DP3.- Cradle to Cradle: Recycling? Downcycling & Upcycling

If we don’t want to make our home a dump, we should…

Change the way we see “things”, so we will be able to reduce the consumption and therefore the attachment and dependence on material things. We must not forget that consumerism is irrational, we consume much more than we need because we think that we really need all those things, but at the end of the day is not richer the one that needs lees to live than the one that has more things?

Spread this point of view that Buddhism practise, doesn’t seem very large scale doable; it seems an easier solution to develop a “cradle to cradle” system of re-using materials in which waste doesn’t exist so we can continue our level of conspicuous consumption. This way we can prevent the suffering of the environment by reducing emissions, the huge amount of garbage and the guilt to fill our lives with more and more things.

Nowadays most of the recycling it is done is what we can call downcycling. The original materials in downcycling have been designed thinking in a product with one single life, so when the materials of a product is recycled, they lose valuable properties such as quality and functionality in every recycling process.

Downcycling can also increase contamination due to the downcycling products materials are lower quality than the first life ones, so if we want to improve the quality we have to add some chemicals. At the end, recycled materials often contain more additives than the original materials. For example, recycled plastics bottles are less transparent and stronger than the originals, so they receive treatment with chemicals to achieve certain level of quality.

It would be desirable that all products resulting from recycling were better quality and less environmentally harmful than they are nowadays, so we should not “downcycling” but “upcycling”. Thinking back into plastic bottles, when they are downcycled they still have antimony that is a toxic product. In contrast, when they are upcycled, what we get is a new plastic bottle without antimony. Therefore, upcycling let as use the same materials for several product lifes because in each recycling process we get a better quality product.

The second, third, fourth or tenth life of the first plastic bottle materials does not have to be always a part of a new plastic bottle, they can “reincarnate” for example in a Patagonia jacket, thanks to the Common Threads initiative!

Patagonia: how to make a jacket with plastic bottles Feel good proudly wearing someone else’s waste!

Patagonia quality

The Cradle to Cradle model transform waste products into valuable resources that companies can use again and again. Companies know that materials are one of their assets and that’s why they want them back. For example in the production of aluminium it is estimated that about 80% of all the aluminium produced thoughout history is still in circulation.

Daniel Goleman in his book Ecological Intelligence says that everything we use today have been developed in an era when we didn’t know its effects. Nowadays and thanks to science we know what are the effects of the materials and chemicals we are using now. Therefore we have the opportunity to reinvent everything in order to reduce the negative impact not only on the planet but in ourselves.

Jeremy Rifkin is also a very interesting writer in this field. In his book The Third Industrial Revolution, he stresses the importance of public sector incentives to companies in order to make them incorporate clean and efficient production processes so we can involve them in the fight against the degradation of the planet.

Comments Off on DP3.- Cradle to Cradle: Recycling? Downcycling & Upcycling / 29 Dec 2011 por Aitana Leret Garcia
Uncategorized /

Energy-saving measures for buildings in Germany #Energy Planning

Many buildings in Germany need too much energy and have high CO₂ emissions. Nearly 40 % of the total final energy consumption is used for heating and warm water. To improve this situation the German government decided to support energy-saving measures in three areas:

CO₂-Program for comprehensive renovation of one building,
“Modernize living space” for individual energy measures and
“Ecological Construction” for new buildings as energy efficient houses and passive houses.

With these actions the government aims to reduce living expenses, create jobs and support climate protection.

The government started with this program in 2001, since 2007 the improved conditions offer cheaper interest rates and grants for the clearance of the debt. The result within just one year was the energy-saving renovation of about 400,000 buildings and the construction of 100,000 new energy efficient houses.

The CO₂-Program includes the modernization of the heating system, replacement of windows, insulation of exterior walls, basement floors and roofs. Through these measures the energy consumption can be reduced by one third to one half. To give incentives to private persons to implement energy-saving measures into the buildings there are credits with interest subsidy or tax relieves.

Since 2007 the government promoted additionally energy-saving measures in schools, day care centers and buildings of public charities. For this purpose it made € 200 million a year available for interest subsidy of loans until 2009. Furthermore it supported municipalities to make schools, kindergartens and youth centers energy efficient with € 600 million. These measures were noticeable on the labor market where 220,000 jobs were saved or newly created.

Overall the measures of the German government help to make Germany more energy efficient. Until 2020 Germans can save up to € 50 billion on heating costs. It should be kept in mind that the rents do not increase too much due to these measures. Important is to change the mindset of the society that people do not construct cheap buildings to live expensive afterwards. One solution can be to build wooden houses: This construction style improves the condition of the air of a room and has the best data in heat insulation.

Resources (German), last accessed 29.12.2011:

Bundesregierung (2008) Wer dämmt, gewinnt: die energetische Gebäudesanierung, http://www.bundesregierung.de/Content/DE/Magazine/MagazinVerbraucher/002/s2-die-energetische-gebaeudesanierung.html

Bundesregierung (2011) Bundesregierung fördert Gebäudesanierung weiter, http://www.bundesregierung.de/Content/DE/Artikel/2011/05/2011-05-12-merkel-haus-und-grund.html

Sichere Immobilie (without year) Immobilien Sanierung – Die neuen Pläne der Bundesregierung, http://www.sichere-immobilie.de/immobilien-sanierung-die-neuen-plaene-der-bundesregierung/

Thoma, wooden houses, http://www.thoma.at/html/deutsch/index1.html

Comments Off on Energy-saving measures for buildings in Germany #Energy Planning / 29 Dec 2011 por Marie Glueck
IMSD /

DP #3: The Role of the Private Sector in Development Aid

“T[t]he greatest contribution that companies can make to society, especially in developing countries, is through responsible, efficient and profitable mainstream investment that produces a variety of socio-economic multipliers¹” (Nelson 2003).

This sentence already implies the possibility how the private sector can contribute to development in poorer countries. But what is the so called “private sector”? To see just the big multinationals and well-known brands would be to short sighted. The private sector in poorer countries is made up of a huge amount of small and medium-sized enterprises (SMEs) which have between 11 and 250 employees (European Commission 2003). Whether domestic or non-domestic, each enterprise contributes in a different way to development, some with technology others with employment (Davies 2011). But what is development? Development can be defined in different ways and might mean different things to individuals. In this blog it is considered to be actions towards closing the gap between rich and poor and not only focused on economic growth.

Let us focus on the private sector: It offers employment, is a main driver of economic growth and provides goods and services for the society. It has huge advantages compared to the public sector like efficiency due to competition, flexibility and profits which can be used to reinvest. Why should it not be included in development aid?

The rapid urbanization challenges the traditional way of delivering development work and emphasizes the role of the private sector in an economy. Until now it was little engaged and some big NGOs like Oxfam were not very keen to work together with the private sector. Anyhow like Clermont et al. (2011) state it is important to engage the private sector, especially after a disaster to make relieve to recovery as smooth as possible. The applied policies should be focused on short term needs and long term development at the same time. It would be better for the long term recovery not to ignore the existing market and to work together with local enterprises to meet the basic needs of the society.

To increase the responsible participation of business in development, development cooperation agencies like GIZ (German) or Sida (Swedish), can do several things:

First they should act as role model and establish corporate responsibility policies and transparency into their own business practice.
Second they can support developing country’s government to create an investment friendly environment and help state owned companies to act in a corporate responsible way.
The third step includes capacity building in the private sector and civil society to increase the use of corporate responsibility policies on the local level.
Fourthly development cooperation agencies can focus on SMEs and support the ones which put corporate responsibility already in practice. One relating measure could be to create links between the domestic market and multinationals.
The fifth and last area of action to foster corporate responsibility would be to give training to individuals to enable them to create links between different parties and hence decrease the rate of failing projects. (Fox, Prescottie 2004)

The question is now how to implement the strengths of the private sector into sustainable development. There are many options to engage the private sector like public-private-partnerships, contracts, franchise, concession or private subscription (Cointreau). Each alternative should be chosen depending on which work should be done. Naturally there will be some activities where participation of each sector might not result in the requested target and where other sectors can perform better.

Now we have seen that NGOs and development cooperation agencies can include the private sector, but what are the incentives for the private sector to engage itself especially in “poverty eradication related activities in developing countries” (Davies 2011)? For multinational companies the reasons may differ and are directly or indirectly connected to the goal of making profit. The incentives “range from addressing risk to exploring business opportunities” (Davies 2011) and can come from outside or inside.

The art is to combine the different goals of development aid and enterprises to make them to pull together. Just if a common target can be established the strengths of the parties can be combined to create unique projects which are sustainable in the long run and contribute to close the gap between rich and poor.

¹“The eight core business multipliers: 1. Generate investment and income; 2. Produce safe products and services; 3. Create jobs; 4. Invest in human capital; 5. Establish local business linkages; 6. Spread international business standards; 7. Support technology transfer; 8. Build physical and institutional infrastructure” (Nelson 2003).

Resources, last accessed 29.12.2011:

Clermont C, Sanderson D, Sharma A, Spraos H (2011) Urban disasters – lessons from Haiti, http://www.alnap.org/pool/files/dec-haiti-urban-study.pdf

Cointreau S (year unknown) Private sector participation in developing countries, http://siteresources.worldbank.org/INTURBANDEVELOPMENT/Resources/336387-1249073752263/6354451-1249073991564/cointreaupsp.pdf

Davies P (2011) The Role of the Private Sector in the Context of Aid Effectiveness, http://www.oecd.org/dataoecd/7/58/47088121.pdf

European Commission (2003) Small and medium-sized enterprises (SMEs), SME Definition, http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm

Fox T, Prescotti D (2004) Exploring the role of development cooperation agencies in corporate responsibility, http://www.eldis.org/fulltext/IIED_CSR1.pdf

Nelson J (2003) ECONOMIC MULTIPLIERS, Revisiting the core responsibility and contribution of business to development, http://commdev.org/content/document/detail/1026/

1 comentario / 29 Dec 2011 por Marie Glueck
IMSD /

DP#2. The forgotten ethics

Why is it that when we work for the poor, we paradoxically become richer? This contradictory question reflects today’s economic non-sense. Despite the critiques and complex analysis that heterodox approaches bring, a strong and obstinate inclination to reduce all social problems to technical solutions remains. Development issues (including poverty reduction) cannot escape this modern movement.

Neoliberal economic policies results, funded on the neoclassical economic theory, are a good example of our lack of ethical concern. For example, poor people in poor countries are facing an increase on food inflation. According to the World Bank, since June 2010, an additional 44 million people fell below the poverty line as a result of higher food prices.

This situation goes beyond the economic or social matter. The tipping point belongs the sphere of ethics. It is quite palpable that the gap between economy (as a science and political mechanism) and ethics is increasing.

We find three different explanations for this tearing apart. First, economists suffer from an extreme fascination towards mathematical formulation and the modeling of problems traditionally considered among the political- economic or philosophical- ones. The desire of Leon Walras (founder of the neoclassical school of thought) was to turn economy into a pure science, such as physics. Welfare economy has proved its lack of interest for any complex ethical concerns. In fact, economists (or policy makers) avoid what models are unable to explain.

Secondly, due to this fascination and in order to make it real it becomes necessary to make everything measurable and predictable, including human action. Neoclassical economy was built on the basis of individualism and understands self-interest as the only possible human reason. The homo economicus was born.

I believe our behavior can be conducted differently, by generosity, love or just unconscious impulses. To me, a mother risking her own life to save her child shows the most rational and human behavior. Well, the conceptual basis of modern economy is too simple and limited to understand, influence or transform the social reality.

Third, the former statement is just focused on exchange. However, there are many other important economic relationships, such as production and distribution. Here ethics must play a major role. Economic productivity depends on cooperative spirit, credibility and self-discipline, as well as on compromise with efficiency at work. Regarding distribution, the ethical values of sustainability and preservation of the environment are extremely important.

Japan is a great example of a society that achieved success by modifying the guidelines of economic atmosphere. Japan created a set of moral values for economic activity that emphasized group responsibility, interpersonal trust, mutual support and the implicit contracts that guide individual behavior, which had important a great incidence on development (Sen, 2003).

Ethics, and specifically, ethics on business could be one of the most important productive assets that an economy or society could have; it is one element of our social capital. However, consider it requires re thinking and re –building the foundations of our society. As I said before, as development stills remain as a technician problem that requires technical solutions, the world will still be looking to the wrong direction.

References

Sen, Amartya: “Does business ethics makes economics sense” in: Business ethics quarterly, volume 3, 1993.

Sen, Amartya: “Ética de la empresa y desarrollo económico” in Cortina, Adela (editor): Construir confianza. Ética de la empresa en la sociedad de la información y las comunicaciones. Trota S.A. Madrid, 2003.

Food price watch. Report April 2011. World Bank, poverty reduction and equity group. http://www.worldbank.org/foodcrisis/foodpricewatch/april_2011.html

Comments Off on DP#2. The forgotten ethics / 28 Dec 2011 por Diana Patricia Sanchez Barajas
IMSD /

DP: Seeds of Life

Hola!

I hope everyone had a wonderful and merry Christmas over the weekend with family and friends. It’s a cold Monday night in Madrid, but warm thoughts of my family and tropical paradise located on the other side of the globe are helping me get through this winter season.

I was taking time to do some additional research on the group project that I am currently working on. My teammates and I were tasked to research and analyse on the Green Belt Movement (GBM), which was founded by the late Prof. Wangari Muta Maathai – an inspirational leader, role model, women’s rights activist, and 2004 Nobel Peace Prize Laureate from Kenya who recently passed away this year after a long battle with cancer.

Wangari Muta Maathai (1940-2011)

The more I read of Prof. Maathai and listen to her speak in videos of past interviews on the importance of protecting the environment, conserving resources, and learning about the causes and symptoms of environmental degradation, the more amazed I am with the vision and pure determination that someone like her possessed.

Who would have thought that the simplest act of planting a small seed could lead to a better standard of living? It lead me to believe, more than ever, that environmental protection and sustainability is indeed essential to us as it is directly linked to our livelihoods as human beings. Simply put, when our environment is in bad condition, our lives will be in bad condition as well. Thomas Berry states, “the natural world is the larger sacred community to which we belong. To be alienated from this community is to become destitute in all that makes us human. To damage this community is to diminish our own existence.”

Prof. Maathai’s wisdom has reminded us that if we were to plant and nurture a fruit tree, it bears fruit that can be fed to children and sold in the market, it provides a cool shade, prevents soil erosion, conserves rainwater, and absorbs CO2. If more trees are planted, the benefits will surely multiply.

Through its efforts to restore ecosystems and increase national forest cover, the GBM claims that it has planted over 45 million trees in Kenya. Planting trees has also helped to increase household income, and has become a source of strength and self-determination to many women who participated in the programme, thus empowering women and promoting gender equality. The significant amount of change and development on the environment and community that GBM has helped to achieve, has gained my profound interest and admiration for the works of the late Prof. Maathai who had sought to provide benefits and opportunities for her people and country.

My readings and online research has taught me so much about the significance of planting a tree. Today, the GBM has grown to become more international, with more programmes that range from crop diversification, to environmental education in schools, to capacity building, and more. It also collaborates with the United Nations Environment Programme (UNEP) and other organisations on global campaigns such as the “Billion Tree” campaign.

Billion Tree Campaign

In my opinion, a complicated problem doesn’t necessarily need to be solved with complicated solutions. When our environment worsens and pulls us further away from our dreams of a better life, why not start with planting a tree?

It will take time, patience, and perseverance but as Prof. Maathai once said, “The planting of trees is the planting of ideas. By starting with the simple step of digging a hole and planting a tree, we plant hope for ourselves and for future generations.”

"The planting of trees is the planting of ideas" – Wangari Maathai

Comments Off on DP: Seeds of Life / 27 Dec 2011 por Syafrina Sharif
IMSD /

Finanzas: “El valioso costo de estudiar en Madrid”

Hacía tres años que tenía pensado estudiar una maestría en el exterior. Pero más allá de mis buenas intenciones y mi tajante resolución, había razones de peso que me impedían cumplir con mi objetivo: mis finanzas personales.

Vayamos por partes. Desde que salí de la Universidad ganaba un sueldo promedio de 1.000 euros mensuales. En Perú se trata de una suma razonable para cualquier joven que vive con sus padres. Con ese dinero podrá darse ciertos lujos y destinar otra buena ración para el ahorro.

Lamentablemente, ese no era mi caso. Con los 1.000 euros que yo recibía al mes, tenía que ocuparme de pagar el alquiler del piso donde vivía, así como el mantenimiento, el celular, la comida y, por supuesto, las diversiones de fin de semana para escapar de tanta presión laboral.

¿Entonces de dónde yo iba a sacar dinero para venirme a estudiar afuera? La veía demasiado difícil, si tomo en cuenta que tampoco poseo una casa, un carro o propiedades inmuebles con qué subvencionar mi estadía en el exterior. Sin embargo, mi carácter obstinado me decía que postulara a la maestría que deseaba estudiar afuera y una vez que consiguiera la admisión, pues me ocupara de pensar cómo financiarme. “Una cosa lleva a la otra”, me repetía.

Ni tonta ni perezosa en junio de este año postulé a EOI, luego de consultar numerosas universidades en Europa especializadas en temas sobre desarrollo sostenible y responsabilidad social. Dos semanas más tarde me anunciaron que mi postulación había sido recibida y que, para mi suerte, me habían admitido.

¿Pero sin un centavo en mi cuenta de ahorros cómo iba a poder concretar mi ansiada meta? Era la gran duda que aturdía mi cabeza. Hasta que tomé la decisión de consultar a los bancos de Perú cuáles son los requisitos para pedir préstamos personales para estudiantes. Para mi sorpresa, solicitarlo era más simple de lo que pensé, pues si ya tenía un trabajo estable y mis estados de cuenta estaban en orden (felizmente ese era mi caso), la entidad bancaria solo me exigía un aval si se trataba de préstamos arriba de los US$15.000.

Luego de consultar y negociar con varias entidades financieras, tomé en cuenta que la mejor oferta venía del BBVA Continental de Perú, el cual me ofrecía una tasa de interés de 10% anual. Aun así, la cantidad que necesitaba para lograr cruzar el charco y asentarme por un tiempo en España superaba los US$42.000 en un primer momento. Así tendría que pagar US$990 mensuales durante los cinco años posteriores a los primeros 12 meses de gracia. “¿Acaso me podría permitir pagar esa suma tanto tiempo? ¿Qué pasaba si luego perdía el trabajo o me iba a la quiebra? ¿El banco me metería a la cárcel por insolvente?”, eran los grandes temores que me carcomían.

De pronto, se me ocurrió pedir consejos al departamento de admisiones de EOI. Acertada fue mi decisión, pues así me informaron que este año la escuela entregaría medias becas para jóvenes latinoamericanos de buenos antecedentes académicos. Siguiente paso: a llenar unos cuantos papeles más y enviarlos por courier. Unos días después, ya había obtenido una media beca para estudiar en el extranjero.

Desde ese momento se me aclaró el panorama y todo para mí fue más fácil. Con esa ayuda financiera de EOI, el préstamo con el banco se reducía a US$22.000, lo suficiente como para pagar mis estudios, así como vivir 12 meses clavados en España.

Claro, tendría que ajustar algunos gastos y no darme tantos lujos para sobrevivir en Madrid sin percibir ningún centavo, pues me dedicaría de lleno a los estudios. Empecé a sopesar los pros y contra y tomé las cosas en perspectiva. Evidentemente, destinar al banco US$550 al mes en vez de US$990 era para mí una gran diferencia.

Estoy segura que estudiar afuera es una valiosísima experiencia no solo para obtener mejores propuestas laborales a futuro, sino también por el enorme aporte cultural y madurez personal que a cualquier profesional le ofrece. Por eso dejé mis temores debajo de la almohada y le pedí al banco que de una vez por todas me otorgara un préstamo de estudios de US$22.000. Algo me decía que obtener una media beca para estudiar en el exterior es una oportunidad que no pasa dos veces en la vida. Creo que el tiempo y mis ganas de esforzarme y trabajar me darán la respuesta sobre la mejor manera de pagar mi deuda bancaria en los próximos años.

Comments Off on Finanzas: “El valioso costo de estudiar en Madrid” / 26 Dec 2011 por Iana Malaga Newton
Uncategorized /

DP #3: Problems vs Consequences

Is food waste just throwing things away….or is it wanting more than you need?
In the developed world, efficiency in the food industry is the missing key.

Problems

Since most businesses operate on the demands and needs of the clients, by analyzing the client trends we can understand why supermarkets are supplying so much food, and why the agriculture industry is producing more than necessary. In addition, this analysis can help us see how increased consumption leads to food waste. Below are some problems we might find.

Complex Diets

As the developed population is enjoying a better standard of living, the desire to get more on each dollar spent is skyrocketing. In addition, the diverse pallet of individuals means more imports of different commodities which are either not in season, or must be imported from far away lands. Most of these goods are shipped in bulk containers.

Increased Cultivation Area

The area used for agriculture has also increased as a result of the Green Revolution, which came as a result of improved technology, new bio-engineered seeds and chemical fertilizers. “Planting of soybeans and other oil crops grew by 94% between 1961 and 2001. Land to produce fruits and vegetables at the turn of the 21st century was nearly double the area of that needed four decades earlier.” (EJSD) In addition, the global average yield of cereals was less than 1.5 tons per hectare in 1961, by the end of the 20th century it rose above 3.0 tons.

The food prices of commodities has been slowly growing and with ever increasing population, and decreasing availability of arable land, the prices are predicted to rise higher. In addition, with increased scrutiny of bio-engineered seeds and chemical fertilizers, funds for advancement of agriculture science and technology declined, which will have an impact on future agricultural yields.

Increased Caloric Intake

In addition to complex diets, increased agricultural yields and high standards of living have led people to consume more food.

For instance, twenty years ago two slices of pizza were 500 calories, today they are 850 calories. Cups of coffee with milk and sugar were 8 ounces, now you can get 16 oz of coffee at Starbucks, a popcorn was 270 calories, now you get a tub with 630 calories, a bagel of a 3 inch diameter was 140 calories, and today a 5-6 inch diameter is 350 calories.

With these numbers, it is no surprise that the caloric intake for women has increased by 22% between 1971 and 2000, rising from 1,542 to 1,877. For men the increase has been 7%, going from 2,450 to 2,618 calories.

Recent studies have also documented an increase in obesity throughout the world. In the United States for instance the rates rose from 14.5 in 1971 to 30.9 in 1999. The main reason for this phenomenon is the increase of portion sizes and plate sizes. Since psychologically it is not possible for individuals to see a 30% increase in their food portions, or feel fuller after eating more food on a bigger plate, most individuals consume far more than needed.

Consequences

As mentioned previously, the biggest problem of food waste in the developed world comes from throwing away edible food in restaurants, grocery stores and households. Most of the food that is thrown away in commercial areas is done so because of cosmetic standards, because of the sell by date, or as a result of food policy within the establishment.

To prevent food waste in grocery stores, new technology such as the Radio Frequency Identification Device (RFID) can be used to battle food waste problems by “using weapons such as logistics, simulations, robotization and new ways of thinking about food supplies.” (SINTEF)  This technology will help address the lack of communication problem that occurs between suppliers and distributors, who order more food than necessary to ensure that the shelves are always stocked with all produce, regardless of whether this product is being bought or not. Without the right demand, many of these goods get tossed away as their shelf life runs out without them ever being bought.

Seeing as how this problem occurs towards the end of the consumption cycle of foods, it is important to analyze the usage of the food products from beginning, so as to address the behaviors that yield to these results.

Solutions

Considering that the main problem lies in the over-consumption and unnecessary demand of food commodities, the main focus of food waste prevention should be geared towards individuals living in the developed countries. By decreasing food portions, the demand for more food will automatically lower, encouraging the agricultural industry to stop overproducing.

Since people are also eating more than they actually need, creating awareness about calorie consumption, and reducing demand will help us produce less food waste, as well as preserve arable land, energy and water that is needed for agriculture.

Governments, therefore, need to create new policy that focuses on educating consumers about proper eating habits, portion sizes and nutrition. Seeing as how portion sizes of fruits and vegetables haven’t increased quite as much as portions of carbohydrates, and meat consumption, a nutritionally well balanced diet should be heavily promoted in all developed nations.

Work Cited:
European Association for the Study of Obesity (2009). Increased Food Intake Alone Explains Rise In Obesity In United States, Study Finds. ScienceDaily. Accessed on December 25, 2011, from http://www.sciencedaily.com /releases/2009/05/090508045321.htm

McKenzie, (2011). John. Food Portion Sizes Have Grown – A Lot. ABC News. Accessed on December 25, 2011 from http://abcnews.go.com/WNT/story?id=129685&page=1.

NCHS/CDC (2004). Calorie Consumption on the Rise in the United States, Particularly Among Women. Morbidity Mortality Weekly Report. Accessed on December 24, 2011 from http://www.cdc.gov/nchs/pressroom/04news/calorie.htm.

SINTEF (2011). New technology could help reduce food waste. ScienceDaily. Accessed on December 23, 2011, from http://www.sciencedaily.com /releases/2011/10/111013111127.htm

Monte, Liz. (2008). Portion Size, Then vs. Now. Divine Caroline. Accessed on December 25, 2011 from http://www.divinecaroline.com/22177/49492-portion-size-vs-now.

Southgate, Douglas. (2007). Population Growth, Increases in Agricultural Production and trends in food prices. EJSD. Accessed on December 25, from http://www.ejsd.org/public/journal_article/13.

Comments Off on DP #3: Problems vs Consequences / 25 Dec 2011 por Hokuma Karimova
IMSD /

Mercadona vs El Corte Inglés

Algunos creen que la crisis económica afecta a todas las empresas, pero nada más lejos de la realidad, hay algunos que han sabido aprovechar este momento de crisis en el que nos encontramos no solo para alcanzar en beneficio a sus competidores, sino para superarles. Este es el caso de Mercadona que gracias a su impecable dirección ha adelantado a El Corte Inglés en beneficio, quien ve amenazar su liderazgo en ventas (ingresos).

El Corte Inglés creció apenas un 0,3% en ventas netas este año, alcanzando una cifra de 16.413 millones de euros, mientras que Mercadona creció un 5,8%, alcanzando los 15.242 millones, aún 1.171 millones por detrás de El Corte Inglés.

El Corte Inglés ha visto caer durante el año 2010 un 4,6% su beneficio bruto operativo (Ebitda) hasta los 1.017 millones, experimentando un descenso del 13,6% en su resultado neto, hasta los 319 millones (frente a la caída del 1,5% que sufrió en 2009). Mercadona, sin embargo, ha visto crecer un 47% su resultado neto, llegando a ingresar 398 millones, viendo dispararse su rentabilidad, y superando por lo tanto en beneficio por primera vez a su mayor competidor, El Corte Inglés.

La táctica de de Mercadona ha sido su apuesta por productos de marca propia a bajo precio, frente a la mayor oferta al consumidor que ofrece El Corte Inglés pero a costes también más altos.

El Corte Inglés incrementó sus gastos de explotación en 32 millones, debido sobre todo al incremento de gastos de personal, un 2,3% más que en 2009. La financiación que concedió a sus clientes para realizar compras alcanzó los 7.819 millones, casi el 48% de su cifra de negocio. El grupo redujo un 15% sus deudas a largo plazo (hasta los 3.353m), pero aumentó en un 42% sus deudas a corto (hasta los 2.349m).

El Corte Inglés, en lugar de incrementar su resultado, está dando más financiación a sus clientes y creando nuevos empleos; contrayendo los márgenes y sacrificando así parte de la rentabilidad. El todavía líder en ventas continúa buscando la manera de competir con Mercadona, ya que ni el ajuste de precios ni sus nuevas marcas blancas: Aliada y Veckia están dando los resultados esperados.

Comments Off on Mercadona vs El Corte Inglés / 25 Dec 2011 por Aitana Leret Garcia
Uncategorized /

companies’ actions as a result of protests

http://www.youtube.com/watch?v=7zLAbdyd3F0 – advertisement to be launched in 2012

http://www.nikebetterworld.com/

Comments Off on companies’ actions as a result of protests / 21 Dec 2011 por Fabio Pinto Almeida
IMSD /

Financial analysis- DIA Annual Accounts (31 Dec. 2010)

The company must aim for financial equilibrium at all times, maintaining its stability. Next we will look at the current situation regarding financial equilibrium of DIA.

DIA is a distribution chain which was founded in Spain nearly 30 years ago, their strategy has been working on the quality-price formula until they based it in central focus of its mission .This mission is reflected in a policy of optimizing costs in order to offer consumers solutions to their food and commodity requirement at lower prices than the market.

For the economic financial analysis of a company we use Balance Sheet and P&L account. After the knowledge acquired in class and analyzing both financial documents 2009 and 2010 from DIA, my first and clear finding is that short term liabilities are greater than the current assets of the company.

More specifically its current assets ( expressed in thousands €) account for 383.959 and its current liabilities are 1.050.243. Therefore part of the fixed assets are being financed by short term resources.

This may be dangerous for the company since the may not be sufficient liquid or convertible-to-liquid resources yo meet current debts.

However DIA is not in an irreversible situation. It has options such as liquidating part of its non current assets to obtain cash, increase capital or seek new loans.

When we study the financial position of the company from the liquidity perspective we are measuring the ability of DIA to meet its debts and obligations in the short term.

With the general liquidity ratio we measure the relation between availability of cash in the short term and the cash recquired to meet the corresponging short term debts. In the case of DIA the result is 0,36, this means short liquidity, a possible option would be converting sort term debt in lobger financial debts.

In relation to the Working Capital (-666,28) the company has working capital defficiency. The Management of working capital involves inventories, cash, accounts receivable and accpunts payable.

The Acid Test Ratio which removes the inventory (204.408) from current assets is also known as quick ratio as it measures the ability of a company to meet short term debts with the most liquid assets, liquid being regarded as immediate cash because their prices are relatively stable when they are sold to the open market.

Studying the estructure of the various components of the liabilities, so the company´s sources of finance we calculate de Debt Ratio which is 1,16. Being this ratio greater than 1 DIA can still have access to the market for external resources.

Debt structure ratio is 0,18, this ratio described the composition of the liabilities of the company and we can see predominantly the liabilities are composed of short term debt (lto be paid in less than a year).

They are also very important the Efficiency ratios, and we can obtain useful information from them.

Looking to the Accounts Collection Period we have a result of 4,30 days.

Calculating the Accounts Payment Period the final result is 97,68 days.

These two results tell us that DIA is paying late to its suppliers but collecting its money early.The first one indicates the average number of days will occur between the sales being made and the payment received.This is a general average as we do not know the average length of time the crédito clients take to pay, we considera all sales.

Analyzing this company we see that average payment period is greater than average recovery period, the financial Management is being carried out adequately.

Regarding the asset turnover (companys efficiency at using its assets in generating sales or revenue) the obtained result is 1,73 in year 2010 while it was 1,65 in 2009. This means DIA is currently using its assets in a more efficient way.

It is interesting that this ratio also indicates pricing strategy, as companies with low profit margins tend to have high asset turnover result, while those with high profit margins have lower asset turnover.

The inventory turnover of DIA is currently in 2010 at 14,8 while in 2009 was 13,5. This result may imply Sorong sales. Calculating it with the cost of goods sold this shows how many times a company’s inventory is sold and replaced over a period.

http://www.diacorporate.com/diawebapp/web/archivos/DIA%20Annual%20Accounts%202010%20and%20DR.pdf

Comments Off on Financial analysis- DIA Annual Accounts (31 Dec. 2010) / 21 Dec 2011 por Tatiana Casquero Rodriguez
Uncategorized /