Business ethics Term Paper Example | Topics and Well Written Essays - 2250 words

Business ethics - Term Paper Example However, it is worth to note that such move put my job on the line from two perspectives. Revealing the truth will upset the company through possible sales back clash and ruined image. Internal conscience and professional ethics also push for doing the right thing. Reconciling these two difficult situations constitutes the pressure in making the final decision concerning the defective products. The main question that is important in this case is what ought to be right. In this respect, the monetary gain of an action may not necessarily be right and as such must be shunned. In this respect, it would be important to enlist the Kant ethical theory which emphasizes the moral obligation to do what is right even if it might have small quantitative gain. In the short run, the company may enjoy but individual sales team would be breaching ethical codes expected of them in keeping the truth from the clients. Making such special payments amount to illegal and unethical business practices. It is important to note that legal structure guiding business in United States shuns corruption. Besides, fair competition offers level ground so that firms can compete on quality judged by customer under no undue influence. Critical ethical assessment of the act puts personal conscience on perpetual slavery of guilt on what may happen next and the magnitude of the problem. It is there important to act on the right rather that from the utilitarian perspective which considers only gains. In that respect, I would oppose my company’s plan to pay the $ 5000 special fee. Some of the consideration includes the potential explosion of product defective nature that will ultimately bring the company down. On the other hand such an action would provoke investigation on the legal platform on which such a business is to be operated. Should the authorities find out the illegal arrangement, the

Major works data sheet for Rebecca Essay Example for Free

Major works data sheet for Rebecca Essay Title: Rebecca Author: Daphne du Maurier Date of Publication: 1938 Genre: Romance, Gothic, Mystery, Classic Biographical Information about the Author: Daphne du Maurier was born on May 13, 1907, in London, England, the daughter of actor-manager Sir Gerald du Maurier. She was a popular novelist known for her suspenseful, romantic and sometimes supernatural plots. Her best known works are Rebecca and The Birds, both adapted to film by Alfred Hitchcock. Du Maurier was made a Dame Commander in the Order of the British Empire in 1969. She died in 1981 in Par, Cornwall, England. Historical Information about the period of Publication: Characteristics of the genre: Romanticism saw a shift from faith in reason to faith in the senses, feelings, and imagination; a shift from interest in urban society to an interest in the rural and natural; a shift from public. Gothic horror) is a genre of literature that combines elements of both horror and romance. Plot Summary: Rebeccas narrative takes the form of a flashback. The heroine, who remains nameless, lives in Europe with her husband, Maxim de Winter, traveling from hotel to hotel, harboring memories of a beautiful home called Manderley, which, we learn, has been destroyed by fire. The story begins with her memories of how she and Maxim first met, in Monte Carlo, years before. In her flashback, the heroine is working as the young traveling companion to a wealthy American named Mrs. Van Hopper. In her flashback, Maxim is staying at the same hotel as the heroine and her employer, and after knowing the heroine for only a few weeks, he proposes marriage. She accepts, and he marries her and takes her back to his ancestral estate of Manderley. But a dark cloud hangs over their marriage: Maxims first wife, Rebecca, drowned in a cove near Manderley the revious year, and her ghost haunts the newlyweds home. Rebeccas devoted housekeeper, the sinister Mrs. Danvers, is still in charge of Manderley, and she frightens and intimidates her new mistress. Despite the encouragement of the house overseer, Frank Crawley, and Maxims sister, Beatrice, the heroine struggles in her new life at Manderley. She feels that she can never compare favorably to Rebecca, who was beautiful, talented, and brilliantor so everyone saysand soon she feels that Maxim is still in love with his dead wife. Manderley traditionally hosts a costume all each year, and it is soon time for the gala to take place. Swept up in the preparations, the heroines spirits begin to revive. But the ball ends in disaster: on Mrs. Danverss suggestion she wears a costume that, it turns out, is the same dress that Rebecca wore at the last ball. Upon seeing the heroine, Maxim is horrified, and the heroine becomes convinced that he will never love her, that he is still devoted to Rebecca. The following day, Mrs. Danvers almost convinces her to kill herself, and she only breaks away from the old womans spell when rockets go off over the cove, signaling that a ship nas run aground. When divers swim near the grounded snip, they find the wreckage of Rebeccas sailboat, with Rebeccas dead body in the hold. This discovery prompts Maxim to tell the heroine the truth: Rebecca was a malevolent, wicked woman, who lived a secret life and carried on multiple affairs, including one with her cousin, Jack Favell. On the night of her death, Maxim had demanded a divorce, and she had refused, and told him that she was pregnant with Favells child. Furious, he seized a gun and shot her, and then sailed out to the harbor in Rebeccas boat and sank it, with the body stowed safely inside. This revelation restores the heroines marriage, and enables her to finally shake off the burden of Rebeccas ghost. Meanwhile, however, the noose of Justice tightens around Maxim: first, it is found that holes have been drilled in the bottom of Rebeccas boat; luckily the coroner delivers a report of suicide, rather than murder. But soon Rebeccas cousin Favell, certain that Rebecca did not kill herself, accuses Maxim of the crime. The local magistrate, Colonel Julyan, investigates, and finds that on the day of her death, Rebecca went up to London to see a Doctor Baker. Favell, Maxim, and he heroine accompany Julyan to London; the heroine is certain that Baker will reveal that Rebecca was pregnant, thus revealing Maxims vengeful motive for murder. But instead, it turns out that Rebecca was dying of cancer, and that furthermore she was infertile; she had lied to Maxim about her pregnancy. Her terminal illness now supplies a motive for Rebeccas supposed suicide, and Maxim is saved. He and the heroine drive all night back to Manderley, stopping only once, when Maxim calls home and learns that Mrs. Danvers has disappeared. As they crest the ridge near the mansion, they look down and find it in flames. Describe the authors style: British writer that uses vivid and lengthy descriptions to describe nature. She is very detailed and descriptive, and used some poetic themes to strengthen her writing. An example that demonstrates her style: The road to Manderley lay ahead. There was no moon. The sky above our heads was inky black. But the sky on the horizon was not dark at all. It was shot with crimson, like a splash of blood. And the ashes blew towards us with the salt wind from the sea. Memorable Quotes If only there could be an invention that bottled up a memory, like scent. And it never aded, and it never got stale. And then, when one wanted it, the bottle could be uncorked, and it would be like living the moment all over again. P 36 The quote shows how much the heroine enjoyed spending the quality time with Maxim and wanted their quality time to last a lifetime because she loved him so much. l wish I was a woman of about thirty-six dressed in black satin with a string of pearls. Heroine always wanted to change because she believed that Maxim was still in love with Rebecca, so she believed that she had to change to make him love her as much as he loved Rebecca. Last night I dreamt I went to Manderley again. Heroine had dreams of Manderley a lot because it still haunted her even after it had been burned down. She did end up falling in love with it, but all the baggage that came along with it was too much for her. Either you go to America with Mrs. Van Hopper or you come home to Manderley with me. Do you mean you want a secretary or something? No, Im asking you to marry me, you little fool. Maxim asks the heroine to marry him so that she can go back to Manderley with him instead of having to leave with Mrs. Van Hopper. The road to Manderley lay ahead. There was no moon. The sky above our heads was inky black. But the sky on the horizon was not dark at all. It was shot with crimson, like a splash of blood. And the ashes blew towards us with the salt wind from the sea. The mansion had been set fire by someone, and the details given her are a great example of du Mauriers writing and the details and vivid descriptions that she gave throughout this novel. We all of us have our particular devil who ruses us and torments us, and we must give battle in the end. Maxim said this, because he has that devil of Rebecca still aunting him even though she has long been dead. Characters Name Role in the Story Significance Adjectives Heroine (Mrs. De Winter) Mr. de winters wife, and loyal supporter. She is the main character, But she is never named. Even throughout the entire book she never has a name besides Mrs. de Winter. She was a shy newcomer to Manderley and was kind of not liked by some especiall y Mrs. Danvers. Shy; self- conscious; Mr. de Winter (Maxim) The husband to Mrs. de Winter, and later to be revealed in the novel as the killer of his late wife Rebecca. The other main character of the husband to Mrs. e Winter. A cultured, intelligent older man, and the owner of Manderley, a prized estate and mansion on the English coast. novel, Intelligent; rich Mrs. Danvers Housekeeper of Manderley, was Rebeccas personal maid. The sinister housekeeper at Manderley. She was fiercely devoted to Rebecca, and remains devoted to her even after death. She despises the heroine for taking her mistresss place. Mean; selfish; rude Jack Favell Rebeccas Cousin Rebeccas cousin. Lacking integrity and given to alcoholic behavior, he was Rebeccas lover while she was married to Maxim. Crazy; drunk Rebecca Maxims late wife, who was murdered by him. In life, Rebecca was the beautiful, much-loved, accomplished wife of Maxim de Winter, and the mistress of Manderley. Now a ghost, she haunts the mansion, and her presence torments the heroine after her marriage to Maxim. Beautiful; cunning; sneaky Mrs. Van Hopper Heroines employer at the beginning of the book A vulgar, gossipy and wealthy American woman. She employs the heroine as a companion while sne travels trom one European resort unkind Setting: town to another. Rude;

Explain how the mechanicals bring humour into the play Essay Example for Free

Explain how the mechanicals bring humour into the play Essay The mechanicals in A Midsummer Nights Dream are the group of actors that bring most of the comedy to the play. This is done by the mechanicals resembling the more unintelligent group out of the four featured in A Midsummer Nights Dream. In the book, the mechanicals are called the Clowns. This implies that they are always fooling around; never getting any work done and maybe making people laugh. Maybe Shakespeare called them the Clowns because they convey most of the humour towards the audience in A Midsummer Nights Dream. However, the mechanicals play near the end of A Midsummer Nights Dream is a serious play; where they do not mess around as they do in the rest of the book. This might suggest that the name Shakespeare gave to the actors (Clowns) does not imply all that it is supposed to. From the start we establish that Bottom takes his role as a leader and we notice that others look up to him as if they are respecting his authority. One of the characters names (Bottom) sounds rude now, but back when the play was first performed the word bottom meant courageous. Nick Bottom comes across in A Midsummer Nights Dream as thunderous, friendly, and a little over-confident. He comes across to the other actors in the mechanicals as dumb or dull, insecure and irritating (e. g. when Bottom wants to play all the parts in the play And I may hide my face, let me play Thisbe too! Ill speak in a monstrous little voice). Bottom also says that he will play every part in their play flawlessly, and that he can act every single part. Instead, when Bottom is rehearsing his part in the play, he messes everything up (pronouncing words wrong Odious instead of odorous) and he forgets lines. In the end, he just plays Pyramus. The way the mechanicals bring humour into A Midsummer Nights Dream is mainly through Nick Bottom. Bottom is the fool in the play; always getting things wrong. Bottom comes across as a little dumb; maybe eccentric. He gets his words wrong, comes up with feeble ideas, and has a spell put on him by Puck. The spell transforms Bottoms head into an asss head. I think it would convey more humour to A Midsummer Nights Dream by having Bottom transform into an ass entirely. Near the end of A Midsummer Nights Dream, in act 5 scene 1, the mechanicals act out their play. Many things bring humour into A Midsummer Nights Dream at this point. Peter Quince tells the audience that the lion is not a lion, but Snug the joiner. The audience would know that the lion is not a real lion, as it is just common sense. When Snug is playing the part of the lion, Snug doesnt want to scare the audience so the actor roars as softly as he can. Snug also explains that he is not really a lion, but playing the part of a lion. This may mean that when the play was performed, being a lion was a disgrace, or an insult. The result of Snug explaining that he is not really a lion, but playing the part of, is that he will not be shamed after the play, or be booed by Theseus. After Snug is finished explaining the he is not a lion, he earns approval from Lysander, Theseus and Demetrius (the stage audience). Shakespeare uses language to create moods and atmosphere within the characters, and also make the characters think how they are feeling. The main mood created in of A Midsummer Nights Dream is that of humour. He creates these moods by the descriptive writing he uses in his sentences. His sentences are well structured, and he chooses the places well where he makes the characters speak in prose and verse. For instance, when the mechanicals are talking casually together, they speak in verse; when acting out their play in front of the duke, they speak in prose. Some of the misunderstandings of the mechanicals are when Puck puts the spell on Bottom. Quince says O monstrous! O strange! We are haunted! Pray, masters, fly, masters! Help! This shows that they are unsure of what to think of Bottom, and Bottom is oblivious to the fact that he has an asses head on him. Instead Bottom starts singing (to show that he id not afraid of what they are saying to him). This in turn wakes Titania up, who has had the love juice put on her eyes. As she wakes up, she instantly falls in love with Bottom. This is reminiscent of the fact that of A Midsummer Nights Dreams main mood it creates is that of humour and that it is mainly the mechanicals that are involved in, or create the humour.

Sports Essays Table Tennis China

Sports Essays Table Tennis China Like many other sports, table tennis began as a mild social diversion. Descending from lawn tennis to badminton to the  ancient medieval game of tennis. Table Tennis likely began as a social hobby in England toward the end of the 1800s. These early pioneers may have referred to their sport as gossima, flim-flam, or ping-pong. The game became a huge fun event after the name Ping-Pong, the noise made by the ball striking the table, was introduced by J. Jacques Son. It became very popular in England under its present name â€Å"Ping-Pong.† (Hickok) By the early years of this century, Ping-Pong had already acquired some of its present day complexities, but it was still used by many as an after-dinner amusement game rather than a sport. Dining-room tables made up some of the early equipment that was used. Several different every-day objects were used to play the sport. They used a line of books as the net; rackets were lids from empty cigar boxes, and then a little later, parchment paper stretched around a frame created a paddle. The ball would be either a ball of string, or perhaps more commonly, a champagne cork or rubber ball. The game underwent a few changes in England in the next few years. One person introduced a celluloid ball to the game, while another added pimpled rubber to the wooden paddle. These additions were used by many and advanced on by others. Some box sets can still be bought from Milton Bradley. (Bradley) The game was very popular in Central Europe in 1905 to 1910, but even this was a modified version that was introduced to Japan, where it later spread to China and Korea to become a huge popular sport in these countries. (Museum) The Japanese dominated the sport for much of the 50s and 60s. But in the 60s and 70s, the Chinese soon caught up with the Japanese. China alone has dominated the sport for much of the time since then, especially after Table Tennis became an Olympic event in the 1980s. For a reason unknown, the Chinese took table tennis as their national sport. And most other countries cant really touch them in skill. Alone from China four of the top ten from both male and female live here including number one. Now other nations such as Sweden and South Korea have joined the top ranks. For a while in Europe, it lost its fun and became very unpopular to play. Then in the early twenties, it regained its popularity and became a sport. In 1926 the International Table Tennis Federation, ITTF, was formed. By that time it had adopted its new name of Ping-Pong, while also being called table tennis. It started to become so popular that organizations and federations developed and rules and regulations were made. (Museum) Over the next sixty years, table tennis developed into a major worldwide sport. Today it is said that a rough 30 thousand people play competitively, and another million to 2 million play in household rooms and garages. Although it has became faster and harder to play, the game itself has not lost its â€Å"gentlemans† sport aura. One major concern that the ITTF has always insured that table tennis remains a contest of human skills. Also, they are very concerned with technological developments, which add a new factor to the game like the spin and speed of a paddle or bat, do not give too great an advantage to the players who get to use these developments. Therefore, equipment specifications are carefully laid down, and rigorously enforced. (Museum) Other changes like lowering of a net, is a big rule that shouldnt be broken. Rules preventing excessive advantage being gained by the server-were introduced in the thirties, and only minor changes are made from time to time. Changes to the rules of the sport can only be made only at the ITTFs Biennial General Meeting. These changes are never made without the agreement of a substantial majority of the hundred members in Associations represented at the BGM. In this vote everyone is equal. This is kind of like the UN Security Council too, if they want to veto a rule or movement, just one person can stop the rule or movement. Modern table tennis at a high rank is as rigorous as any sport in its demands for the highest degree of physical fitness and mental concentration. Very physical and arduous training to develop natural skills for the sport usually attains this. Fred Perry in 1928-29 became the World Mens Singles Table Tennis Champion, and then in the following years he became a champion at Wimbledon. Many say he moved to the tennis court because his reactions got slower. But it is certainly true that no other sport requires faster reactions and more delicate muscular co-ordination than ping-pong. (Museum) According to a PBS article: One of the first public hints of improved U.S.-China relations came on April 6, 1971. This happened when the American Ping-Pong team in Japan for the 31st World Table Tennis Championship, received a surprise invitation from their Chinese colleagues for an all-expense paid visit to the Peoples Republic. Time magazine called it The ping heard round the world. On April 10, nine players, four officials, and two spouses stepped across a bridge from Hong Kong to the Chinese mainland, ushering in an era of Ping-Pong diplomacy. They were the first group of Americans allowed into China since the Communist takeover in 1949.(Dean) In table tennis there are very many different strokes, different swings, and different stances. I, myself as a ping-pong player, use the shake-hand grip. I use this grip for very many reasons. One reason would have to be that it feels the most comfortable to me. It feels way more natural and comfortable rather than the pen-hold grip. I have a lot more speed and control when I hit a hard move or hit. Another reason is because if someone hits the ball really fast back to me, then I am ready and I can hit back a very fast stroke back. In this style I can hit a backhand or forehand as fast as my body will let me. Also when I use this grip I can hit the ball to any spot on the table. When I use the pen-hold grip, I cant usually hit the ball where I want to. In table tennis, professionals play with either the shake-hand grip or the pen-hold grip. I myself use this grip. I have more control and more speed when I use this style. The shake-hand grip is appropriately named because you hold the paddle as if you were shaking someones hand, with your index finger extending over the bottom part of the rubber on the backhand side and your thumb slightly touching the rubber on the forehand side. (Bradley, Milton) The pen-hold grip is also appropriately named because you hold the paddle just like a pen, only grasping the paddle at the top of the handle. Because of this, people that use this grip get a paddle with a more comfortable handle to use this grip. The wrist flick is almost always done from the backhand side. The opponent usually does it to return a serve or to return a ball hit very short and low. (Bradley) The counter is used against topspin balls, which you have no time to loop. This stroke requires very little forward arm motion, but it is extremely important that you angle and position your paddle correctly. If it is hard topspin, you must angle your paddle downward, so the ball is forced not to pop up when you hit it. If it is soft topspin, do angle your paddle so its nearly facing the opponent. If hitting either a backhand or a forehand, the paddle should only move forward about a foot during the complete shot. (Bradley) All in all, ping-pong has a long history of ups and downs. It started in the end of the 1800s and has since then become very popular. From all countries there have been many people that have played their way to the top of ping-pong history. There are a lot of different strokes and spin moves in the game of ping-pong. There are two main grips, pen-hold grip and shake-hold grip which are used in all games of ping-pong. Works Cited: Deen, Alfred. History of Table Tennis. PongWorld. 2000. PongWorld. 31 Jan 2008 . Hickok, Ralph. Table Tennis. Hickok Sports.com. Monday, 17-Dec-2007 11:26:23. Hickok Sports. 4 Feb 2008 . International Table Tennis Federation museum, The History of Table Tennis. Robbins Table Tennis Specialties. 2007. Robbins Table Tennis Specialties, Inc.. 31 Jan 2008 http://www.robbinstabletennis.com/history.htm ITTF Museum. A Comprehensive History of Table Tennis. ITTF Museum. ITTF Museum. 4 Feb 2008 . Milton Bradley, The History of Table Tennis. Table Tennis History. Fortune City. 4 Feb 2008 . Willcox, Isobel. Acrobats Ping~Pong. 13438. New York: Dodd, mead Company, 1981.

guitar :: essays research papers

An acoustic guitar strums softly in the back alley of a rock concert.Thousands of people stampede by. They flood the streets like hungry animals.It starts to rain; slowly the guitar raises and smashes into the concrete-ridden ground over and over until it is screaming,raging-a guitar madness! It breaks and cracks into millions of tiny pieces. Another dream is broken. The people don't notice. They crowd the street, standing on someone else's misery. They kick the pieces aside and enter a world where self -involved entertainers sell their misery to a world where misery is fashionable. Music today is being controlled by pop culture. They use it as a weapon to over power and trick young listeners into buying their products.Pop culture today is seeming to be full of "faceless bands". They all look the same, and they all sound almost exactly the same. If someone even tries to enter the world of music, pop culture immediately takes control. They've turned it into a "music business". You'll get chewed up and spit out, if you don't look the part. It isn't about sounding the part anymore. It's all about looking the part for their self-proclaimed "music business". What ever happened to the musicians who performed just for the love of it? It's all about money now. They've all realized the power music has over people. They tried to take it away, and are now using it against us, for their advertisements, t.v. shows, radios, and various products. Music is more powerful than you think it is. Music creates the way you feel, and think. It is a huge social interest. If you go out with your friends, usually there will be music. It is a big impact on a teenage life. Think about dances, parties, and other social gatherings. It's turned into a new fashion. If your friends listen to a certain type of music, there is a high percentage that you will too. People treat music like a clothing brand; a product to brainwash large quantities of people . What happened to the real musicians? Where are they? Well I'll tell you. They are the ones sitting in the back alley of a rock concert, going unnoticed, until their dream is smashed and they give up the dream of being "company property", and they wake up. Why bother trying to grasp the media's attention? You will just become one of them: a money craving beast. guitar :: essays research papers An acoustic guitar strums softly in the back alley of a rock concert.Thousands of people stampede by. They flood the streets like hungry animals.It starts to rain; slowly the guitar raises and smashes into the concrete-ridden ground over and over until it is screaming,raging-a guitar madness! It breaks and cracks into millions of tiny pieces. Another dream is broken. The people don't notice. They crowd the street, standing on someone else's misery. They kick the pieces aside and enter a world where self -involved entertainers sell their misery to a world where misery is fashionable. Music today is being controlled by pop culture. They use it as a weapon to over power and trick young listeners into buying their products.Pop culture today is seeming to be full of "faceless bands". They all look the same, and they all sound almost exactly the same. If someone even tries to enter the world of music, pop culture immediately takes control. They've turned it into a "music business". You'll get chewed up and spit out, if you don't look the part. It isn't about sounding the part anymore. It's all about looking the part for their self-proclaimed "music business". What ever happened to the musicians who performed just for the love of it? It's all about money now. They've all realized the power music has over people. They tried to take it away, and are now using it against us, for their advertisements, t.v. shows, radios, and various products. Music is more powerful than you think it is. Music creates the way you feel, and think. It is a huge social interest. If you go out with your friends, usually there will be music. It is a big impact on a teenage life. Think about dances, parties, and other social gatherings. It's turned into a new fashion. If your friends listen to a certain type of music, there is a high percentage that you will too. People treat music like a clothing brand; a product to brainwash large quantities of people . What happened to the real musicians? Where are they? Well I'll tell you. They are the ones sitting in the back alley of a rock concert, going unnoticed, until their dream is smashed and they give up the dream of being "company property", and they wake up. Why bother trying to grasp the media's attention? You will just become one of them: a money craving beast.

The American Dream in Death of a Salesman by Arthur Miller, and The Gre

The American Dream in Death of a Salesman by Arthur Miller, and The Great Gatsby by F. Scott Fitzgerald In a majority of literature written in the 20th century, the theme of the ' American Dream" has been a prevalent theme. This dream affects the plot and characters of many novels, and in some books, the intent of the author is to illustrate the reality of the American Dream. However, there is no one definition of the American Dream. Is it the right to pursue your hearts wish, to have freedom to do whatever makes one happy? Or is it the materialistic dream prevalent in the 50's, and portrayed in such movies as Little Shop of Horrors? Or is the American Dream a thought so intangible, it changes in the heart of every person and can never be truly defined? Or is it an 'American' Dream at all, is it simply a human drive to pursue a better life? In the book, The Great Gatsby, by F. Scott Fitzgerald, and the play Death of a Salesman by Arthur Miller, the writers portray two completely different literary works which have an amazing connection. Both works are written to illustrate two viewpoints on the American Dream; either the pursuit of happiness, or the pursuit of material wealth. In both literary works, the authors show a comparison between these two visions of the American Dream, and in the end, the authors message is the same; the American dream cannot be a materialistic goal. Or, should not. For many Americans, the American Dream is a 2-door garage in a suburb, but as illustrated in the literary works, this sort of an American Dream leads to unhappiness, depression, and in the case of Willy Loman, suicide. In The Great Gatsby, it is Daisy who has a materialistic dream. She loved Gatsby. When he was a soldier, she loved him, but Gatsby knew he could never marry her, because of class. So, Daisy married Tom Buchanan, a wealthy man, a good looking man, but Daisy did not love him. In the book, Daisy is miserable. She knows Tom is having an affair, and she often cries. She wishes for her daughter to be " a beautiful little fool"( Gatsby 21) so that her daughter will not be smart enough to be unhappy. Daisy loves Gatsby, but she loves her lifestyle. And when she had the decision between the two, she chose her lifestyle, and she will regret her decision time and again. The concept of the American... ...attered, enough so that he could see who his father truly was. Biff had to reevaluate his life, and he came to a realization; " To devote your life to keeping stock, or making phone calls, or selling or buying. To suffer fifty weeks a year for the sake of a two week vacation, when all you want is to be outdoors"( Death 139). Biff came to the conclusion that humans were not meant to work in pursuit of this economic goal, but were meant to work outside. His father could never accept that, and if Willy had, the story would have had a much different ending. The American Dream has no singular definition, but a multitude of interpretations. Yet, in these two completely different literary works, the authors share the same message; the American Dream should not be a materialistic goal, but a goal in pursuit of true, spiritual happiness. This is shown in both Death of a Salesman by Arthur Miller, and The Great Gatsby by F. Scott Fitzgerald. Both authors feel very strongly about the issue, as do many other authors writing today, who fear American Economic views could doom the human race to a meaningless existence. With an ending not too dissimilar from Brave New World.

Luotang Power

Table of Contents INTRODUCTION1 QUANTITATIVE VARIANCE ANALYSIS2 i. Quantity Variance5 ii. Price Variance6 iii. Fuel Efficiency Variance7 iv. Fuel Cost Variance8 v. Other Cost Variances9 5 PORTER FORCES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 CONCLUSION12 INTRODUCTION Luotang Power was established by American companies who was selected bidders to operate a 600 MW coal-fired power plant project. This company was located in Hubei Province, China. Although this company wholly foreign-owned but they need to use Chinese- manufactured equipment. There are two main issues in this case study.The first issue is the positive performance of Luotang Power does not show in the financial results. Mr. Tan Min Yi was scheduled to make a presentation to the Board of Directors of his parent company, China Hua Tong Power about the results. Mr. Tan Min Yi is a general manager of the Luotang Power Company. He needs to review and investigate the financial results before presenting to the board the disappointing results. The second issue is about the quality of the coal provided by the supplier, Pingdingshan. Sometimes, the Pingdingshan will supply some of the coal with bad quality.They will send some of the coal contain high level of moisture. They need to take time to dry it and will cause additional costs to happen like storage cost. Mr. Tan wants to use a variance analysis method to better understand plant performance compared to the previous year. So, we will help Mr. Tan to solve this problem by calculating and prepare the recommendations to improve reporting and evaluation of the plant's performance. QUANTITATIVE VARIANCE ANALYSIS As what have been introduced before, the Luotang Power CEO has to present the financial report to the board of director.But first he has to understand about the quantitative variance ana lysis. Variance Analysis is the analysis of performance by means of variances. This tool can be used to promote management action at the earliest possible stages. After a budget (based on standard costs) has been set, its usefulness lies in the review procedures which compare actual results against the budget. Variance analysis is the process of examining in detail each variance between actual and budgeted or standard costs to determine the reasons why budgeted results were not met. When the effect of variance is concerned, there are two types of variances.When the actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter (F). But when actual results are worse than expected results given variance is described as adverse variance, or unfavorable variance. In common it is denoted by the letter (U). There are very few plans that turn out exactly as planned. Even when the overall objective s of the plan are achieved, some, if not all components of the performance will have varied from the sub-plans or standards that make up the overall picture.So does the performance on the Luotang Power in 2011 which most of the variance is in unfavorable results. The variance analysis provides a framework for all business managers including Mr. Tan as one of Luotang Power directors to break down the overall performance of an organization, so that each individual element of the business can be isolated and analyzed in turn. The CEO facing problem with quantity variance, price variance, fuel efficiency variance, fuel cost variance and other cost variances. All these variance help him to explain about the plant performance throughout the year 2011 to the board of directors.Later, we will explain some of the variance that we have listed and all the problems related to â€Å"Luotang Power: Variance Explained† case study. This is the calculation of all variances. Variance | Calcula tion | Result| Quantity Variance| (3427351-3937377) x 0. 4219 = 215179. 97| Unfavorable| Price Variance| | Unfavorable | Fuel Efficiency Variance| [(346-347) x 0. 4219] x 3427351= 1445999387| Unfavorable| Fuel Cost Variance| (315612 – 320183)=5021| Unfavorable| Fixed Operating ; Maintainance Variance| (33178-39068)=5890(304090 – 348549)=44459| UnfavorableUnfavorable | i. Quantity Variance 3,427,351-3,937,377) x 0. 4219 = RM 215,179. 97 (UNFAVOURABLE) Based on the calculation above, we can see that amount of selling to HPPC had been declined in the year 2011 regarding HPPC produce electricity by itself. As we can see, Luotang Company never expects that demanding from HPPC will decline because looking at data, they make a bulk purchase on year 2010 and suddenly on year 2011, have dropped in demand. Ratio of coal consumed to net electricity generation| 2010| 2011| 347,000 X 100 % = 8. 1 % 3,937,377| 346,000 X 100 % = 10. 09 % 3,427,351 | Based on calculation above, we can see that in the year 2010, Luotang very effectively usage their resources accordingly to generate electricity, but in the year 2011, Luotang lack of usage of resources to generate electricity. | Excessive usage of materials that is usually a reason of unfavorable direct material quantity variance may be due to lower quality of materials, untrained workers, poor supervision. Generally, production managers are responsible for this variance.However purchasing department may also be held responsible for purchasing materials of lower quality to economize on prices. Where Purchasing Department purchases low grade direct materials at low prices to show a favorable material price variance, the material quantity variance is usually unfavorable due to lower quality of direct materials. ii. Price Variance The definition of price variance is the difference between the actual and standard prices of one product unit multiplied by how much input was used.The formula is: Price Variance = (Actual P rice – Standard Price) X Actual Quantity The price variance can be used by a business to assess the change between expected and actual input prices, since a positive price variance reflects an unfavorable cost rise, while a negative result indicates a favorable cost decrease. To adapt price variance to the type of business Luotang power it’s based upon the average price that electricity was sold to HPPC. The formula is: (Price per MWh in Current Year-Price per MWh in Prior Year) * Net Generation in Current Year From our calculation in price variance for Loutang Power we get amount RMB 6,511,9669.Since the amount is positive, that’s mean it unfavorable. Unfavorable show that Loutang Power unefficiency in managing its price and cost. We can see that demand from clients in 2010 is higher than others years because in 2010 the price is lowest. In 2009 is the highest price than its effect the demands. General Manager increases a little bit price in 2011, so the demand is decreased dramatically. This may also be caused by HPPC had its own electricity generating and produce themselves the electricity. Price is influence of the increase of cost, especially direct material cost.Luotang power must change the term of contract with the supplier. Origin contract is Luotang Power paid a fixed price per tonne. If staying with fixed price, the company must pay it although the coal quality has not reached the expected quality. Luotang Power purchase it with a large number, it’s a high risk because the supplier inconsistent provides the quality coal. So Luotang must buy the coal with a condition that if the coal is not meet the qualifications, it must be returned back to the supplier. Luotang Power must set the fix benchmark for the coal, so the supplier must follow it.If not Luotang Power doesn’t have to pay it, just return it. It saves the cost. So Luotang can set the price lower. iii. Fuel Efficiency Variance The meaning of fuel efficiency v ariance in this case study is the difference between the current year of the quantity of coal used to generate each MWh of electricity sold and the prior year of the quantity of coal used to generate each MWh of electricity sold. This is calculation how to find the fuel efficiency variance: (Mass of coal used per net MWh sold this year- Mass of coal used per net MWh sold last year) x MWh sold this year's x price of coal last yearFrom our calculation, for 2011, the fuel efficiency variance is –RMB 1,445,999,387. This show that this variance is unfavorable because the result in negative. We found several reasons that cause this to happen. The first reason is from an electricity demand from the HPPC is decreasing in 2011. This due to the HPPC have its own electricity generating units. The HPPC can produce the same electricity as the Luotang electricity. The second reason is because of the price that Luotang Power offer to HPPC. If you see in 2010, the price that the Luotang offe r is cheaper than 2011.Because of the increasing of electric price in 2011, the amount of electricity sold is decreasing. The other reason maybe for the quality of coal provided by Pingdingshan. Pingdingshan was required to supply low sulfur bituminous coal. If the Pingdingshan provides low quality of coal to the Luotang, the coal that can be used to produce electricity will decrease then, the production of electricity will be reduced. There is some recommendation that we will give to Mr. Tan to overcome this problem. We recommend that Luotang revenue does not just depend on the HPPC only.Mr. Tan needs to find other clients. Even it will cost to Luotang but it is will give advantage to Luotang’s long- term performance. The second recommendation is Luotang needs to lower the price of electricity if the company wants the HPPC buy more electricity from them. The last one is, the Luotang need too strict with the Pingdingshan regarding to the direct material, coal. If the Pingding shan provides them with a low quality of the coal, the Luotang needs to tell them or not to pay the expenses. The Luotang cannot let this happen.Although they can adjust the price but actually it will make the Luotang suffered loss in controlling their direct materials because they need to bear other cost in order to adjust back the quality of coal like the storage expenses. iv. Fuel Cost Variance In cost accounting, deviation between the actual cost and the standard cost. If the actual cost exceeds the standard cost, an unfavorable variance exists. A variance can be calculated for different cost items such as manufacturing costs (i. e. , direct material, direct labor, and overhead), selling expenses, and administrative expenses.The reasons for a variance should be identified and corrective action taken. Favorable variance can be defined as a difference between an actual cost and a budgeted or standard cost, and the actual cost is the lesser amount. In the case of revenues, a favora ble variance occurs when the actual revenues are greater than the budgeted or standard revenues. And unfavorable variance can be defined as the amount by which actual costs exceed the standard costs or budgeted costs. Also, the amount by which actual revenues are less than the budgeted revenues.After all of us do the analysis, we have found that this company having major problems in fuel cost, the fuel that Luotang receive from the Pingdingshan for this year have a low quality to compare from the last year. This has affected the production of the company. So that it brought the company a major problem that are decreasing purchase from HPPC. Analysis variance has shown that the fuel cost variance it just unfavorable. We have used the original formula, that are, Cost Variance = (cost this year-cost last year) x actual quantity this year.But we have modified the formula to calculate with Fuel Cost Variance = (price of coal this year-price of coal last year) x Mass of used per net MWh s old this year x MWh sold this year. So that we have found that Luotang have unfavorable variance. The cost is increased from the standard cost because the coal that receive from the Pingdingshan have a problem with its quality so that its take time to plant to generate or burn the coal. So that, its increase the cost with a lower quantity of production. From the analysis, we recommend Luatong should do fuel diversification.Fuel diversification implies the selection of a mix of electric generation technologies in a fashion that strikes a good balance between reduced cost and reduced risk. A long-term perspective as well as a short-term perspective can be taken on the fuel diversification problem. In a short-term perspective, the decision maker is limited to selecting power sources from existing alternatives. The construction of new generation plants and the associated fixed costs are justifiably ignored. The short-term problem translates in most instances to a scheduling problem.On t he other hand the long-term perspective on fuel diversity seeks insights that can help decision-making involved in the selection of new power plants. The long-term problem can be thought of as a resource- planning problem. Our focus is on the long-term perspective. Long-term fuel diversity has recently gained the attention of state regulators and federal policy makers. It has been argued that fuel diversity has the potential to advance several socially desirable objectives such as lower long-term prices, low price risk, less dependent on foreign sources of energy, higher power reliability and a cleaner environment. . Other Cost Variances The variance that related in this area are Coal Cost, Fixed Operating and Maintenance Cost, and Depreciation Expense. This is because in this case, only these three costs that have the useful information that help us to make an analysis of variance. Allocated cash costs are a type of expense that is clearly associated with and so can be readily assi gned to a certain business process, project or department. Allocated costs can be divided into two which allocate cash costs and allocated non-cash costs. Allocated cash costs are most probably things related to cash items.In this case it can be implemented in fixed operating and maintenance while allocating non-cash costs example is depreciation expense. The formula to calculate these two types of allocated cost is: Allocated Cash @ Non-Cash Costs = (Cost of volume allocated based on the quantity used – Actual costs) Related to the Allocated Cash Costs, in this case, we can simply use the formula: Allocated Cash Costs = (Standard Cost for Fixed Operating and Maintenance 2011 – Actual Fixed Operating and Maintenance 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 5890 or can be denoted by 5890 U. Which shows unfavorable result. The main factor that contributes to increase of act ual result is unmanageable plant management. This is including engineering, planning, accounting and cost of railway fee. While in Luotang Power, they only have depreciation expense that have a relation of Allocated Non-Cash Cost, we can simply use the formula: Allocated Non-Cash Costs = (Standard Cost for Depreciation Expense 2011 – Actual Depreciation Expense 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 44459 or can be denoted by 44459 U. Which shows unfavorable result. The main cause that contributes to increase of actual result is the standard cost of depreciation that have been planned is unachievable. In the previous two years, they recorded RMB 350320 in 2009 and RMB 349342 in 2010. The issue arises is why Loutang Power finance department decreases the standard cost significantly and unachievable. Our suggestion towards this company to minimize their unfavorable results is ma nage their plant in a very successful way and perhaps can decrease the unachievable amount of the fixed cost.Firstly, Luotang Power can minimize their cost of handling the management of their plant in a very strategic way. They have to manage the railway line regarding its fees, manage coal by maximizing the utilities of storage area, manage its boilers with a full efficiency of boiling point and so much more related to the site layout for 2x300MW Luotang Power Project. Next, they must take into consideration on achievable amount of the standard cost. It is essential to all standard cost setter to discuss among all of the directors and subordinates first before setting up the most accurate standard cost that can be used as a benchmark for a company. Porter Forces 1) Efficiency Based on data, we can see that Luotang Company doesn't have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing. They have made by their own estimated or standar d cost on year 2011 but when comes to producing the actual cost incurred more than standard cost. This is showing that they fail to manage their production either capability of the machine or weakness of management itself. 2) Bargain of buyer Regarding to theory 5 Porter Forces, their purchaser has power of deciding the price. When we looking at the information, Luotang depend more on HPPC as a buyer.So this made difficulties to Luotang to decide their own price although they have an efficiency in production. 3) Bargain of supplier As we know, supplier as the important agent to determine whether our company successful or not, because we rely on their capabilities to supply us with quality raw materials and reasonable price, also willing to provide us when we need. In this case, Luotang depend on Pingdingshan and recently reported that coal quality had deteriorated about 3 % from the expected quality. CONCLUSION Luotang Power Company is an international power developers to finance, d esign, construct and operate coal-fired power plant.However due to the nature of our business, we have a big problem about our supplier that have gotten changed on 2011. The supplier has supplied low quality coal to Luotang and that disturbs the progress of the production. That has caused decreases demand from a loyal customer. And its affect the financial situation of the company. Besides that, several recommendations should be taken to ensure a successful implementation of the system in our company. First of all, purchasing department may also be held responsible for purchasing materials that can define the quality of the material.Besides that, Luotang also change the term of contract with the supplier, need to find other clients not to depend to HPPC, Luotang also should do fuel diversification to make sure there are several suppliers, and Luotang can minimize their cost of handling the management of their plant in a very strategic way so that they can improve their management we ll. In addition, what we have found by concept 5 Forces in this company that their faces during their production. There are ; Luotang not have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing.Besides that, bargain of buyer that show their purchaser have power in deciding the price. And lastly, bargain of supplier that show there is a supplier that supply the raw material to Luotang. As a conclusion in overall, we can see that Luotang Power Company has a good performance in their production but it have decreased in year 2011 because there are several problems that unexpected, that come from the supplier and others. So that, Luotang should do in several ways to overcome the problem and prove it to the Boar of Directors. Luotang Power Table of Contents INTRODUCTION1 QUANTITATIVE VARIANCE ANALYSIS2 i. Quantity Variance5 ii. Price Variance6 iii. Fuel Efficiency Variance7 iv. Fuel Cost Variance8 v. Other Cost Variances9 5 PORTER FORCES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 CONCLUSION12 INTRODUCTION Luotang Power was established by American companies who was selected bidders to operate a 600 MW coal-fired power plant project. This company was located in Hubei Province, China. Although this company wholly foreign-owned but they need to use Chinese- manufactured equipment. There are two main issues in this case study.The first issue is the positive performance of Luotang Power does not show in the financial results. Mr. Tan Min Yi was scheduled to make a presentation to the Board of Directors of his parent company, China Hua Tong Power about the results. Mr. Tan Min Yi is a general manager of the Luotang Power Company. He needs to review and investigate the financial results before presenting to the board the disappointing results. The second issue is about the quality of the coal provided by the supplier, Pingdingshan. Sometimes, the Pingdingshan will supply some of the coal with bad quality.They will send some of the coal contain high level of moisture. They need to take time to dry it and will cause additional costs to happen like storage cost. Mr. Tan wants to use a variance analysis method to better understand plant performance compared to the previous year. So, we will help Mr. Tan to solve this problem by calculating and prepare the recommendations to improve reporting and evaluation of the plant's performance. QUANTITATIVE VARIANCE ANALYSIS As what have been introduced before, the Luotang Power CEO has to present the financial report to the board of director.But first he has to understand about the quantitative variance ana lysis. Variance Analysis is the analysis of performance by means of variances. This tool can be used to promote management action at the earliest possible stages. After a budget (based on standard costs) has been set, its usefulness lies in the review procedures which compare actual results against the budget. Variance analysis is the process of examining in detail each variance between actual and budgeted or standard costs to determine the reasons why budgeted results were not met. When the effect of variance is concerned, there are two types of variances.When the actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter (F). But when actual results are worse than expected results given variance is described as adverse variance, or unfavorable variance. In common it is denoted by the letter (U). There are very few plans that turn out exactly as planned. Even when the overall objective s of the plan are achieved, some, if not all components of the performance will have varied from the sub-plans or standards that make up the overall picture.So does the performance on the Luotang Power in 2011 which most of the variance is in unfavorable results. The variance analysis provides a framework for all business managers including Mr. Tan as one of Luotang Power directors to break down the overall performance of an organization, so that each individual element of the business can be isolated and analyzed in turn. The CEO facing problem with quantity variance, price variance, fuel efficiency variance, fuel cost variance and other cost variances. All these variance help him to explain about the plant performance throughout the year 2011 to the board of directors.Later, we will explain some of the variance that we have listed and all the problems related to â€Å"Luotang Power: Variance Explained† case study. This is the calculation of all variances. Variance | Calcula tion | Result| Quantity Variance| (3427351-3937377) x 0. 4219 = 215179. 97| Unfavorable| Price Variance| | Unfavorable | Fuel Efficiency Variance| [(346-347) x 0. 4219] x 3427351= 1445999387| Unfavorable| Fuel Cost Variance| (315612 – 320183)=5021| Unfavorable| Fixed Operating ; Maintainance Variance| (33178-39068)=5890(304090 – 348549)=44459| UnfavorableUnfavorable | i. Quantity Variance 3,427,351-3,937,377) x 0. 4219 = RM 215,179. 97 (UNFAVOURABLE) Based on the calculation above, we can see that amount of selling to HPPC had been declined in the year 2011 regarding HPPC produce electricity by itself. As we can see, Luotang Company never expects that demanding from HPPC will decline because looking at data, they make a bulk purchase on year 2010 and suddenly on year 2011, have dropped in demand. Ratio of coal consumed to net electricity generation| 2010| 2011| 347,000 X 100 % = 8. 1 % 3,937,377| 346,000 X 100 % = 10. 09 % 3,427,351 | Based on calculation above, we can see that in the year 2010, Luotang very effectively usage their resources accordingly to generate electricity, but in the year 2011, Luotang lack of usage of resources to generate electricity. | Excessive usage of materials that is usually a reason of unfavorable direct material quantity variance may be due to lower quality of materials, untrained workers, poor supervision. Generally, production managers are responsible for this variance.However purchasing department may also be held responsible for purchasing materials of lower quality to economize on prices. Where Purchasing Department purchases low grade direct materials at low prices to show a favorable material price variance, the material quantity variance is usually unfavorable due to lower quality of direct materials. ii. Price Variance The definition of price variance is the difference between the actual and standard prices of one product unit multiplied by how much input was used.The formula is: Price Variance = (Actual P rice – Standard Price) X Actual Quantity The price variance can be used by a business to assess the change between expected and actual input prices, since a positive price variance reflects an unfavorable cost rise, while a negative result indicates a favorable cost decrease. To adapt price variance to the type of business Luotang power it’s based upon the average price that electricity was sold to HPPC. The formula is: (Price per MWh in Current Year-Price per MWh in Prior Year) * Net Generation in Current Year From our calculation in price variance for Loutang Power we get amount RMB 6,511,9669.Since the amount is positive, that’s mean it unfavorable. Unfavorable show that Loutang Power unefficiency in managing its price and cost. We can see that demand from clients in 2010 is higher than others years because in 2010 the price is lowest. In 2009 is the highest price than its effect the demands. General Manager increases a little bit price in 2011, so the demand is decreased dramatically. This may also be caused by HPPC had its own electricity generating and produce themselves the electricity. Price is influence of the increase of cost, especially direct material cost.Luotang power must change the term of contract with the supplier. Origin contract is Luotang Power paid a fixed price per tonne. If staying with fixed price, the company must pay it although the coal quality has not reached the expected quality. Luotang Power purchase it with a large number, it’s a high risk because the supplier inconsistent provides the quality coal. So Luotang must buy the coal with a condition that if the coal is not meet the qualifications, it must be returned back to the supplier. Luotang Power must set the fix benchmark for the coal, so the supplier must follow it.If not Luotang Power doesn’t have to pay it, just return it. It saves the cost. So Luotang can set the price lower. iii. Fuel Efficiency Variance The meaning of fuel efficiency v ariance in this case study is the difference between the current year of the quantity of coal used to generate each MWh of electricity sold and the prior year of the quantity of coal used to generate each MWh of electricity sold. This is calculation how to find the fuel efficiency variance: (Mass of coal used per net MWh sold this year- Mass of coal used per net MWh sold last year) x MWh sold this year's x price of coal last yearFrom our calculation, for 2011, the fuel efficiency variance is –RMB 1,445,999,387. This show that this variance is unfavorable because the result in negative. We found several reasons that cause this to happen. The first reason is from an electricity demand from the HPPC is decreasing in 2011. This due to the HPPC have its own electricity generating units. The HPPC can produce the same electricity as the Luotang electricity. The second reason is because of the price that Luotang Power offer to HPPC. If you see in 2010, the price that the Luotang offe r is cheaper than 2011.Because of the increasing of electric price in 2011, the amount of electricity sold is decreasing. The other reason maybe for the quality of coal provided by Pingdingshan. Pingdingshan was required to supply low sulfur bituminous coal. If the Pingdingshan provides low quality of coal to the Luotang, the coal that can be used to produce electricity will decrease then, the production of electricity will be reduced. There is some recommendation that we will give to Mr. Tan to overcome this problem. We recommend that Luotang revenue does not just depend on the HPPC only.Mr. Tan needs to find other clients. Even it will cost to Luotang but it is will give advantage to Luotang’s long- term performance. The second recommendation is Luotang needs to lower the price of electricity if the company wants the HPPC buy more electricity from them. The last one is, the Luotang need too strict with the Pingdingshan regarding to the direct material, coal. If the Pingding shan provides them with a low quality of the coal, the Luotang needs to tell them or not to pay the expenses. The Luotang cannot let this happen.Although they can adjust the price but actually it will make the Luotang suffered loss in controlling their direct materials because they need to bear other cost in order to adjust back the quality of coal like the storage expenses. iv. Fuel Cost Variance In cost accounting, deviation between the actual cost and the standard cost. If the actual cost exceeds the standard cost, an unfavorable variance exists. A variance can be calculated for different cost items such as manufacturing costs (i. e. , direct material, direct labor, and overhead), selling expenses, and administrative expenses.The reasons for a variance should be identified and corrective action taken. Favorable variance can be defined as a difference between an actual cost and a budgeted or standard cost, and the actual cost is the lesser amount. In the case of revenues, a favora ble variance occurs when the actual revenues are greater than the budgeted or standard revenues. And unfavorable variance can be defined as the amount by which actual costs exceed the standard costs or budgeted costs. Also, the amount by which actual revenues are less than the budgeted revenues.After all of us do the analysis, we have found that this company having major problems in fuel cost, the fuel that Luotang receive from the Pingdingshan for this year have a low quality to compare from the last year. This has affected the production of the company. So that it brought the company a major problem that are decreasing purchase from HPPC. Analysis variance has shown that the fuel cost variance it just unfavorable. We have used the original formula, that are, Cost Variance = (cost this year-cost last year) x actual quantity this year.But we have modified the formula to calculate with Fuel Cost Variance = (price of coal this year-price of coal last year) x Mass of used per net MWh s old this year x MWh sold this year. So that we have found that Luotang have unfavorable variance. The cost is increased from the standard cost because the coal that receive from the Pingdingshan have a problem with its quality so that its take time to plant to generate or burn the coal. So that, its increase the cost with a lower quantity of production. From the analysis, we recommend Luatong should do fuel diversification.Fuel diversification implies the selection of a mix of electric generation technologies in a fashion that strikes a good balance between reduced cost and reduced risk. A long-term perspective as well as a short-term perspective can be taken on the fuel diversification problem. In a short-term perspective, the decision maker is limited to selecting power sources from existing alternatives. The construction of new generation plants and the associated fixed costs are justifiably ignored. The short-term problem translates in most instances to a scheduling problem.On t he other hand the long-term perspective on fuel diversity seeks insights that can help decision-making involved in the selection of new power plants. The long-term problem can be thought of as a resource- planning problem. Our focus is on the long-term perspective. Long-term fuel diversity has recently gained the attention of state regulators and federal policy makers. It has been argued that fuel diversity has the potential to advance several socially desirable objectives such as lower long-term prices, low price risk, less dependent on foreign sources of energy, higher power reliability and a cleaner environment. . Other Cost Variances The variance that related in this area are Coal Cost, Fixed Operating and Maintenance Cost, and Depreciation Expense. This is because in this case, only these three costs that have the useful information that help us to make an analysis of variance. Allocated cash costs are a type of expense that is clearly associated with and so can be readily assi gned to a certain business process, project or department. Allocated costs can be divided into two which allocate cash costs and allocated non-cash costs. Allocated cash costs are most probably things related to cash items.In this case it can be implemented in fixed operating and maintenance while allocating non-cash costs example is depreciation expense. The formula to calculate these two types of allocated cost is: Allocated Cash @ Non-Cash Costs = (Cost of volume allocated based on the quantity used – Actual costs) Related to the Allocated Cash Costs, in this case, we can simply use the formula: Allocated Cash Costs = (Standard Cost for Fixed Operating and Maintenance 2011 – Actual Fixed Operating and Maintenance 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 5890 or can be denoted by 5890 U. Which shows unfavorable result. The main factor that contributes to increase of act ual result is unmanageable plant management. This is including engineering, planning, accounting and cost of railway fee. While in Luotang Power, they only have depreciation expense that have a relation of Allocated Non-Cash Cost, we can simply use the formula: Allocated Non-Cash Costs = (Standard Cost for Depreciation Expense 2011 – Actual Depreciation Expense 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 44459 or can be denoted by 44459 U. Which shows unfavorable result. The main cause that contributes to increase of actual result is the standard cost of depreciation that have been planned is unachievable. In the previous two years, they recorded RMB 350320 in 2009 and RMB 349342 in 2010. The issue arises is why Loutang Power finance department decreases the standard cost significantly and unachievable. Our suggestion towards this company to minimize their unfavorable results is ma nage their plant in a very successful way and perhaps can decrease the unachievable amount of the fixed cost.Firstly, Luotang Power can minimize their cost of handling the management of their plant in a very strategic way. They have to manage the railway line regarding its fees, manage coal by maximizing the utilities of storage area, manage its boilers with a full efficiency of boiling point and so much more related to the site layout for 2x300MW Luotang Power Project. Next, they must take into consideration on achievable amount of the standard cost. It is essential to all standard cost setter to discuss among all of the directors and subordinates first before setting up the most accurate standard cost that can be used as a benchmark for a company. Porter Forces 1) Efficiency Based on data, we can see that Luotang Company doesn't have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing. They have made by their own estimated or standar d cost on year 2011 but when comes to producing the actual cost incurred more than standard cost. This is showing that they fail to manage their production either capability of the machine or weakness of management itself. 2) Bargain of buyer Regarding to theory 5 Porter Forces, their purchaser has power of deciding the price. When we looking at the information, Luotang depend more on HPPC as a buyer.So this made difficulties to Luotang to decide their own price although they have an efficiency in production. 3) Bargain of supplier As we know, supplier as the important agent to determine whether our company successful or not, because we rely on their capabilities to supply us with quality raw materials and reasonable price, also willing to provide us when we need. In this case, Luotang depend on Pingdingshan and recently reported that coal quality had deteriorated about 3 % from the expected quality. CONCLUSION Luotang Power Company is an international power developers to finance, d esign, construct and operate coal-fired power plant.However due to the nature of our business, we have a big problem about our supplier that have gotten changed on 2011. The supplier has supplied low quality coal to Luotang and that disturbs the progress of the production. That has caused decreases demand from a loyal customer. And its affect the financial situation of the company. Besides that, several recommendations should be taken to ensure a successful implementation of the system in our company. First of all, purchasing department may also be held responsible for purchasing materials that can define the quality of the material.Besides that, Luotang also change the term of contract with the supplier, need to find other clients not to depend to HPPC, Luotang also should do fuel diversification to make sure there are several suppliers, and Luotang can minimize their cost of handling the management of their plant in a very strategic way so that they can improve their management we ll. In addition, what we have found by concept 5 Forces in this company that their faces during their production. There are ; Luotang not have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing.Besides that, bargain of buyer that show their purchaser have power in deciding the price. And lastly, bargain of supplier that show there is a supplier that supply the raw material to Luotang. As a conclusion in overall, we can see that Luotang Power Company has a good performance in their production but it have decreased in year 2011 because there are several problems that unexpected, that come from the supplier and others. So that, Luotang should do in several ways to overcome the problem and prove it to the Boar of Directors.