Acquisition of Natwest by Royal Bank of Scotland (RBS)

Acquisition of Natwest by Royal Bank of Scotland (RBS) Corporate strategy developers have in the past and today seen Mergers and Acquisitions as an effective tool to foster future growth and create sustainable value. As a norm, companies now aggressively seek and buy compatible businesses to gain from synergetic benefits and strengthen their core business operations, whether that is the Industry of Banking, Pharmaceutical, Information Technology, Construction or Retailing etc. Expenditure on acquisitions in the UK by foreign companies increased from  £9.2 billion in quarter four 2007 to  £19.9 billion in quarter one 2008. Expenditure on acquisitions abroad by UK companies decreased from  £25.8 billion in quarter four 2007 to  £15.5 billion in quarter one 2008. Expenditure on acquisitions in the UK by UK companies increased from  £3.2 billion in quarter four 2007 to  £3.6 billion in quarter one 2008. The number of transactions reported for acquisitions in the UK by UK companies at quarter one 2008 is the lowest reported since quarter one 2003?. Source: (http://www.statistics.gov.uk/pdfdir/ma0608.pdf- on 06-06-2008). In March 2000, Royal Bank of Scotland (RBS) acquired NatWest Bank, a bank three times its size. Shareholders were told that the merger would realise  £1.1 billion in cost savings and income gains. The acquisition of NatWest by the Royal Bank of Scotland has created a larger group which combines scale and financial strength with an innovation and growth culture, and gives us strategic options to create additional value for shareholders?. Source:(http://www.rbs.com/media03.asp?id=MEDIA_CENTRE/PRESS_RELEASES/2001/MARCH/RESULTS2000- on 02-06-2008). The perceived motivation drives for this merger and acquisition activity are generally considered to be the acquiring banks desire to increase its return by expanding geographically. This perception is similar to Stewarts premises of merger motivation. According to the Stewart; the actual motivating forces behind merger should be ones that will: Increase financial performance (net operating profits). Financial benefits through borrowing against the Sellers unused debt capacity or against an increase in the consolidated debt capacity (lending capacity for banks). Tax benefits derived from expensing the stepped-up basis of assets acquired or from the use of otherwise forfeited tax deductions or credits?. (Stewart, 1991, p 375). 2. BRIEF REVIEW OF LITERATURE This chapter aims to discuss various literatures on mergers and acquisitions in order to provide a background for subsequent analysis. The literature identifies several economic and financial theories that justify Merger and Acquisition activity. In this review, we provide an overview of the literature that we use to guide our empirical work. 2.1 DEFINITIONS The interdisciplinary nature of the MA discourse is reflected in the versatile definitions provided in the literature. Some definitions emphasize the organizational context of MA: The term ËÅ"merger has two meanings in the context of combining organizations. Merger can refer to any form of combination of organizations, initiated by different kind of contracts. The more specific meaning that separates merger from acquisition is that merger is a combination of organizations which are similar in size and which create an organization where neither party can be seen as acquirer?. (Vaara, 2000, p 82). The word merger refers to negotiations between friendly parties who arrive at a mutually agreeable decision to combine their companies. In general, mergers reflect various forms of combining companies through some mutuality in negotiations?. (Fred and Weaver, 2001, p 6). The word merger is used to mean the combining of two business entities under the common ownership?. (Arnold, 2005, p 1041). In Acquisitions a company buying shares in another company to achieve a managerial influence. An acquisition may be of a minority or of a majority of the shares in the acquired company. An acquisition is recorded on the date of the economic decision (formally agreed) even if the legal issues have not been fully finalised. If subsequent disputes, legal issues or a lack of supervisory approval were to interfere with a completion of the acquisition, it is held not to have been recorded?. (Eurpean Central Bank, 2000, p 4). 2.2 TYPES OF MERGERS ACQUISITION From the point of view of an economist, there are four main groups of Merger and Acquisition. Horizontal ­: In this one firm combines with another in the same line of business. In simple words, a horizontal merger occurs when two competitors combine?. (Gaughan, 2007, p 13). Horizontal merger reduces the number of the competitors in the market. Vertical: A vertical merger is the combination of successive activities in a vertical chain under common coordination and control of a single firm?. (Sudarsanam, 2003, p 140). In simple words, it is a merger between a supplier and the distributor company of the supplies. This is a cost saving merger as well. For example HSBC purchased JP Morgans dollar clearing business in 1996. Congeneric: This involves related enterprises but not producers of the same product (as in horizontal merger) or firms in producer supplier relationship (as in vertical merger). An example is when Lloyds Bank acquired Cheltenham and Gloucester in 1995 mostly to acquire its mortgage business, which is related to but different from retail banking?. Source: (http://www.lloydstsb.com/about_ltsb/lloyds_bank.asp â€Å" 04-05-2008) Conglomerate: A conglomerate merger is the combining of two firms which operate in unrelated business areas. Some conglomerate mergers are motivated by risk reductions through diversification; some by the opportunity for cost reduction and improved efficiency, others have more complex driving motivations?. (Arnold, 2002, p 870). For example in 1996, Royal Bank of Scotland was expected to take control of Charles Church. 2.3 LITERATURE REVIEW- THEORIES OF MA There are might a number of motives that might play a role in merger activity, like efficiency, growth , synergy, financial and tax benefits, shareholders exploration, but two of the most often cited motives for mergers and acquisitions are faster growth and synergy. All these strategic motives shall be discussed in this part of the proposal for the better understanding of merger and acquisition. 2.3.1 Efficiency Theory The efficiency theory says that mergers occur because they improve the combined firms, operations, for example, by letting superior managers assume control, by exploiting cost reducing synergies? or complementarities in the partners operations, or by taking fuller advantage of scale of economies and risk spreading opportunities, among other things in securing capital?. (Ravenscraft and Scherer, 1987, p 211). In simple words, efficiency is an improvement in the utilization of existing assets that enables the combined firm to achieve lower costs in producing a given quantity and quality of goods and services. 2.3.2 Managerial Motives or Managerial Perspectives Takeovers can also arise because of the agency problem that exists between shareholders and managers, whereby managers are more concerned with satisfying their own objectives than with increasing the wealth of shareholders. The motive behind some acquisitions may be to increase managers pay and power. Managers may also believe that the larger their organization, the less likely it is to be taken over by another company and hence the more secure their jobs will become. Take overs made on the grounds have no shareholder wealth justification since managers are likely to increase their own wealth at the expense of the shareholders?. (Watson and Head, 2006, p 317). 2.3.3 Shareholders Expropriation The important motive behind the consolidation has been maximization of shareholders wealth. In the neo-classical prospective, this mean that the incremented cash flows from the decisions, where discounted at the appropriate discount rate should yield positive or zero net present value. Under uncertainty, the discount rate is the risk-adjusted rate with a market determined risk premium for risk. Draper and Paudyal (1999) found that shareholders in the target businesses benefits substantially from takeover activity, particularly where they are given the option to receive either cash or shares in the bidder as the consolidation. It seems that the bidders shareholders do not suffer from merger. They also found that the benefits to target shareholders have declined in the recent past. Bruner (2004) argued that the approach taken by many of the studies based on US takeovers were flawed in that the research results were unduly influenced by a relatively small number of failures that involve d particularly large businesses. He claimed that all takeovers benefit target shareholders and the overwhelming majority benefit bidder shareholders as well.? (McLaney, 2005, p 395). Shleifer and Summers suggest a number of other motives for mergers and acquisitions in which shareholders may gain at the expense of other stakeholders. For example, some target firms may seek acquirers to escape financial problems or to break unfavourable labour contracts. Other firms may seek leveraged purchases of their targets to increase the surviving firms risk- return profile at the expense of existing debt holders?. (Shlfeifer and Summer, 1988, p 33). 2.3.4 Financial and Tax Benefits Whether tax motives are an important determinant of MAs. Certain studies have concluded that acquisition may be an effective means to secure tax benefits. Gilson, Scholes and Wolfson have set forth the theoretical framework demonstrating the relationship between such gains and MAs. They assert that for a certain small fraction of merger, tax motives could have played a significant role. Moreover, whether the transaction can be structured as a tax-free exchange may be a prime determining factor in whether to go forward with a deal. Sellers sometimes require tax free status as a prerequisite of approving a deal. In the U.K the rules are more strict for taxes; the losses incurred by the acquired firm before it becomes part of the group cannot be offset against the profit of another member of the group. The losses can only be set against the future profits of the acquired company. Also that company has to continue operating in the same line of business?. (Arnold 2005, p 1052). 2.3.5 Growth / Market Power Theory One of the most fundamental motives for MAs is growth. Companies seeking to expand are faced with a choice between internal or organic growth and growth through MAs. Internal growth may be a slow and uncertain process. Growth through MAs may be a much more rapid process. If a company seeks to expand within its own industry, they may conclude that internal growth is not an acceptable alternative, for example, if a company has a window of opportunity that will remain open for only a limited period of time, slow internal growth may not suffice. As the company grows slowly through internal expansion, competitors may respond quickly and take market share. The only solution may be to acquire another company that has a resource, such as established offices, and facilities, management and other resources, in place?. (Gaughan, 2007, p 117). Some mergers may result in market power which redounds to the benefits of the merging firms. George Stigler argued that such an effect might have been a primary motivation for many of the mergers and acquisitions during the last quarter of the 19th century and first half of the 20th century. He called the 1887-1904 merger wave merger for monopoly? and the 1916- 1926 wave merger for oligopoly?. (Stigler, 1968, p 23). 2.3.6 Synergy Theory This refers to the fact that the combined company can often reduce duplicate departments or operation, lowering the costs of the company relation to the same revenue stream, thus increasing profit. The two main types of synergy are operating synergy and financial synergy. Operating synergy comes in two forms: revenue enhancement and cost reduction. These revenues enhancements and efficiency gains or operating economies may be derived in horizontal or vertical mergers. Financial synergy refers to the possibility that the cost of capital may be lowered by combining one or more companies?. (Gaughan, 2007, p 124). Financial synergies result in lower cost of capital by lowering the systematic risk of a companys investment portfolio through an investment in an unrelated business?. (Trautwein, 1990, p 283). Below the list of reasons has been provided that are initiating consolidation in the form of merger and acquisitions in the U.K banking industry. Competition from building societies. New entrants into saving markets. New technology and the internet. Competition from the overseas banks. Government Policies. Economies of scale scope. Managing branch networks. 2.4 MERGER AND ACQUISITIONS: BENEFITS AND DRAWBACKS Lumby and Jones identified four key benefits and five draw backs of mergers and acquisitions as follows: 2.4.1 BENEFITS 2.4.1.1 Speed: An acquisition allows the companys newly formed strategy to be implemented rapidly. Through organic growth it will take the company much longer to reach the same level of business activity. 2.4.1.2 Critical mass: The Company is able to immediately achieve the critical mass of assets and activity levels that might be needed to obtain the operating economies of scale that exist in the chosen business area. At the early stages of organic growth into a new business area, the operating economies enjoyed by large competitors will not be achievable; so putting the developed business activity at a significant competitive cost disadvantage, from which further progress may not be possible. 2.4.1.3 Own-paper financing: An acquisition can be made without impacting on the companys cash resources or on its liquidity, by financing it with an issue of new equity called the companys ËÅ"own-paper. In contrast, organic growth will require the expenditure of the companys cash and credit resources. 2.4.1.4 Intellectual assets: In addition to the tangible assets of the acquired company, an acquisition will also bring with it intellectual assets such as the ËÅ"know-how, and business contacts of the management team, the skills of the workforce and its trading reputation. With organic growth, these may have to be developed ËÅ"in-house over time. In spite of the identified benefits, mergers and acquisitions have the following significant drawbacks as stated by Lumby and Jones: 2.4.2 DRAWBACKS 2.4.2.1 Risk: Mergers and acquisitions have a significant risk of high-cost failure attached. This is because an acquisition represents a single, very large investment, which if it turns out to be a mistake, then the business will have lost a substantial amount of its value. 2.4.2.2 Acquisition premium: Most acquisitions require the payment of an acquisition premium in order to persuade shareholders of the target company to sell their shares. This means that the acquiring company will be paying more than the economic worth of the company. 2.4.2.3 Steep learning curve: The acquiring company will have to rapidly learn how to manage an unfamiliar business and they may not necessarily be successful in doing so. In contrast, the slower pace of organic growth allows the management far more time in which to learn the range of new skills required to successfully manage the new business area. 2.4.2.4 Post-acquisition problems: Acquisitions could lead to a clash of management cultures between those of the acquired company and the acquiring company. This will often lead to key members of the acquired company leaving post-acquisition, resulting in the loss of vital intellectual capital. This may not be the case with organic growth. 2.4.2.5 Coinsurance effect: In an acquisition where either the predator company or/and the target company has debt financing, then there is the risk of a post-acquisition wealth transfer from the shareholders to the debt holders. (Lumby, 2003). 3. AIMS AND OBJECTIVES This Proposal has been built upon the analysis of the mergers and acquisition of banks in the U.K, like the acquisition (takeover of NatWest by Royal Bank of Scotland) in 2000. In this research my effort is to attempt and cover all important issues related to Mergers and Acquisition, like what causes, and initiates a merger or an acquisition, the benefits accrue to the company, its employees and customers etc, and native aspects of MA. This research investigates into the roots and causes of ever increasing consolidation activity and tries to critically evaluate merger and acquisition. Another aim of the proposal is to study the expectations of the stakeholders of the banks in the U.K, and the effect a merger or an acquisition has on them. Three stakeholders, namely, shareholders, employees and customers shall be studied in detail with the help of the case study. As according to the Schweigher: MAs basically aim at enhancing the shareholders value or wealth, the results of several empirical studies reveal that on an average, MAs consistently benefit the target company shareholders but not the acquirer company shareholders. A majority of corporate mergers fail. Failure occurs on average, in every sense, acquiring firm stock prices likely to decrease when mergers are announced; many acquired companies sold off; and profitability of the acquired company is lower after the merger relative to comparable non-merged firms. Consulting firms have also estimated that from one half to two-thirds of MAs do not come up to the expectations of those transacting them, and many resulted in divestitures. (Schweiger, 2003, p 71). The conclusion from this case study support my hypothesis that, whether stakeholders benefit from the merger and acquisition, because on the one hand, sometimes the merger and acquisition is beneficial for shareholders of the merging /or acquiring bank. On the other hand, employees are left worse-off following job cuts and redundancies. 4. STATEMENT OF DESIGN AND METHODOLOGY In order for the aims and objectives of the research to be fulfilled, it is essential to expand an understanding of the reason for growing tendency amongst banks in United Kingdom to pool together and the advantages of this pooling. The design of this project shall follow the deductive approach, like questionnaire, and the inductive research or the internal research will focus on interviews with the Managers and staff and customers of Royal Bank of Scotland and NatWest. In this regards, it is not an easy task to get an interview from the managers or the members of staff, but I shall try my best to do so. The external research will be carried out through the readings of books, journal and published data. Another difficult thing was access to annual reports, but I have already got the annual reports of both banks. The theory, annual reports and different analysists reports on the concepts of mergers and acquisitions shall be critically reviewed and thereafter compared and contrasted wi th facts gathered from the case study to confirm or disprove existing knowledge. Finally, both qualitative and quantitative data shall be analysed to make desired recommendations and conclusion. (UWIC Guidelines, Red Book is read carefully). 5. SOURCES AND ACQUISITION OF DATA Research can be done through books, as everyone knows, as only some knows; it can be done by letters. It can also be performed through Conversation?. (Watson, 1999, p 52). Sources of data adopted for this project include both secondary and primary data. A secondary data source enables a better understanding and explanation of the research problem. The literature review is a type of the secondary data, it involves the review of earlier studies on and around the research topic. Other secondary data includes the books on Finance, Mergers and Acquisitions, Strategy, journals, annual reports, analysists reports and different online resources like web pages of Royal Bank of Scotland and NatWest bank, should be used. In addition to the secondary data stated above, primary data sources shall equally be utilised to gather data directly from the key players in the merger and acquisition process. This shall include the use of questionnaires and personal interviews with managers and members of staff of RBS and NatWest. The interviews must be focused on the research area and not delve into alternative areas. (UWIC Guidelines, Red Book is been studied thoroughly). METHOD OF DATA ANALYSIS Data analysis is the most difficult part of the project. Data analysis is the process of applying statistical, systematic and logical techniques, comparing the data and managing it. During the project both the qualitative and quantitative data will require analysis. In order to determine how well a company has performed in delivering stakeholders value, we need to make a comparison with its past performance. The first annual figures for The Royal Bank of Scotland Group following the acquisition of NatWest show the enlarged Group made a profit before tax, goodwill amortisation and integration costs of  £4,401 million on a pro forma basis for the year to 31 December 2000, an increase of 31 per cent. The period analysed would be broken into following categories. 1999 The Pre-acquisition period. 2000 The Announcement and bidding period. 2001 The Post acquisition period. The analysis shall cover some expense ratios, profitability ratios and balance sheet ratios. The expense and profitability ratios shall be used to analyse efficiency and profitability during the pre- and post-acquisition periods, while the balance sheet ratio shall be used to analyse changes that may have occurred that might have affected efficiency or profitability. REFERENCES Books: Arnold, G, 2005, Corporate Financial Management?, 3rd edition, England, Prentice Hall, p 1041 1052. Arnold, G, 2002, Corporate Financial Management?, 2nd edition, Great Britain, PrinticeHall, p 870. Fred W. J and Weaver S. C, 2001, Merger and Acquisition?, 1st edition, Los Angeles, McGraw-Hill Professional, p 6. Gaughan P. A, 2007, Merger, Acquisition, and Corporate Restructurings?, 4th edition, New Jersey, John Wiley Sons, Inc, p 13, 117 124. Gilson R, Scholes M. S and Wolfson M. A, 1988, Taxation and Dynamics of Corporate Control?, 1st edition, New York, Oxford uni press, p 273. McLaney, E, 2005, Business Finance, Theory and Practice?, 7th edition, U.K, Pearson Education, P 395. Ravenscraft D. J and Schere F. M, 1987, Mergers, Sell-offs, Economic Efficiency?, Washington D.C, Brookings Institution Press, p 211. Red Book, UWIC Guideline. Stewart, G.B, 1991, The Quest for Value, A guide for senior Manager?, New York, Harper Business, p 375-382. Sudarsanam, S, 2003, Creating Values from Mergers and Acquisitions-The Challenges?, England, Pearson Education Limited, p 140. Watson, G, 1999, Writing A Thesis?, 1st edition, New York, Pearson Education Ltd , P 52 Watson, D and Head, A, 2006, Corporate Finance, Principles and practice?, 4th edition, U.K, PrinticeHall, p 317. Journals: Stigler G, (1968) Monopoly and Oligopoly by Merger?, American economic Review (1968) by the organisation of industry, Vol 40, No 2, May, p 23-34. Trautwein F, (1990), Merger Motives and Merger Prescriptions?, Strategic Management Journal (1986-1998), Vol 11, No 4, May/June, p 283, by John Wiley sons. Shleifer. A and Summer, L. H (1988), Breach of Trust in Hostile Takeovers; from Corporate Take over: Causes and Consequences, P 33-67, The University of Chicago Press. Vaara, E, (2000), Constructions of Cultural differences in post-merger change process: a sense making perspective on Finnish-Swedish cases?. [emailprotected]@gement Vol 3, no3: p 82. Schweiger, D.M, (2003), MA Integration: A Framework for Executives and Managers,? Book Summary by Niranjan Swain, in The ICFAI Journal of Applied Finance, Vol 9, No 2, p 71-79. Articles (Electronic): European Central Bank, (2000), Mergers and acquisitions involving the EU banking industry?, Available from, (www.ecb.eu/pub/pdf/other/eubkmergersen.pdf -accessed on 12-05-2008. Powell, C, (2008), Mergers and acquisitions involving UK companies?, First Release, P 1, Available from (http://www.statistics.gov.uk/pdfdir/ma0608.pdf, accessed on 06-06-2008). Websites: http://www.rbs.com/media03.asp?id=MEDIA_CENTRE/PRESS_RELEASES/2001/MARCH/RESULTS2000- accessed on 02-06-2008 http://www.lloydstsb.com/about_ltsb/lloyds_bank.asp- accessed on 04-05-2008.

HArley davidson †casestudy Essay

In this case study we will analyze Harley-Davidson unique way of marketing. How they chose to invest the majority of their marketing budget back in their customers, to give the ultimate Harley experience and way of life. And how all of the above translate to exceptional brand loyalty and growing sales in traditional and new demographics. The Lifestyle Harley-Davidson has positioned itself as a way of life, with an extremely loyal and growing customer base. Harley Davidson’s H.O.G (Harley Owners Group) has about one million members1, and it is being referred internally as the ‘Original Social Network’ 2 H.O.G. members enjoy benefits such as a magazine subscription (Hog Tales and Enthusiast), the H.O.G. Touring Handbook, a dedicated roadside assistance service, an insurance program that was designed specifically to their needs, a theft reward service, a travel center, and a â€Å"Fly & Ride† program allowing H.O.G members to rent Harley-Davidson bikes wherever they fly3. In addition, Harley-Davidson encourages their customers to customize their bikes and make it ‘their own’. They are community members who take pride in their creation and/or special connection to the community by personalizing their motorcycle and giving it their own personality. As a result (or as a cause), Harley’s customers, and H.O.G members are extremely engaged and are being brand advocates throughout the country and the world4. Demographics Traditionally, the ideal Harley-Davidson customers were Caucasian men ages 35-plus5.. However, in recent years Harley-Davidson has been targeting other segments of the motorcycle users pool. 4 Harley-Davidson is aiming to reach a more diverse customer pool. Harley-Davidson has an â€Å"outreach† program targeting new segments, such as: young adults 18-34, women, AfricanAmericans and Hispanics. In the U.S., 2012’s sales to these segments grew at twice the rate their traditional U.S. customer base sales for that year6. Sticking to their marketing philosophy (Lifestyle), Harley-Davidson also created additional benefits under H.O.G dedicated for women riding Harley. Their ‘Ladies-Of-Harley’ (LOH) club was established to encourage women to be more involved in the ‘Harley Way of Life’ and community7. Today, 30%-40% of Harley-Davidson riders are women8. Questions and Answers Q: What does Harley-Davidson position it self in the market and what is the key to its marketing success? A: Harley-Davidson positions itself in the market as a way of life more than just a transportation mode. And the key to its success is the exceptional relationship between the brand and its customers. Harley’s relationship with its customers, is so unique, to the point where Harley-Davidson crowd-sourced most of its marketing campaigns to the customers themselves9, knowing that they know themselves better, and they can do an exceptional job (as they do) in representing the brand. Q: How does Harley-Davidson build a long-term customer relationship? A: Harley-Davidson encourages their customers to get involved in the brand by customizing their motorcycle and to ‘express their true self in steel, rubber and chrome’10. In addition it is encouraging local clubs, shared rides and trips and other group activities through their H.O.G. club. Q: What is Harley-Davidson’s value proposition? A: Harley’s value proposition is more in the community and way of life, than anything else they offer. It is the sense of community, belonging, patriotism and the free expression of one’s true self. Q: Relate the concept of customer equity to Harley-Davidson. How does HarleyDavidson’s strategy focus on the right relationships with the right customers? A: Harley-Davidson has one of the highest customer equity out there. By building a relationship that simulates a cult. Their customers desire the â€Å"Harley’s way of life† and show an amazing behavioral loyalty towards the brand. A Harley-Davidson customer is not necessarily a Harley-Davidson motorcycle owner. It is anyone who relates to the Harley experience and way of living. For example, Harley’s clothing line11, the H.O.G. Associate membership12, and other peripheral experiences are addressing all Harley enthusiasts, not just motorcycle owners. Summary and Conclusion Harley-Davidson’s way of marketing is through its established and growing customer base, it is amazing that a company that invests 85%13 of their entire marketing budget in their current customers is growing stronger by the year, and expanding into new market segments. To summarize: â€Å"Harley is not automotive. It might have an engine, it might have wheels, and it might run on roads, but that’s where the similarities stop,† 14 -Mark-Hans Richer, CMO References Forbs, Behind The Brand, Harley-Davidson’s ‘Original Social Network’, by Jennifer Roony 30, May 2013 (http://www.forbes.com/sites/jenniferrooney/2013/05/30/behind-the-brand-harleydavidsons-original-social-network/) 2 . Its members are extremely engaged and are being brand advocates throughout the country and the world. Principles of Marketing, Global Edition, by Philip Kotler / Gary Armstrong, p.17 (ISBN 027378-699-7) 4 Forbs, Behind The Brand, Harley-Davidson’s ‘Original Social Network’, by Jennifer Roony 30, May 2013 (http://www.forbes.com/sites/jenniferrooney/2013/05/30/behind-the-brand-harleydavidsons-original-social-network/) 5 Harley-Davidson, Corp Relations, Demographics (http://investor.harleydavidson.com/phoenix.zhtml?c=87981&p=irol-demographics) 6 Harley-Davidson, Corp Relations, Demographics (http://investor.harleydavidson.com/phoenix.zhtml?c=87981&p=irol-demographics) 7 MCHOG, Ladies of Harley, (http://www.mchog.com/MCHogLadiesOfHarleyMain.htm) Harley-Davidson The Spirit of America, Documentary (http://www.imdb.com/title/tt0456137/) How Mark-Hans Richer Is Driving Harley-Davidson’s Marketing Agenda, Video Interview, Forbs, 30 May, 2013 (http://www.youtube.com/watch?v=4c5nBtF-AGU) 9 Customize your Harley, Harley-Davidson (http://www.harleydavidson.com/en_US/Content/Pages/Owners/customize.html) 11 Harley Davidson, Men and Women clothing lines. (http://www.harley-davidson.com/store/) 12 Harley Davidson, Membership types. (http://www.harleydavidson.com/en_US/Content/Pages/HOG/membership-types.html) 13 Mark-Hans Richer, Harley-Davidson CMO, Ad Age interview July 10, 2010 http://adage.com/article/242952/ 14 Mark-Hans Richer, Harley-Davidson CMO, Ad Age interview July 10, 2010 http://adage.com/article/242952/

Night World : Secret Vampire Chapter 1

It was on the first day of summer vacation that Poppy found out she was going to die. It happened on Monday, the first real day of vacation (the weekend didn't count). Poppy woke up feeling gloriously weightless and thought, No school. Sunlight was streaming in the window, turning the sheer hangings around her bed filmy gold. Poppy pushed them aside and jumped out of bed and winced. Ouch. That pain in her stomach again.-Sort of a gnawing, as if something were eating its way toward her back. It helped a little if she bent over. No, Poppy thought. I refuse to be sick during summer vacation. I refuse. A little power of positive thinking is what's needed here. Grimly, doubled over-think positive, idiot!-she made her way down the hall to the turquoise-and gold-tiled bathroom. At first she thought she was going to throw up, but then the pain eased as suddenly as it had come. Poppy straightened and regarded her tousled reflection triumphantly. â€Å"Stick with me, kid, and you'll be fine,† she whispered to it, and gave a conspiratorial wink. Then she leaned forward, seeing her own green eyes narrow in suspicion. There on her nose were four freckles. Four anda half, if she were completely honest, which Poppy North usually was. How childish, how-cute! Poppy stuck her tongue out at herself and then turned away with great dignity, without bothering to comb the wild coppery curls that clustered over her head. She maintained the dignity until she got to the kitchen, where Phillip, her twin brother, was eating Special K. Then she narrowed her eyes again, this time at him. It was bad enough to be small, slight, and curly-haired–to look, in fact, as much like an elf as anything she'd ever seen sitting on a buttercup in a children's picture book–hut to have a twin who was tall, Viking-blond, and classically handsome .. well, that just showed a certain deliberate malice in the makeup of the universe, didn't it? â€Å"Hello, Phillip,† she said in a voice heavy with menace. Phillip, who was used to his sister's moods, was unimpressed. He lifted his gaze from the comic section of the L.A. Times for a moment. Poppy had to admit that he had nice eyes: questing green eyes with very dark lashes. They were the only thing the twins had in common. Phillip said flatly, and went back to the comics. Not many kids Poppy knew read the newspaper, but that was Phil all over. Like Poppy, he'd been a junior at El Camino High last year, and unlike Poppy, he'd made straight A's while starring on the football team, the hockey team, and the baseball team. Also serving as class president One of Poppy's greatest joys in life was teasing him. She thought he was too straitlaced. Just now she giggled and shrugged, giving up the menacing look. â€Å"Where's Cliff and Mom?† Cliff Hilgard was their stepfather of three years and even straighter-laced than Phil. â€Å"Cliff's at work. Mom's getting dressed. You'd better eat something or she'll get on your case.† â€Å"Yeah, yeah †¦Ã¢â‚¬  Poppy went on tiptoe to rummage through a cupboard. Finding a box of Frosted Flakes, she thrust a hand in and delicately pulled out one flake. She ate it dry. It wasn't all bad being short and elfin. She did a few dance steps to the refrigerator, shaking the cereal box in rhythm. â€Å"I'm a †¦ sex pixie!† she sang, giving it a footstomping rhythm. â€Å"No, you're not,† Phillip said with devastating calm. â€Å"And why don't you put some clothes on?† Holding the refrigerator door open, Poppy looked down at herself. She was wearing the oversize T-shirt she'd slept in. It covered ‘ her like a , minidress. â€Å"This isclothes,† she said serenely, taking a Diet Coke from the fridge. There was a knock at the kitchen door. Poppy saw who it was through the screen. â€Å"Hi, James! C'mon in.† James Rasmussen came in, taking off his wraparound Ray-Bans. Looking at him, Poppy felt apang-as always. It didn't matter that she had seenhim every day, practically, for the past ten years. Shestill felt a quick sharp throb in her chest, somewherebetween sweetness and pain, when first confronted with him every morning. It wasn't just his outlaw good looks, which alwaysreminded her vaguely of James Dean. He had silky light brown hair, a subtle, intelligent face, and grayeyes that were alternately intense and cool. He was the handsomest boy at El Camino High, but that wasn't it, that wasn't what Poppy responded to. It was something insidehim, something mysterious andcompelling and always just out of reach. It made her heart beat fast and her skin tingle. Phillip felt differently. As soon as James came in, he stiffened and his face went cold. Electric dislike flashed between the two boys. Then James smiled faintly, as if Phillip's reactionamused him.†Hi.† â€Å"Hi,†Phil said, not thawing in the least. Poppyhad the strong sense that he'd like to bundle herup and rush her out of the room. Phillip alwaysoverdid the protective-brother bit when James wasaround. â€Å"So how's Jacklyn and Michaela?† headded nastily. James considered. â€Å"Well, I don't really know.† â€Å"You don't know?Oh, yeah, you always drop yourgirlfriends just before summer vacation. Leaves you free to maneuver, right?† â€Å"Of course,† James said blandly. He smiled. Phillip glared at him with unabashed hatred. Poppy, for her part, was seized by joy. Goodbye, Jacklyn; goodbye Michaela. Goodbye to Jacklyn's elegant long legs and Michaela's amazing pneumatic chest. This was going to be a wonderful summer. Many people thought Poppy and James's relationship platonic. This wasn't true. Poppy had known for years that she was going to marry him. It was one of her two great ambitions, the other being to see the world. She just hadn't gotten around to informing James yet. Right now he still thought he liked long-legged girls with salon fingernails and Italian pumps. â€Å"Is that a new CD?† she said, to distract him fromhis stare out with his future brother-in-law. James hefted it. â€Å"It's the new Ethnotechno release.† Poppy cheered. â€Å"More Tuva throat singers-I can't wait. Let's go listen to it.But just then her mother walked in. Poppy's mother was cool, blond, and perfect, like an Alfred Hitchcock heroine. Shenormally wore an expression of effortless efficiency. Poppy, heading out of the kitchen, nearlyran into her. â€Å"Sorry-morning!† â€Å"Hold on a minute,† Poppy's mother said, gettinghold of Poppy by the back of her T-shirt. â€Å"Good morning, Phil; good morning, James,† she added.Phil said good morning and James nodded, ironically polite. â€Å"Has everybody had breakfast?† Poppy's motherasked, and when the boys said they had, she looked at her daughter. â€Å"And what about you?† she asked,gazing into Poppy's face. Poppy rattled the Frosted Flakes box and hermother winced. â€Å"Why don't you at least put milkon them?† â€Å"Better this way,† Poppy said firmly, but when hermother gave her a little push toward the refrigerator, she went and got a quart carton of lowfat milk. â€Å"What are you planning to do with your first day of freedom?† her mother said, glancing from James to Poppy. â€Å"Oh, I don't know.† Poppy looked at James. â€Å"Listen to some music; maybe go up to the hills? Or drive to the beach?† â€Å"Whatever you want,† James said. â€Å"We've got allsummer.† The summer stretched out in front of Poppy, hotand golden and resplendent. It smelled like pool chlo rine and sea salt; it felt like warm grass under her back. Three whole months, she thought. That's forever. Three months is forever. It was strange that she was actually thinking thiswhen it happened. â€Å"We could check out the new shops at the Village — was beginning, when suddenly the painstruck and her breath caught in her throat. It was bad-a deep, twisting burst of agony thatmade her double over. The milk carton flew fromher fingers and everything went gray.

Essay about World War Two - 603 Words

World War Two World War II was a major event in European history. It changed the world forever. The events would shape Europe until the Second World War. There were severe consequences of this war. These consequences can be broken into social, political, economic and psychological consequences. WWI definitely was a pivotal point in history. There were many social effects of World War I. Women became the majority of the work force. All of the men went to the military so someone had to work in the factories. These women gained equal pay also in these factories. This was a big step in the equality of women. The rise of women at home gave birth to flappers. These were sexually independent women who dressed in very revealing†¦show more content†¦The US did not want this. Wilson devised his 14 Points Plan but was rejected because it went to easily on the Germans. They ended up not joining the League of Nations. H.C.Lodge fought it. In article 10, US troops could be dispatched in times of confli ct and we did not want to be involved in the European conflicts. The US became isolationist. The Treaty demilitarized Germany greatly. They were required to pay full war reparations. The biggest effect of the treaty was that Germany had to assume full war guilt. German lands were handed over to France and Poland. France obtained Alsace and Lorraine and the Saar mining region. Poland was given Silesia and the Polish Corridor was formed. This treaty made Germany hateful towards Europe. By humiliating Germany, it was almost impossible to avoid future wars. In addition to the humiliation of Germany, the Turkish Empire was also divided. Britain obtained Iraq and Palestine while France got Lebanon and Syria. The new controllers of these countries would cause rebellions. The political effects of WWI would not last long. Because of the harsh treatment of the Germans, a Second World War was not far away. WWI had many economic consequences as well. First of all, Germany was left in shambles a fter the Treaty. They were being forced to pay reparations that they couldnt afford. They paid the first couple payments before they started to stop. This forced France and Belgium to occupy part ofShow MoreRelatedWorld War Two : A Good War1362 Words   |  6 PagesWorld War two is remembered as the Good War, but like most wars, mobilization of the patriotic public opinion is necessary . Advertisers came up with a series of mottos to help sell World War Two to the people: One of the major words being â€Å"freedom† . The war was supposed to protect Americans freedom, use honorable means, and bring freedom to foreign nations but that’s not exactly what it did. When people think of WW2 as the Good War, many memories of the war are being left out. World War Two wasRead MoreWar I And World War Two867 Words   |  4 Pagesthe lives of countless people in the past. 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