What does Orwell do in the opening two pages of the novel Essay Example For Students

What does Orwell do in the opening two pages of the novel ? Essay In the novel Nineteen Eighty-Four, the author, George Orwell employs a range of different techniques such as similes, metaphors and symbolism to unnerve and keep the reader in anticipation, impelling them to read on. The novel is in a third-person narrative style, this technique employed by Orwell creates a distance between the central character, Winston Smith and the reader. This vagueness adds tension and mystery to Orwells depiction, only allowing the characters emotion to be revealed through dialogue. The narrative viewpoint also allows the reader to grasp an unbiased view of the character and his circumstances. Throughout these first couple of pages Orwell purposefully refuses to expand on things which confuse the reader. For instance, The hallway smelt of boiled cabbage and old rag mats, and simply doesnt give an explanation why. This deliberate omission is employed to purely keep the reader on edge and impel him/her to read on. Another example of this is towards the end of the second page, The Patrols did not matter, however. We will write a custom essay on What does Orwell do in the opening two pages of the novel ? specifically for you for only $16.38 $13.9/page Order now Only the Thought Police mattered. This line immediately grabs attention and creates suspense, but Orwell leaves it here. The reader is now left feeling insecure and leaves us questioning ourselves through mere confusion of what may be happening in this society. Another technique utilized by Orwell to disturb the reader is the use of unusual contradictions; an example of this is given in the first line. It was a bright cold day in April, and the clocks were striking thirteen. After reading this opening line the reader becomes confused because usual connotations of the word Bright wouldnt normally be associated with the word Cold. Therefore a bright cold day would seem a little irregular but effectively creates atmosphere and tension, this poetic technique is called an Oxymoron. After this Orwell goes on to portray the clocks striking thirteen, this again, is a clever contradiction introduced by Orwell which directly unsettles the reader. The number thirteen itself is known as an unlucky number, associated with evil. These unusually dark connotations all add to the obscurity of the feeling Orwell is trying to depict and leave the read mystified about what is going to happen. In addition to this Orwell applies various similes, metaphors, repetition and symbolism to convey different emotions across to the reader. An example of the similes used is on the second page, a helicopter skimmed down between the roofs, hovered like a bluebottle. This clever expression compares the hovering helicopter with a bluebottle fly. The helicopter snooping about annoying and hassling people just like the hovering pest Orwell wants it to be related with. The repetition used within these two pages is based around the block capital written captions, BIG BROTHER IS WATCHING YOU. These headings are repeated twice; they are outstanding and emphasize the authority and presence of this establishment. Again, Orwell doesnt go into detail about what this organization symbolizes or stands for; he simply proceeds with the descriptions. This lack of knowledge of Big Brother leaves the reader wanting to know more about what control this unexplained leader has over the society. Furthermore, the symbolism which exploits this societys conduct with their people is portrayed through Winston Smith, the main character. Was thirty nine-nine and had a varicose ulcer above his right ankle and a small, frail figure, the meagreness of his body These descriptions of Winston prove that this society run by strangers, is under the unhealthiest of commands and nobody, especially Winston is treated correctly. These descriptions leave the reader with sympathy for Winston but still in a fearful atmosphere and anxious of what is going to happen. In conclusion to the question, George Orwell has employed successful and intelligent techniques that keep the story on a suspenseful edge whilst the reader and Winston Smith remain within a mysterious distance of each other. The distance is ample enough for the reader to be optimistic and impelled to go on.

Handmaids Tale Essays - The Handmaids Tale, Free Essays

Handmaid's Tale Essays - The Handmaids Tale, Free Essays Handmaid's Tale The nature of Offreds lost identity is very drastic. Before the new religious group of Gilead took over the world she was a very normal every day woman. She did what was expected of her time and continued to do so after the take over. She had a husband and a daughter who she loved very much. But the new society which she lives in love is not permitted. If I thought that this would happen again I would die. But this is wrong, nobody dies from lack of sex. Its lack of love we die from. Theres nobody here I can love, all the people I could love are dead or elsewhere . Offred also had the choice of free will before her civilization changed. But then slowly women began to lose all of their rights and were no longer allowed to have jobs or even to use money, Sorry, he said. This number is not valid. Thats ridiculous, I said. It must be, Ive got thousands in my account. Its not valid, he repeated obstinately. See that red light? Means its not valid,(p.164). In the days of anarchy, it was freedom to. Now you are being given freedom from (p.24). Social class was not a racial matter before the take over; and each individual was treated equally. However, slowly people of high social groups became much more powerful. They were chosen as Commanders and the poorer individuals went to the Colonies; which were farming communities. Young woman were screened, and the ones with viable ovaries were used as Handmaids; and became bedridden slaves. These Handmaids had children for the infertile Commanders wives. They would be sent away to special schools where they were taught how to give birth; and also to obey their masters without question. You can always practice, said Aunt Lydia. Several sessions a day, fitted into your daily routine. Arms at the sides, knees bent, lift the pelvis, roll the backbone down. Tuck. Again. Breathe in to the count of five, hold, expel (p.66). The womans lives were controlled by this society; and were taught to forget th e society which they once lived. Things that once were, no longer existed. The circumstances which led to the lost identity of Offred happened very abruptly. The first sign of change in her society was when her Constitution was suspended. It was said that it would only be temporary, but that was not the truth. People had no idea what to do; and looked anywhere for some kind of guidance. Eventually newspapers and television became very censored, for what was said to be security reasons. Then came the roadblocks, and Identipasses which were greatly approved by society, The road blocks began to appear, and Identipasses. Everyone approved of that, since it was obvious that you couldnt be too careful(p.163). No one tried to fight the changes because they did not understand what was occurring, There wasnt even any rioting in the streets. People stayed home at night, watching television, looking for some direction (p.163). There were rumors that new elections were to take place, for the new Constitution. However, this would take a very long process to prepare for. Streets were cleaned up, and prostitution disappeared, They said that new elections would be held, but that it would take some time to prepare for them. The thing to do, they said, was to continue on as usual (p.163). Then finally one day everything changed. Woman were no longer allowed to hold jobs, or even buy groceries. People were shipped off to a place called the Colonies, and others went elsewhere. Things happened so quickly that no one even saw it coming. The consequences of the lost identity in The Handmaids Tale, were not as severe as one would have expected. Offred was a very reasonable woman who easily adapted to the changes. Her greatest loss was that of love. The results of this lack of love were several affairs throughout the entire story. Affairs were strictly prohibited in the Gileadian society; however, they were very hard to resist as well. Offred would try to convince herself that these affairs were not about love, simply about a feeling of being wanted: Some

Environmental Ethics Essay Sample

Environmental Ethics Essay Sample Environmental Ethics Essay Our environment is one of the most important structures of the physical world that need to be valued and respected. This is because it provides essential elements to offer life. The Earth’s atmosphere is one of the most important structures that Mother Nature created because it offers a place for every organism to thrive. Human Beings need an atmosphere so that they can live in a certain period of time. We thrive by scouting natural resources that sustain our survival such as food. Our environment offers us shelter from any environmental hazards such as natural calamities that often strikes anywhere around the world on a regular basis. However, our environment is at risk for being abused by the humanity due to manmade hazards. Environmental ethics is associated with the existing law that mandates the society to respect our natural environment and preserve the society. The goal of promoting environmental ethics is to decrease the number of environmental violations that risks our surroundings from being damaged. Environmental laws and policies ensure that our environment is protected from any man-made hazards that attempt to destroy our physical environment. As a result, any violators are apprehended by the local and national government units with the cooperation of the law enforcement agencies. The reason behind is that violators are responsible for destroying our natural environment through pollution. Apprehensions can imprison perpetrators of environmental ethics violations because they are considered threats to the society. This is because there is a growing problem with regards to the competition between nature and a man-made settlement that are changing our physical environment that is observed on a ra pid scale. Pollution is the main cause of environmental hazards that disrespects the essence of environmental ethics. Major companies such as mining firms usually dump toxic waste to water ways and sewerage systems that contaminate rivers, streams, and oceans. Land pollution is commonly caused by humans who dump their waste anywhere, which clogs the canals. As a result, clogged canals are the most common scenario that increases risks of flooding in an area that are filled with numerous waste materials. When waste materials will flow through the rivers and reach open seas, it creates a risk to marine ecosystems, which kills fishes and other marine creatures. Vehicles that are fueled by petroleum products are one of the main causes of air pollution. Vehicles need gasoline or diesel in order to generate energy. However, the smoke emits reaches the atmosphere and saturating carbon particles that block the sun’s rays. Global warming is the result of violating environmental ethics such as pollution. This is a condition wherein it saturates carbon particles into the atmosphere. The heat cannot escape from the Earth’s atmosphere towards space because it is blocked by the carbon particles that generated a thin layer above the sky. Gradual increasing of temperature causes the sea levels to rise, causing stronger natural calamities such as intense tropical cyclones. Violating environmental ethics serves as a lesson to the population because it results in a catastrophic impact on our environment. One example is low lying islands across the world that are slowly swallowed by the rising seas. This is a consequence that is non-stoppable because the sea level continues to rise each year that threatens low lying areas around the world to sink in the future (Sutter Berlinger, 2015). Reference Sutter, John D. Berlinger, Joshua (2015).  Final draft of climate deal formally accepted in Paris.  CNN. Cable News Network, Turner Broadcasting System, Inc.

Nutritional quality of rapeseed oil and health benefits of omega fatty Essay

Nutritional quality of rapeseed oil and health benefits of omega fatty acids - Essay Example The plant bears yellow flowers. Rapeseed is popular for the oil that can be produced from it. The most popular brand is the canola oil, which is a refined form of rapeseed oil. Until a few years ago, Rapeseed oil was used as an efficient lubricant for steam engines. Currently, the oil is used as biofuel and human edible oil and the by-product is used as animal food (USDA, 2010). The oil has high levels of erucic acid and glucosinolate because of which it tastes bitter. Canola oil has lesser amount of acid and glucosinolate and hence is palatable. It has higher quantities of omega fatty acids which reduce LDL cholesterol and serum triglyceride levels (USDA, 2010). Canola oil has low saturated fat and high levels of monounsaturated oil. Infact, when compared to other vegetable edible oils like sunflower oil, corn oil and peanut oil, canola oil has very low ratio of saturated to unsaturated fats. The main omega fatty acid present in the oil is alpha-linolenic acid, which is an omega-3 f atty acid. 1.3 grams of this fatty acid is present in one serving of the oil. 1ml of the oil yields 12 calories and 1.4 grams of fat. Only 10 percent of the fat is saturated. The oil has no cholesterol, protein, carbohydrate or sodium. The oil is rich in vitamin E which is a valuable anti-oxidant (Ingle, 2010). Despite the popularity of the rapeseed oil as safe and beneficial edible oil, many experts have condemned the nutritional benefits of the oil. Some researchers are of the opinion that the useful ingredients of the oil are destroyed in industrial manufacturing and that during such a process, trans-fatty acids develop which are not only harmful to the body but also are detrimental to the beneficial actions of the useful ingredients of the oil. Some experts opine that Canola oil or the irradiated rapeseed oil can cause certain problems of the central nervous system like tremors, palsy, shaking, uncoordination of movements, slurring of speech, blurring

The basic principles of MR image production Essay

The basic principles of MR image production - Essay Example In this essay, safety issues and hazards of MRI will be discussed and methods for safe imaging will be explored through review of suitable literature. MRI is a "way of obtaining very detailed images of organs and tissues throughout the body without the need for x-rays or "ionizing" radiation. Instead, MRI uses a powerful magnetic field, radio waves, rapidly changing magnetic fields, and a computer to create images that show whether or not there is an injury, disease process, or abnormal condition present" (Patient-Safety MRI, 2010). MRI has turned out to be an excellent investigation tool because of it ability to provide good contrast between various tissues in a particular region. For example, in the brain, a good contrast is provided between white matter, gray matter and cerebrospinal fluid (Diwadkar and Keshavan, 2002). The technology of MRI mainly employs 3 components for imaging and they are pulsed radio-frequency fields or RF, high static magnetic field and time-varying gradient electromagnetic fields or EMF (Roboman et al, 2006). For the purpose of MR imaging, the patient is placed in a "large, tunnel or doughnut-shaped dev ice that is open at both ends" (Patient-Safety MRI, 2010) (Refer Figure-1). The examination causes no pain or tissue injury, although loud noises are heard during the procedure. There is also a risk of mechanical injury due to ferromagnetic objects kept in the scanning room unintentionally. The main hazards concerned with magnetic fields are interactions with the equipment and interactions with human tissue. As far as human tissue interactions are concerned, the most worrisome interactions are with blood flow, ears and cardiac cycle (De Wilde et al, 2007). The main safety issues which are of concern on exposure to high static magnetic field are are both mechanical and biological effects and their consequences. In clinical MRI scanning, the strength of magnets used range between

Result produces movement Essay Example for Free

Result produces movement Essay When our bodies require us to produce movement our brains have to provide our muscles with the signals to carry out the movement, this type of communication between the brain and the muscle is known as nerve impulses, these nerve pulses are electrical currents that travel from the central nervous system also known as the CNS through nerves and then to the desired muscle tissues, which the final result produces movement. Therefore initially when we begin exercise there are more muscles involved which require nerve impulses from the brain to create the movement, and these have to be sent within split seconds, this is why the nerve impulses coming from the brain increase, because not only do they have to send the normal resting nerve impulses but they also have to send nerve impulses to the desired organs or parts of the body which now have had an increase demand of contractions. For example the hearts contractions initially in exercise increase by up to 10-20 beats per a minute therefore to carry out this increased heart contractions more nerve impulses are needed to be sent. Also when these increased signals are sent, initially any muscular contractions would also be on the incline because at rest or relaxation all muscles still need to contract otherwise the body would just collapse or flop, therefore slight signals are sent to these muscles to remained contracted, however as soon as exercise begins the brain sends increased amount of nerve impulses to contract the muscles at a quicker rate, this is why it is said that weight resistant training can be more beneficial to loose weight, because as the muscle contractions are quicker they require more and more energy. The signal sent from the CNS to the muscles is whats called an Action Potential, as the signal is sent to the motor neurones the motor neurones signal a contraction to the muscle fibres. The Action Potential increases because the signals sent from the brain to the CNS are an increased amount of signals therefore the CNS has to provide more Action Potentials to assure that the motor neurones signal quickly enough to the muscle fibres to produce the desired movements. Acetylcholine diffusion occurs across the gap between the nerve and the muscle, this produces an electrical signal which is known as the Excitatory post-synaptic action potential, as initial exercise begins the diffusion of Acetylcholine is going to increase because as the muscle requires to contract more to produce more movement this requires more electrical signals to be sent to the muscles to produce this contraction, therefore Acetylcholine needs to diffuse more quickly to ensure that the Excitatory post-synaptic action potential occurs, otherwise if this signal is not big enough the muscle tissues will fail to contract sufficiently. In result of the increased Acetylcholine production, there is an enzyme known as Cholinesterase, this type of enzyme has the characteristics to break down the Acetylcholine, this is essential that Acetylcholine is broken down because it allows the muscle to be ready to receive the next signal. Therefore in the first stages of exercise because there are increased amounts of signals to produce rapid muscle contractions there is increased amounts of Acetylcholine production therefore the enzyme Cholinesterase has to be increased in order to break down the Acetylcholine quick enough to be ready to produce the next muscle signal.

The Advantages of Web-Based Businesses for Entrepreneurs Essay

Starting and maintaining a successful business is the dream of all entrepreneurs. Today’s advancements in technology have created new opportunities for business owners to get closer to this dream. The Web has been the most effective tool in creating new opportunities for business owners. An entrepreneur should be more successful by starting, marketing, and operating a Web-based business. The first reason an entrepreneur should be more successful starting a Web-based business is because it’s simple and inexpensive to set up. Once an entrepreneur has the proper licensing and permits and creates a website, Business is can began operating. A Web-based business decreases start-up cost by not having to acquire a physical location. Obtaining financing to purchase or develop a physical location can be difficult and expensive. Banks are highly sensitive to risk and are often reluctant to lend money to businesses. The greater the risk a lender takes in making a loan, the higher the rate of interest a lender requires (McHugh, J., McHugh, S., & Nickel, 2008). Another reason an entrepreneur s...

Factors that contributed to the rise and development of sociology Essay

This essay serves to outline the factors that contributed to the rise of sociology and the latter`s development. In simply terms, sociology is the scientific study of the society and human behavior. The emergence of sociology traces back to the eighteenth century up to present day. Johnson (1998) suggests that in summary, the rise and development of sociology is based on political, economic, demographic, social and scientific changes. Ritzer (2008) asserts that the immediate cause for the beginning of sociology were political unrests especially the French Revolution that took over from the eighteenth century to the nineteenth century. The turmoil of the French Revolution spread throughout Europe and other nations. Kornblum (2008) suggests that the political upheavals were associated with tremendous social changes. The political revolutions demolished the old social order and monarchies. There was social chaos and disorder in societies that were resulted in by the political revolutions especially in the French society. Social theorists were attracted by these societal changes that had been a result of the political unrests hence giving rise to the discipline of sociology. Auguste Comte (1798-1857) who is credited for being the founding father of sociology was attracted by the social changes that had arose in reaction to the political revolutions. The French philosopher Comte attributed his focus of study to the French society so as to restore social order. This marked the beginning of sociology. Therefore, it is wise to claim that the European political upheavals resulted in social changes which attracted a number of social theorists such as Comte thereby leading to the rise of the scientific study of society. Industrial Revolutions also contributed to the rise of sociology as a discipline and had great impact to the rise of sociology (Schaefer, 2010). Industrial Revolution was a period of transformation whereby economic modes of production changed from feudalism to capitalism. The industrial transformations gave in the establishment of factories and industries resulting in the creation of employment and social changes such as urbanization in the urban settlements. According to Kornblum (2008) ,individuals flocked from rural to urban settlements for employment that had been brought by the capitalist system. This resulted in over population, poor sanitation, poor health and high death rates due to poor working conditions in the urban settlements where industrialization had emerged upon. The lower classes that served as laborers for the capitalists were oppressed and exploited by the capitalists in the sense that both adults and children worked for long hours and were given low wages. Classical sociologists such as Karl Marx (1818-1883) were attracted to the study of society due to the unfair system of the capitalist economy that had been brought by the industrial revolution in Europe. Marx condemned the industrial societies and gave alternative models of society such as socialist and communist societies. As a result, it is wise to assert that societal changes brought by the industrial revolutions in Europe were one of the basic foundations of sociology. The industrial revolutions also had an impact in the beginning of American sociology. Johnson (1998) suggests that industrialization resulted in the beginning of sociology in the United States of America. Masses migrated from Europe to the United States of America due to the industrialization that had arisen in the United States of America. Individuals came to the United States of America in search of employment opportunities. The urban settlements of America were overpopulated thereby causing America social theorists to begin the scientific study of the society. American sociologists began studying social changes that had been resulted by the industrial revolution such as racism, theft and interaction among societal individuals. Charles Horton Cooley is one of the American sociologists who began the study of the society due to social changes brought by industrialization. Industrialization in the United States of America contributed to the rise of sociology in the United States of America. The scientific study of the society rose also due to the growth of science in Europe (Ritzer, 2008). Sociology emerged during a period of time when natural sciences had great honor and prestige in the European society. Natural scientists were given respect and honor in the society because they were believed to be problem-solvers in the world through the use of natural sciences such as chemistry. The growth and superiority of the natural sciences stimulated social scientists also to develop a social science that would solve societal problems that had been brought by the industrial and political revolutions. The social scientists eagerness of creating a science of society resulted the beginning of sociology which is the scientific study of the society. Auguste Comte was influenced by the growth and prestige of the natural sciences because Comte coined the term sociology which relates to the scientific study of the society. Comte alson developed positivism which was based on the notion that natural scientific methodology of objective observation and experiments should also be applied when studying the society. In this regard, the growth and prestigious position of the natural sciences resulted in the emergence of sociology. Ritzer (2008) also suggests that the enlightenment era also led to the rise of sociology. Ritzer (2008) adds that the enlightenment era was a period of rema rkable intellectual development and change. The beginning of sociology was determined by enlightenment philosophers such as Charles Montenesqueu (1689-1755) and Jean Jacques Rousseau (1712-1718). The enlightenment thinkers denounced the existing status quo stating that humans should control the universe and destroy traditional beliefs. A few sociologists were inspired by the enlightenment thinkers such as Karl Marl who favored change as suggested by the enlightenment philosophers. However, most sociologists such as Emile Durkheim and Auguste Comte followed footsteps of De-Bonald and De-Maistre rejecting enlightenment views because they were conservative, they feared change. Consequently, sociology rose as response or reaction to enlightenment philosophers. According to Ritzer (2008), the rise of socialism contributed to the rise of sociology as a discipline. Socialism was based on the notion that property should be communally owned in a society. This gave the rise of sociology because a few sociologists used doctrines of socialism in studying the society and they believed that a socialist society would mark the end of social problems. Karl Marx was inspired by socialism in developing his sociological theories because he advocated change from the capitalist to the communist society model. However, socialism also developed sociological theory because most of the sociologists particularly functionalists were conservative and criticized the socialist doctrines. Thus sociology developed due to socialism because sociology hardly consisted solely the scientific study of the society but it also comprised criticisms of some theories specifically socialism. As a result, socialism contributed to the rise and development of sociology as highlighted above. The rise of feminism had an impact in sociology because feminist ideas developed sociological theory (Ritzer, 2008).Feminism is based on the idea that women are superior as well and are equal to men in the society. Feminism rose during the liberation era of modern Western History. Feminist sociologists include Harriet Martineau (1802-1876) who wrote a textbook entitled ‘Society in America’. Male sociologists such as Comte responded conservatively to the feminist ideas. Thus feminism developed sociology because sociology had been a male dominated discipline so feminism developed sociology by transforming the discipline from a male dominated to a balanced discipline of both males and females. According to Ritzer (2008), religion also led to the rise of sociology. Ritzer (2008) citing Hinkle and Hinkle (1905) says that many early sociologists came from different religious backgrounds and were actively involved. They brought to sociology the same religious objectives they had in their personal lives. For instance, Durkheim, Karl Marx and Max Weber wrote on religion in their personal perspectives. Therefore, religion also contributed to the rise of sociology. Johnson (1998) adds on that sociology started as an academic discipline in the United States of America. Sociology started as an academic discipline at Chicago School of thought, faculties and departments of sociology were set up at Chicago and sociology emerged as an academic disciple in the Western nations between the 1920s and 1970s. This attitude has spread all over the world even into African universities. It has been seen in the essay how multiple factors influence the rise and development of sociology as a discipline in the global environment. Be it as it may, the industrial revolutions had a greater impact than any other factors outlined in essay in contributing to the rise of sociology as a discipline. Since industrial revolutions had a greater impact in contributing to the rise and development of sociology, one cannot assume that the industrial revolutions can solely explain completely the origins and development of sociology. The factor of industrial revolutions can fully explain the rise and development of sociology with other factors outlined in essay. . REFERENCES Farganis, (2011). Readings in Social Theory: The Classic Tradition to Post Modernism (sixth edition). New York: McGraw-Hill. Johnson, W.A. (1998). The Sociology Student Writer`s Manual. USA: Prentice Hall Inc. Kornblum, W. (2008). Sociology: In A Changing World. Canada: Thompson Learning. Ritzer, G. (2008). Sociological Theory. New York: McGraw Hill. Schaefer, R. T. (2010). Sociology (twelveth edition). New York: .McGraw.

Harvard business publishing Essay

In mid-September of 2010, Emily Harris, vice president of New Heritage Doll Company’s production division, was weighing project proposals for the company’s upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the division’s innovative product lines and drive future growth. However, due to constraints on financial and managerial resources, Harris knew it was possible that the firm’s capital budgeting committee would decline to approve both projects. She also knew that New Heritage’s licensing and retail divisions would promote compelling projects of their own. Consequently, Harris had to be prepared to recommend one of her projects over the other. The Doll Industry Revenues in the U.S. toy and game industry totaled $42 billion in 2008 and were projected to increase by 4.6% per year to $52.5 billion by 2013. The market was divided into two broad segments: video games (48%) and traditional toys and games (52%). The second segment was further divided into infant/preschool toys (14.5%), dolls (14.1%), outdoor & sports toys (12.3%), and other toys & games (59.1%) including arts and crafts, plush toys, action figures, vehicles, and youth electronics. The U.S. market for toys and games was dominated by large global enterprises that enjoyed economies of scale in design, production, and distribution. Revenues were highly seasonal; the largest selling season in the United States coincided with the winter holiday period. Within the toy and game segment, U.S. retail sales of dolls totaled $3.1 billion in 2008 and were projected to grow by 3% per year to $3.6 billion by 2013. The doll category included large, soft, and mini dolls, as well as doll clothing and other accessories. The phenomenon of â€Å"age compression†Ã¢â‚¬â€ the tendency of younger children to acquire dolls that had traditionally been designed for older girls—reduced growth in the â€Å"baby-doll† sub-segment. Competition among doll producers was vigorous, as a small number of large producers targeted similar demographics and marketed their dolls through the same media. Lasting franchise value for a branded line of dolls was rare; the enormous success of Barbie ® dolls was an obvious exception. More recently and on a much smaller ________________________________________________________________________________________________________________ HBS Professor Timothy Luehrman and HBS MBA Heide Abelli prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. Th is case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright  © 2010 Harvard Business School Publishing. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://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 Publishing. Harvard Business Publishing is an affiliate of Harvard Business School. Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 New Heritage Doll Company: Capital Budgeting 4212 | New Heritage Doll Company: Capital Budgeting scale, New Heritage also had created a durable franchise for its line of heirloom dolls. But the popularity of most doll lines waned after a few years. New Heritage Dolls By 2009, New Heritage had grown to 450 employees and generated approximately $245 million of revenue1 and $27 million of operating profit from three divisions: production, retailing, and licensing. The production division, discussed further below, designed and produced dolls and doll accessories. The retailing division offered a unique â€Å"intergenerational experience† for grandmothers, mothers, and daughters, centered upon the character histories and storylines of the company’s dolls and delivered through an online website (42%), a mail-order paper catalog (33%), and a network of retail stores (25%). In fiscal 2009, the retailing division generated roughly $190 million of revenue and $4.8 million of operating profit. The licensing division was started in 1998, and represented the company’s newest and most profitable division. It sought to extend the New Heritage brand and capitalize on high levels of customer loyalty by selectively licensing the company’s doll characters and themes to a variety of media that reached the firm’s target demographic of toddler to pre-teen girls. In fiscal year 2009 the licensing division generated $24.5 million of revenue and $14.5 million in operating profit. New Heritage’s Production Division Production was New Heritage’s largest division as measured by total assets, and easily its most asset-intensive. Approximately 75% of the division’s sales were made to the company’s retailing division, with the remaining 25% comprising private label goods manufactured for other firms. Table 1 summarizes the division’s various sources of revenue and operating income. Table 1 Production Division Data: Revenue ($ millions) Operating Income ($ millions)    New Heritage’s dolls and accessories were offered under distinct brands with different price points, targeting girls between the ages of 3 and 12 years. The company’s baby dolls were generally priced from $15–$30, and were offered to younger girls in earlier stages of development. These dolls typically came with a â€Å"birth certificate† and a short personal history. Dolls in the higher-end of this category incorporated technology that produced a limited amount of speech and motion. For the 1 The division revenue figures include approximately $95 million of internal sales within divisions which are eliminated when considering consolidated revenue for the company. BRIEFCASES | HARVARD BUSINESS PUBLISHING Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 The New Heritage Doll Company was founded in 1985 by Ingrid Beckwith, a retired psychologist specializing in child development and the grandmother of two young girls. Dr. Beckwith believed the dolls produced by the major toy companies did little to develop girls’ imagination or foster a positive self-image, so she created a line of dolls with unique storylines and wholesome themes. Dr. Beckwith’s dolls struck a chord among mothers and grandmothers who also rejected the dated, clichà ©d images portrayed by the popular dolls of the day. New Heritage Doll Company: Capital Budgeting | 4212 New Heritage outsourced much of its production to a select number of contract manufacturers in Asia. To ensure product quality and safety, the company maintained a fulltime staff to oversee material sourcing, production, and quality control on site at each of its manufacturing partners. Manufacturing activities that required precise tolerances or proprietary processes, along with all the creative elements (design and product prototyping, for example), were handled in-house at the company’s headquarters facilities in Sacramento, California. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 Capital Budgeting at New Heritage New Heritage’s capital budgeting process retained some of the informality that characterized the company’s early years as an innovative startup. As the company grew, deliberate steps were taken to decentralize some of the project approval process and increase spending authority at the division level. However, large and/or strategic spending proposals were reviewed at the corporate level by a capital budgeting committee consisting of the CEO, CFO, COO, the controller, and the division presidents. The committee examined projects for consistency with New Heritage’s business strategy and sought to balance the needs and priorities of each division against practical financial and organizational constraints. The committee also sought to understand project interdependencies and the potential for a given investment to strengthen the whole company, not solely the division proposing it. New Heritage’s capital budget was set by the board of directors in consultation with top officers, who in turn sought input from each of the divisions. The capital and operating budgets were linked; historically, the capital budget comprised approximately 15% of the company’s EBITDA. The committee had limited discretion to expand or contract the budget, according to its view of the quality of the investment opportunities, competitive dynamics, and general industry conditions. Before being considered by the committee, projects were described, analyzed, and summarized in self-contained proposal documents prepared by each division. These contained business descriptions, at least five years of operating and cash flow forecasts, spending requirements by asset category, personnel requirements, calculations of standard investment metrics, and identification of key project risks and milestones. Financial Analyses Financial analysis began with operating forecasts developed with oversight from New Heritage operating managers. Revenue projections were derived from forecasts of future prices and volumes. Fixed and variable costs were estimated separately, by expense category. Forecasts of working capital requirements were likewise vetted by line managers, who paid particular attention to a project’s requirements for various types of inventory. Forecasts for fixed assets and related depreciation charges were developed in cooperation with analysts reporting to the controller. HARVARD BUSINESS PUBLISHING | BRIEFCASES Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org $75–$150 price range, New Heritage produced a line of heirloom-quality dolls and accessories. These were designed to appeal to older girls and to convey a sense of cultural and family tradition among grandmothers, mothers, and daughters. The heirloom dolls had more elaborate accessories and personal histories. Finally, the company offered a line of high-end dolls based on fictional â€Å"celebrities,† each associated with a charitable cause and embracing more contemporary fashion trends. These dolls targeted girls in the so-called â€Å"tween† age range of 8–12 years, and also were priced from $75–$150. Like the heirloom dolls, celebrity dolls also came with more elaborate stories and accessories. 4212 | New Heritage Doll Company: Capital Budgeting New Heritage assigned discount rates to projects according to a subjective assessment of each project’s risk. High-, medium-, and low-risk categories for each division were associated with a corresponding discount rate set by the capital budgeting committee in consultation with the corporate treasurer. Assessments of each project’s risk were made at the division level, but subject to review by the capital committee. Factors considered in the assessment of a project’s risk included, for example, whether it required new consumer acceptance or new technology, high levels of fixed costs and hence high breakeven production volumes, the sensitivity of price or volume to macroeconomic recession, the anticipated degree of price competition, and so forth. In 2010, â€Å"medium†-risk projects in the production division received a discount rate of 8.4%. High- and low-risk projects were assessed at 9.0% and 7.7%, respectively. Projects that created value indefinitely, given continuing investment, were treated as going concerns with a perpetual life. That is, NPV calculations included a terminal value computed as the value of a perpetuity growing at a constant rate. However, to preserve an element of conservatism, the capital committee generally insisted on relatively low perpetual growth rates – lower than New Heritage’s historical growth and lower than near-term growth forecasts for a given division. Investment Opportunities in the Production Division Emily Harris was focused on two of the production division’s most attractive current proposals. The first involved expanding the successful Match My Doll Clothing Line to include matching allseason clothing for tween girls and their favorite dolls. The second involved a new initiative, the Design Your Own Doll line, which employed web-based doll-design software to let users â€Å"customize† a doll’s features to the customer’s specifications. Match My Doll Clothing Line Expansion The Match My Doll Clothing line originally consisted of a few sets of matching doll and child clothing and accessories for warm weather. It quickly became successful after the daughters of a few celebrities were spotted and photographed wearing items from the line, and girls’ magazines included some of the line in â€Å"what’s hot to wear† sections. Given recent publicity, Marcy McAdams, the brand manager responsible for the line, believed the timing was perfect to expand. Specifically, McAdams proposed to create an â€Å"All Seasons Collection† of apparel and gear covering all four seasons of the year. She expected the new offerings to be at least as profitable as the existing line, since its current popularity would make it possible to maintain premium prices. She also hoped to take advantage of off-peak discounts offered by some suppliers and contract manufacturers as they tried to smooth their capacity utilization. In the same fashion, McAdams argued the expansion would help reduce, or at least not exacerbate, the seasonality in New Heritage’s sales and earnings. BRIEFCASES | HARVARD BUSINESS PUBLISHING Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 Operating projections for a given project were used to develop cash flow forecasts that would underpin calculations of net present value (NPV), internal rates of return (IRR), payback period, and other investment metrics. Cash flow forecasts were intended to capture the incremental effect of a proposed project on the firm’s cash flow for each year within the forecast period. That is, each project’s cash flow forecasts excluded non-cash items, such as depreciation charges, and nonincremental items such as sunk costs (i.e., costs that would be incurred regardless of whether a given project was undertaken or not). The cash flow forecasts were computed on an after-corporate-tax basis, but excluded all financing charges. Some elements of the cash flow forecasts were prepared with assistance from treasury analysts, but most of the necessary adjustments were well understood by division staff. New Heritage Doll Company: Capital Budgeting | 4212 To exploit the current popularity of the original Match My Doll Clothing line, especially given the fickle nature of children’s fashion trends, McAdams believed the opportunity had to be exploited without delay. Her investment proposal contained relatively large outlays for R&D, market research, and marketing to maximize the probability of quick acceptance and longer-term success for the follow-on line. Upfront investment expenditures are summarized in Table 2. Table 2 Match My Doll Clothing Extension Outlays The R&D and marketing expenditures would be deductible for tax purposes at New Heritage’s 40% corporate tax rate. The property, plant and equipment was expected to have a useful life of 10 years; the associated depreciation charges, shown in Exhibit 1, were based on the modified accelerated cost recovery system (â€Å"MACRS†) allowed by the IRS. Working capital requirements, shown in Table 2 for 2010 and in Exhibit 1 for subsequent years were based largely on recent historical experience with the original Match My Doll Clothing line. Finally, given the proven success of Match My Doll Clothing, Harris believed the project entailed moderate risk—that is, about the same degree of risk as the production division’s existing business as a whole. Design Your Own Doll This initiative targeted existing New Heritage customers, many of whom owned several of the company’s heirloom dolls. The company’s research showed that, when asked what features (e.g., appearance, ethnicity, â€Å"life story,† etc.) New Heritage should give to future dolls, loyal customers’ responses had a high correlation with their own personal data. That is, girls wanted dolls like themselves. Further research suggested that many loyal customers would purchase yet another doll if they could customize the doll’s features to create a â€Å"one-of-a-kind† addition to a girl’s or family’s existing collection of dolls. It also promised to increase the girl’s pride in and identification with the doll, both because of their shared features and because of the girl’s participation in creating the doll. This in turn further cemented customer loyalty. The customization process would begin with a new section of New Heritage’s website, where proprietary design software enabled the customer to select physical attributes of the doll such as hair color, hair length & style, skin color, eye shape, eye color, and other facial features. The software could combine selected features and produce a photo-realistic image showing the finished doll with user-selected accessories. The customer could zoom in or out on the image and rotate it to see different aspects. The software made it easy to try out different combinations of features and accessories before making a purchase. Elizabeth Holtz, brand manager for heirloom dolls, was very excited about the project. She observed, â€Å"A girl’s relationship with her favorite doll is often partly mommy and partly big sister. Either way, having your doll look more like you is really powerful. And there’s excitement in the experience: exploring the website, naming the doll-to-be, selecting her first outfit†¦even the anticipation of waiting for the new doll to arrive. I really think this is big.† Holtz also believed that the dolls could command a premium price. â€Å"Customers will naturally expect to pay more [for a HARVARD BUSINESS PUBLISHING | BRIEFCASES Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Initial Expenditures ($ thousands) 4212 | New Heritage Doll Company: Capital Budgeting custom doll],† she said. Market research with focus groups revealed significant enthusiasm for the product concept and supported the notion of premium prices. The web-based software tools and order entry system required New Heritage to make significant modifications to its existing technology infrastructure, expand its webhosting capacity, and modify the terms of its third-party service agreements to ensure a higher level of service quality. The majority of the R&D expenditures shown below were related to software development, hardware upgrades, and web design. The development time involved, including product testing, was expected to be approximately 12 months. Initial outlays, some of which occurred in 2010 and some in 2011 As with Match My Doll Clothing, the required R&D and marketing costs would be tax deductible. Manufacturing equipment had to be ordered by the end of 2010 to be ready for production at the beginning of 2012. While New Heritage had the option to pay for custom equipment in quarterly installments, the firm could get a substantial discount by paying for the equipment up front, in 2010. Figures in Table 3 and Exhibit 2 reflect the discounted cost of the equipment. To support the forecasted level of sales, substantial investment in working capital (primarily work in process inventory of partially manufactured dolls) would be required beginning in 2011. And still more equipment would have to be purchased and installed no later than 2014. In years 2015 and following, investments in working capital and equipment would revert to patterns familiar from the production division’s traditional lines of dolls. To complete development work, Holtz planned to use some of the company’s existing IT staff. The majority of the work would take place during calendar 2011. The number of people and their fully loaded costs are shown Table 4. These costs were not included by Holtz in the initial outlays shown in Table 3 or in the forecasts presented in Exhibit 2. The development personnel Holtz needed were considered â€Å"corporate† resources and were almost certainly available to work on the project. Table 4 Design Your Own Doll Development Personnel, ($ 000s) Application Development Personnel Costs: Web Application Developers Database Manager Systems Integration Specialist Total Cost BRIEFCASES | HARVARD BUSINESS PUBLISHING Purchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact info@thecasecentre.org However, even a limited degree of customization increased manufacturing complexity and expense. Further, because of the low production runs and volume, fixed costs on a per unit basis were expected to be relatively high. Consequently, the breakeven volume for the project was also expected to be high. New Heritage Doll Company: Capital Budgeting | 4212 Finally, Holtz needed to give Harris her assessment of the project’s riskiness. On the one hand, Design Your Own Doll had a relatively long payback period, introduced some untested elements into the manufacturing process, and depended on near-flawless operation of new customer-facing software and user interfaces. If the project stumbled for some reason, New Heritage risked damaging relationships with its best customers. On the other hand, the project had a relatively modest fixed cost ratio, and it played to the company’s key strength—creating a unique experience for its consumers. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F211857 Emily Harris still needed to complete her review and financial analysis of the two proposals. McAdams and Holtz were in frequent touch with Harris and both had offered to respond to any questions she might have about the proposals: the business case, the financial projections, the operating details, or anything else. Harris expected that she would indeed have some follow-up questions as she worked through her financial analyses. She also knew that her final recommendation might disappoint some executives within the division, who would scrutinize it closely. It had to be well-supported.

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