Tuesday, January 28, 2020
Introduction To Service Industry Restaurants Marketing Essay
Introduction To Service Industry Restaurants Marketing Essay The food service industry continues to grow in volume and revenue every year and typically divides itself into two categories: full-service restaurants and fast-food restaurants. Each individual restaurant is in competition with other food service operations within the same geographical area. The fast food restaurant industry is highly competitive. McDonalds competes with other restaurants through the quality, variety and value perception of food products offered. McDonalds Corporations main competition comes from other fast-food restaurants; most notably, YUM! Brands Inc, Wendys International, Dominos and Burger King. Figure1: The total revenues of the major players in the fast food industry (www.ycharts.com) The figure represents the market share of McDonalds in the fast food industry. McDonalds Corporation (MCD) has company operated and franchise restaurants all over the world. They are the leading global food service retailer by means of over 30,000 restaurants in more than 117 countries, serving about 50 million people every day. Franchising plays a major role in McDonalds system with 26,216 were operated by franchisees (including 19,020 operated by conventional franchisees, 3,160 operated by developmental licensees and 4,036 operated by foreign affiliated markets (affiliates)-primarily in Japan) and 6,262 were operated by the company. Their total revenue in 2009 was $ 23 billion. McDonalds success in the fast food industry stems from their main success factors which are branded affordability, menu variety and beverage choice, convenience and daypart expansion, ongoing restaurant reinvestment and operations excellence. These success factors are used to promote McDonalds brand image, p rovide customers with quality products and differentiate themselves from other competitors like YUM Brands (YUM owns brands like KFC, Pizza Hut, Taco Bell and Long John Silver) After extensive research, analysis and valuation, it is found that McDonalds corporation is currently an undervalued company and rated as a Market Outperform and thus I recommend this stock as a Buy. Executive Summary The food service industry is one of high competition; however, McDonalds has been able to obtain the position as the leader in market capitalization with a market capital of $74.6B in 2009. While McDonalds has deployed high amounts of capital, the company manages its asset base with high inventory turnover while also maintaining cost efficiency. Industry Demand Drivers: The market of the food service industry attributes much of its growth to global sales and revenue. Despite tough environment, McDonalds delivered an exceptional year of growth, posted strong sales and increased market share around the world. In 2009, global comparable sales increased 3.8 percent, fueled by solid gains in the United States (+2.6 percent), Europe (+5.2 percent), Asia/Pacific, Middle East and Africa (+3.4 percent), Latin America (+5.3 percent) and Canada (+5.8 percent). Earnings per share for the year increased 9 percent to $4.11 (13 percent in constant currencies), while consolidated operating income increased 6 percent (10 percent in constant currencies). We also returned $5.1 billion to shareholders through share repurchases and dividends paid, bringing our three-year cash return total to $16.6 billion-notably at the high end of our stated target of $15 to $17 billion for the years 2007 through 2009. Globally, McDonalds caters and adapts to different cultures and societies, while still providing them with the same McDonalds experience. With a significant portion of McDonalds sales derived from international stores, foreign denominated sales should generate additional earnings leverage given the weakening of the US dollar against other currencies. McDonalds is well positioned: McDonalds is able to maintain a loyal customer base, and compete with the existing competitors by introducing variation to their menu, such as the Dollar Value Menu. Also, in order to adhere to a more concerned health concise society, McDonalds has implemented holistic approach which consists of High-Quality Choices for customers, Consumer-Friendly Nutrition Information and communicate responsibly. The Happy Meal, which has been a long standing childs favorite, now has options such as fruit instead of French Fries and all white meat chicken nuggets. As for one McDonalds company goals is to adhere to outstanding customer service, strengthens the maintenance of long standing customers, as well as develop new relationships with customers of a new generation. Franchising business model: Within Fast Food restaurants franchise models are common. Franchise models can grow faster using others capital. Franchises have to be pay rent and royalties based on a percent of sales along with minimum rent payments, and initial fees. On the other hand, company-owned models have greater control over pricing, operations and can close underperforming restaurants more quickly. In 2009 the total no of franchised restaurants was 26,216 compared to 25,465 in 2008 and the number of company operated restaurants decreased by 3.6%. The total revenue from franchises in 2009 was $7,286.2 Million an increase in 4% compared to 2008. McDonald Franchises Revenue from Franchises Key challenges and Adaptability Intensity of competition: Competitors of the industry also try to compete with similar products; therefore, leading to price wars. McDonalds created a Dollar Value Menu, in response to competitors such as Wendys 99 cent menu. Overall, the industry has tried various product differentiations in order to accumulate greater market share, but most consumers are drawn to the classics. McDonalds is doing more and more to compete with health focused restaurants like Subway. Nutritionist and other leading experts have been hired to join the McDonalds team in order to ensure that the correct items are added to the menu, while still keeping and improving the classics that they are famous for. For example, the chicken nuggets that we all grew up on are now 100% white meat. McDonalds is flexible in their menu to conform to the changing tastes of society. Bargaining Power of Suppliers: In recent years the industry has had a small problem with beef, because of the outbreak of the mad cow disease. This problem raised the cost of beef in Europe tremendously but the cost actually went up around the world because of the beef shortage in Europe. The suppliers that sell to McDonalds have a strong voice also because of the fact that the switching cost for McDonalds as a whole would be so tremendous, so any problems or disputes would be worked out with there suppliers. Comparative Ratio Analysis Ratio analysis helps us analyze the financial trends of previous years and extrapolate those trends into future years for McDonalds and its core competitors within the industry. It is divided into three areas: fundamentals, growth and profitability, and capital structure of the company. Liquidity ratios are used to determine how liquid the firm is, and how it will meet its obligations. This also helps us determine how risky the firm is by determining if the company is employing an adequate amount of liability or risk to generate profit. Profitability ratios give us the perspective profitability of the firm is operating. The ratios will help in accurately valuing the company at its current condition, compare its performance against competitors, and project the future results of the company. Fundamentals of McDonalds (MCD) vs. YUM Brands (YUM) Table 1 Financial Condition Company Industry Average SP 500 Debt/Equity Ratio 0.74 1.82 1.13 Current Ratio 1.4 1.3 1.4 Quick Ratio 1.3 1.2 1.2 Interest Coverage 30.6 18.8 28.0 Leverage Ratio 2.1 3.8 3.8 Book Value/Share 13.12 11.95 22.35 The industry average is calculated as an average of competitor brands like YUM, Burger King and Wendys. Current ratio: Since 1999 McDonalds has experienced a steady increase in their current ratio. The present current ratio of 1.4 is higher compared to industry average of 1.3. This increase shows that McDonalds has more ability to pay off their short term debts from the sale of their currents assets. Overall, McDonalds is in fairly good shape because their current ratio is growing. Receivables Turnover: McDonalds has consistently been well below its competitors YUM with accounts receivables turnover. This means that they arent collecting their accounts receivables as promptly as their competitors. This prevents McDonalds from reinvesting and expanding their restaurants which is a major source of revenue. This also allows for a greater chance of default on their accounts receivables. Asset Utilization: This ratio indicates how profitable a company is relative to its total assets. The return on assets (ROA) ratio illustrates how well management is employing the companys total assets to make a profit. The higher the return, the more efficient management is in utilizing its asset base. McDonalds Asset Turnover has consistently been lower than its competitor YUM since 1999. Debt to Equity Ratio: The debt-equity ratio is another leverage ratio that compares a companys total liabilities to its total shareholders equity. McDonalds has maintained a fairly low Debt to Equity Ratio of 0.74 which means that the company has an efficient amount of equity that can cover the cost of its liabilities compared to Yum of 3.14 or the industry average of debt to equity ratio of 1.82. Book value per share: This is an indication of how much shareholders are paying for the net assets of a company. McDonalds book value of 13.12 is higher than the industry average (11.95) or YUM (3.05) Net Income: The net income for McDonalds suffered a dip of 23% in 2007 but recovered in the year 2008, 2009. The total net income in 2009 was $ 4,555 Million compared to YUM who had a net income of $1071Million Shareholders Equity: Shareholders equity represents the amount by which a company is financed through common and preferred shares. The average Shareholders Equity for MCD is $13,287M compared to YUM who has a $709M. Dividend: MCD has consistently grown in dividends over the years. This is one of the most attractive features of MCD. Comparing the dividends of MCD and YUM, MCD has 25% increase on YTY compared to YUM who has only 14%. Growth and Profitability Table 2 Investment Returns % Company Industry Average SP 500 Return On Equity 34.8 48.2 21.4 Return On Assets 16.2 13.1 7.5 Return On Capital 17.6 15.4 10.0 Return On Equity (5-Year Avg.) 22.7 29.0 16.4 Return On Assets (5-Year Avg.) 11.4 10.1 7.6 Return On Capital (5-Year Avg.) 13.0 12.5 10.3 The industry average is calculated as an average of competitor brands like YUM, Burger King, and Wendys. Revenue Growth: The global recession has affected the revenue of both the companies. By year 2009 the consumer demand and currency exchanges have helped recover to pre-recessionary levels. EPS and Growth: The portion of a companys profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a companys profitability. The EPS for MCD is 4.11 which have increased from 9% from the previous year while the EPS for YUM is 2.26. The growth of EPS has been fluctuating due to the global economic crises. Profit Margin: A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. MCD has a profit margin of 20% compared to Yum is 10%. Return on Equity (ROE): Return on equity measures a corporations profitability by revealing how much profit a company generates with the money shareholders have invested. The ROE for MCD is 34.8 which is less than the industry average of 48.2. From the above figure we can infer for 2009 the ROE for YUM is 180%, but this has not been consistent over the years. For a long term investor this is not good. Capital Structure Charts Table 3 Price Ratios Company Industry Average SP 500 Current P/E Ratio 16.4 20.9 22.4 P/E Ratio 5-Year High NA 6.8 15.8 P/E Ratio 5-Year Low NA 3.2 2.4 Price/Sales Ratio 3.21 2.33 2.03 Price/Book Value 5.30 7.11 3.21 Price/Cash Flow Ratio 12.70 11.90 13.80 The industry average is calculated as an average of competitor brands like YUM, Burger King, and Wendys. Market Capital: Market capitalization represents the public consensus on the value of a companys equity. McDonalds in 2009 had a market capital of $67.3B compared to YUM brand that had a market capital of $16.35B. It also represents the market estimate of a companys value, based on perceived future prospects, economic and monetary conditions. Price to Earnings Ratio: A stock with a high P/E ratio means that investors are expecting higher earnings growth in the future compared to the overall market, as investors pay more for todays earnings in anticipation of future earnings growth. From the table 2 McDonalds PE is 16.4, which is below the industry average of 20.4. However there are limitations since the ratio depends on the earnings per share. McDonalds earnings per share of 4.24 are above the industry average of 1.43. Price to Book Value: This ratio used to compare a stocks market value to its book value. A lower P/B ratio could mean that the stock is undervalued. From the above figure McDonald has a stable P/B ratio compared to the Yum. From table 3 the P/B ratio for McDonald is 5.31 which is below the industry average of 7.11. Price to Sales ratio: The P/S ratio measures the price of a companys stock against its annual sales. From table 3 we can understand that the P/S ratio for McDonalds is 3.21 compared to the industry average of 2.33. This means that the investor would be paying $3.21 for every dollar of McDonalds sales. Price to Cash Flow Ratio: This ratio compares the stocks market price to the amount of cash flow the company generates on a per-share basis. McDonalds has a Price/Cash Flow ratio of 12.70 which is higher than the industry average of 11.90. Conclusion In our overall analysis of McDonalds Corporation using a variation of methods and models, we have conclusively found that McDonalds is currently undervalued in the market and is a Buy. The Method of Comparables was used, which included such ratios as: Price/Earnings, Price/Book, Price/Sales, and Price Earnings growth ratio valuations. The ratio valuations were calculated by finding the industry average and using a varying of other factors to project an expected share price. The industry average is calculated as an average of competitor brands like YUM, Burger King, and Wendys. Price to Book Ratio $ Industry Average of Price to Book value 7.11 Current Book Value of McDonald 13.12 Estimated price of share $93.28 Current Market Price 69.37 Trailing Price to Earnings Ratio Industry Average of Trailing Price to Earnings Ratio 17.9 Current McDonalds earnings per share $4.11 Estimated Market price $73.59 Current Market Price 69.37 Dividends Yield Ratio Analysis Industry Dividend Average (%) 2.73 McDonald Dividend per share 2.2 Expected share price found by dividing McDonalds (Dividends per share)/ (Industry average Dividends yield ratio) $80.50 Current Market price $69.37 Forward Price to Earnings Ratio Industry Average of Forward Price to Earnings Ratio 14.73 Current McDonalds earnings per share $4.11 Estimated price of share $60.54 Current Market Price 69.37 All Data obtained from Yahoo finance on 13/016/2010 From the above calculation the estimated price of McDonald is between $60.54 $93.28. However McDonalds corporation has faced previous law suits on being held accountable for obesity, similarly following the litigation process of cigarettes and tobacco companies. The courts ruled against this issue in McDonalds favor, making this a remote future risk factor. In addition, MCD in its effort to be a more socially responsible corporate citizen, by supporting a healthier society, has developed light and healthy menu items in order to give customers additional eating options and in doing so, broadening the array of its customer base while offering its existing customer base with healthier menu options.
Monday, January 20, 2020
Gender Roles, Socialization and Relationships Essay -- Sociology
Watch the classical film Grease and one will understand how relationships function in western Society. The film tells a story of a boy (Danny) and a girl (Sandy) who falls in love. Through a series of misunderstandings they break up, but still care enough about each other that they still try revive their relationship. Through ballads such as Summer Nightââ¬â¢s that are still popular today, the film shows how differently males and females view relationships. Danny, for example, describes his relationship in more physical terms while Sandy describes her relationship in much more emotional terms ââ¬âsuch as what they did that night. Films like Grease are like a mirror, reflecting societal values and how it socializes its members. It makes clear that in relationships, males ââ¬âlike Dannyââ¬âare socialized to view relationships as mostly a physical, sexual endeavor, while females ââ¬âlike Sandyââ¬â view it as an emotional bond, that is has resulted from a deeper c onnection between the two individuals within a relationship. It is tempting to believe that when couples say that they are ââ¬Å"in love,â⬠they view their love in the same way ââ¬âthat they have successfully ââ¬Å"defined their relationship.â⬠Love after all, is the only legitimate reason for marriage in western society and one should at least be on the same page before entering into a perpetual union (Henslin 468). Sociologists like to say that romantic love is composed of two components: sexual attraction (a biological response) and idealization of the other (a societal created response that promotes a bond between two individuals) (Henslin 468). However this is a very simple definition of love because it turns out that romantic love is in the eye of the beholder. Researchers of heterosexual love have ... ... completely differently. It is not stretch then to conclude that a dating couple who is watching this movie will be reinforced in what they already believe. The man will still view relationships as mostly physical and sexual and the women, as a means to satisfy her emotional needs and that of her offspring. Works Cited Dosser, David A., Jack O. Balswick, and Charles F. Halverson Jr. "Male Inexpressiveness and Relationships." Journal of Social and Personal Relationships 3.241 (1986): 241-58. Print. Gray, Peter. Psychology. 6th ed. New York: Worth, 2011. Print. Henslin, James M. Sociology: A Down-to-Earth Approach. 10th ed. Ally & Bacon, 2010. Print. Kanin, Eugene J., Karen R. Davidson, and Sonia R. Scheck. "A Research Note on Male- Female Differentials in Experience of Heterosexual Love." The Journal of Sex Research 6.1 (1970): 64-72. Print.
Saturday, January 11, 2020
Are Television, Movies, and Music Responsible for Teen Violence?
Are Television, Movies, and Music responsible for teen violence? Most people would like to know why violence among teens is rising. Most people blame parents for the way the child acts. Others blame the kids theyââ¬â¢re around. In my opinion, I donââ¬â¢t think neither parents nor peers are to blame. The media is responsible for teen violence in our society. The media teaches teens that violence is acceptable. Children will try to imitate the things they see on television.For example in Toronto, a six year old boy wearing a Ninja Turtle costume stabbed his friend in the arm for not giving back a toy he had borrowed. When the child is young and watches shows that have violence in it like SpongeBob Square pants children will want more violence when they grow older. The more they grow the more violence they want. This makes them less sensitive to violence. Only 16% of shows actually show the long-term effects of violence. The other way media portrays violence is by music.Rappers li ke Eminem have violent lyrics. One example is when Eminem wanted to kill his wife and ask his daughter to help throw her mom in the bottom of the ocean because he made a bed at the bottom of the ocean. When reporters ask him why he has such violent lyrics he blames his alter ego Slim for everything that happens, with his family, and work, that is bad. ââ¬Å"I do promote violence and I don't care. â⬠-Eminem. Artists donââ¬â¢t get in trouble for the negative message they send to teens. Rap music puts teens at risk to get arrested 2. times more. 66% of 13- to 17-year-olds believe violence in music is partly responsible for violent crimes. Music has a big impact on a teenagers life it helps up when were down and to make us happy. The last way media portrays violence is in Video games. More than 70 percent of American teenage boys have played the violent and adult-rated Grand Theft Auto video games. This will make them more aggressive. This can cause teens to fight with their pe ers by using what they see in the game to attack their peers. 8 percent of games show aggression that went unpunished. Video games are a form of entertainment among youth. 70 percent of children from ages 2 to 18 have access to video games at home. Teens that arenââ¬â¢t exposed to violence in media will be less likely to have violent behaviors. If parents donââ¬â¢t allow their child to watch too much T. V and play less video games than they will be less likely to have violent behaviors. People say itââ¬â¢s not the mediaââ¬â¢s fault if that is true than whose fault is it?Most teens grow up with T. V. Violence on T. V starts off young and they grow up with it and the more they grow the more violence they want. Violence in the media has negative effects on children. For example it increases aggressiveness and anti-social behavior. It also increases their fear of becoming victims because they see what happens and they are scared if it will happen to them. In summation media is a major component in the upbringing of a child whether good or bad, the key to stopping it is to not purchase it.
Friday, January 3, 2020
Domestic Feminism Politics Cary s Hidden Voice
Domestic Feminism in Politics: Caryââ¬â¢s ââ¬Å"Hiddenâ⬠Voice Throughout the semester, and the number of various works and authors explored, analyzed, and detailed in reading, research, and extrapolation, few had come to interest me as particularly as Elizabeth Caryââ¬â¢s, The Tragedy of Mariam, The Fair Queen of Jewry. What has come to pique my interest in this specific work, is in trying to understand the underlying motif of the work, I have come to discover, and explore in my own writings, that Mariam is not only significant for having the first publicly published female playwright, but that the work brings into focus the domestic, political, and religious doctrine of the period of the publication. That despite the overwhelming patriarchal dominance in the 17th century English society, Mariam forwards Caryââ¬â¢s ideals in expressing feminism; the independence and agency of women, in a society ruled by patriarchs in court and clergy. Demonstrating that in wielding c ompeting interpretations of feminism in interaction with Herodââ¬â¢s monarchy, men and women may meet their ultimate success or downfall in a patriarchal society. In this play, it is noted that nearly every mouth is in motion at one point or another, be they man or woman. For this essay, I will focus on Caryââ¬â¢s expressions of feminism, as it is presented in The Tragedy; abstract, revealed in not only the dialogue, but in the motions of the dialogue, or even through the lack of speech altogether. Nearly all mouths can be considered
Thursday, December 26, 2019
This paper is about the street children and their problems
A street child is a young person, under the age of fifteen, who lives and sleeps in the streets, whose family ties are broken and who cant or wont return home. Street children live in the streets without their families. Each child has to learn how to survive alone, since no adult takes responsibility of them. Often they are very young and completely ignored by their families. These children dont like to be called as street children. They live, or rather struggle to survive, they are usually in the downtown area, near stations and shopping malls, places, which are lit up at night or in garbage dumps, in railway stations or under bridges in most major cities of developing countries around the world. To avoid being caught, streetâ⬠¦show more contentâ⬠¦Education is the key to everything else. Moreover, in order to be able to learn how to live like other people, the child has to be taught to recognize basic rules of good and bad behavior. Also as it was mentioned before, lack of love is the fundamental problem for them, like other children they need a f amily. Thus, every step should be taken to return the child to their family. If that is impossible, they should take refuge in the foster homes foster homes which take in these children on a voluntary basis. (Grant, 35). Nevertheless, the most important point which should be taken into consideration is that A street child needs a refuge from the many dangers of life in the street. They need places where they can take cover in an emergency and have someone to talk to. Clearly, the opportunity of living in such a place not only meets the childs minimum living requirements but, in addition, allows them to get to know other children in the same situation, which is another of the childs essential needs. ( Smith, 18). There should be caused an awareness of the situation of street children and their need for special protection. The principles should work hard and promote their rights and liberate them from the suffering caused by living and working in the street. (Smith, 28). Furthermore, as it was mentioned before education is the key word, so in order to offer some solutions for the street children, primary education will be made compulsory. And the numberShow MoreRelatedThe Filippino Street Children767 Words à |à 3 PagesFilippino Street Children: A Constructivist and Behavioral Analysis Introduction: Right now there are millions of children all over the world running around playing games of tag, engrossing themselves in intense video games, or using their time to bury their noses in a book. Very few of these children, and their parents for that matter, realize just how privileged they are to live in communities here these activities are available and acceptable. 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Wednesday, December 18, 2019
The Duty Of The Army - 772 Words
Returning to Our Profession Army Doctrine Reference Publication 1-0 states, ââ¬Å"living by and upholding the moral principles of the Army Ethicâ⬠is the foundation to our profession. An organization cannot survive if there are no foundation for morals. The organization will internally implode. This is a critical fact for the Army. Individuals that do not have a foundation that aligns with the Armyââ¬â¢s foundation is detrimental to the organization. The purpose for this short paper is to explore the fundamentals of our profession; examine the need for structure; how to return to basics of the profession; who needs to enforce standards; finally, implementing a culture change within the Army. Army leaders have categorized the four problems thatâ⬠¦show more contentâ⬠¦Washington desired to reshape the regimental structure. He forwarded his request to congress for approval with help from his military leaders. Congress approved the division of Infantry regiments on 4 November 1776 (Wright, 1 983). The new structure consisted of eight Infantry companies, one Staff Company, and one Battalion Headquarter and increased efficiency. The division increased labor efficiency, allowing leaders to train individuals more effectively by providing structure. More leaders were involved with Soldier development. Individual training increase despite eliminating two companies in the regiment. On February 23, 1778, Baron von Steuben joined forces with the Continental Army (Boatner, 1995). A German by birth, Steuben began to train Soldiers and transform the Army. He took an abrasive approach to training Soldier. He did not speak English; however, Steuben, Washington, and his leaders selected 100 candidates to receive training. These men would serve as future leaders. This group of men were the first representatives for the new profession (Boatner, 1995). General Washington then began training the troops. He developed the training and drilled basic tasks that Soldiers and their leaders should know to function in every day operations and trainers in their unit. Steuben was dedicated to the profession and possessed a strong ability to influence Soldiers. He drilled with the Soldiers continually to provide
Tuesday, December 10, 2019
Computer crime research proposal free essay sample
Over the last few years the internet crime industry has changed very dramatically. Think back almost twenty years ago, computers were just beginning to make their marks in the professional world. However, big companies were the main individuals with computers, mainly because they werenââ¬â¢t that popular in homes. Nowadays, computers can be found anywhere. They are so convenient and you can do almost anything from a computer, pay a bill, shop, order food, even banking. The convenience has even been extended to a cell phone or smart phone as they are referred too. At the same time, all of the convenience and little to no security method is implemented. This proposal is geared to help people who have been victimized. Surveys, secondary data, and field research will all be of help to anyone that needs it. INTRODUCTION: Convenience versus Security, everything is able to be completed online, whether its shopping, banking, taxes, or simple communication it can all be done behind a screen. Its so easy for someone to assume your identity and you never know because of how convenient computers have become. When one item becomes too convenient the downfall is the lack of security that will come with that, it can be viewed as Convenience vs. Inconvenience. Making things convenient for ourselves isnââ¬â¢t always the most secure thing that we can do. Itââ¬â¢s a fact that, ââ¬Å"convenience is often times inversely proportional to safety and security (Mente, 2000)â⬠. My independent variable is the expansion of technology which leaves end users vulnerable for attack. The variable that is dependent upon my IV is the rise in attacks. As technology increases, the knowledge the hackers attain increases as well. Meaning that they are getting smarter and we need to be educated in their methods. As time progresses and technology continues to thrive in an upward direction more attacks are going to occur. Computers, PDAs, and Tablets are showing an economic boom in sales as the security level is withering. Convenience versus Security! The more you have of one the less you have of the other. BACKGROUND AND LITERATURE REVIEW: The five articles I chose to summarize are important to me. The trends thatà these cyber criminals are implementing are progressing at a very fast pace. Newer trends are developing just as fast as technology is growing. We have to be ready for all the new ideas the tech savvy individuals are coming up with to assume ones identity. There are so many that the public cannot be warned about them all therefore schooling yourself on the security measures to take will save you the hassle in end. ââ¬Å"Internet Crime Trends: The Latest Reportâ⬠I chose this article because it is good to be aware of the trends that the computer criminals implement. Based on the ICR, or the Internet Crime Report which dates back to 2010, the top three common complaints that the IC3, or Internet Crime Complaint Center, had were non-delivery of payment or merchandise, impersonating scams, and identity theft. Most of the complaints came from United States residents, mostly male, between the ages of 40 and 59. Most of the complaints come from California, Texas, New York, and Florida. Those are the states that are heavily impacted because they are heavily populated. Computer criminals are far from fools. Being able to master the art of theft online is not easy. They target the cities that are fast-paced, that way they will not realize a crime is being committed until well into the process. The IC3 received approximately 300,000 complaints a year roughly 25,000 per month. Half of the reported complaints were of some form of financial loss. However, many internet crimes go unreported. Citizens are not aware that even if they do not fall into the trap and become a victim of a computer crime, the fact that they were contacted at all should be reported as well. According to the NCSS, or National Computer Security Survey, there are three types of cybercrime. There are the cyber-attacks, cyber-theft, and cyber-security incidents. The cyber-attacks are when the computer system in general is the target. Viruses and worms are the culprit in cyber-attacks. Cyber-theft is when a computer is used to receive any type of financial gain or other things of value, embezzlement and fraud are types of cyber-theft just to name a few. Cyber-Security incidents normally affect businesses. Spyware, Adware, Hacking and Phishing are common incidents that can happen in a business establishment. However, this is where our security needs to be in its best shape. In 2005, a study of over 7000 companies reported that 67% detected at least one cybercrime,à almost 60% detected one or more types of cyber-attack, 11% detected cyber theft and 24% detected other computer security incidents (NCSS, 2005). Many of the companies didnââ¬â¢t even report the crimes but the ones that were reported sustained monetary loss of $10,000 or more. This data revealed to me that some cyber-crimes go unnoticed because they are not reported. Business companies and individual citizens alike have been victim to a potential cyber-crime whether you are aware or not. Many people do not report mainly because nothing was stolen. It takes for something to leave our possession before we react. On the contrary, with crimes like Cyber-Attacks, Cyber-Theft, and Cyber-Security breaches acting on something small can save you a lot of disappointment in the end. The fact that the trends are adapting rapidly daily does not mean that the older techniques are not still lurking. If you have received mail, physically or electronically, asking for money, claiming to be someone that needs money, or telling you how to make money itââ¬â¢s usually a scam. ââ¬Å"Cyber-Crime Taking on Sinister Formsâ⬠Nowadays, the criminals who attack via the computer are growing rapidly. Authorities feel that 2012 will be a big year for cyber criminals. Especially the scams, there have literally been hundreds of emails sent out asking one to send money, or to cash a check then wire it somewhere else. Often scammers assume the identity of major companies and corporationââ¬â¢s telling you that you can become a member of their team if you send money from one place to another. Citizens should report any suspicious activity. Older men are considered a high risk target. Unlike women, most men are not computer savvy and may fall for a scam faster than a woman would. Many scammers are unemployed and are looking to make easy money. However, we cannot be so easily fooled. Another common problem for authorities is the use of computers to stalk and harass individuals. Usually the sender remains anonymous and their main goal is to gain access to the identity of an individual. Based on an electronic monitoring study in 2006, 83% reported that they received an email from a stalker, 35% received an instant message. More than 3 million people, both male and female, over the age of 18 had been stalked at least once. Now of course, stalking in the physical is completely different from cyber stalking. In this sense, stalking is definedà as conduct that would cause a person to feel fear. Studies show that electronic monitoring was used to stalk 1 in 13 victims. Video or digital cameras we used to spy on individuals that never knew they were being watched. Of the 3 million people surveyed over 250,000 sustained injuries in stalking attacks (Osterburg Ward, 2010). These specific attacks escalated from cyber-stalking to physical stalking, however, it everything originated online. Out of the initial survey, over 35,000 were raped or sexually assaulted, over 50,000 were seriously injured, and over 270,000 individuals suffered minor injuries (Osterburg Ward, 2010). This information was shocking. One never knew you could be stalked online. However, if at any point you felt any type of fear whilst online that is considered cyber-stalking. Another fact that shocked me was that the offenders were between the ages of 18 and 29, at the same time, the victims were between 21 and 39. One would think the offenders would be older and the victims young but sadly this is not the case.
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