditure that is most sensitive to changes in cash flow, and should conserve on cash flow by paying low or no dividends. Firms indicating a liquidity constraint by not paying dividends will have the most significant cash flow/investment relationship.In a study Fazzari, Hubbard, and Petersen (1988) discovered that cash flow has a strong work on investment expenditure in firms with low dividend payout policies. They argue that this result is consistent with the belief that because of asymmetric information costs associated with external financing, low payout firms are cash flow confined. One reason these firms keep dividends to a minimum is to preserve on cash flow from which they can fund profitable investment prospects. Later in the year 1993, Fazzari and Petersen (1993) found that the same group of firms paying low dividends, even out fluctuations in cash flow with working capital to maintain desired investment levels. This result is consistent with the findings done by Myers and Majluf (1984) which states that the underinvestment problem arising from asymmetric information can be alleviated by the liquid financial assets.Carpenter (1993) studied the relationships between debt structure, debt financing, and investment expenditure to test the theory of free cash flow, comparing the restructured firms with the non-restructured firms. He observed that firms had increased their investment expenditure that was restructured by substituting large amounts of external equity with debt as compared to non-restructured firms. To him these results seemed to be conflicting with free cash flow behavior. He believed that cash flow commit to debt maintenance must be correlated with reductions in later investment expenditure.Devereux and Schiantarelli (1990) and Strong and Meyer (1990) conducted studies that support the free cash flow interpretation. Strong and Meyer (1990) studied separately the investment and cash flow of firms in the paper industry into sustaining investment and discretionary investment, and total cash flow and residual cash flow. Discretionary investment and share price perform ance are negatively and strongly related. Discretionary investment and residual cash flow are found to be positively and strongly correlated. This evidence suggests that residual cash flow is frequently used to finance unprofitable discretionary investment expenditure.Study conducted by Vogt (1994) related to cash flow and capital expenditure predicts that firms not paying dividends should exhibit the strongest relationship, while those paying high dividends should show the weakest relationship between cash flow and investment expenditure. His result suggested that cash flow-financed capital expenditure is slightly inefficient and provides facts in support of the Free Cash Flow hypothesis. Regarding the small firms that paid low dividends over the sample period, Vogt (1994) commented that such firms relied heavily on cash flow and changes in cash to fund capital expenditure. Cash flow-financed growth by small, low-dividend firms is likely to be value- creating, whereas cash flow-fin anced growth is value destroying for large, low-dividend firms. He concluded by suggesting that managers of cash flow-rich companies may consider increasing dividend payouts as a method of increasing the efficiency of their capital expenditure decisions. A continued high-dividend-payout policy may also signal to shareholders that extra and expensive monitoring of capital expenditure decisions is unnecessary. Furthermore, since capital expenditures typically add to the amount of assets under managerial control and create more predictable future cash flows, such expenditures generate the opportunity to exploit free cash flow in adjacent periods.Alti (2003) found out that investment is sensitive to cash flow. The sensitivity is intimately higher for young, small firms with high growth rates and low dividend payout ratios. The hesitation these firms face about their growth prospects amplifies the investment-cash flow sensitivity in two ways. First, the uncertainty is resolved in time as cash flow realizations provide new information about investment opportunities. This makes investment exceedingly sensitive to cash flow surprises. Second, the uncertainty creates implicit growth options relate to long-term growth potential but not to investment in the near-term. Having a weaker relationship with the value of long-term growth options, cash flow acts as a useful instrument in investment turnabouts.nobility (1990) analyzed capital expenditure with total cash flow and found out that the circumstances of cash flows going to capital investment ranged from an outflow of 60 percent or more. The giant companies invested a higher percentage of their total outflow in plant and equipment than companies in the other size categories. The small companies invested the lowest percentage of their total outflows in capital.There has been a research done previously that was applied to agricultural firms by Jensen (1993). The results were found to be consistent with previous stud ies for nonagricultural firms which showed that internal cash flow variables are important in explaining investment. It was found that the addition of internal cash flow variables can improve the explanatory power of agricultural investment models. In terms of elasticity, investment was more responsive to internal cash flow variables.Worthington (1995) has found that cash flow measures industry-level investment equations positively and significantly, even after investment opportunities are proxied by capacity utilization variables. The effect of cash flow is greater in durable goods industries than in non durable goods industries.Moyen (2004) explained the fact that the cash flow sensitivity of firms described by the constrained model is lower than the cash flow sensitivity of firms described by the unconstrained model can be easily explained. In both models, cash flow is highly correlated with investment opportunities. With more favorable opportunities, both constrained and unconst rained firms invest more.Raj Aggarwal (2005) conducted a study in which he concluded that investment levels are significantly positively influenced by levels of internal cash flows. Also, the strength of this relationship generally increases with the degree of financial constraints approach by firms. Overall, these findings seem strong to the nature of the financial system and indicate that most firms operate in financially incomplete and imperfect markets and find external finance to be less attractive than internal finance. question MethodologyIntroduction The hypothesis tests the relationship between free cash flow and capital expenditure, concentrating on the Sugar Industry of Pakistan. The aim is to ascertain the strength of the relationship between the variables. In order to do that, elongated regression seems to be the best test as it attempts to model the relationship between two variables by fitting a elongated equation to observed data. One variable is considered to be an independent variable while the other is considered to be a dependent variable. The objective of multiple linear regression analysis is to use the independent variables whose values are known to forecast the single dependent value selected by the researcher. (Hair, 2006)Data Annual financial statement data for 27 sugar mills of Pakistan listed on KSE is taken to calculate free cash flow and annual capital expenditure for the period 2000 through 2008.Variable 1. Independent variable = Free Cash Flow (FCF)2. myrmecophilous variable = Net Capital use of goods and servicesIndependent variableThe FCF is calculated they way Lehn and Poulsen (1989) and McLaughlin, Safieddine, and Vasudevan (1996) defined it. It is operating income before depreciation, less interest expense on debt, less income taxes, less preferred and common dividends.Free cash flow = Operating income before depreciation interest on debt income taxes preference common stock dividend.Dependent variableNet capital e xpenditures are those where funds are used to acquire or upgrade physical assets such as property, industrial buildings or equipment. Change in fixed assets over a year is taken as net capital expenditure by the firm.Net capital expenditure = Current year fixed assets last year fixed assets.Net capital expenditure = Ln (FA)Ln of fixed assets is taken to control the division of the data.Sampling criteria Sample companies that are taken for the purpose of research are 27 sugar mills of Pakistan that are listed on Karachi Stock Exchange. venture Free Cash flow has a significant relationship with capital expenditure.Data analysis Annual financial statement data for 27 sugar mills of Pakistan, listed on Karachi Stock Exchange (KSE), was taken to calculate free cash flow and annual capital expenditure over the 2000-08 period. mannequin SummaryRR SquareFSig.0.3020.09123.6760.000Predictors = (Constant), FCFDependent Variable = Ln FAThe researcher has used statistical software SPSS 13.0 to process the data and run regression analysis on the variables. The results are interpreted in light of statistical text book by Hair (2006). only FCF and (ln) FA figures are in Million Rupees.R value It is the sample coefficient of correlation coefficient between the outcomes and their predicted values, or in the case of simple linear regression, between the outcome and the values being used for prediction.R value of 0.302 means that the strength of the relationship between FCF and capital expenditure is 30.2%.R shape value the coefficient of determination, R2 is the amount of variance in the dependent variable that can be explained by the regression model.The R square of 0.091 means that 9.1% of the variability in the data is explained by the predictor. Out of the total free cash flow, 9.1% is used for capital expenditure.The F test for the regression model is significant which proves that regression model is best fit.Regression model summary is masking that FCF has a posit ive impact on net capital expenditure.CoefficientsModelUnstandardizedStandardizedSig.CoefficientsCoefficientsBStd. ErrorBeta(Constant)3.2510.1070.000FCF0.0040.0010.3020.000Dependent Variable Ln FAUnstandardized comparison Ln FA = 3.251 + 0.004 FCFStandardized Equation Ln FA = 0.302 FCFIf FCF changes by 1 million, ln of net capital expenditure changes by 0.004, which means Net Capital expenditure increases by 1.004008 million.The regression coefficie