Carrie Chapter Twenty-one

Part Three Wreckage From the national AP ticker, Friday, June 5, 1979: CHAMBERLAIN, MAINE (AP) STATE OFFICIALS SAY THAT THE DEATH TOLL IN CHAMBERLAIN STANDS AT 409, WITH 49 STILL LISTED AS MISSING. INVESTIGATION CONCERNING CARIETTA WHITE AND THE SO-CALLED ‘TK' PHENOMENA CONTINUES AMID PERSISTENT RUMOURS THAT AN AUTOPSY ON THE WHITE GIRL HAS UNCOVERED CERTAIN UNUSUAL FORMATIONS IN THE CEREBRUM AND CEREBELLUM OF THE BRAIN. THIS STATES GOVERNOR HAS APPOINTED A BLUE-RIBBON COMMITTEE TO STUDY THE ENTIRE TRAGEDY. ENDS. FINAL JUNE 5 030 N AP From The Lewiston Daily Sun, Sunday, September 7 (p. 3): The Legacy of TK Scorched Earth and Scorched Hearts CHAMBERLAIN – Prom Night is history now. Pundits have been saying for centuries that time heals all wounds, but the hurt of this small Western Maine town may be mortal. The residential streets are still there on the town's East Side, guarded by graceful Oaks that have stood for two hundred years, the trim saltboxes and ranch styles on Morin Street and Brickyard Hill are still neat and undamaged. But this New England pastoral lies on the rim of a blackened and shattered hub, and many of the neat houses have FOR SALE signs on their front lawns. Those still occupied are marked by black wreaths on front doors. Bright-yellow Allied vans and orange U-Hauls of varying sizes are a common sight on Chamberlain's streets these days. The town's major industry, Chamberlain Mills and Weaving, still stands, untouched by the fire that raged over much of the town on those two days in May. But it has only been running one shift since July 4th, and according to mill president William A. Chamblis, further lay-offs are a strong possibility. ‘We have the orders,' Chamblis said, ‘but you can't run a mill without people to punch the time clock. We don't have them. I've gotten notice from thirty-four men since August 15th. The only thing we can see to do now is close up the dye house and job our work out. We'd hate to let the men go, but this thing is getting down to a matter of financial survival.' Roger Fearon has lived in Chamberlain for twenty-two years, and has been with the mill for eighteen of those years. He has risen during that time from a third-floor bagger making seventy-three cents an hour to dye-house foreman; yet he seems strangely unmoved by the possibility of losing his job. ‘I'd lose a damned good wage,' Fearon said. ‘It's not something you take lightly. The wife and I have talked it over. We could sell the house – it's worth $20,000 easy – and although we probably won't realize half of that, we'll probably go ahead and put it up. Doesn't matter. We don't really want to five in Chamberlain any more. Call it what you want but Chamberlain has gone bad for us.' Fearon is not alone. Henry Kelly, proprietor of a tobacco shop and soda fountain called the Kelly Fruit until Prom Night levelled it, has no plans to rebuild. ‘The kids are gone,' he shrugs. ‘If I opened up again, there'd be too many ghosts in too many corners. I'm going to take the insurance money and retire to St Petersburg.' A week after the tornado of '54 had cut its path of death and destruction through Worcester, the air was filled with the sound of hammers, the smell of new timber, and a feeling of optimism and human resilience. There is none of that in Chamberlain this fall. The main road has been cleared of rubble and that is about the extent of it. The faces that you meet are full of dull hopelessness. Men drink beer without talking in Frank's Bar on the corner of Sullivan Street, and women exchange tales of grief and loss in back yards. Chamberlain has been declared a disaster area, and money is available to help put the town back on its feet and begin rebuilding the business district. But the main business of Chamberlain in the last four months has been funerals. Four hundred and forty are now known dead, eighteen more still unaccounted for. And sixty-seven of the dead were Ewen High School Seniors on the verge of graduation. It is this, perhaps, more than anything else, that has taken the guts out of Chamberlain. They were buried on June 1 and 2 in three mass ceremonies. A memorial service was held on June 3 in the town square. It was the most moving ceremony that this reporter has ever witnessed. Attendance was in the thousands, and the entire assemblage was still as the school band, stripped from fifty-six to a bare forty, played the school song and taps. There was a sombre graduation ceremony the following week at neighbouring Motton Academy, but there were only fifty-two Seniors left to graduate. The valedictorian, Henry Stampel, broke into tears halfway through his speech and could not continue. There were no Graduation Night parties following the ceremony; the Seniors merely took their diplomas and went home. And still, as the summer progressed, the hearses continued to roll as more bodies were discovered. To some residents it seemed that each day the scab was ripped 69 again, so that the wound could bleed afresh. If you are one of the many curiosity-seekers who have been through Chamberlain in the last week, you have seen a town that may be suffering from terminal cancer of the spirit. A few people, looking lost, wander through the aisles of the A&P. The Congregational Church on Carlin Street is gone, swept away by fire, but the brick Catholic Church still stands on Elm Street, and the trim Methodist Church on outer Main Street although singed by fire, is unhurt. Yet attendance has been poor. The old men still sit on the benches in Courthouse Square, but there is little interest in the checkerboards or even in conversation. The over-all impression is one of a town that is waiting to die. It is not enough, these days, to say that Chamberlain will never be the same. It may be closer to the truth to say that Chamberlain will simply never again be. Excerpt from a letter dated June ninth from principal Henry Grayle to Peter Philpott, Superintendent of Schools. †¦ and so I feel I can no longer continue in my present position, feeling, as I do, that such a tragedy might have been averted if I had only had more foresight. I would like you to accept my resignation effective as of July 1, if this is agreeable to you and your staff. . . Excerpt from a letter dated June eleventh from Rita Desjardin, instructor of Physical Education, to Principal Henry Grayle: †¦ am returning my contract to you at this time. I feet that I would kill myself before ever teaching again. Late at night I keep thinking: If I had only reached out to that girl, if only, if only †¦ Found painted on the lawn of the house tot where the White bungalow had been located: CARRIE WHITE IS BURNING FOR HER SINS JESUS NEVER FAILS From ‘Telekinesis: Analysis and Aftermath' (Science Yearbook, 1981), by Dean D. L McGuffin: In conclusion, I would like to point out the grave risk authorities are taking by burying the Carrie White affair under the bureaucratic mat-and I am speaking specifically of the so-called White Commission. The desire among politicians to regard TK as a once-in-a-lifetime phenomenon seems very strong, and while this may be understandable it is not acceptable. The possibility of a recurrence, genetically speaking, is 99 per cent. Ifs time we planned now for what may be †¦ From Slang Terms Explained.. A Parents' Guide, by John R. Coombs (New York: The Lighthouse Press, 1985), p. 73: to rip off a Carrie. To cause either violence or destruction; mayhem. confusion; (2) to commit arson (from Carrie White, 1963-1979) From The Shadow Exploded (p. 201): Elsewhere in this book mention is made of a page in one of Carrie White's school notebooks where a line from a famous rock poet of the '60s, Bob Dylan, was written repeatedly, as if in desperation. It might not be amiss to close this book with a few lines from another Bob Dylan song, lines that might serve as Carrie's epitaph: I wish I could write you a melody so plain/ That would save you, dear lady, from going Insane/ That would ease you and cool you and cease the pain/Of your useless and pointless knowledge†¦ From My Name Is Susan Snell (p. 98): This little book is done now. I hope it sells well so I can go someplace where nobody knows me. I want to think things over, decide what I'm going to do between now and the time when my light is carried down that long tunnel into blackness †¦ From the conclusion of The State Investigatory Board of Maine in connection with the events of May 27-28 in Chamberlain, Maine: †¦ and so we must conclude that, while an autopsy performed on the subject indicates some cellular changes which may indicate the presence of some paranormal power, we find no reason to believe that a recurrence is possible or even likely †¦ Excerpt from a letter dated May 3, 1988, from Amelia Jenks, Royal Knob, Tennessee, to Sandra Jens, Maiken, Georgia: ? ­and your little neece is growin like a weed, awfull big for only 2. She has blue eyes like her daddy and my blond hair but that will porubly go dark. Still she is awfull pretty & I think sometimes when she is asleep how she looks like our momma. The other day wile she was playin in the dirt beside the house I sneeked around and saw the funnyest thing. Annie was playin with her brothers marbles only they was mooving around all by themselfs. Annie was giggeling and laffing but I was a little skared. Some of them marbles was going right up & down. It reminded me of gramma, do you remember when the law came up that time after Pete and there guns flew out of there hands and grammie just laffed and laffed. And she use to be able to make her rocker go even when she wasen in it. I gave me a reel bad turn to think on it. I shure hope she don't get heartspels like grammie did, remember? Well I must go & do a wash so give my best to Rich and take care to send us some pitchers when you can. Still our Annie is awfull pretty & her eyes are as brite as buttons. I bet she'll be a worldbeeter someday. All my love, Melia

Aspartame and Holland Sweetener Co.

27-Feb Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) (HBS 9-794-079) 1. How should Vermijs expect NutraSweet to respond to the Holland Sweetener Company’s entry into the European and Canadian aspartame markets? Ans: 1. NutraSweet had a very high Cost of Goods Sold in producing the Aspartame. So it was not a wise move for NutraSweet goes for Price war with Holland Sweetener Company, which might possibly results in a negative gain on the product. . Even though price war is not expected, NutraSweet possibly might use his advantage as the first one introducing the market to continue dominated the market. NutraSweet might also increase its advertisement expense to reintroduce and redirect consumers’ interest back to NutraSweet. 3. In response to Holland’s sue against the company; NutraSweet might probably try their best to fight against it, since they wanted to continuously dominate the soft drink industry.However, even though NutraSweet succeed to defend its anti-competitive, if Holland Sweetener Company or other sweeteners offered a rather better price, similar quality, and comparable distribution offer, in a long run, the drink industry might go to the use of multi-sweetener to lower the suppliers’ control power and to follow government’s suggestion. 4. Since the market shares for NutraSweet will drop with the entry of Holland Sweetener and other Sweetener companies, NutraSweet may expect a sales decrease. Thus, NutraSweet will continue to improve their operation to make it more profitable. . Specifically, how should Vermijs assess the relative likelihood of the two scenarios—price war and normal competition—he has in mind? Price war Anw: Vermijs can use game theory to assess the relative likelihood (N -0. 7, H-0. 3) Holland Enter the Market Normal (N 0. 6, H 0. 4) Nutra Holland did not enter the Market (Nutra 1, Holland 0) When Vermijs think about the likelihood of the two scenarios, he needs to stand in NutraSweet’s shoes to think what Holland will do. If Holland did not enter the market, then Holland will get nothing.But if Holland enter the Market, there’s 50% chance Holland will get some revenue. So Holland will enter the market. When Holland enter the market, Nutra had price war, then they both lost revenue, but if Nutra just normally compete with Holland, then at least Nutra still have positive revenue gain. So Nutra will not start a price war. 3 Other Notes: NutraSweet once reached 711 million for Aspartame business from 1965 to 1987 (patents’ expiration in European and Canadian market); 1986, Holland Sweetener Company prepare to enter this market.NutraSweet’s decision: Normal competition & Price war. NutraSweet has limited production capacity, which hinders the growth of sales and limited their profit; so either NutraSweet increase more capacity to expand their market shares, or after the expiration of exclusivity, let other company get in. Extensive advertising led to wide use of Aspartame by food/beverage manufacturer. Huge price discount first to raise awareness and then put its foot onto soft drink and powdered drink industry.

Describe your son room Essay Example | Topics and Well Written Essays - 250 words

Describe your son room - Essay Example The furniture rises out of this mess as varying levels of more of the same. The bed I gave him was a wooden framed futon with a full-sized black mattress but all one can see of this is one side of the wooden frame closest to the wall where an inexplicable and largely inaccessible hole exists in the mess reaching all the way to the floor – only a few wrappers here and a couple other pieces of trash. The rest of the bed is more of the same scattered blankets, clothing and pillows. The desk is recognizable thanks to the computer monitor and keyboard, but these are crowded as well by piles of papers and unopened mail. A standing lamp rises disdainfully out of the boxes and bundles piled up against one wall that haven’t moved since we moved here more than a year ago and a TV set peeks out from under yet more clothes slung over its top as if it were a waiting valet. I don’t dare peek in the closet for fear of what monsters might exist in there. At one point in time, I would have thrown a fit for him allowing his living space to become such a danger zone but over the years I have determined that I have other things to spend my energy on. He is uncomfortable in his room but I am allowing him to discover on his own the joy and the relaxation available when one can simply rest in their own quiet, private, clean space – something not at all possible in the room’s current state forcing him to frequently invade his cleaner sister’s room or vacate the house altogether in order to find a place to relax. As long as he keeps his door closed so none of his disaster spills into the rest of the house and he avoids destroying the rest of the house as he has his room, I try to stay out of his business. He had an entire childhood of having to keep his room clean; now that he’s a teenager, it’s time for him to choose when he wants to actually grow up and take care of his

Postmodernism and Metanarratives Essay Example | Topics and Well Written Essays - 1500 words

Postmodernism and Metanarratives - Essay Example The essay "Postmodernism and Metanarratives" states the postmodernism and discovers our liberation from metanarratives. In the department of American philosophy, postmodernism approach is little accepted to knowledge and truth. A metanarrative is an idea that people think it’s a comprehensive explanation of knowledge or historical experience. It is a global cultural narrative schema that explains and orders experience and knowledge. As used, Meta means â€Å"about â€Å"while a narrative is a story that is built in a fashion that is sequential. A metanarrative is therefore a story that explains a story encompassing other small stories within schemes that are totalizing. This notion, that reality is community oriented, also appeals to very few Christian theologians. Because there is no any universality accepted postmodern philosophy, but there are many, there are few consistent themes that happen to emerge from every mainstream postmodern writer. The many issues surrounding p ostmodernism today leaves us asking ourselves if we have been liberated from metanarratives and if we should be. The main theme of postmodern philosophy is that it denies the objective truth, which is universal. This is well declared in a statement that is so famous, â€Å"incredulity towards metanarrative†. A meatanarrative is a unifying story that tries to tell about the world. People should be skeptical of broad explanations like those ones. The statement, that God so loved the world is treated as nonsensical by postmodernists.

Business A formal report Law on Pollution Accounting Essay

Business A formal report Law on Pollution Accounting - Essay Example *GEO Year Book 2006. United Nations Environmental Programme. 16 Apr.2006.http://www.unep.org **Poverty Resource. World Resources Institute. 16 Apr.2006. Our minimal awareness and response have produced a number of treaties, protocols, laws and monitoring agencies. But why then the Ozone hole is expanding Why Global-Warming is increasing Why species are, increasingly, afflicted by pollution in it's various forms Let us blame it on business houses and governments. Nature, in it's myriad forms, is exploited ruthlessly for 'materialistic economic benefits'. Society is the ultimate sufferer. How to stop the further decline and start our response more effective and pronounced The answer lies in "Pollution Accounting". This is the way we should make the business houses and government agencies absolutely transparent, responsible and answerable to the common man of the society, in the matters of environment and pollution. 'Pollution Accounting' is as good as financial accounting. It reflects the activities of business in relation to environment and pollution. It records, also, the role of government and it's agencies. The 'Pollution Accounting' reflects 'liabilities' and 'assets', as how a financial accounting does. 'The liabilities' must record how the business activities degraded and polluted the environment. What are all the negative impacts on the society should also be recorded under liabilities. Any legal case, pending or over, in relation to pollution and any ongoing investigation, by government agencies, related to environmental degradation should also be recorded. The data must be provided in 'real' terms and in monetary terms also. 'The assets', in 'Pollution Accounting", must include the internal and external...This is the way we should make the business houses and government agencies absolutely transparent, responsible and answerable to the common man of the society, in the matters of environment and pollution. 'Pollution Accounting' is as good as financial accounting. It reflects the activities of business in relation to environment and pollution. It records, also, the role of government and it's agencies. should also be recorded under liabilities. Any legal case, pending or over, in relation to pollution and any ongoing investigation, by government agencies, related to environmental degradation should also be recorded. The data must be provided 'The assets', in 'Pollution Accounting", must include the internal and external activities of the business aimed at improving the environment and curtailing the pollution. It must reflect the tangible and intangible benefits of the pollution control activities. The asset side should also include any proposal, to be taken up by the business, to improve the environment. The data must be provided in 'real' as well as in monetary terms.

Charles Chesnutt Debates Washington and Du Bois Essay

Charles Chesnutt Debates Washington and Du Bois - Essay Example Washington: Of course laws are manipulated to hinder our progress and advancement. But we as blacks, in our own hunger and impatience also endeavor to regulate and manipulate perhaps too much and all at once. Nonetheless, in this social tug of war, we have already managed to strive and attain a compromise with the powers that be. Du Bois: A compromise is not enough. As Chestnutt says, the persistent funk of the matter still exists. This idea about obstructions and obstacles has already been established and understood in all of humanity; it is an absolute truth of all struggles, as in the Greek and Roman tragedies. Obstacles caused by the enemy as well as by the protagonist are inevitable in all epics and in all realities. Such 'evil' powers have always existed to obstruct the advancement of any race, of any people C: Now, beyond fairytales and myths, if we are truly emancipated should not all of society take up the responsibility of our emancipation Should not all of society, black or white, be held accountable for such manipulations of power that continue to degrade and oppress our progress W: Such responsibility and accountability take time. We as blacks have to accommodate ourselves to our newly acquired rights and we need to pacify the fears of the whites to establish a dialogue and a trust. D: Just as much as the whites have to accommodate to us ... Obstacles caused by the enemy as well as by the protagonist are inevitable in all epics and in all realities. Such 'evil' powers have always existed to obstruct the advancement of any race, of any people C: Now, beyond fairytales and myths, if we are truly emancipated should not all of society take up the responsibility of our emancipation Should not all of society, black or white, be held accountable for such manipulations of power that continue to degrade and oppress our progress W: Such responsibility and accountability take time. We as blacks have to accommodate ourselves to our newly acquired rights and we need to pacify the fears of the whites to establish a dialogue and a trust. D: Just as much as the whites have to accommodate to us being free, to us being educated, respected and held among the great intellectuals of society. We cannot humble ourselves too much or we'll be slaves again, brother. W: Yes but absolute emancipation will never happen over night. You cannot merely change white to black by adding in a completely new color which has never existed. The desired shades of grey or any color for that matter must go through their process to reach a compromise. C: Maybe you're right. We don't want white or black, we want white and black, and that is what black folks and white folks do not understand. The war is over. Perhaps it's time for an understanding- D: Well, I think what there needs to be is a sincerely desired resolution by both parties. The blacks need to establish themselves wholeheartedly and maybe even a little forcefully with their God given rights- W: Yet sensibly- D: To an extent. Whereas the whites need to earnestly acknowledge that yes, there must indeed be an acceptance of our rights and not a fear. One cannot try to outsmart

Virtual Working Teams Essay Example | Topics and Well Written Essays - 500 words - 1

Virtual Working Teams - Essay Example Peru is highly collectivist, in which decision-making is trusted and valued with group emphasis (geert-hofstede.com, 2). France is highly individualistic, valuing rewards and recognition for individual accomplishment of that of group affiliation and group-based norms (geert-hofstede.com, 2); the same is true for the United States. Egyptian protocols are highly social even in the business environment (Dunn, 1). As part of expatriate training, managers will be provided exceptional literature on cultural dimensions to assist in locating top talent for the virtual team role in each geographical region. Training will consist of literature and software scenarios based on customer relationship management principles and corporate social responsibility related to government interaction and business leadership. Training will further consist of inter-dependent group methodologies in the form of role play exercises to highlight scenario responses in a virtual environment. Skype and other streaming software will assist in this development with the HR manager in the U.S. who will observe and recommend solutions based on testing scores and expatriate management assessment. For issues of cost reduction, cloud computing will be the majority of software support. This system provides access to CRM software over the Internet with pay-per-use access (Burns, 11). This will avoid the need for a defined, individualized information technology support system. Communications between teams will occur via existing e-mail systems (i.e. Lotus Notes), streaming video, and teleconferencing. These are effective systems for real-time project communications. However, a recent study using a sample of 42 interviewed virtual team members from 26 different organizations indicated that face-to-face discussion is required in order to gain commitment and build productivity (Dube & Robey, 18). To facilitate this need, key personnel

The different between originality and plagiarism Essay

The different between originality and plagiarism - Essay Example Originality on the other hand is a different concept and it is not a wrong act as is plagiarism. It is basically the assembling of ideas and writings by an author that were already available and presented by other writers with the viewpoint of the current author. The author gives a new shape and meaning to the other thoughts and philosophies and does not basically steal the ideas of others. It is an original piece of work where the author can be credited for the writing as he only takes the understanding from previous readings but amends and writes them according to his own concept and viewpoint. According to Knoop, â€Å"Originality is defined as the identification, development, and combination of pre-existing structures and elements, mostly from literature, but also from other fields, such as philosophy, politics, or science.†(Knoop 2011). Thus, plagiarism is an act of copying the works of sources without acknowledging the true writers of the author.

Macro-Economic Convergence. Property sector growth in Prague Essay

Macro-Economic Convergence. Property sector growth in Prague - Essay Example 63). The substance of this study is based on the premise that real estate development as an aspect of economic growth depends significantly on the nature and direction of financial development. This study will seek to demonstrate that seasons of favourable financial developments have tended to correspond to with seasons of a rise in the values of residential properties in the country. The study will also seek to illustrate the fact that inflationary pressure and other financial forces on the market have a tremendous effect on the level of economic development as represented in the value of property prices in the country. The study will use illustration of the performance of property values in the country within the period of ten years. Basically, this study will be qualitative in approach. It will combine the methods of extended literature and case study approach to determine the insights of the study with particular reference on the impact of financial developments on economic growt h in the Czech Republic. Reliable and resourceful information on the financial trends in the Czech Republic will be matched to the nature of real estate development in order to establish the kind of associations between the two (Haber, North & Weingast, 2007). In order to enrich the authenticity of the study, it will be appropriate to use the most recent information for the study. Case analyses will be conducted to determine the manner in, which the financial trends in the Czech Republic impact on the aspect of economic growth (Liebscher, 2006). The trends of the values on the property markets suggest that macro-economic forces at play in the country have some significant impacts on the property development in the country. Furthermore, the study will incorporate the views of analysts in order to establish the nature of relationships that operate between the two realities. There is a sense in which the dynamics of economic growth and the trends in the interest rates affect the level of property development in the Czech Republic (Ranciere & Loayza, 2005). Generally, the study will seek to demonstrate the fact that the nature of growth and the levels of stability of the markets determine economic processes. Past and recent case analyses, economic development studies, media reports and other multiple sources have shown compelling proof of a boom in the residential property sector in the space of time of a decade in Czech Republic (Ranciere & Loayza, 2005). Various explanations from different sources have offered a range of explanations behind this development. In the opinion of analysts and industry experts, the phenomenal growth of the residential property sub-sector has impacted significantly on the property values in the country. The various sources are in concurrence with the fact that Prague remains the focal point of residential property development in the country. Few studies have attempted to determine the exact impact of the phenomenal growth in the resid ential property sub-sector on the value of properties in Prague (Ranciere & Loayza, 2005). However, a review of select cases indicates a consistent growth in the value of residential property prices over the past five years. Analyses of various cases have shown up to 500 percent increase in the value of residential properties in a span of a few years (Florio, 2011, p. 78). Whereas some analysts predict a consistent pattern of value increment in Prague’s property sector, others remain pessimistic expressing fears and doubts over the sustainability of the current value growth rates. Those who project a decline in the value

Internal policies and procedures Essay Example for Free

Internal policies and procedures Essay Technology is a significant facet of district operations. Technology affects performance through enabling the citizens to access as well as analyze information, resolve problems, work in partnership with others, and successfully communicate their thoughts and information. People make use of technology as an instrument to support in administrative duties. Technology in information systems is needed to provide appropriate information to efficiently manage the district’s assets and make knowledgeable decisions. Only copyrighted materials are put through restrictions within a Policy Statement. Materials that are not copyrighted may be copied unreservedly and without limit. Copyrighted software and patented hardware may be copied devoid of copyright owner’s consent only in proportion to the Copyright Act that permits making an archival back-up duplicate. However, most software is licensed to a user and the terms of a license agreement may provide the user consent to create copies of the software beyond the archival copy allowed by the Copyright Act. Software license agreements and patented hardware are unique and consequently, the rights of the user to copy licensed software further than that endorsed under the Copyright Act may simply be verified by means of reading the user’s license agreement (Wesier, 77). Any reproduction or copying of copyrighted software on a system or constituent computing equipment must be in line with the Copyright Act and the related software license conformity. Educational institutions may not utilize unauthorized copies of software on system or component institution-owned networks or computers housed in a system or component institution facilities. In view of the fact that software companies are worried by the soaring rate of plagiarism and piracy of their programs, studies for probable violations can be anticipated. While software corporations may not possibly find it lucrative to file suit against an individual for violation, it definitely would not be reserved from filing suit against Universities. Additionally, companies may need to convey suits against people to put off future impending pirates. Software companies could also proscribe University’s use of their software packages. Consequently, University employees who make use of these software materials have a responsibility to avert use of copyrighted materials and to utilize the software barely in accordance with licensing agreements. EVALUATION OF CURRENT POLICIES AND PROCEDURES OF ALACHUA COUNTY The Alachua County has cost-efficiently purchased new technology, maintains a reliable technology infrastructure given obtainable resources, have instituted policies and moral standards for using technology, and has good controls to guarantee appropriate access and make use of the district’s information systems. In 2001, the district’s technology departments were pooled into one inclusive department Administrative and Instructional Technology Department. The amalgamation took place when the directors comprehended that both departments had overlying duties as well as consolidation into one department would augment overall effectiveness. To utilize the remaining best practice principles and guarantee the performance, competence, and efficacy of its softwares and hardwares, the district have to regularly modernize and monitor its technology arrangement, make the training processes official related to technology, regulate budget allowances within obtainable funding, utilize the work order structure to develop the delivery of support, develop the use of technology to progress communications, and institute procedures for analyzing technology services and purchases. Along with the district’s District Technology Plan (2001-2006), the Alachua County currently make use of computers for instruction in general areas: schools curriculum support, technology literacy, as well as communication. All districts have computer committees that provide direction for the function of technology within the instructional procedure and the acquisition of hardware/software. Every district selects and purchases its computer software in accordance with its needs. The constituency sets common direction and provides supervision to guarantee the quality and compatibility of instructional materials. The Technology and Information Services Department supervises technology in Alachua County schools, counting central processing unit and support of services, finance, human resources, and facilities functions. In that structure, the department addresses all issues related to both instructional and technology administrative, as well as the local area networks at each school and district. The staffs support other areas of technology at schools and districts, and assists in using technology. However, the county’s technology plan does not provide sufficient direction for instructional and administrative technology decision-making. Planning is the means to a well-delivered and well-implemented information system. Efficient planning helps guarantee that district information system meets the instructional needs of the people and the administrative needs of decision makers, including schools, hospitals and other organizations and agencies. An effectual planning procedure identifies the technology necessities of users, develops strategies to obtain needed technology in a lucrative manner, and identifies accessible funds required for acquisitions. To ensure that all critical needs are identified, the planning process should comprise an extensive range of stakeholder participation. The decisions made throughout the planning process must be in writing and the resulting plan has to guide technology-related policymaking as well as acquisitions.

Evolution of Substrate Integrated Waveguide (SIW)

Evolution of Substrate Integrated Waveguide (SIW)  ­Ã‚ ­EVOLUTION OF SUBSTRATE INTEGRATED WAVEGUIDE STRUCTURES: AN OVERVIEW , and Abstract — Substrate integrated waveguide(SIW) is the most captivating technology for easy integration onto planar substrates for millimeter wave components and systems for the next decade. This guide is synthesized on the substrate with arrays of metallic posts retaining the low loss advantage of conventional rectangular waveguides. In this paper, various evolving structures of SIW which had been implemented for various practical applications like filters, couplers, antennas etc are reviewed and some ongoing projects based on this technology are also presented. Index Terms —  Filters, couplers, substrate integrated waveguide (SIW) INTRODUCTION Metallic waveguides are preferred over traditional transmission lines like coaxial cables wherein high losses are accounted, namely, copper losses and dielectric losses [1]. Metallic waveguides inherit the advantage of high power handling capability and high Q-factor [2]. In spite of its aforementioned advantages, it is not yet a very promising technology because of its bulky and non planar nature [3]. Slot like planar printed transmission lines are next to metallic waveguides used in microwave integrated circuits (MICs). These were planar in nature but not suitable at smaller frequencies due to its transmission losses [4].      To bridge the gap, SIW is introduced, a very promising waveguide structure which maintains the advantages of a rectangular waveguide, such as high Q-factor and high power handling capability in planar form [5-7]. Basically in SIW, two parallel metallic layers of substrate are connected via metallic posts introducing structure similar to common metallic waveguides. Generically, the substrate integrated waveguides (SIW) are known as substrate integrated circuits (SICs) [8]. SIW is the most popular topology among others family members of SICs because the design techniques of rectangular waveguide can be applied directly to this topology. The SIW technology has been implemented with millimeter and microwave components as it is suitable for high frequency range because of its accounted leakage losses at low frequency. They can be directly connected to planar circuits, namely, micro strip line and coplanar waveguides (CPW), allowing for easy integration of active circuits thus making it su itable for mass production . In this paper, evolutions of SIW structures are studied and different application of SIW technology are presented, and some ongoing projects are discussed later. EVOLUTION OF SIW STRUCTURE At millimeter wave frequency, electromagnetic coupling between building blocks of antenna makes designing a very critical issue. To provide great deal of flexibility for designing of components, concept of SICs is introduced. SIW, which are synthesized on planar substrate in which metallic posts are perforated in the embedded substrate using printed circuit board technology shown in fig.1. [9] Fig.1. Substrate Integrated Waveguide The steady and constant rise of wireless user has fuelled an increase in wireless applications. For the fulfillment of increasing day to day needs of communication, various evolving structures of SIW are proposed. Substrate integrated slab waveguide (SISW), a new variant in the SIW toolkit is hereby introduced [10]. The structure offers an increase in bandwidth by adding air holes into an SIW mainly for wideband microwave applications. Compared to rectangular waveguides, a size reduction of is achieved with SIW. Unfortunately, SIW are still large (compared to their micro strip counterparts) for various practical applications and hence substrate integrated folded waveguide (SIFW) is proposed [11]. In SIFW size reduction of (9) is achieved by using dual layer substrate but its losses are increased. Also there are half mode substrate integrated waveguides (HMSIW) [12] which increases the bandwidth and can also have a reduced size while maintaining the advantages of SIW. Recently after HMSIW, folded half wave substrate integrated waveguide (FHMSIW) is proposed but there are complexity issues which needs to be solved [13].For effective utilization of waveguide channel, hybrid SIW is proposed in which waveguide channel usage is maximized by routing a strip line inside the substrate [14]. Novel class of bandwidth enhancing structures are proposed, namely ridged substrate integrated waveguide (RSIW) [15] shown in Fig.3 and ridged substrate integrated slab waveguide (RSISW) [16].In former structure, side walls of top and bottom metal layers are connected by full height metallic posts and central row of partial heighted metallic posts are connected at their bottom by a metal strip. The latter structure is having the similar geometry of RSIW but additional air holes are included to further increase the bandwidth. Also there are unpopular structures like honeycomb substrate integrated waveguide (HCSIW) and folded corrugated substrate integrated waveguide (FCSIW). HCSIW cr eates partially low dielectric region by drilling air filled posts vertically [17] and FCSIW is used for back lobe suppression [18]. For two different modes of propagation, switchable substrate integrated waveguide (SSIW) (via the biasing of pin diode switch) is introduced [19]. Another variant of HMSIW is rotated HMSIW, to improve the manufacturing tolerances by enabling direct interaction with wave energy at central point which is not feasible for the structures discussed earlier[20]. Recently, Butterfly substrate integrated waveguide; another variant has been added to the SIW toolkit for better gain and low side lobe levels. [21]. Latest variant added to the SIW toolkit is empty SIW (ESIW). This structure eliminates the disadvantages of dielectric substrate by replacing it by novel empty substrate (air filled) while maintaining the advantage of complete integration in planar substrate [22]. Outlines of important configurations of SIW are shown in fig.2. [11], fig.3.[15] and fig.4 [21]. Fig.2. SIW Main Variants Fig.3.RSIW Structure Fig.4.Butterfly substrate integrated waveguide FUTURE TRENDS IN SIW SIW, a very promising technology has been implemented for many practical applications like SIW based shifters, oscillators, resonators, filters, power dividers, diplexers, mixer, antennas and many more [23-30]. Currently there were many ongoing projects in progress based on SIW technology. A very few have been mentioned here in this paper. Efficient synthesis and design of reconfigurable micro electro mechanical systems (MEMS) based band pass filter (BPF) in SIW technology [31] is one of the ongoing projects. This project is focused on the development of novel microwave and millimeter wave fully reconfigurable BPF on SIW so that advantages of miniaturization, easy integration onto planar substrates, low losses, high power handling can be achieved. This project tries to combine the advantages of novel comb line SIW resonators with the enhanced characteristics of MEMS varactors to tune the response of coupled resonator filters. These filters are key components of emerging RF front ends for future telecommunication systems. SOSRAD-77GHz SIW system on substrates (SOS) radar front end is the other ongoing project based on SIW [32]. The aim of the project is to establish SIW technology as the leading high performance platform to encompass all available technologies within a common substrate at mm-wave frequencies. Some of the completed projects on SIW technology are stated; integrated focusing systems in SIW technology: full wave modeling and optimization [33] and Design and development of SIW based RF circuits and components using metamaterials in ku-band application [34]. REFERENCES [1] Dominic Deslandes, â€Å"Design considerations for tapered micro strip to substrate integrated waveguide transitions,† IEEE Trans. Microwave Theory Tech., vol. 46, no.5, pp.625-630, May 1998. [2] N. Ranjkesh and M. Shahabadi, †LOSS MECHANISMS IN SIW AND MSIW,† Progress in Electromagnetics Research B, Vol. 4, 299–309, 2008. [3] Li Yan, Wei Hong Guang Hua, Jixin Chen, Ke Wu and Tie Jun Cui, â€Å"Simulation and Experiments on SIW Slot array antennas,† IEEE Microwave and wireless components letters, vol. 14, no. 9, September 2004. [4]  Futoshi Kuroki and Ryo-ji Tamarulow, â€Å"Low-loss and Low-cost solution for printed Transmission Lines at Millimeter-wavelengths by using Bilaterally Metal-loaded Tri-plate,† Microwave Symposium Digest, 2009. MTT’09, IEEE MTT-S International. [5]  Dominic Deslandes and Ke Wu, â€Å"Integrated Micro strip and rectangular waveguide in planar form,† IEEE Microwave and wireless components letters, vol. 11, no. 2, February 2001. [6]  Uchimura, H.; Takenoshita, T.; Fujii , M., â€Å"Development of the laminated waveguide,† Microwave Symposium Digest, 1998 IEEE MTT-S International, vol. 3. [7]  a, J.; Ando, M, â€Å"Single layer waveguide consisting of posts for plane TEM wave excitation in parallel plates,† IEEE Transactions on Antennas and Propagation, vol. 46, no.5, may 1998. [8] a Wu, Dominic Deslandes and Yves Cassivia, â€Å"The Substrate Integrated Circuits-A new concept for high-frequency electronics and optoelectronics,† 6th international conference on Telecommunications in Modern Satellite, cable and Broadcasting Service, 2003, vol. 1. [9] M. Bozzi, L. Perregrini, K. Wu, and P. Arcioni, â€Å"Current and future research trends in substrate integrated waveguide technology,†Radioengineering, vol. 18, no. 2, pp. 201–209, 2009. [10] Deslandes, D.; Bozzi, M.; Arcioni, P.; Kea Wu, â€Å"Substrate integrated slab waveguide (SISW) for wideband microwave applications,† Microwave Symposium Digest, 2003IEEE MTT-S International, vol. 2, pp. 1103-1106. [11] Nikolaos Grigoropoulos, Benito Sanz-Izquierdo and Paul R. Young. â€Å"Substrate Integrated Folded Waveguides (SIFW) and Filters,† IEEE Microwave and Wireless Components letters, vol.15, no. 12, December 2005. [12] W. Hong, B Liu, Y. Wang; Q. Lai, H. Tang, X. X. Yin. D. Dong, Y. Zhang, and K. Wu, â€Å"Half Mode Substrate Integrated Waveguide: A new guided wave structure for microwave and millimeter wave applications,† in Proc. Joint 31st Int. conf. Infr. Millim. Waves, Sept. 18-22, 2006, pp. 219-219. [13] W. Wang, Yuan Jiang, W. J. Zou, R. J. Luo, X. Q. Lin, â€Å"A varactor-loaded tunable phase shifter based on folded half mode substrate integrated waveguides,† in Proc. International Symposium on Antenna, Propagation EM Theory(ISAPE)Oct. 22-26,2012 pp. 558-561. [14]  Suntives, A.;Abhari, R, Experimentalevaluationof ahybridsubstrate integrated waveguide, Antennas and Propagation Society International Symposium, 2008. AP-S 2008. IEEE, pp.1-4. [15]  Cuixia Li,;Wenquan Che;Russer, P.,Propogation and Band Broadening Effect of Planar Ridged Substrate-integrated Waveguide(RSIW), Microwave and Millimeter Wave Technology, 2008. ICMMT 2008.InternationalConference,vol. 2,pp.467-470. [16] M. Bozzi, S. A. Winkler, and K. Wu, â€Å"Broadband and compact ridge substrate integrated waveguides,† IET Microw. Antennas Propag., vol.4, no. 11, pp. 1965–1973, 2010. [17] H. Ikeuchi, I. Ohta, M. Kishihara, and T. Kawai, â€Å"Honeycomb substrate integrated waveguide (HCSIW) and its application to design of SIW right-angle corner,† Proc. 42nd European Microwave Conf., pp. 112-115, Oct. 2012. [18] Daekeun Cho; Hai-young Lee,Folded Corrugated SIW(FCSIW) Slot Antenna for Backlobe Suppression, Antennas and wireless propagation Letters,IEEE, vol.2,2013. [19] R. F. Xu; B. S. Izquierdo; and P. R. Young, â€Å"Switchable substrate integrated waveguide,† IEEE Microw. Wireless Compon. Lett., vol. 21,no.4, pp. 194–196, Apr. 2011. [20] Farrall, A..J. ; Young, P.R,Rotated Half-Mode Substrate Integrated Waveguide, Antennas and Propagation Conference(LPAC),2013, pp.514-517. [21] Mohtashami, Y. ; Rashed-Mohassel, J,A Butterfly Substrate Integrated Waveguide Leaky-Wave Antenna,IEEE Transactions on Antenna and Propagation, 2014, vol. 62, pp.3384-3388. [22] A. Belenguer, H. Esteban, V.E. Boria,Novel Empty Substrate Integrated Waveguide for High-Performance Microwave Integrated Circuits,IEEE Transactions on Microwave Theory and Techniques, April 2014, vol. 62, pp. 832-839. [23] W. Che, E. Yung, and K. Wu, â€Å"Millimeter-wave ferrite phase shifter in substrate integrated waveguide (SIW),† in IEEE Int. AP-S Symp. Dig.,Jun. 2003, pp. 887–890. [24] Y. Cassivi and K. Wu, â€Å"Low cost microwave oscillator using substrate integrated waveguide,† IEEE Microw. Wireless Compon. Lett., vol. 13,no. 2, pp. 48–50, Feb. 2003. [25] Y. Cassivi, L. Perregrini, K. Wu, and G. Conciauro, â€Å"Low-cost and high-Q millimeter-wave resonator using substrate integrated waveguide technique,† in Proc. Eur. Microw. Conf., Milan, Italy, Sep. 2002, pp. 1–4. [26] D. Deslandes and K. Wu, â€Å"Millimeter-wave substrate integrated waveguide filters,† in Proc. IEEE Elect. Comput. Eng. Conf., May 2003, vol. 3, pp. 1917–1920. [27] S. Germain, D. Deslandes, and K. Wu, â€Å"Development of substrate integrated waveguide power dividers,† in Proc. IEEE Can. Conf. Elect.  Comput. Eng., May 2003, vol. 3, pp. 1921–1924. [28] Z. Hao, W. Hong, J. Chen, X. Chen, and K. Wu, â€Å"Planar diplexer for microwave integrated circuits,† Proc. IEEE Microw. Antennas Propagat. Conf., vol. 152, no. 6, pp. 455–459, Dec. 2005 [29] J. Xu and K. Wu A sub harmonic self-oscillating mixer using substrate integrated waveguide cavity for millimeter-wave application,IEEE MTT-S Int. Microwave Symp. Dig., pp.2019 -1022 2005. [30] W. Hong, â€Å"Development of microwave antennas, components and subsystems based on SIW technology,† in Proc. IEEE Microw., Antenna, Propag. and Electromagn. Conf., Beijing, China, Aug. 8–12, 2005, pp.P-14–P-17 [31] Efficient synthesis and designs of reconfigurable microelectromechanical systems based band pass filter in substrate integrated waveguide technology , cordis .europa . eu / project / rcn / 704581_en.html. [32] SOSRAD-77 GHz substrate integrated waveguide(SIW) system on substrate (SOS) radar front-end, http://www.cttc.es/project/77-ghz-substrate-integrated-waveguide-siw system on substrate-sos-radar-front-end/. [33] Integrated focusing systems in substrate integrated waveguide technology: full wave modeling and optimization, http://www.esf-newfocus.org/achievements_projects.html. [34] Design and development of SIW based RF circuits and components using metamaterials in ku-band application, www.becs.ac.in/project-etc-submenu.

Brave New World Theme Analysis Essay -- essays research papers

"'God isn't compatible with machinery and scientific medicine and universal happiness.'" So says Mustapha Mond, the World Controller for Western Europe in Aldous Huxley's novel Brave New World. In doing so, he highlights a major theme in this story of a Utopian society. Although the people in this modernized world enjoy no disease, effects of old age, war, poverty, social unrest, or any other infirmities or discomforts, Huxley asks 'is the price they pay really worth the benefits?' This novel shows that when you must give up religion, high art, true science, and other foundations of modern life in place of a sort of unending happiness, it is not worth the sacrifice. True, the citizens of this "brave new world" do enjoy many refinements and benefits to life. Lenina shows one thing they enjoy when on the reservation she sees an old Indian man and reacts with, "'What's the matter with him?'†¦ 'He's old, that's all,'†¦ 'But the Director's old; lots of people are old; they're not like that.'" (Huxley 110) Evidently Utopia has succeeded in eliminating the effects of old age. Being able to live one's entire life youthful certainly would be wonderful. It is not a thrilling prospect to grow weaker with age, gradually having your sense's perceptiveness fade, so most anyone would prefer this 'unimpaired youth.' There are other things which also make life easier, pointed out by Mustapha Mond talking to John the Savage, "'But there aren't any wars nowadays†¦There's no such thing as a divided allegiance; you're so conditioned that you can't help doing what you ought to do. And what you ought to do is on the whole s o pleasant, so many of the natural impulses are allowed free play, that there really aren't any temptations to resist. And if ever, by some unlucky chance, anything unpleasant should somehow happen, why, there's always soma to give you a holiday from the facts,'" (Huxley 243, 244). The people are never unhappy, there is nothing in society to bring about strong emotions, and any desires they have are almost immediately fulfilled. If anything is wrong, the people can take soma, a drug that makes you happy and high and has no adverse affects. One might be led to believe that this society is a perfect place to live, since all the inhabitants are eternally happy. The... .... The Savage could see that it was nothing but valueless vice, and when he accidentally succumbs to that which he so detested, he commits suicide after waking from his 'soma holiday.' Aldous Huxley is also sending us many warning messages with his novel. If we spend too much of our lives pursuing happiness through physical fulfillment, we will miss out on what is truly important, our relationships with other people and with God. He is also telling us to be careful with our science, or we may end up like the Utopians, mass producing identical citizens, then brainwashing them to think alike, and to think exactly what the government mandates. Huxley tells us not to cheapen sex through promiscuity, because it is supposed to be something to express a deep and undying love to someone, not a simple carnal pleasure. These were just some of the mistakes the Utopians made, all of which contributed to their lives being shallow and meaningless. They were not truly happy, because they misplac ed their values and failed to see what brings true joy and peace in one's life. The apparent blissfulness in which they lived turned out to be nothing, their Utopia was not worth the high price they paid.

Self Discovey in King Lear Essay -- History, Renaissance, Galileo, Cat

Throughout recorded history, humans have deemed themselves superior to all other living creatures. The Bible, arguably the most influential work of literature extant, demonstrates human superiority in the excerpt, "Let us make man in our image...let them rule over the flesh of the sea and the birds of the air, over all the earth." This notion of superiority was especially evident during the Renaissance, a period categorized by the rebirth of thinking and knowledge. The Renaissance, which lasted from about 1300 to 1600, brought advances in science that clashed with traditional viewpoints on life and the universe. Galileo Galilei, an Italian physicist, mathematician, and astronomer, with evidence from Copernicus' works, proposed a heliocentric model of the universe; that is, a model in which the planets revolve around the sun. The Catholic Church opposed Galileo's ideas, claiming that Bible verses placed the earth at the center of the galaxy; this further supports the notion of human eminence. Galileo was placed on trail in 1633 for heresy and imprisoned for the remainder of his life. Galileo's imprisonment demonstrates the stronghold the church had on society, even during the Renaissance. Equanimity, compliance, and human superiority were tenets supported by the Catholic Church; dissent and individualism were not. Renaissance authors, such as William Shakespeare, seemed to protest human superiority and Stoicism. In King Lear, one of Shakespeare's especially famous works, the main character from which the play gains its namesake embarks on an emotional journey of self-discovery. The play commences with Lear, the reigning King of England, preparing to divide his kingdom. Lear has three daughters: Regan, Goneril, ... ... 39-year old man from California, slaughtered his family in an attempt to receive a sizable inheritance. Lyle and Erik Menendez, also from California, ended the lives of their parents in pursuit of an upper-class lifestyle. These individuals valued money over familial ties; King Lear originally valued power and compliance over his own blood. The self-discovery of King Lear exemplifies the fact that humans are far more valuable than money or power in attempt to set an example for humanity. These lessons still ring true in more modern times; famed psychiatrist Sigmund Freud warned against accepting flattery as genuine and giving away one's possessions during his or her lifetime. Lear's self-discovery came too late to save his daughters; the play seems to encourage humanity to have its own self-discovery before it disavows its Cordelias in the pursuit of niceties.

Reward and Punishment

In America we all live by laws, codes, and rules that have been put in place before we were even born. With each law and rule there is also a causal effect if we do not properly follow them. For instance, we know that if you kill someone, there will be negative consequences. Also, if we excel in our career, we will be rewarded appropriately. Justice and fairness are issues that we all strive to achieve. The concept of good and bad in regards to justice and fairness ties into our reward and punishment systems. Let’s take a look at how each of these is used in America.First we have reward. â€Å"Reward is one method of distributing on a fair and just basis the good we are concerned with† (Thiroux, and Krasemann 122). Reward is very desirable in many people eyes. We have the need to be rewarded for our efforts, whether it is at work or at home. There are two major theories that deal with how reward should be distributed which are retributivist and utilitarian. Retributivis t, or deserts theory rewards based on what people deserve for what they have done in the past, not for what the consequences for what they have done will be.Rewarding based on one’s efforts is the main focus. According to the retributivist theory, if two people are enrolled in the same Ethics class and put in the same effort, they should end up with the same grade. This would seem to be unfair to many people. The example alone is one of the major issues regarding retributivist theory. There is no incentive for a person to produce a higher quality of work or seek a dangerous occupation. Utilitarian theory is based upon good consequences for everyone affected by acts or rules (Thiroux, and Krasemann 129).The emphasis is on the future and the rewards should be given only when someone is seeking to bring good consequences to everyone. The idea is to give someone an incentive to do better or work harder (Thiroux, and Krasemann 129). This theory also believes in rewarding people fo r working in dangerous or unpleasant occupations because it ultimately brings about the greater good for everyone involved. One problem of this theory is that the rewards are based on production and not hard work. In America I believe that we tend to use a combination of both retributive and utilitarian.Each theory has aspects to them that sound similar to the way some people are evaluated for rewards. While there are no hard fast rules as to how we should distribute rewards, everyone can agree that it should be done in the fairest method possible. The four basic ways that goods or rewards can be distributed are equally among all without merit, a person’s abilities, merit, and needs. The combination of criteria is specific to the situation for which we are basing the reward upon. For example, we distribute goods out based on needs. Think of a homeless person and what their needs might be; shelter, food, water, just to name a few.There are many local homeless shelters and soup kitchens that help meet these needs. Someone that is not homeless might argue that it isn’t fair that they would not be allowed to sleep in the shelter or eat at the soup kitchen, but if we think about the criteria for distributing goods, this person does not have the same need as a homeless person does. If the person disregards the need of others over his based on selfishness, the result could be in the form of punishment. Punishment is defined as â€Å"the infliction of some kind of pain or loss upon a person for a misdeed (i. e. , the transgression of a law or command).Punishment may take forms ranging from capital punishment, forced labor, imprisonment and fines (Encyclopedia Britannica). There are three different theories regarding how punishment should be distributed. The retributive theory states that punishment should be given only when it is deserved and the severity should match the extent of the crime. It is only concerned with the past and is given to deter futu re offensive behavior. Punishment is given to restore order within a society. A view of retributivism can be found in a saying in the Old Testament, â€Å"an eye for an eye and a tooth for a tooth† (Thiroux, and Krasemann 135).Retributive justice attempts to ensure that the punishment fits the crime so if you have committed a murder, you are put into prison for longer than if you have stolen a car. Another view is that of the utilitarian theory and it is focused on the future rather than the past. Punishment is not given because a crime, but given so that something good could result. An example would be instilling shame in a person if they did something that we feel is wrong. Lastly, we have the restitution theory. Restitution is provided to victims by those that committed the crimes.This could be accomplished easily when dealing with a crime like theft. According to restitution, if we give back the item that was stolen, justice would be achieved. When thinking about how Amer ica approaches punishment, I believe that we again use a combination of theories. The United States, we have been focused on retribution mainly because of the idea of â€Å"an eye for an eye, a tooth for a tooth†¦Ã¢â‚¬  which has been influential for thousands of years and used in ancient law (Encyclopedia Britannica). This focus on retribution has made the United States demand retaliation against criminals.This can clearly be demonstrated with the terrorist attacks of 9-11. The use of shame is also used a lot and I usually see it in younger children as a tactic to teach the child right from wrong. Restitution is also commonly used when the punishment can be easily resolved with this method. There will always be controversy over the effectiveness of how we reward and punish people in our society. The best we can hope for is that everyone tries to conduct themselves in the highest morals possible and in the event that punishment must be given it is done so in the fairest way p ossible.Punishment is necessary because it can also give a sense of closure and helps victims move on with their lives.Bibliography â€Å"Punishment. † Encyclopedia Britannica. Encyclopedia Britannica Online. Encyclopedia Britannica, 2010. Web. 15 Oct. 2010 http://original. search. eb. com. bloomington. libproxy. ivytech. edu. allstate. libproxy. ivytech. edu/eb/article-272347. Thiroux, Jacques, and Keith Krasemann. Ethics Theory and Practice. 10th. Upper Saddle River, NJ: Prentice Hall, 2009. 122. Print.

Pepsi Cola

9-801-458 REV. OCTOBER 24, 2008 CARLISS Y. BALDWIN LEONID SOUDAKOV PepsiCo's Bid for Quaker Oats (A) Introduction By the end of 1999, following a multi-year restructuring effort, PepsiCo had once again become one of the most successful consumer products companies in the world. In less than four years, it had achieved an 80% increase in net income, on 30% lower sales, and with 75% fewer employees. Exhibits 1 through 3 contain the company’s recent financial statements. PepsiCo’s major subsidiaries were the Pepsi-Cola Company, which was the world’s second largest refreshment beverage company, Frito-Lay, Inc. the world’s largest manufacturer and distributor of snack chips, and Tropicana Products, the largest marketer of branded juices. PepsiCo’s leading brands included carbonated soft drinks (Pepsi, Diet Pepsi and Mountain Dew), AquaFina bottled water, Tropicana juices and juice-based drinks, Lipton tea-based beverages and Frappucino ice coffee, as well as Fritos and Doritos corn chips, Lay’s and Ruffles potato chips, and Rold Gold pretzels. Throughout 1999, PepsiCo was closely tracking several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived.At this time, PepsiCo management decided to initiate confidential discussions with The Quaker Oats Company about a potential business combination. Gatorade, a key brand in Quaker’s portfolio, had long been on PepsiCo’s wish list. On October 5, 2000, an investment-banking team from Merrill Lynch met with the top executives of PepsiCo to discuss a possible business combination between PepsiCo and Quaker. The goals of the meeting were: †¢ to assess the value of Quaker’s businesses; to estimate potential synergies associated with a Pepsi-Quaker merger; and to come up with an effective negotiation strategy. †¢ PepsiCo executives were confident that Quaker’s beverage a nd snack food businesses could contribute to Pepsi’s profitable growth in convenience foods and beverages. However, PepsiCo’s managers, led by CEO Roger Enrico and CFO Indra Nooyi, were committed to upholding the value of PepsiCo’s shares, and as a result, they were determined not to pay too much for Quaker. ________________________________________________________________________________________________________________ Leonid Soudakov (MBA ‘01) prepared this case from published sources under the supervision of Professor Carliss Y.Baldwin. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2001, 2002, 2008 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to htt p://www. hbsp. harvard. edu.No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 801-458 PepsiCo’s Bid for Quaker Oats (A) PepsiCo’s Origins and History In the summer of 1898 Caleb D. Bradham, a young pharmacist from North Carolina, looked for a name that would better describe the â€Å"Brad’s Drink,† his concoction of carbonated water, sugar, vanilla and kola nuts.He decided to buy the name â€Å"Pep Kola† from the local competitor, which he later changed to Pepsi-Cola, maintaining that the beverage aided in curing dyspepsia, or indigestion. In 1902, Bradham applied for federal trademark protection and founded the first Pepsi-Cola Company. As a result of Bradham’s gambling on the post-World War I price of sugar, the company wen t bankrupt in 1923, and its assets were sold for $30,000. It was reorganized as the National Pepsi-Cola Company in 1928, only to go bankrupt again three years later. Emerging from bankruptcy with new owners, the company’s fortunes changed uddenly in 1934. That year, in the middle of the Great Depression, it introduced a 12-ounce bottle of Pepsi Cola for â€Å"just a nickel. † Its sales soared, and the Pepsi-Cola Company embarked on six decades of sustained and profitable growth. In 1965, the company merged with the Texas-based snack manufacturer, Frito-Lay, Inc. In 1970, its total food and beverage sales passed the $1 billion mark. The major products in its portfolio at this time were Pepsi-Cola, Diet Pepsi and Mountain Dew beverages, plus Fritos, Lay’s, Ruffles, Doritos, Cheetos, and Rold Gold snacks.The company, now called PepsiCo, continued to grow through the 1970s and 1980s. During this period, it used acquisitions to diversify out of its profitable, but re latively slow-growth beverage and snack businesses, acquiring North American Van Lines, a trucking company, in 1968; Wilson Sporting Goods in 1970; Pizza Hut restaurants in 1977; and the Taco Bell fast food chain in 1978. In 1984, PepsiCo was restructured to focus on soft drinks, snacks and restaurants, and the transportation and sporting goods businesses were sold.To strengthen its restaurant division, PepsiCo acquired Kentucky Fried Chicken in 1986; purchased an equity interest in California Pizza Kitchen in 1992; and acquired East Side Mario’s Restaurants and D’Angelo Sandwich Shops a year later. By 1995, PepsiCo sales had reached $30 billion, and it had 470,000 employees worldwide. It was the world’s third largest employer. Restructuring in the Mid-1990s In the mid-1990s, PepsiCo began to encounter severe problems in its international bottling operations and in its restaurant division.In August of 1996, PepsiCo’s long-time archrival, The CocaCola Comp any, bought Pepsi’s largest Venezuelan bottler, and PepsiCo was left with no presence in that market practically overnight. In Brazil and Argentina, a bottler jointly owned by PepsiCo and local investors, came close to bankruptcy. The bottler’s debts were converted into equity, a move that essentially eradicated Pepsi’s claim: PepsiCo reported a one-time loss of $576 million as a result of this restructuring. Simultaneously, the company suffered volume and profit declines in its restaurant businesses.Between 1988 to 1994, PepsiCo had invested close to $7 billion to acquire thousands of fast food and casual dining outlets. But the operational complexity of these businesses was a tax on PepsiCo’s management. Moreover, because of their capital intensity, even profitable restaurant chains could not maintain high returns on invested capital without commensurately high levels of debt. Finally, PepsiCo’s beverage sales to other restaurant chains suffered because of the company’s dual role as a beverage supplier and a major competitor through its own fast food chains. 2PepsiCo’s Bid for Quaker Oats (A) 801-458 In April 1996, Roger Enrico, formerly the head of the Frito-Lay division, became the CEO of PepsiCo. He acknowledged that the company had invested â€Å"too much money too fast, trying to achieve heroic overnight success where, in retrospect, the odds were tougher that they seemed. †1 In the restaurant division, Enrico’s team began by divesting PepsiCo’s restaurant supply and distribution company and the smaller casual dining businesses. Simultaneously, the company announced plans to spin off its core restaurant businesses into a separate company.In 1997, PepsiCo combined its three restaurant businesses, Pizza Hut, KFC and Taco Bell, into a new corporate entity, Tricon Global Restaurants. PepsiCo received $4. 5 billion in cash from Tricon as repayment of certain amounts due and a dividend; Tri con’s shares were then distributed to PepsiCo’s shareholders, and simultaneously listed on the NYSE. These moves created a new public company, with $10 billion in sales and a market capitalization of $4. 5 billion. Altogether, the divestitures of the restaurant businesses brought $5. 5 billion of cash proceeds to PepsiCo.At the same time, PepsiCo’s managers embarked on a major restructuring of the international beverage division. The goals of the program were to lower fixed costs, write down underperforming assets, and divest noncore businesses. Following the lead of Coca-Cola, the company consolidated its previously dispersed bottling operations into the hands of a few large, well capitalized â€Å"anchor† bottlers, who were focused solely on manufacturing, selling and distributing Pepsi’s line of beverages. The new bottlers were designed to be counterweights to large retailers, like Wal-Mart and Carrefour, in the rapidly consolidating retail mark etplace.Thus in 1998 PepsiCo created the Pepsi Bottling Group (PBG) with $7 billion in sales, and bottling operations in countries ranging from the United States to Russia. This move separated the bottling and concentrate parts of the business, and allocated responsibility for building operational efficiency to the bottling companies. Retaining a 35% noncontrolling interest, PepsiCo sold 65% of PBG’s equity in an initial public offering in 1999. The sale brought $1 billion in cash onto Pepsi’s balance sheet, and led to a significant reduction in the company’s asset base.Signaling management’s confidence in the new corporate strategy, PepsiCo used the cash generated by the restaurant and bottling divestitures to launch a share repurchase program. It bought back 54 million shares in 1996, 69 million shares in 1997 and 59 million shares in 1998. Management was now able to focus on building a strong portfolio of brands in beverage and snack foods. In 1998, Pe psiCo acquired the Tropicana juice business from Seagram’s for $3. 3 billion in cash. The acquisition gave the company a strong market presence in the fast-growing noncarbonated beverage segment.Compared to Pepsi’s existing businesses, Tropicana provided a lower return on assets and invested capital, but PepsiCo’s managers, especially Enrico and Indra Nooyi, the CFO, saw a great opportunity for strong margins and profitable growth if this superior brand were brought under the PepsiCo umbrella. Investment analysts and portfolio managers were more skeptical, however. At the time of the Tropicana acquisition, there was a perception on Wall Street that Pepsi might have paid too much. Two years later, however, the Tropicana acquisition was viewed as an outstanding success.Tropicana’s sales volume and profitability consistently exceeded market expectations every quarter from the date of acquisition in the fall of 1998 through September 2000. Moreover, the integ ration of the new business into PepsiCo’s corporate structure was seamless: neither Tropicana’s brand heritage, nor its unique distribution system was harmed by the acquisition process. 1 Letter From the Chairman, 1996 PepsiCo Annual Report. 3 801-458 PepsiCo’s Bid for Quaker Oats (A) Exhibit 4 shows PepsiCo’s stock price history from October 31, 1997 through October 4, 2000.Throughout 1999, PepsiCo’s stock price stagnated as investors shied away from the traditional packaged goods companies in favor of the Internet and technology stocks. This lackluster performance caused PepsiCo’s management to abstain from any major acquisitions. In the words of CFO Indra Nooyi, â€Å"we wanted a few quarters of solid performance behind us, and our currency— that is, our stock price—to reflect our underlying value. †2 When the Internet bubble burst in March 2000, PepsiCo’s stock price began to rise: between March 8 and October 4, it appreciated from $30. 0 to $45. 125, or almost 50%. PepsiCo’s managers believed that it was time to see if a deal could be struck with Quaker that would be advantageous to both sides. The Quaker Oats Company Nearly a century old in 1999, Quaker Oats was a worldwide consumer goods company with annual sales of $4. 7 billion. In addition to its hot cereals, Quaker Oats and Quaker Instant Oatmeal, the company’s portfolio of brands included Gatorade sports beverages, Granola snack bars, Life and Cap’n Crunch ready-to-eat cereals, and Rice-a-Roni and Near East flavored grain dishes.Exhibits 5-7 contain Quaker’s most recent financial statements as of October 4, 2000. Exhibit 8 provides data on Quaker’s financial performance broken down by beverage and food segments and by region. Exhibit 9 shows Quaker’s total sales and growth rates by product line for the years 1994-1999. In 1999, Quaker was emerging from a period of restructuring and refocu sing of its core businesses. During the decade prior to 1999, Quaker divested businesses with more than $2 billion in revenues, or about a third of its initial asset base.The divested operations included chemicals, toy manufacturing, specialty retailing, restaurants and pet foods, as well as the infamous Snapple beverage business. (In 1994, Quaker paid $1. 7 billion for Snapple Corporation, which sold branded juice-based beverages. Quaker then made the mistake of replacing Snapple’s distributors, and alienating the brand’s target consumers. After incurring dramatic losses, Quaker sold the business to Triarc in 1997 for $300 million. ) Robert Morrison joined the company as CEO in 1997, and proceeded to lead the company through an impressive turnaround.By 1999, 93% of Quaker’s U. S. sales came from brands holding the number-one or number-two positions in their product categories, and the company was perceived to be one of the best-managed companies in the packaged food and beverage industry. However, because it was a relatively small player in a highly concentrated and competitive global industry, Quaker was also seen as a potential acquisition target. Table A shows the distribution of revenues among the major players in the global packaged food and beverage industries.Indeed, in August 2000, David Nelson, an analyst at CSFB estimated Quaker’s synergies with various large food and beverage companies, and translated those figures into a potential takeover price for the company. His calculations are summarized in Table B. 2 Quoted in Lauren R. Rubin, â€Å"Profitable Fit,† Barron’s, December 11, 2000. 4 PepsiCo’s Bid for Quaker Oats (A) 801-458 Table A Major Companies Competing in the Global Packaged Food and Beverage Industries Annual Revenues, $Bns 50 40 30 20 10 0 Heinz Kraft Quaker Oats Hershey General Mills Coca-Cola Campbell PepsiCo Unilever Keebler Danone Kellogg NestleTable B Potential Acquirer's Estimated S ynergies ($ in millions) Synergy Estimates Savings Kellogg Campbell Philip Morris Coca-Cola Pepsi-Cola Nestle Danone Source: Capitalized Value Total 450 200 450 650+ 425 400 275 Per OAT Share $20. 36 $9. 05 $20. 36 $30. 00+ $19. 23 $18. 10 $12. 45 Potential Takeover Price $95. 36 $84. 05 $95. 36 $105+ $94. 23 $93. 10 $87. 45 Revenues 150 25 150 500+ 250 150 100 300 175 300 150 175 250 175 CSFB Equity Research Report on Quaker Oats, August 1, 2000. Interest in Quaker was centered on its Gatorade line of sports beverages, which accounted for 39% of Quaker’s sales in 1999.According to one analyst report in August 2000, â€Å"As a small, publicly traded, now well-managed company owning possibly the fastest-growing billion dollar growth potential product in the food and beverage industry, there is little doubt that Quaker is an attractive target or at least a highly desirable merger partner. †3 3 David C. Nelson, David S. Bianco, â€Å"Quaker Oats: Is It in the Stock? ,â⠂¬  Credit Suisse First Boston Equity Research, 08/01/2000, p. 4. 5 801-458 PepsiCo’s Bid for Quaker Oats (A) Rumors linking PepsiCo and Gatorade first surfaced in 1994.Late in 1996, Quaker reportedly attempted to sell both its beverage businesses (Gatorade and Snapple) as a package for about $3 billion. A year later, analysts predicted that PepsiCo’s would use the proceeds from the spin-off of its restaurant unit to finance an acquisition of Gatorade. Finally, in a report published in March 2000, Bill Pecoriello, an analyst at Sanford C. Bernstein & Co. , advocated a PepsiCo-Quaker merger, saying that PepsiCo was â€Å"strongly positioned† to leverage Gatorade through its distribution system in the US and internationally, and to sell Quaker snacks through its Frito-Lay network.Fueled in part by speculation that it might be acquired, Quaker stock appreciated almost 80% from its low of $45. 9375 on March 14 to its recent high of $79. 125 on September 29, 2000. E xhibit 10 shows Quaker’s stock price history from October 1997 through October 4, 2000. Exhibit 11 calculates selected ratios for PepsiCo and Quaker for the years 1996 to 2000. Exhibit 12 provides data on comparable companies. Exhibit 13 shows market interest rates as of October 4, 2000. Gatorade Gatorade was created on the campus of the University of Florida in 1965.Researchers at the school wanted to create a drink that would prevent dehydration among athletes. The drink was named for school’s football team, the Gators: its introduction in the early 1970s launched the commercial sports beverage industry. Quaker acquired rights to the formula and the name in 1983. By 1999 Gatorade was well established as the world’s leading sports drink with $1. 9 billion in global sales, and 82 percent of the U. S. sports beverage market. Its growth had been remarkable: From 1997-1999, Gatorade’s sales grew at an annual rate of 12 percent, while profits grew at around 1 5 percent (see Exhibits 8 and 9).Over the next five years (2000-2004), Quaker’s management expected Gatorade sales to increase by $1 billion, implying a 9. 25% cumulative average growth rate. Should that growth materialize, economies of scale were expected to drive profits upward at a 13. 5% rate over the same time period. As a rehydrating and energy beverage, Gatorade was a seasonal product, with the majority of its sales occurring in the warmer months of April to October. Highest levels of per capita consumption were in the southern parts of United States. Gatorade’s international presence was limited, however: less than 20% of its sales came from outside North America.Its European launch in the mid-1980s had been unsuccessful, partly because of poor brand positioning, but also because heat-driven beverage consumption was not common in Europe’s colder climates. Quaker’s managers believed that Gatorade had huge growth potential in the warm-weather climat es of Latin America and Asia, but the shaky economies in these regions presented major challenges to sustained, profitable growth. At the time of the acquisition by Quaker, Gatorade had only two flavors on the market: orange and lemon-lime. By 1999, there were more than twenty different flavors, from Whitewater Splash to Cool Blue Raspberry.Quaker was also seeking to extend the Gatorade’s brand into new product arenas. In the summer of 2000, Quaker launched a vitamin-fortified flavored water called Propel under the Gatorade brand umbrella in southern U. S. markets. This new product was advertised as a â€Å"fitness water†: it delivered the vitamins, carbohydrates, and antioxidants present in Gatorade with only one-fifth of the calories. This move marked Gatorade’s entrance into the fast-growing bottled water market. At the same time, the company launched Torq, a quick energy, high-carbohydrate diet supplement for intense athletes.Although Torq was a niche produc t with limited market prospects, it signaled Gatorade’s continuing commitment to sports nutrition, thereby enhancing consumers’ perception of the brand. 6 PepsiCo’s Bid for Quaker Oats (A) 801-458 Finally, Quaker’s management had decided to extend the Gatorade brand into the $500 million energy bar market, which was growing at an annual rate of 30%. This was a natural move, given Quaker’s core expertise in snack bar products (see below), and the fact that nearly 70% of energy bar consumers also drank Gatorade. Quaker’s Food BusinessesQuaker’s food businesses were based on an assortment of brands in the categories of hot and ready-to-eat cereals, grain products, snack bars, maple syrups, pancake mixes and grits. Following Morrison’s restructuring, all product lines were profitable, but for the most part their growth rates were low (see Exhibits 8 and 9). None of Quaker’s current food brands had the potential to exceed $ 1 billion in sales in the foreseeable future:? Hot cereals Oats were Quaker’s original product, but by 1999, hot cereals represented only 13% of the company’s U.S. sales. Still oats were the company’s most profitable product line with operating contribution margins of almost 30%, and high returns on invested capital. Recently, sales had benefited from a growing consumer focus on healthy living and diet. Thus in 1999, Quaker’s hot cereal sales increased by 12. 5% compared with the compound annual sales growth of 1. 6% over the prior five years (see Exhibit 9). Quaker managers projected considerable volume growth in this category as the baby boomers grew older and became even more health conscious.In the eyes of consumers, the main drawbacks of oatmeal were its taste and inconvenience in preparation. New product development focused on these issues. Thus in 1999 Quaker introduced several new instant oatmeal flavors, including baked apple, French vanilla, and cinnamon roll. It was testing convenient single-serve microwave-ready cups designed to eliminate the need for a bowl in preparation. Other new hot oatmeal products included Dinosaur Eggs, which were targeted towards kids: when hot water was added to the instant oatmeal, the eggs hatched little dinosaurs.Ready-to-eat cereal In 1999, Quaker held the number four position in the intensely competitive ready-to-eat (RTE) cereal market category, trailing General Mills (33%), Kellogg (31%) and Kraft (16%). The business included three strong brands: Life and Cap’n Crunch, with more than $150 million in annual sales each, and the Toasted Oatmeal line, with sales of around $100 million. The balance of the segment was made up of bagged cereals: Sweet Crunch, Cocoa Blasts, and Marshmallow Safari. Real per-capita RTE cereal demand had decreased about 6% annually in the United States since 1994.Bucking this trend, Quaker’s RTE sales had increased by 1%-2% on average over the last fiv e years (see Exhibit 9). But, although Quaker’s top RTE cereal brands were competing effectively for share in this declining category, it was increasingly difficult to maintain their profitability. In this difficult segment of their business, Quaker management had decided to focus on efficiency. In 2000, the company announced a two-year restructuring plan designed to achieve significant cost savings by closing manufacturing facilities, consolidating manufacturing lines, and reconfiguring the RTE ereal distribution network. Golden Grain Quaker’s Golden Grain business produced flavored rice and pasta. Sales had been flat for the last five years (see Exhibit 9), but Quaker still held the number one position in flavored rice with a 37% market share, and the number two position in flavored pasta with a 33% market share. Competition was increasing in these markets, however: Mars was aggressively marketing flavored rice under its Uncle Ben’s brand, and General Mills wa s promoting flavored pasta under the Betty Crocker label.In response to these competitive moves, Quaker managers felt they might have to defend share by increasing expenditures on promotion and advertising or dropping 7 801-458 PepsiCo’s Bid for Quaker Oats (A) prices. The division contributed about $50 million in operating profits annually, and accounted for about 7% of Quaker’s 1999 operating income. Grain-based snacks Quaker’s Snack Foods division sold Chewy Granola Bars, Fruit & Oatmeal Bars, Rice Cakes, and new Crispy Mini-Rice Cakes. Its products accounted for 17. 4% of the snack/granola bar market, second only to Kellogg Co.Quaker’s Chewy Granola Bars led the $360 million granola bar category with a 39% market share. Over the past five years, Chewy’s growth in revenues averaged 8% annually. Quaker Fruit & Oatmeal Bars were number two to Kellogg’s NutriGrain in the cereal bar category. Quaker Rice Cakes had an impressive 66% market sha re in the $165 million rice cake category. The profits of the snack business had grown at 10% per year over the past three years, owing to the strength of demand for granola and cereal bars, and successful new product introductions (see Exhibit 9). Other U. S. nd international foods Quaker also sold Aunt Jemima syrup and pancake mixes, and through them held a 17% share of the $560 million syrup category and 21% of the $300 million pancake mix category. Quaker Grits dominated the $100 million corn grits market, with a 77% share. These were highly profitable brands, but they were in categories that promised little in the way of future growth. The Quaker’s international food businesses lacked critical mass. Its Latin American food sales were concentrated in Brazil, where sales had declined 17% in 1999, due to severe currency devaluation and economic recession.In Europe, Quaker had a small, growing RTE cereal business, which was concentrated in the United Kingdom and Scandinavia. Its Asian food business was minuscule, accounting for less than $25 million in sales in 1999. Potential Synergies Gatorade If the acquisition succeeded, PepsiCo’s management expected that Gatorade would dramatically enhance both the company’s strategic position and its economic performance. PepsiCo would become the clear category leader in noncarbonated beverages, a market, which was growing at 8%-9% annually, three times faster than the carbonated soft drink market.With Tropicana and Gatorade combined, PepsiCo would control a full quarter of this $23 billion market. One of the major benefits of combining the two companies’ operations would stem from distribution. Gatorade used a warehouse brokers’ distribution system to deliver beverages to convenience stores and supermarkets, whereas PepsiCo’s used a Direct Store Delivery (DSD) system. Each system worked best for different types of products and retail outlets. The DSD system was much more expens ive, usually amounting to 15%-20% of sales, but it gave PepsiCo direct control over product selection, in-store visibility and the size of product displays.Moreover, the labor and equipment costs of DSD were mostly fixed, hence the contribution margins of incremental unit sales were high. DSD worked well for high volume products (like colas), but it was not an economical way to supply lower volume products in large varieties) to supermarkets and convenience stores. As indicated, Quaker used a warehouse brokers’ distribution system. In the case of Gatorade, however, robust consumer demand acted to offset many of the disadvantages of selling through brokers, including lower margins, potential stock-outs and poor product presentation.As a fastmoving convenience store item, Gatorade was regularly allocated highly visible shelf space, almost entirely without slotting fees, which were customary in the retail business. Moreover, Gatorade’s new products and packages historical ly had won increased shelf space for the brand, instead of taking up the same shelf space and cannibalizing older products. 8 PepsiCo’s Bid for Quaker Oats (A) 801-458 The acquisition of Quaker would enable PepsiCo to distribute Tropicana’s nonrefrigerated juices, like Twister and Dole, through Gatorade’s warehouse brokers’ distribution system.The merger would thus considerably enhance company’s position in the $7 billion nonrefrigerated juice segment: According to CEO Enrico, PepsiCo would become the â€Å"category captain† of the nonrefrigerated juice aisle. PepsiCo’s managers estimated that using Gatorade’s warehouse distribution system for Tropicana juices could generate an incremental $400 million in sales and $45 million in operating profit by the year 2004. The PepsiCo management team also projected procurement savings of approximately $60 million annually by 2004 from reductions in the costs of raw materials and supplie s.Moreover, Gatorade used â€Å"hot-fill† production lines, which were similar to those used by PepsiCo’s Twister, Lipton teas, Frapuccino and SoBe beverages. If the two companies were combined, the team anticipated cost savings from better capacity utilization in manufacturing, warehouse, delivery and logistics systems. Collectively, these cost savings were expected to reach $65 million annually by 2004. Other potential benefits of the business combination were more difficult to quantify.For example, PepsiCo’s managers believed that Pepsi’s extensive cooler distribution network could be used to increase Gatorade’s penetration in vending machines, schools, and smaller convenience stores as well as other niche vending channels and food service accounts. PepsiCo CFO Indra Nooyi argued: â€Å"The combination of Gatorade and AquaFina in vending machines is a no-brainer. † Over the longer term, PepsiCo could accelerate Gatorade’s internati onal expansion by using the existing sales and distribution organizations of both Pepsi-Cola International and Frito-Lay International.Finally, the sports technology expertise of the Gatorade Sports Science Institute might be combined with the health research capabilities of the Tropicana Nutrition Center to develop products that would meet the refreshment and nutrition needs of beverage consumers in new ways. Snacks If the acquisition succeeded, PepsiCo’s managers planned to integrate the Quaker’s snack food division into its Frito-Lay unit, which was already the world’s leader in salty snacks. They saw a significant opportunity in the $2 billion snack bars market, which was growing at 9% annually.Frito-Lay was in the process of reengineering its direct store delivery (DSD) distribution system to handle more product units. PepsiCo’s management believed that distributing Quaker’s Chewy Granola and other snacks through Frito-Lay’s system coul d increase Quaker’s revenues from snacks by an incremental $200 million and its operating profit by $34 million by 2004. A nonquantifiable benefit of the acquisition would be that Quaker snacks were not salty. For the most part, its brands connoted nutrition and health more than good taste or fun.Quaker brands’ positioning would give Frito-Lay access to numerous consumption occasions, for example, in the morning, that its existing salty snack brands did not serve. According to Roger Enrico, PepsiCo CEO: â€Å"We see bars as an ideal way to â€Å"smuggle† nutrition into more daily diets. † Other foods If the acquisition succeeded, Quaker’s nonsnack food businesses would represent 10% of the combined company’s pro forma sales. Quaker Oatmeal, RTE cereals, Golden Grain, and Aunt Jemima businesses did not fit within PepsiCo’s convenience-food strategy, nor did they represent significant growth opportunities.Yet these businesses were highl y profitable, and were expected to generate substantial free cash flows and modest growth over the foreseeable future. Lastly, their unit volumes supported the scale of Quaker’s (hence Gatorade’s) warehouse brokers’ distribution system. One complexity of the proposed acquisition stemmed from the fact that PepsiCo’s management would only consider a stock-for-stock transaction. Under that transaction structure, the company would be able to account for the merger as a pooling-of-interests. With a pooling-of-interests 801-458 PepsiCo’s Bid for Quaker Oats (A) accounting treatment, no goodwill would be created, and neither PepsiCo’s nor Quaker’s shareholders would have to recognize a gain or loss as a result of the merger for income tax purposes. On the other hand, under pooling-of-interests accounting, PepsiCo was precluded from selling any significant assets of Quaker for two years following the merger. Thus, if the acquisition succeeded , PepsiCo would not be able to divest Quaker’s slower-growth food divisions for at least two years.By the same token, PepsiCo would not be able to repurchase shares in any significant quantity for two years. Both Pepsi and Quaker used share repurchases as their primary mode of returning cash to shareholders (see Exhibits 3 and 7). If the acquisition succeeded, Pepsi would have to change its cash distribution policy radically. Decision PepsiCo had to determine its initial offer before approaching the Quaker. The timing was critical, as several other companies were likely to be attracted by Quaker’s obvious strengths (see Tables A and B).At the same time, PepsiCo management had two major concerns. First, although Gatorade’s synergies and growth prospects provided a clear strategic rationale for the acquisition, Gatorade plus the snack business accounted for only about 40%-45% of Quaker’s sales and operating income. Food products like Quaker Oats, which Peps iCo was not directly interested in, constituted the bulk of Quaker’s business. Second, Quaker traded at 23 times the earnings, which was lower than PepsiCo, but still at a premium compared to other food manufacturers (see Exhibit 12).Depending on the price and the value of realized synergies, a stock-for-stock transaction could potentially dilute PepsiCo’s earnings and diminish earnings per share, at least in the short run. 10 PepsiCo’s Bid for Quaker Oats (A) 801-458 Sources This case was prepared using the following published sources: PepsiCo, Inc. 2000 Annual Report, available at www. pepsico. com/2000/annual2000. html PepsiCo, Inc. 1999 Annual Report, available at www. pepsico. com/1999/annual1999. html PepsiCo, Inc. 1998 Annual Report, available at www. pepsico. com/1998/content. shtml PepsiCo, Inc. 997 Annual Report, available at www. pepsico. com/1997/content. shtml PepsiCo, Inc. 1996 Annual Report, available at www. pepsico. com/1996/content. shtml The C oca-Cola Company 1999 Annual Report, available at www. cocacola. com/annualreport The Quaker Oats Company 1999 Annual Report, available at www. quakeroats. com The Quaker Oats Company 1998 Annual Report, available at www. quakeroats. com The Quaker Oats Company 1997 Annual Report, available at www. hoovers. com Form S-4, Registration Statement under the Securities Act of 1933, as filed by PepsiCo, Inc. ith SEC on 01/09/2001 â€Å"Pepsi Seeks $5B Credit Line,† Dow Jones News Service, 10/12/1994 â€Å"Analysts Dubious on Pepsi’s Interest in Quaker,† Dow Jones News Service, 10/12/1994 â€Å"Quaker Rises on Pepsi Report,† The Milwaukee Journal Sentinel, 11/30/1996 Michael J. Branca, â€Å"PEP: The Good, The Bad and The Ugly,† Lehman Brothers Equity Research, 11/03/2000 Cathleen Egan, â€Å"S. Bernstein Analyst Muses over a Pepsi-Quaker Merger,† Dow Jones News Service, 03/13/2000 Cathleen Egan, â€Å"Quaker in Talks to Sell Gatorade, Snapple to Pepsi,† Dow Jones News Service, 11/29/1996 David C.Nelson, David S. Bianco, â€Å"Quaker Oats: Is It in the Stock? ,† Credit Suisse First Boston Equity Research, 08/01/2000 Lauren R. Rubin, â€Å"Profitable Fit,† Barron’s, 12/11/2000 Patricia Sellers, â€Å"Can Coke and Pepsi Make Quaker Sweat? † Fortune, 07/10/1995 Janet Kidd Stewart, â€Å"Pepsi Chief Pooh-poohs Deal for Quaker Drinks,† Chicago Sun-Times, 01/25/1997 11 801-458 PepsiCo’s Bid for Quaker Oats (A) Exhibit 1 PepsiCo Financial Statements: Consolidated Statement of Income ($ millions, except per share data) 9/2/00a 1999 1998 1997 1996Net sales New PepsiCo Bottling operations Total net sales Costs and expenses Cost of sales SG&A Amortization of intangible assets Impairment and restructuring charge Total costs and expenses Operating profit New PepsiCo Bottling operations and equity investments Total operating profit Bottling equity income, net Gain on bottling transactions In terest expense Interest income Income before taxes Provision for income taxes Income from continuing operations Income from discontinued operations, net Net income Net income per share of common stock, $ 14,028 0 14,028 8,244 2,123 20,367 14,686 7,662 22,348 13,655 7,262 20,917 20,337 5,433 6,209 96 0 11,738 8,198 9,103 183 65 17,549 9,330 9,924 222 288 19,764 8,525 9,241 199 290 18,255 8,452 9,063 206 576 18,297 2,290 0 2,290 135 0 (156) 43 2,312 740 1,572 0 1,572 1. 09 2,765 53 2,818 83 1,000 (363) 118 3,656 1,606 2,050 0 2,050 1. 40 2,460 124 2,584 0 0 (395) 74 2,263 270 1,993 0 1,993 1. 35 2,252 410 2,662 0 0 (478) 125 2,309 818 1,491 651 2,142 1. 40 2,040 (565) 91 1,566 624 942 207 1,149 0. 73 Source: Company 10(K) and 10(Q) filings. aData for 36 weeks ended September 2, 2000. 2 PepsiCo’s Bid for Quaker Oats (A) 801-458 Exhibit 2 Assets PepsiCo Financial Statements: Consolidated Balance Sheet ($ millions) 9/2/00a 705 97 1,835 975 588 4,200 9,209 (3,928) 5,281 4,531 3,011 636 8,178 17,659 1999 964 92 1,704 899 514 4,173 8,816 (3,550) 5,266 4,735 2,846 531 8,112 17,551 1998 311 83 2,453 1,016 499 4,362 13,110 (5,792) 7,318 8,996 1,396 588 10,980 22,660 1997 1,928 955 2,150 732 486 6,251 11,294 (5,033) 6,261 5,855 1,201 533 7,589 20,101 1996 307 289 2,276 853 225 3,950 10,908 (4,822) 6,086 6,036 1,147 491 7,674 4,450 22,160Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Accumulated depreciation Net PP&E Intangible assets, net Investments in unconsolidated affiliates Other assets Net II&O Net assets of discontinued operations Total assets Liabilities and Shareholders' Equity Short-term borrowings Accounts payable and other current liabilities Income taxes payable Total current liabilities Long-term debt Other liabilities Deferred income taxes Common stock Capital in excess of par value Retained earni ngs Accumulated other comprehensive loss Less: Repurchased common shares, at cost Total shareholders' equity Total liabilities and shareholders' equity Average shares outstanding, millions 16 3,337 168 3,621 2,737 3,033 1,380 29 963 15,040 (1,219) (7,925) 6,888 17,659 1,446 233 3,399 156 3,788 2,812 2,861 1,209 29 1,081 14,066 (989) (7,306) 6,881 17,551 1,466 3,921 3,870 123 7,914 4,028 2,314 2,003 29 1,166 12,800 (1,059) (6,535) 6,401 22,660 1,480 0 3,617 640 4,257 4,946 2,265 1,697 29 1,314 11,567 (988) (4,986) 6,936 20,101 1,528 0 3,378 413 3,791 8,174 1,997 1,575 29 1,201 9,184 (768) (3,023) 6,623 22,160 1,564 Source: Company 10(K) and 10(Q) filings. aData for 36 weeks ended September 2, 2000. 13 801-458 PepsiCo’s Bid for Quaker Oats (A) Exhibit 3 PepsiCo Financial Statements: Consolidated Statement of Cash Flows ($ millions) 9/2/00a 1999 1998 1997 1996Cash Flows from Operating Activities Net income from continuing operations Adjustments to reconcile net income to net cas h provided by operating activities: Gain on bottling transactions Bottling equity income, net Depreciation and amortization Noncash portion of 1998 income tax benefit Noncash portion of restructuring charges Deferred income taxes Other noncash charges and credits, net Net change in operating working capital Net Cash Provided by Operating Activities Cash Flows from Investing Activities Capital spending Investments in unconsolidated affiliates Sales of businesses Sales of property, plant and equipment Short-term investments, by original maturity: More than three months – purchases More than three months – maturities Three months or less, net Other, net Net Cash Used for Investing Activities Cash Flows from Financing Activities Proceeds from issuances of long-term debt Payments of long-term debt Short-term borrowings, by original maturity: More than three months – proceeds More than three months – payments Three months or less, net Cash dividends paid Share repurchases Proceeds from exercises of stock options Other, net Net Cash Used for Financing Activities Net cash from discontinued operations Effect of Exchange Rate Changes Net (Decr. )/Incr. in Cash and Cash Equivalents Cash and Cash Equivalents – Beginning of year Cash and Cash Equivalents – End of period Source: Company 10(K) and 10(Q) filings. aData represents 36 weeks ended September 2, 2000. 1,572 2,050 1,993 1,491 942 0 (135) 642 0 0 138 191 (295) 2,113 (1,000) (83) 1,032 0 37 529 364 98 3,027 0 0 1,234 (259) 254 150 237 (398) 3,211 0 0 1,106 0 233 51 342 196 3,419 0 0 1,073 0 366 160 505 146 3,192 (574) (66) 0 0 (582) 577 0 (137) (782) (1,118) (430) 499 126 (2,025) 2,008 12 (144) (1,072) 1,405) (4,537) 17 134 (525) 584 839 (126) (5,019) (1,506) (119) 221 80 (92) 177 (735) (96) (2,070) (1,630) (75) 43 9 (115) 192 736 (214) (1,054) 108 (716) 103 (32) 375 (594) (1,238) 408 0 (1,586) 0 (4) (259) 964 705 3,480 (1,123) 3,691 (2,741) (2,856) (778) (1,285) 308 0 (1,304 ) 0 2 653 311 964 990 (2,277) 2,713 (417) 1,753 (757) (2,230) 415 0 190 0 1 (1,617) 1,928 311 0 (1,875) 146 (177) (1,269) (736) (2,459) 403 5 (5,962) 6,236 (2) 1,621 307 1,928 1,772 (1,432) 740 (1,873) 89 (675) (1,651) 323 (9) (2,716) 605 (5) 22 285 307 14 801-458 -15- Exhibit 4 PepsiCo Stock Price History PEP Historical Price Performance, October 31, 1997-October 4, 2000 Oct 4: Last close $45. 125 50 45 40 35 30Mar 8: 52 week low of $30. 50 25 Jul-98 Jul-99 Jan-98 Apr-98 Jun-98 Oct-98 Jan-99 Apr-99 Jun-99 Oct-99 Jan-00 Feb-00 Apr-00 Jun-00 Jul-00 Nov-97 Dec-97 Feb-98 Mar-98 Feb-99 Mar-99 Mar-00 Aug-00 Aug-99 Sep-99 Nov-99 May-99 Dec-99 May-00 Aug-98 Nov-98 May-98 Source: Prepared by casewriter based on CRSP data. Sep-98 Dec-98 Sep-00 Oct-00 20 801-458 PepsiCo's Bid for Quaker Oats (A) Exhibit 5 Quaker Financial Statements: Consolidated Statement of Income ($ millions, except per share data) 9/30/00* Net sales Cost of goods sold Gross Profit SG&A Impairment and restructuring (gain) or charge Interest expense Interest income Foreign exchange loss, net Income before taxesProvision (benefit) for income taxes Net income Preferred dividends, net Net income available for common Net income per share of common stock, $ 4,045 1,805 2,240 1,551 172 40 1999 4,725 2,137 2,588 1,904 (2) 62 (12) 18 618 163 455 4 451 3. 36 1998 4,843 2,374 2,468 1,873 129 70 (11) 12 397 112 285 5 280 2. 04 1997 5,016 2,565 2,451 1,939 1,486 86 (7) 11 (1,064) (133) (931) 4 (934) (6. 80) 1996 5,199 2,808 2,392 1,981 (113) 107 (7) 9 416 168 248 4 244 1. 80 477 165 312 3 309 2. 34 Source: Company 10(K) and 10(Q) filings. aData for nine months ended September 30, 2000. 16 PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 6 Quaker Financial Statements: Consolidated Balance Sheet ($ millions)Assets Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Other current assets Total current assets Property, plant and equipment Accumulated depreciation N et PP Intangible assets, net Other assets Total assets Liabilities and Shareholders' Equity Short-term borrowings Accounts payable Other current liabilities Total current liabilities Long-term debt Other liabilities Deferred income taxes Preferred stock Deferred compensation Tresury preferred stock Total preferred stock, net Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Deferred compensation Less: Repurchased common shares, at cost Total shareholders' equity Total liabilities and shareholders' equity Average shares outstanding, millions /30/00* 111 126 391 287 234 1,149 1,872 (797) 1,075 231 57 288 2,512 89 258 648 995 672 510 0 100 (27) (47) 25 840 126 1,051 (108) (22) (1,578) 310 2,512 132 1999 283 0 254 266 193 997 1,852 (745) 1,107 237 56 293 2,396 155 214 570 938 715 523 0 100 (39) (39) 22 840 101 855 (95) (46) (1,457) 197 2,396 134 1998 327 28 283 261 216 1,115 1,819 (749) 1,070 246 79 325 2,510 137 168 704 1,009 795 533 0 1 00 (48) (30) 22 840 79 556 (80) (68) (1,176) 151 2,510 137 1997 84 0 306 256 487 1,133 1,913 (748) 1,165 351 49 400 2,697 169 191 586 946 888 579 36 100 (57) (22) 21 840 29 431 (82) (91) (899) 228 2,697 137 1996 111 0 295 275 209 890 1,943 (743) 1,200 2,237 69 2,306 4,394 568 210 576 1,355 994 559 238 100 (65) (16) 19 840 0 1,521 (68) (103) (960) 1,230 4,394 135 Source: Company 10(K) and 10(Q) filings. Data for nine months ended September 30, 2000. 17 801-458 PepsiCo's Bid for Quaker Oats (A) Exhibit 7 Quaker Financial Statements: Consolidated Statement of Cash flows ($ millions) 9/30/00* 1999 455 124 14 (5) 4 0 13 (38) 32 31 631 (222) 14 (185) 219 14 0 (160) (156) 34 1 (96) 83 (373) (9) (516) 2 (44) 327 283 1998 285 133 (31) (27) 90 38 12 (41) 32 23 514 (205) 266 (166) 143 8 240 287 (160) (17) 2 (109) 112 (377) (8) (557) (1) 242 84 327 1997 (931) 161 (12) 1,151 66 40 42 (91) 20 43 490 (216) 300 0 0 0 0 84 (159) (453) 8 (54) 121 (50) (6) (593) (7) (26) 111 84 1996 248 201 14 (82) 23 0 29 (70) 22 27 410 (243) 174 0 0 0 0 (68) (157) (125) 2 (78) 31 0 (6) (331) 6 17 93 111Cash Flows from Operating Activities Net income from continuing operations Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes (Gains) losses on divestitures, net Restructuring charges** Asset impairment losses Loss on disposition of property and equipment Net change in operating working capital Change in deferred compensation Other items Net Cash Provided by Operating Activities Cash Flows from Investing Activities Additions to property, plant and equipment Business divestitures, net of tax Purchase of marketable securities Proceeds from sale of marketable securities Proceeds from sale of PP Capial gains tax recovery Net Cash Used for Investing Activities Cash Flows from Financing Activities Cash dividends paid Change in short-term debt Proceeds from issuances of long-term debt Reduction of long-term debt Issuance of common treasury stock Repurchases of common stock Repurchases of preferred stock Net Cash Used for Financing Activities Effect of Exchange Rate Changes Net (Decr. )/Incr. in Cash and Cash Equivalents Cash and Cash Equivalents – Beginning of year Cash and Cash Equivalents – End of period 312 99 4 0 177 0 2 (132) 35 15 512 (199) 0 (354) 232 5 0 (316) (115) (25) 1 (84) 105 (236) (9) (364) (4) (172) 283 111 Source: Company 10(K) and 10(Q) filings. a Data for nine months ended September 30, 2000. bThe 2000 number represents the sum of restructuring charges, asset impairments and losses (gains) on divestiture. 18 801-458 -19- Exhibit 8 Quaker Oats Operating Segment Information (dollars in millions, except per share data) bYear Ended December 31 1999 Net Sales a 1998 1997 Operating Income (Loss) 1999 1998 1997 $2,359. 5 308. 4 215. 4 2,883. 3 1,502. 3 229. 1 103. 8 1,835. 2 4,718. 5 6. 7 $4,725. 2 $2,274. 1 372. 9 202. 9 2,849. 9 $399. 8 26. 2 21. 1 447. 1 253. 9 16. 5 (7 . 3) 263. 1 710. 2 -$710. 2 $2,287. 8 371. 4 205. 7 2,864. 9 1,183. 3 232. 2 103. 0 1,518. 5 4,383. 4 632. 3 $5,015. 7 $369. 8 28. 2 (1. 2) 396. 8 214. 9 25. 6 (7. 4) 233. 1 629. 9 (2. 4) $627. 5 $390. 3 34. 0 (9. 9) 414. 4 182. 7 19. 3 (15. 0) 187. 0 601. 4 (34. 6) $566. 8 1,338. 2 267. 7 103. 1 1,709. 0 4,558. 9 283. 6 $4,842. 5 Foods: U. S. and Canadian Latin American Other c Total Foods Beverages: U. S. nd Canadian Latin American Other c Total Beverages Total Ongoing Businesses Total Divested Businesses d Total Sales/Operating Income Less: (Gains) losses on divestitures, restructuring charges, asset impairments and other–net e (2. 3) 25. 9 50. 2 18. 1 618. 3 163. 3 $455. 0 $3. 36 $3. 23 128. 5 31. 9 58. 9 11. 6 396. 6 112. 1 $284. 5 $2. 04 $1. 97 1,491. 1 50. 1 79. 1 10. 8 (1,064. 3) (133. 4) ($930. 9) ($6. 80) ($6. 80) General corporate expenses Interest expense–net Foreign exchange loss–net Income (Loss) before income taxes Provision (Benefit) for income t axes f Net Income (Loss) Per Common Share: Net income (loss)e Net income (loss)–diluted 801-458 -20- Exhibit 8 (continued) (dollars in millions) Year Ended December 31 1999 Identifiable Assets 1998 1997 1999Capital Expenditures Net of Depreciation 1998 1997 Foods: U. S. and Canadian Latin American Other c Total Foods Beverages: U. S. and Canadian Latin American Other c Total Beverages Total Ongoing Businesses Total Divested Businesses g Total Operating Segments Corporateh Total Consolidated $1,124. 6 174. 0 110. 1 1,408. 7 522. 7 105. 4 79. 6 707. 7 2,116. 4 0. 0 2,116. 4 279. 8 $2,396. 2 464. 2 94. 6 109. 5 668. 3 2,115. 1 37. 5 2,152. 6 357. 7 $2,510. 3 364. 5 81. 9 98. 2 544. 6 1,845. 4 335. 9 2,181. 3 515. 7 $2,697. 0 69. 8 20. 4 1. 7 91. 9 99. 5 0. 0 99. 5 (0. 9) $98. 6 $1,187. 0 167. 7 92. 1 1,446. 8 $1,056. 9 122. 4 121. 5 1,300. 8 $3. 7 3. 7 0. 2 7. 6 $37. 5 6. 5 (0. ) 43. 4 26. 1 6. 3 0. 8 33. 2 76. 6 (3. 5) 73. 1 (0. 9) $72. 2 $7. 2 9. 7 12. 3 29. 2 26. 4 (0. 9) 20. 0 45. 5 74. 7 (18. 7) 56. 0 (1. 7) $54. 3 Source: Company financial statements and casewriter calculations. aIntersegment sales are not material. bOperating results exclude restructuring and asset impairment charges, gains and losses on divestitures and certain other expenses not allocated to operating segments such as income taxes, general corporate expenses and financing costs. cOther includes European and Asia/Pacific businesses. d1999 includes net sales and operating results (through the divestiture date) for the Brazilian pasta business. 998 includes net sales and operating results (through the divestiture date) for the Ardmore Farms, Continental Coffee, Nile Spice and Liqui-Dri businesses and the business divested in 1999. 1997 includes net sales and operating results (through the divestiture date) for the Snapple beverages and certain food service businesses and the businesses divested in 1999 and 1998. e1999 includes pretax restructuring charges of $12. 7 million, or $0. 06 per share, a pretax divestiture gain of $5. 1 million, or $0. 03 per share, and pretax adjustments of $9. 9 million, or $0. 04 per share, to reduce prior restructuring and divestiture reserves. 1998 includes pretax restructuring charges of $89. 7 million, or $0. 8 per share, pretax asset impairment losses of $38. 1 million, or $0. 18 per share, and a combined pretax divestiture loss of $0. 7 million, or a gain of $0. 20 per share, due to certain tax benefits. 1997 includes pretax restructuring charges of $65. 9 million, or $0. 27 per share, a pretax net charge of $4. 8 million, or $0. 02 per share, for an asset impairment loss partly offset by a cash litigation settlement, and a combined pretax loss of $1. 42 billion, or $8. 41 per share, for business divestitures. f1999 includes reductions in the provision for income taxes of $59. 3 million, or $0. 44 per share, related to previously recorded tax accruals and tax assets. Includes the following Divested Businesses: in 1999, the Bra zilian pasta business in 1998 Ardmore Farms, Continental Coffee, Nile Spice, Liqui-Dri and the business divested in 1999; in 1997, Snapple, certain food service businesses and the businesses divested in 1999 and 1998. hIncludes corporate cash and cash equivalents, short-term investments and miscellaneous receivables and investments. PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 9 Quaker Oats Company Operations Summary 1994-1999 Annual Sales (dollars in millions) 1994 U. S. and Canadian Gatorade a International Gatorade Total Beverages U. S. Hot Cereals U. S. Ready-to-Eat Cereals Golden Grain Grain-based Snacks Other U. S. nd Canadian Foods Latin American Foods European and Asian Foods Total Foods Total Sales $908 269 1,177 416 679 334 275 483 301 233 2,721 $3,898 1995 $1,040 308 1,348 402 665 324 298 505 319 210 2,723 $4,071 1996 $1,095 283 1,378 440 626 316 285 518 345 207 2,737 $4,115 1997 $1,183 335 1,518 462 693 343 269 521 371 208 2,867 $4,385 1998 $1,338 371 1,709 431 712 341 291 500 373 203 2,851 $4,560 1999 $1,502 333 1,835 485 725 344 305 501 308 215 2,883 $4,718 CAGR 10. 6% 4. 4% 9. 3% 3. 1% 1. 3% 0. 6% 2. 1% 0. 7% 0. 5% -1. 6% 1. 2% 3. 9% Distribution of Annual Sales (%) 1994 U. S. and Canadian Gatorade a International Gatorade Total Beverages U. S. Hot Cereals U. S. Ready-to-Eat Cereals Golden Grain Grain-based Snacks Other U. S. nd Canadian Foods Latin American Foods European and Asian Foods Total Foods Total Sales 23% 7% 30% 11% 17% 9% 7% 12% 8% 6% 70% 100% 1995 26% 8% 33% 10% 16% 8% 7% 12% 8% 5% 67% 100% 1996 27% 7% 33% 11% 15% 8% 7% 13% 8% 5% 67% 100% 1997 27% 8% 35% 11% 16% 8% 6% 12% 8% 5% 65% 100% 1998 29% 8% 37% 9% 16% 7% 6% 11% 8% 4% 63% 100% 1999 32% 7% 39% 10% 15% 7% 6% 11% 7% 5% 61% 100% Source: Company financial statements. aIncludes Europe, Asia-Pacific and Latin America. 21 801-458 -22- Exhibit 10 Quaker Oats Stock Price History OAT Historical Price Performance, October 31, 1997-October 4, 2000 90 Oct 4: Last close $76. 0625 80 70 60 50 40 Mar 14: 52 week low of $45. 9375 Jul-98 Jul-99 Jan-98 Apr-98 Jun-98 Oct-98 Jan-99 Apr-99 Jun-99 Oct-99 Jan-00Apr-00 Jun-00 Jul-00 Feb-98 Mar-98 Feb-99 Mar-99 Feb-00 Nov-97 Dec-97 Aug-98 Sep-98 Nov-98 Dec-98 Aug-99 Sep-99 Nov-99 Dec-99 Mar-00 Aug-00 May-99 May-00 Source: Prepared by casewriter based on CRSP data. May-98 Sep-00 Oct-00 30 PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 11 PepsiCo PepsiCo and Quaker Oats: Selected Ratios 1996-2000 36 Wks. 00 39% 44% 16% 16% 32% a 1999 40% 45% 14% 15% 44% -2% 26% 40% 64% 53% 12% 30% 1998 42% 44% 12% 17% 12% 0% 33% 49% 82% 35% 12% 31% 1997 41% 44% 13% 16% 35% -4% 30% 36% 62% 54% 13% 21% 1996 42% 45% 10% COGS/Sales SGA/Sales Operating Profit/Sales New Pepsi Operating Profit/New Pepsi Sales Tax Rate NWC (excl.Cash ST Inv and ST Debt)/Sales a Net PPE/Sales a Net II/Sales a Invested Capital/Sales Shareholders Equity/Invested Capital Return on Invested Capital d Return on Equity c 40% -2% 30% 38% 66% 50% 9% 14% -1% 26% 40% 66% 52% 17% 23% Quaker Oats, Inc. COGS/Sales SGA/Sales b Operating Profit/Sales Tax Rate NWC (excl. Cash ST Inv and ST Debt)/Sales a Net PPE/Sales a Net II/Sales a Invested Capital/Sales Shareholders Equity/Invested Capital Return on Invested Capital d Return on Equity c a 9 Mos. 00 45% 38% 13% 35% 0% 20% 5% 25% 23% 33% 100% 1999 45% 40% 15% 26% -2% 23% 6% 28% 15% 38% 229% 1998 49% 39% 10% 28% -2% 22% 7% 26% 12% 26% 185% 1997 51% 39% -19% 13% 5% 23% 8% 37% 12% -46% -410% 1996 54% 38% 10% 40% 0% 23% 44% 67% 35% 9% 20% Source: Company financial statements. aAnnualized. Quaker Operating Profit = Gross Profit – SG – Impairment, consistent with PepsiCo’s definition. cReturn on Invested Capital = [Operating Profit * (1 – Tax Rate)]/Invested Capital. dReturn on Equity = Net Income from Continuing Operations/Shareholders’ Equity. 23 801-458 -24- Exhibit 12 Quaker Oats: Comparable Food and Beverage Companies Source: Company Annual Reports, Hoover’s Online Bu siness Network. aSara Lee financial information includes RYA/Monarch, the sale of which is scheduled to close in second quarter of fiscal 2001. bH. J. Heinz EBIT includes $464. 6 million gain on the sale of Weight Watchers. Hershey EBIT includes $243. 8 million gain on the sale of U. S. pasta business. Kellogg EBIT incorporates $244. million in restructuring charges and equipment write-offs. PepsiCo EBIT includes $1,000,000 gain on bottling transactions. cAverage diluted shares outstanding, in millions of per-share calculations, including stock options, ESOP and non-vested awards. dCommon Stock price data for 52 weeks prior to October 4, 2000, includes Danone ADR’s traded at NYSE. eP/E calculated as Closing Common Stock price divided by EPS for the last full fiscal year. fMarket Capitalization calculated as the Closing Common Stock price times the average diluted shares outstanding. Using last-available diluted shares outstanding would not change the calculation significantly . PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 13