Finance Assignment Essay Example | Topics and Well Written Essays - 750 words

Finance Assignment - Essay Example However, the performance level is crucial in determining the stock price, but it not necessary that a company that has good financial statement may be the best to invest. This is because the movement of the value of the stock price changes by the activities of the investors, so the investor needs to clearly watch the demand and supply of the stock and invest accordingly. That is way, people say that trading is require full attention of mind and is not luck game. In order to be a successful investor, one should have the quality of asset management. Now, picking a sole asset or playing only with one stock is never a feasible option. Such type of assets are called stand-alone asset and risk associated to them I the stand-alone risk (Brigham 1994 p.156). There are always chances that your value of the stock may go down and you would likely have loss or you may even win. But the probability of success is always uncertain. So most of the investors or traders advice to go for more than two assets and invest in different sectors or companies. So one should make a portfolio of assets, so that value of one stock goes down, the value of others would be might go up and the end you may not lose your money. Therefore, logically investing in securities as portfolio is more beneficial than going for stand-alone securities (Brigham 1994 p.156). ... Fundamental Analysis: Now when an investor would be looking for a company or an industry to invest, he needs to analyze its financial statements such as Income Statement, Cash Flow Statements etc and also its competitors, so that he could among them and then decide. Analyzing past trends and pattern of movement of assets should also done. All such basic analyses when selecting a security is called Analytical modeling. There are basic types of modeling, Technical and Fundamental. The Technical approach is much more simple because it mainly deals with the past trend and by looking it, calculated the expected future value of the asset. Whereas, the Fundamental approach is more studied approach and require more in-depth analysis of assets. The fundamental analysis requires more quantitative analysis involved. The investor must have the knowledge of financial statements and ratios such Earning Per Share (EPS), Sales Per Share (SPS), Return on total Asset (ROA), Return On Investment (ROI) and other liquidity r atios, turnovers etc (BuckInvestor.com). Approaches Now once you get the complete knowledge of the price movement of the knowledge, now the question of how to invest arises i.e. should the investor invest sector-wise or company-wise. In Top-down approach, the investor first looks the entire stock market, how specific industry is performing and then finally at the stock (buckinvestor.com). For Instance, I have invested in Shell Petroleum. Now following the top-down approach I would first analyze the entire stock exchange and look whether the market index points are performing. Are they closing at higher rate or not Then my next step would be to look the performance of Refinery

Dialogue Between Plato and Aristotle Essay Example for Free

Dialogue Between Plato and Aristotle Essay Pluto: No, listen. What I am saying is that the environment or form that we live in is full of unevenness, imperfection and impurity this due to the fact that this form is merely a copy of the ideal world that one would understand once they rise above our physical environment and grasp it intellectually. Aristotle: I understand you just fine but I disagree with you. I agree that our world is an imperfect world but I object to the notion that it is not real or that there is another invisible form out there from which it is cloned. I find that preposterous, everything is right here on earth, physically. Pluto: No. What we see on earth ‘physically’ as you say are just mimics or artificial replicas of the real thing only with a lot of imperfections. This is just an illusion of the real thing. Aristotle: How can that be when our natural world is real and physical? Let me explain it to you clearly, our world, this world is made up of many forms. Sure, they may not be ideal, pure or perfect but our senses identify with them. Pluto: Well, our senses identify with them because they are copies of the perfect form and we have knowledge of them. Let me explain it to you. Knowledge must have as its object that which is openly real as juxtaposed with that which is an appearance only, that which is fully real must be fixed, permanent and unchanging- in the realm of being as opposed to that which is in the realm of physical. That is why you call these world ‘physical’ when it is just a perception from the true ideal form. Aristotle: That is absurd! If experience has shown us anything is that individual substances exist and are real, being predicated of the substance and that an individual is not produced by some idea or model the actually exist! Pluto: Now you have joined people inexperienced in the theory of forms. Captives in a cave, bound to the wall with no likelihood of turning your heads. With fire burning behind you, you can only see the wall of the cave and the shadows of the puppets placed between you and the fire. You are incapable to fathom that the shadows you see and the echoes you hear are a reflection of real objects, behind you. This world that is available to our senses exists only as a reflection of the real world. Aristotle: Here is where I differ to you completely! !An individual is not formed from the perception of another’s  mind but from an individual who through germ or seed was able to reproduce another one hence, the seed in the individual would be in potency form because of its capacity to become an individual in future. Every individual is a compound of matter and form, not a mirror or perception of another from another form. Pluto: That is just how easy it is to mistake appearance for reality, just like the captives in the cave experience, they easily refer to the shadows using the names of the real objects that the shadows reflect. This just shows that knowledge is only a reflection of the real ideas in our minds. What is seen on the earth is an imitation of the real thing. The captives, by looking at the shadows may learn what an item is but this does not enable them to claim that it refers to an object, which they have seen. Likewise, we need the physical objects in order to enable us acquire concepts. Aristotle: So your idea is that we live in an imagined world and that is copied from an ideal world and that the physical items and entities we encounter on our day to day activities and with which our senses identify with are merely there for us to acquire concepts? Pluto: Yes. Exactly! Aristotle: You are not serious! You do realize that the possibility of error forces the mind to determine the truth validity of a given statement. Meaning the intellect must have adequate reasons, which can ensure the proposed judgment conforms to reality. These are the foundation of perfect knowledge, knowledge through causes. Not that we originate from some made up form that we cannot access, but that we originate from an individual. Matter is the indeterminate element, which is unchanging, and form is the force and power shaping and developing the individual. That is a structure of two statements leading to correct reasoning. Pluto: So you object to my whole idea? Aristotle: Completely! It lacks a foundation and crumbles upon itself. Your own argument argues that there is need for physical objects to enable us acquire concepts but your idea is based on an unseen form that cannot be confirmed physically. Pluto: We could argue about it for hours. It’s a stalemate. Aristotle: Seems we have found an impasse, but I win!

Voltaires Affect on Modern Western Society Essay -- Fracois Marie Aro

â€Å"I do not agree with what you have to say, but I’ll defend to death your right to say it,† were the famous words of Fracois Marie Arouet, more commonly known under the pen name of Voltaire. He was known for being very outspoken and rebellious, which got him into trouble with the authorities for most of his life. Voltaire advocated the French bourgeoisie as being ineffective, the aristocracy as being corrupt, and the commoners as being too superstitious. Voltaire’s beliefs on freedom and reason is what ultimately led to the French Revolution, the United States Bill of Rights, and the decrease in the power of the Catholic Church, which have all affected modern western society. The French Revolution was a period of upheaval in France, during which the French governmental structure and Catholic clergy underwent a large change due to Enlightenment ideas. The commoners of France began to revolt after hearing the ideas of famous philosophes like Voltaire. Voltaire was a deist who believed that the Catholic Church and its doctrines were not to be trusted since they used propoganda to get followers rather than the actual religion. He believed it was unfair that there wasn’t any religious freedom since you were expected to be a Catholic. He spoke openly about this, which of course got him into a lot of trouble. Nevertheless, the French commoners took his word into thought and decided to act upon what he said by revolting against the church. Voltaire’s ideas also critized royal absolutism because they had, in his opinion, too much power. He favored an elightened absolutist, which is an absolutist who adopts Enlightenment ideas. Once again, the French commoners took this to heart and agreed with Voltaire that the French government was too ... ... to make you commit injustices.† Voltaire studied natural sciences and reason because he was against supestition. Although he advocated religious tolerance, he believed that any one church should not have absolute power. By the time he was executed, he had already brought about the end of the power and right of the church to torture France. People in France still are not as faithful to the Catholic Church as they had been before Voltaire had introduced them to the idea of â€Å"reasoning†. The Enlightenment is held to be the source of many modern ideas, such as the primary values of freedom and reason. The views of philosophers such as Voltaire are considered to be the source of many essential changes in countries such as America and France. His views on religion, government, and freedom are what people remember most because they have not died out in today’s society. Voltaire's Affect on Modern Western Society Essay -- Fracois Marie Aro â€Å"I do not agree with what you have to say, but I’ll defend to death your right to say it,† were the famous words of Fracois Marie Arouet, more commonly known under the pen name of Voltaire. He was known for being very outspoken and rebellious, which got him into trouble with the authorities for most of his life. Voltaire advocated the French bourgeoisie as being ineffective, the aristocracy as being corrupt, and the commoners as being too superstitious. Voltaire’s beliefs on freedom and reason is what ultimately led to the French Revolution, the United States Bill of Rights, and the decrease in the power of the Catholic Church, which have all affected modern western society. The French Revolution was a period of upheaval in France, during which the French governmental structure and Catholic clergy underwent a large change due to Enlightenment ideas. The commoners of France began to revolt after hearing the ideas of famous philosophes like Voltaire. Voltaire was a deist who believed that the Catholic Church and its doctrines were not to be trusted since they used propoganda to get followers rather than the actual religion. He believed it was unfair that there wasn’t any religious freedom since you were expected to be a Catholic. He spoke openly about this, which of course got him into a lot of trouble. Nevertheless, the French commoners took his word into thought and decided to act upon what he said by revolting against the church. Voltaire’s ideas also critized royal absolutism because they had, in his opinion, too much power. He favored an elightened absolutist, which is an absolutist who adopts Enlightenment ideas. Once again, the French commoners took this to heart and agreed with Voltaire that the French government was too ... ... to make you commit injustices.† Voltaire studied natural sciences and reason because he was against supestition. Although he advocated religious tolerance, he believed that any one church should not have absolute power. By the time he was executed, he had already brought about the end of the power and right of the church to torture France. People in France still are not as faithful to the Catholic Church as they had been before Voltaire had introduced them to the idea of â€Å"reasoning†. The Enlightenment is held to be the source of many modern ideas, such as the primary values of freedom and reason. The views of philosophers such as Voltaire are considered to be the source of many essential changes in countries such as America and France. His views on religion, government, and freedom are what people remember most because they have not died out in today’s society.

Dozier a

1. Evaluate each of the different alternatives. Justify your assumptions and argue which is the best one for Dozier. After their bid was accepted, Dozier has three options to choose from. Of the three choices, the 1st alternative yields the most profit. However, the profit from alternative 1 cannot be guaranteed, and it is much more volatile. The company wants to expand its market to the U. K. and also guarantee the profit (while minimizing exchange risk). Therefore, alternative 2, which has a higher profit margin than alternative 3 is the best hedging choice for Dozier. Alternative 1Alternative 2 Alternative 3 Dollar value of the balance $1,505,086. 88 $ 1,501,438. 5 $1,493,995. 00 Dollar value of the contract $1,677,311. 33 $1,673,663. 00 $1,666,219. 73 Total cost $1,642,783. 00 $1,642,783. 00 $1,642,783. 00 Profit $34,528. 32 $30880 $ 23,437. 00 Percent of Profit 2. 10% 1. 88% 1. 43% Cost of Hedge N/A -1. 20% -1. 70% The detailed calculation is shown below. Alternative 1: Do Nothi ng Dozier would choose to remain unhedged, and expose itself to currency risk. We assume the company will exchange the 10% deposit into dollars and deposit into the U. S. anks directly. The company can obtain interest revenue from this part of deposit. The spot pound rate in U. S. dollars on January 14 is 1. 437. The company can get ? 117,500 ? 1. 437 = $168847. 5 when they exchange the deposit. Three-month deposits interest rate in the U. S. is 8% annually. Therefore, the interest rate would be 0. 08/4=2%. The company can get $168847. 5 ? 1. 02 = $172224. 5 from the 10% deposit. The company will receive GBP 1. 0575 million on April 14,1986. The exchange rate on April 14 remains unknown. However, the pound has weakened over the previous six weeks.CFO, Rothschild was also concerned that the value of the pound might depreciate even further during the next 90 days. We can set three possible rates with different possibilities. According to Exhibit 5, the 3-month forward rate is 1. 4198. This is the scenario that has the highest probability of occurring in the future because it is the most reasonable spot rate on April 14. This is the base case from which to measure the other two alternatives. We can also run the regression (see appendix, graph 1) on the recent eight weeks and get the exchange rate on April 14, as the worst case.Another regression can be run based on the half year exchange rate (see appendix, graph 2). This case can be set as the best one which shows long term data. Receivables Exchange Rate Revenue Probability Base Case ?1,057,500 1. 4198 $ 1,501,438. 50 50% Worst Case ?1,057,500 1. 3617 $1,439,997. 75 25% Best Case ?1,057,500 1. 4917 $1,577,472. 75 25% The total expected revenue from receivables would be: Base Case Revenue ? Probability + Worst Case Revenue ? Probability + Best Case Revenue ? Probability = 1,505,086. 88. Therefore, Revenue from Receivables $ 1,505,086. 88 Revenue from Deposit $172224. 45Total Expected Revenue $ 1,677,311. 33 Tota l Cost $1,642,783. 00 Profit $34,528. 32 Percentage of Profit 2. 10% We can also perform break-even analysis here. The exchange rate would be 1. 3906 when the profit is zero. Therefore, if the pound depreciate to 1. 3906, the company would suffer a loss for this contract. Alternative 2: If Dozier sells pounds forward 90 days Dozier would incur an obligation to deliver pounds 90 days from 1/14/86 at the rate of 1. 437. This would ensure that Dozier would receive a certain amount of money, regardless the change of exchange rate. The 3-Month Forward Rate in U. S.Dollars on 1/14/86 is 1. 4198 and the balance is GBP 1. 0575 million. Thus, Dozier would receive 1. 4198 ? ?1. 0575 million = $1501438. 5 after three months. As we discuss above, the company can get 168847. 5 ? 1. 02 = $172224. 5 dollars from the 10% deposit. Therefore, the actual revenue of the contract is 1501439 + 172224. 5 =$1673663. The total cost is $1642783. Thus the profit is 1673663 – 1642783 = $30880. The perce nt of profit is 30880/1642783 = 1. 88% If the rate remains the same as 1. 437, the rest pounds has the value of 1. 437 ? ?1. 0575 =1519627. 5 million. The cost of hedge is (1501438. 5 – 1519627. )/1519627. 5 = -1. 2% Alternative 3: If Dozier secures a 90-day pound loan Dozier can also do a spot hedge, which worked similarly in that it also created a pound obligation 90 days. Dozier would borrow pounds from bank and exchange the proceeds into dollars at the spot rate of 1. 4198. Dozier would use its pound receipts, ? 1. 0575 million, to repay the loan. The rate of loan would be at 1. 5% above the U. K. prime rate. Since the loan rate for three months is (1. 5% + 13. 5%)/4=3. 75%, Dozier could receive ? 1. 0575 million/ (1+3. 75%) = ? 1019277 on 1/14/86. Then he would exchange them to dollars.With the spot transaction at 1/14/86, Dozier would get ? 1019277 ? 1. 437 =$ 1464701. 2 on 1/14/86. To get more profit, Dozier would deposit dollars. At end of three months, they would rec eive $ 1464701. 2 ? (1+8%/4) = $1493995 for ? 1. 0575 million. As we discuss above, the company can get 168847. 5 ? 1. 02 = $172224. 5 dollars from the 10% deposit. Thus, the actual revenue of the contract is 1493995 + 172224. 5 =$1666219. 73. The total cost is $1642783. Ergo the profit is 1666219. 73 – 1642783 =$ 23437. The percent of profit is 23437/1642783 = 1. 43%. The cost of hedge is (1493995 – 1519627. 5 )/1519627. = -1. 7% 2. What is the relation between the forward rate,the spot rate and the interest rates in the US and the UK? Below are the formulas from the suggested reading. It can show the relationship between the forward rate,the spot rate and the interest rates. Forward rate in U. S. : Forward rate in U. K. : If we divide forward rate in U. S. by forward rate in U. K. , we can get formula below: Generally, the relationship between currency spot rates and futures rates are based on interest rate parity, in which the exchange rate is determined by the rela tive interest rates, and the expected future spot rate.From the formulas above, we can see that if the US risk-free rate is less than the British pound rate, the futures exchange rate will be less than the current spot exchange rate. Relative to the spot rate, the forward rate tells you whether interest rates in one currency are higher or lower than those in the other currency. The international Fisher effect suggests the currency of the country with the higher nominal interest rate is expected to depreciate against the currency of the country with the lower nominal interest rate, as higher nominal interest rates reflect an expectation of inflation. 3.Are there alternative ways for Dozier to protect itself from currency risk? Yes. There are five alternatives for Dozier to protect itself from currency risk. First, Dozier could offset the pound exchange risk by hedging with options. Calls would be used if the risk is an upward trend in price, while puts are used if the risk is a downw ard trend. If the risk was a depreciation of the pound, Dozier would need to buy put options on pounds. If pounds were to depreciate at the time Dozier receives its pound revenue, then Dozier would exercise its right and thereby effectively obtain a higher exchange rate.However, if the pound was to appreciate instead, Dozier would then let the contract expire and exchange its pounds in the spot market at the higher exchange rate. The options market allows traders to experience unlimited favorable movements while limiting losses. This feature is unique to options, unlike the forward or futures contracts where the trader has to forego favorable currency rate movements, plus there are also no limits to losses. The advantages of options over forwards and futures are the limited downside risk and the flexibility and variety of strategies made possible.Also, in options there is neither the initial margin nor the daily variation margin since the position is not marked to market. This relie ves traders from potential cash flow problems. Options are however, more expensive because they are much more flexible compared to forwards or futures. The option price is therefore its disadvantage. Another alternative for Dozier to protect itself from currency risk would be to use profits generated in British pounds to buy durable goods which are then sold in the US in dollars. For example, British beer.Presumably, the beer industry has a low beta since most people are going to drink, regardless of economic standings. There may even be a tendency for people to drink more during hard economic times. If Dozier were to purchase British beer in pounds, the value would be retained when resold in the US, thus protecting the firm from exchange risk. The primary cost associated with this may be tariffs and other taxes on imports to the U. S. Third, similar to the alternative above, Dozier could direct profits earned in British pounds into other U.K. investments. From the case, it is belie ved that the company wants to continue its international growth. The company can use the profits earned to expand the overseas market. Holding a large portfolio of international units can in the long run, reduce unsystematic risk isolated in the U. S. Fourth, because the pound might depreciate further during the next 90 days, Dozier can accelerate the completion of the project to offset currency risk (predicted depreciation of the pound) by collecting payment prior to the agreed upon date.Finally, the company can benefit from currency swap. It is a foreign-exchange agreement between two institutions to exchange aspects of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency. Currency swaps are motivated by comparative advantage. For instance, if Dozier needed to acquire pounds and a U. K. company needed to acquire dollars, these two parties could arrange to swap currencies by establishing an interest rate, an agreed upon amount, and a maturity date.These currency swaps are negotiable for at least 10 years making them a very flexible method of foreign exchange. Additionally, since swaps are considered a foreign exchange transaction, they are not required to be listed on a firm’s balance sheet. 4. Should Dozier diversify its currency risk? Does it have a comparative advantage in remaining unhedged? Yes, controlling the currency risk is an important instrument for controlling and improving performance of international investments. In remaining unhedged Dozier may not necessarily have an advantage.While option 1 was calculated to be the most profitable, this depends on the exchange rates remaining relatively high. The exchange rates will fluctuate. The value of the dollar could increase or the pound could decrease leading to losses. If it goes below 1. 3906, the company would suffer a loss. It is the first time that Dozier is expanding into a foreign country. For Dozier to continue to expand into foreign ma rkets, it is essential that cash flows are generated. Hedging offers Dozier exchange rate risk protection in the vent the value of the British pound falls. It would eliminate the risk and guarantee the necessary cash flows. For the same reasons however, it may be Dozier’s best interest to remain unhedged. If they already planned for a 6% profit margin, exposing themselves to more risk may be the only way to get a this return. A riskier, unhedged position may be further incentivised by a principal agent problem between Rothschild and the CEO. It is not explicitly stated, but as the CFO, Rothschild’s job may be on the line if he does not perform.Therefore, the added risk in order to cover for past 6 week’s exchange losses may be his last hope. It will not cost him any more to take on the additional risk if he is already facing a high probability of losing his job. Agency costs aside, the question boils down to this: Is a high probability of a small profit better t han a small probability of a big profit. Considering this is their first international project, it might be best to go with what is certain, taking small steps, and learn from their mistakes going forward into future projects. Appendix Graph 1 Graph 2

How Starbucks Saved My Life Essay

We chose to review the bestselling book called â€Å"How Starbucks Saved My Life† by Michael Gill because we thought that it would be a good read, as the title itself was intriguing. The book was quite difficult to find but somehow we managed to chance upon some copies of it. The book was not a disappointment as it was truly inspirational. It had taught us to start looking on the brighter side of life and to always move forward, not backward. We have also learned that we should not dwell on the past. At the start of the book, Michael Gill had been living in his past and had many regrets in his past life. Soon enough, the author came to the realization that lingering in his past was not going to make the present any better for himself. Hence, he made the decision to obtain a more positive mindset about the future. He proceeded to observe things in a different light and always did things with an open mind. Another one of the reasons why we chose this book was because it has also taught us to be hard working and take pride in whatever we have accomplished. In addition to that, the author taught us to never take things for granted and to appreciate the things we have in life before it can be abruptly taken away from us. The book is based on a true story about the author’s life. He used to work with J. Walter Thompson (JWT) – the largest advertising agency in the United States of America – as a successful advertising executive. He devoted most of his life working hard for the agency and sacrificed most of his time with his family to contribute in making the agency successful. He had spent long hours working with his clients instead of being with his family. The author thought of himself as a pillar of his family. He thought that sacrificing his job was worth all the times he had not been there for his family as he desired to provide a good life for his family. In fact, he was so loyal to his job that he was willing to surrender spending Christmas with his family to work with his client. The author had said â€Å"I was full of pride that I had never refused any effort JWT ever asked of me. † (2008, page 8). He had done everything he could to dedicate himself to the company; he was soon enough fired by one of his colleagues, Linda. The author had really liked Linda and he had helped her to move up on the Board of Directors. Hence, he felt extremely hurt that he was fired by Linda as he thought of her as a friend. The author was also furious with himself because he did not notice the signs earlier on while he was working that his new boss, a Brit named Martin Sorrell, who was younger than him. One of the signs that the author should have paid attention to was when his boss had once said straightforwardly â€Å"I like young people around me. † (2008, page 9). A few years later, he decided to open up his own consulting company and at the start, many of his old clients made business with him. However, his business gradually slowed down to a halt as lesser and lesser of his clients went back to him. His life became more miserable when he found out that he had a tiny tumour called an ‘acoustic neuroma’ on the base of his brain that was affecting his hearing. The author also started going to the gym momentarily after he was fired to keep himself occupied. â€Å"I needed a reason to get out of the house everyday, and exercise became my new reason for getting up and out. (2008, page 23) was what the author said. The gym was where he met his mistress, Susan. He had an affair with Susan for more than a year while still being married to his wife, Betsy. Late one morning, Susan broke the news to the author that she was pregnant with his child. He had hoped that she would go for an abortion but she refused because she thought that God told her that she should keep the baby. The author had then confessed to his wife of many years that he had impregnated another woman which led to his divorce. The author was sitting in a Starbucks store, reminiscing about his past when a black lady named Crystal accosted him intrepidly and confidently, offering him a job at Starbucks. During the interview, Crystal provided the author with a booklet that showed the health benefits of working as a barista at Starbucks. This caused the author to immediately make the decision to work at Starbucks as he could finally secure his fifth and last child’s health insurance. He then embarked on a new journey working at Starbucks and working for Crystal was a new experience for him since he was used to working in a high rank position. The author also wrote about how the Guests of Starbucks treated him differently than the clients he used to work with in his previous job. His Partners treated him with respect and was always patient when it came to teaching him new things. Slowly, he moved up his position as a barista and became the Coffee Master of the store. He adored his job so much that he wanted to exceed his service for his Partners and Guests. Therefore, he did this in a form of writing poems for them. One of the poems he wrote for his Guests was: â€Å"Your wonderful smile/When you walk in the door/Helps to make/Our spirit soar. You make sure to us/Just how we are/When we see you at the register/Or at the bar. /Little wonder you are our star/And a favourite Guest. /You bring out/Our very best! † (2008, page 224). At last, he decided to quit working at Crystal’s store and work at the Starbucks store which is near to his apartment. When he told Crystal that he wanted to work at another Starbucks store, he was praised by Crystal as being one of the best at delivering legendary service. It meant that he made the extra efforts to make positive bonds with the Guests. Due to his excellent service, he helped the store to attain a five star award which was the first ever time that Starbucks rewarded its stores. The book was useful to us as there were some original economic acumen. It taught us that no matter how rich and successful you are at that point in your life, you will still have to make a financial backup plan and be vigilant towards your own financial wealth. We found this book inspiring because the author did not give up even after many downfalls in his life. It taught us to persevere through hardship and be determined to overcome it. Family was also another important factor that he had stressed on in the book. He wrote about how he regretted not spending enough time with his family. He wrote that he was upset with himself because he had not been able to see his children grow up as fine adults that they are presently. This has taught us not to neglect our family even though it clashes with our personal work. We must always spend quality time together because it will strengthen the bond in the family as it is our first priority. The fact that he was the reason why his family was broken apart also caused him to feel guilty. The author had lived luxuriously all his life until he was fired by his company. He had once said in an interview, â€Å"I was born with just about every advantage you could imagine, or even wish for. † He had everything he wanted but he took it for granted. We can relate this to our lives as it acts as a reminder to us to always treasure what we have in life. This book is mostly about his experience working at Starbucks. However, the book was not entirely perfect. What did not appeal to us the most was that he had too many flashbacks. Due to the numerous flashbacks which he had, it made the book less interesting to us. It was tough for us to continue halfway through the story as he droned on about his previous life too much but eventually, we still managed to finish the book. The book also had too many corporate speaking and repetition. Another reason why it was not that useful was that the author talked about the Partners, Guests and having respect almost endlessly but only mentioned about his affair, divorce and his out-of-wedlock child merely. He had not exactly elaborated on the negative impacts in his life. Other than that, the author had also said in his book that he regretted prioritizing his work rather than his family in his younger years but it still seems as if he is achieving more from his work instead of from his new child. We have learned the importance of respect and serving people well from him but we feel that he had not learned how to connect with his children – especially his last child – well enough.