EMC Plc Strategic Management - Essay Example

? UG Programme Strategic Management The Executive Business Simulation …..Driving the Learning Experience EMC Plc Briefing Paper Table of Contents Executive Summary 2 Heneric, O, Licht, G, & Sofk, W, (2005), Europe's automotive industry on the move: competitiveness in a changing world, Springer, Germany. 15 Executive Summary Various companies enter into the market with hopes of making supernormal profits through outwitting already existing firms. In any case, such new entrants go into the market after identifying various weaknesses of existing firms. While taking advantage of the weaknesses portrayed by already existing firms, new entrants succeed at the first instance but later on start encountering problems. Nevertheless, entrance into an existing industry by a new firm requires well-developed marketing and entrance strategies lest such firms experience problems to the extent of losing initial capital (Heneric, Licht & Sofk, 2005; p 25). What’s more, existing companies have barriers to new entrants such established market strength and shares of the already established firms, cumbersome process of registration, high initial capital outlay, and developed brand loyalty amongst existing customers. As such, new entrants are likely to find it difficult to penetrate into such existing markets and industries calling for efficient and effective strategies. Regarding established industries and market, automotive industry and market is one of the deeply established with many players but controlled by few. Some of the great players within the industry include GM, Ford, Daimler, Chrysler, Toyota, Honda, Nissan, Peugeot, Renault, Hyundai Motor, Mazda, and Fiat amongst others (Nieuwenhuis & Wells, 2005; p 69). European Motor Company (EMC) operated as part of a large industrial conglomerate with interests in the aerospace, defence and medical sectors before is acquisition several years ago to an automotive group who made significant investment in the company for a few years. Nevertheless, the automotive group felt unable to support the business any further because of a rapidly declining market share. The following is an analysis of EMC Plc and the automotive industry. Main analysis of this paper focuses on both internal and external market factors. Attaining such an analysis is possible through various strategic management tools and models such as PESTLE, SWOT, Porter’s Five Forces, and Critical Success Factors that have so far been of importance to the organization. In addition, this analysis focuses on strategic direction of EMC Plc covering a period of 5 years (Nieuwenhuis & Wells, 2005; p 75). Such strategic direction employs the use of strategic defining tools and concepts such as mission, vision, overall target markets, strategic rationale, as well as financial objectives. The analysis winds up by providing strategic development and progress coupled with reflective portfolio. In order to attain these, the paper is divided into three parts with different sections. Part 1: Initial Strategic Position and Intentions 1.1 External and Internal Initial Situation Industries and firms face different factors both from within and outside. External environmental factors refer to those that business organizations and industries have no control over for instance, political, economical, socio-cultural, technological, legal, and environment. On the other hand, internal environmental factors are those that a firm or industry may control such as the strengths, weakness, threats, and opportunities (Watson & Head, 2009). The following discussion uses various tools to explain automotive industry’s environmental factors and their effects on EMC Plc’s operations. 1.1.1 PESTLE Analysis EMC Plc is likely to experience political, economical, socio-cultural, technological, legal, and environment as illustrated in Appendix 1(a). EMC Plc experiences political stability and advantages from various political factors such as degree of government involvement in business activities, the serene political atmosphere that European countries experience, and presence of unions that may spur anger on consumers hence leading to reduced sales volume as well as profitability (Johnson, Scholes & Whittington, 2011). Legal environment includes aspects if employment laws where employers must adhere to such reasons relating to employee. Economic recession coupled with high interest and inflation rates forced EMC Plc to review its strategies with an aim of attaining better results. 1.1.2 SWOT Analysis SWOT analysis of EMC Plc largely depends on the automotive industry, its market, as well as forces associated with the same (Johnson, Scholes & Whittington, 2011). In Appendix 1(b), an illustration is provided for the various strengths and weakness of the firm in relation to automotive industry. Strengths: EMC Plc boosts of a number of strengths. Firstly, economies of scale derived from large scale operations hence low-costs position, adequate and efficient leadership and managerial skills, availability of financial and cash resources following the fact that it is a public limited company whose shares can be traded publicly, and lastly the innovativeness within the firm that might lead to development of new products. Weaknesses: Despite the many strengths outlined above, EMC has limited market share in the automotive industry hence the need to come up with a better way of attracting and retaining customers. Moreover, EMC Plc has few core strengths and low on various key issues meant to propel it to higher levels. The firm has no customers’ brand loyalty. Opportunities: From the above strengths, many opportunities arise. Some include new markets and segments, new products and market growth, diversification of opportunities through the firm’s innovative nature, as well as the changing faces of demographics and government involvement in business. Government involvement and positive demographic changes result into increased market and demand for automotive goods and services. Threats: Even though there are opportunities, EMC Plc faces many threats such as stiff competition especially from already established firms such as Ford, BMW, Daimler Chrysler, Toyota, Hyundai, and Honda amongst others. In addition, there are increased pressures from both buyers and suppliers as well as economic down turn that are likely to affect purchasing power of buyers while also interfering with production costs. Lastly, the firm faces serious technological threats. 1.1.3 Porter’s Five Forces Bargaining Powers of Buyers: In a scale of 1 to 5, this is rated at 4, high. Bargaining powers of buyers is very high given the high intensity of competition, which leads to a variety of automotive products hence low switching costs. Consumers can therefore shift from one product to another without incurring extra costs (Heneric, Licht & Sofk, 2005; p 98). Moreover, the automotive market is perfect competition hence adequate information regarding all products. Availability of information coupled with unavailability of grand proliferation makes buyers to have higher bargaining power. Consequently, this is vital for EMC Plc to identify such points of strengths within buyers and make good use of the same. Bargaining power of Suppliers: Power axis in the automotive industry tips off in favour of industry and the cordial interactions between manufacturers and their suppliers. In a scale of 1 to 5, bargaining power of suppliers in automotive industry is 2, low (Johnson, Scholes & Whittington, 2011). The main reasons for such a low power is due to fewer manufacturers of different products required by automotive firms, which is offset by consolidated relationship between automotive firms. Most suppliers in the industry tend to establish cordial relationship with market leaders. This is likely to affect EMC Plc in developing its strategies to come back into the market. Intensity of Competition: Intensity of competition within automotive industry is 5, very high. This is because there are various firms well established that keep meeting consumer demands in much customized ways. For a long time, automotive industry was a showground for some specific firms known as the “Big Three”, which included GM, Food, and Daimler Chrysler. With entrance of Honda, BMW, and Toyota, the market is currently experiencing the highest degree of competition ever seem in the global perspective (Johnson, Scholes & Whittington, 2011). EMC Plc should take into consideration the fact that there is so much competition hence comes up with better strategies vital for developing competitive advantage. Threats of New Entrants: Threats of new entrants in automotive industry is rate at 1, very low. Some of the reasons that make new entrants to be low include the huge initial capital outlay, lengthy procedures required in completing registration and commencing business, large number of well-established automotive firms, as well as increased brand loyalty amongst the consumers. EMC therefore, needs to come up with better ways of ensuring that it takes advantage of this low power of threats from new entrants. Threats of Substitutes: this rate at 3, moderate. Other than selecting different models from the same manufacturer or different manufacturer as well, substitutes may involve the use of other means of transport such as airplane, water, and trail. Therefore, the threat of substitutes is moderate and EMC Plc can take advantage and develop proper strategies for existing in the industry and the market. Regarding Porter’s five forces, EMC Plc should be able to identify strengths and weaknesses within such forces thereby taking the advantage to strengthen on weaknesses and avoid strengths such as strong bargaining power of buyers. This is summarized in Appendix 1(c). 1.1.4 Critical Success Factors From the numerous critical success factors, EMC relies significantly on training and education, communications with an aim of improving quality of products, quality data as well as reporting, engaging quality department in continuous monitoring and improvement of quality, staff orientation, and management commitment amongst others (Johnson, Scholes & Whittington, 2011). In order to attain these critical factors, EMC focuses on its mission and vision statements coupled with various operational activities as indicated in Appendix 1 (d). 1.2 Strategic Direction (5 Years) 1.2.1 Mission and Vision Statements Mission Statement The mission statement of EMC states that, “EMC is a multinational automotive corporation involved in socially responsible operations in the global spectrum. It is dedicated to provide automotive products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment.” This mission statement focuses on all stakeholders of EMC; customer, employees, business partners, and shareholders. Vision Statement The vision statement of EMC states that, “The vision of EMC Plc is to be a global market leader in automotive industry, which entails all automotive products and its related services. We will earn our customers’ enthusiasm via quality assurance and delivery through unending monitoring and improvement of various concepts such as integrity, teamwork, and innovation of GM people.” 1.2.2 Overall Target Markets and Strategic Rationale The overall target market for EMC in the next five years needs to be middle and high-class individuals. This is because with such a market segment or target, EMC Plc requires certainty of sales in a bid to increase profitability, which may eventually lead to growth and expansion. In any case, EMC Plc opts for segment marketing rather than mass marketing since in segment marketing it becomes easier for the firm to identify specific needs for the customers hence develop proper automotive products and services. 1.2.2.1 Business Level Strategy In order to attain high sales volume and profitability for the next five years, EMC Plc needs to employ the four generic strategies within business level to enhance its competitive advantage. With competitive advantage, EMC Plc should be able to penetrate deeper into automotive industry and market thereby attracting and retaining many customers that are to be part of the required increased sales and profitability. The four generic strategies include cost leadership, differentiation, focused low costs in production, as well as reliance in differentiation of not only products but services as well (Johnson, Scholes & Whittington, 2011). Nevertheless, a fifth strategy that involves combination of low cost and differentiation is vital in assisting the firm to meet sales volume and profitability objectives. 1.2.2.2 Ansoff/Grand Strategy Matrix In the next five years, EMC Plc should employ different strategies depending on the product and market while following the Ansoff Matrix illustrate in Appendix 2 (a). For instance, EMC Plc needs to engage in market development and diversification for new markets and on the other hand market penetration and product development regarding existing markets. Consequently, these marketing strategies are vital in enhancing attainment of objectives and goals for the next five years. There are automotive products that already exist hence the best marketing formula or strategy should be market penetration and product development. 1.2.3 Financial Objectives In order to attain marketing objectives efficiently and effectively, EMC needs to apply some financial objectives. Some of the financial objectives likely to be employed in a bid to attaining overall aim of the corporation include; To grow the earnings per share of the firm by 9% per annum for the next five years To increase annual return on investment from the current level of 5% to 10% within the next five years To increase annual dividends for each share by 3% for the first two years and by 5% for the subsequent three years To maintain a positive cash flow in sales and other investments involved in during the five-year plan To strive in increasing profitability by 7% for the next five years Part 2: Strategy Development and Progress 2.1 Functional Level Strategies Different functional level strategies other than business level strategies are also applicable along the road to attaining the overall mission, vision, and objectives of EMC Plc within the automotive industry. 2.1.1 Technology/Research & Development Contemporary business environment is so much engrossed into technological developments and advancements. One ways of enhancing technological development and advancements is through research and development (Johnson, Scholes & Whittington, 2011). EMC Plc should conduct various market researches to identify different needs and tastes of consumers thereby developing customized products that are to meet the same. Through technological capabilities and competences experienced within EMC Plc, new automotive products meeting current technology should get into the market in a bid to counter act competition from other automotive firms. 2.1.2 Operations Operations involve the capacity, production, and inventory. Since the firm is not well established, the number of automotive products developed together with their specifications should depend entirely on the available orders that the firm shall receive. Nonetheless, there is need to produce at least three automotive products per model for display purposes. This is to help in cutting down costs as well as to ensure that all the automotive products manufactured are sold as quickly as possible (Maxwell & Drummond, 2010; p 40). Work-in-progress is always a serious challenge and expense to firms and this should be significantly avoided within EMC Plc. Inventory of all products ordered, manufactured, and dispersed should be kept in safe custody for future references. 2.1.3 Marketing In marketing, EMC Plc needs to concentrate on the 4P’s, product, price, promotion, and place. In terms of product, EMC Plc should come up with new and more advanced automotive products that are unique and pocket friendly. Such products should meet demands, tastes, and specifications of consumers. The following table provides an illustration on some of the automotive products produced by EMC Plc. Design Model 1 EMC 2 Model 2 EMC 5 2/4 Door Saloon/Estate Yes Yes 2/3 Door Coupe Yes Yes Small Engine (4 Cylinder) Yes Large Engine (6 Cylinder) Yes Diesel Engine Yes Yes Pricing on the other hand should be on different forces of demand and supply. Using penetrative pricing strategy for instance is likely to lead EMC Plc into great loss hence unnecessary. Instead, EMC Plc needs to embark on other pricing strategies such as product line pricing, which takes into consideration all factors and costs of production applied in developing a give automotive product. Promotion is as important as making the product. It will be meaningless for EMC Plc to develop product and wait for consumers to discover their existence (Maxwell & Drummond, 2010; p 43). In this regards, EMC should employ various promotional strategies such as advertising, public relation and community building show to show case their products, and direct market amongst others. In any case, promotional activities are known to be effective in altering consumers’ buying behaviour to favour the promoter. The last P addresses distribution channels that EMC needs to employ. Since it is a multinational company, there is need to set up subsidiaries in major target countries hence use them as the sole route for distributing automotive products. 2.1.4 Financial Notably, it is important for EMC Plc to source for funds through IPO given that it is a public limited company. This will boost the financial status of the company thereby providing wider opportunity for EMC Plc to engage in investment activities that are vital for the growth and expansion of the firm. 2.1.5 Human Resource Human resource is the most vital and yet most delicate resource an organization has in its custody. In this regards, better methods of dealing with human resource need to be advanced in order to ensure good working conditions as well as enhance motivation amongst the employees. With such good working conditions and 2.2 Competitive Response and other Business Risks Contemporary business environment comprises technological dynamisms and turbulence that make organizations to be cautious. Competitive response involves development of potential and capability in dealing with environmental dynamisms and turbulences. EMC needs to develop potential and capability to improve its performance via creating a continuous process that has competitive advantage (Maxwell & Drummond, 2010; p 58). There is need for the firm to develop speed, effectiveness, and consistency in developing automotive products. In addition, this should be coupled with identification, analyzing, and regulating of possible business risks arising from the environment. Part 3: Reflective Portfolio 3.1 Company’s Successes and Failures 3.1.1 Successes Measurement of success is on attaining or achieving the set objectives. EMC’s attainment of set objectives, aims, vision, and mission will be an indicator or properly developed strategies as well as effective and efficient application in a bid to ensure that consumers receive high quality automotive products. 3.1.2 Failures Failures on the other hand will arise when the set objectives, aims, vision, mission, and targets are not met with specified time. EMC Plc should struggle to ensure that each objective is attainable within its stipulated time. 3.2 Reflections Despite the fact that automotive industry is well developed, EMC Plc has the potential and capability of attaining its objectives. Even though there are various big players in automotive industry, EMC has the potential especially with reference to its financial status as illustrated in Appendix 4. 3.3 Brief Outline for Market Positioning In summary, EMC Plc market position will involve pricing, improvement of quality, delivery of services to consumers such as briefing on functionality of various models of automotive products, distribution, and packaging whenever necessary. Since market position is a strategy, EMC Plc should ensure that they target the right consumers delivering automotive products at the right time and place. Bibliography Heneric, O, Licht, G, & Sofk, W, (2005), Europe's automotive industry on the move: competitiveness in a changing world, Springer, Germany. Johnson, G., Scholes, K., & Whittington, R., (2011), Exploring corporate strategy: Text & cases. 9th ed., Pearson Education, Upper Saddle River, NJ. Maxwell, G, & Drummond, S, (2010), Automotive Industry: Technical Challenges, Design Issues and Global Economic Crisis, Nova Science Publishers, Hauppauge, NY. Nieuwenhuis, P, & Wells, P, (2005), The automotive industry and the environment: A technical, business and social future, Woodhead Publishing, Abington. Cambridge. Tierney, S. 2005, "Rays of hope for automotive", Supply Chain Europe, vol. 14, no. 1, pp. 40-40. Watson D, & Head, A., (2009), Corporate finance: Principles and practice 5th ed., Pearson Education, Upper Saddle River, NJ. Appendices Appendix 1 (a): Environmental Analysis PESTLE Analysis Political Economic Degree of government intervention Political Stability Unionizations that may result into strikes of workers Trading agreements such as EU Government’s policy on economy Recent economic recession Increased in interest rates Increased inflation rates Long term prospects of GDP per capita Strong currency against others such as dollars Social Technological Income distribution Attitude to work and leisure Standard of education and skills Population demographics Mobility Working conditions Changing attitudes and life styles IT Development New Materials and processes Government technology funding Speed of technology transfer Software upgrades Legal Environmental Employment law Trade and product restrictions Health and safety regulations EU and international laws Monopolies commission Waste disposal Noise controls Environmental pressure groups Pollution problems Planning permissions Appendix 1 (b): SWOT Analysis Internal Environment Strengths Weaknesses Economies of scale Low-cost position Leadership and management skills Financial and cash resources Innovation processes & results Differentiated products Share weakness Few core strengths and low on key skills Lack of customers’ brand loyalty External Environment Opportunities Threats New markets and segments New products & Market growth Diversification opportunities Demographic and social change Change in political, economic environment Increased competition Increased pressure from customers & suppliers Substitutes Low market growth Economic cycle downturn Technological threat Appendix 1 (c): Porter’s Five Forces Appendix 1 (d): Critical Success Factors Appendix 2: Strategic Direction Appendix 2 (a): Ansoff/ BCG Matrix for EMC Plc Appendix 3: Strategy Development and Progress Appendix 3 (a): Competitive Response Cycle Appendix 4: Financial Information of EMC European Motor Company plc Management and Financial Information Pack For the financial year ended 30th September 2011 Production and Sales Report Section 1: Model Production and Sales Market Sector Model Name Produced Sold In Stock Model Price ? Market Share % 6 EMC 2 61351 61351 0 19650.00 1.01 7 EMC 5 59633 59633 0 28750.00 2.04 Section 2: Model Resource and Cost Summary Market Sector Model Name Workforce Materials Costs ? Design & Options Costs ? Labour Cost ? Gross Margin % Productivity 6 EMC 2 1250 10124.18 3864.30 438.05 26.58 49.08 7 EMC 5 1215 13836.91 7316.10 438.05 24.90 49.08 Section 3: Productivity Report Market Sector Model Name Potential Productivity Cars/Worker/Year Potential Productivity With O/time 6 EMC 2 49.88 59.86 7 EMC 5 49.88 59.86 Total Workforce 2465 No of days lost to strikes 4 Overall Productivity (cars/worker/year) 49.08 Productivity Index 1.26 Section 4: Market Distribution Analysis Total Market (m) City Medium Large Luxury No of Units 5.81 6.08 2.92 0.79 Profit and Loss Account ? m Sales 2920.00 Cost of Sales* 2172.62 Gross Profit (Loss) 747.37 Overheads Fixed Overheads 201.82 Stock Upkeep Cost Product Recall Cost Promotion 210.00 Research and Development 247.61 Professional Charges 15.33 Warranty Claims Training Cost Extraordinary Events Loan Capital (Set Up Fee) Depreciation 83.45 Operating Profit (Loss) -10.84 Gilt Interest Received Investment Disposal Income Share Income Received Interest on Current Account 27.57 Interest on Loans 70.49 Cost of Redundancies Factory Sale Loss Pre Tax Profit (Loss) -53.77 Tax Post Tax Profit (Loss) -53.77 Cost of Dividends Retained Profit (Loss) -78.77 *Cost of Sales Breakdown Opening Stock 0.00 plus Materials Costs 2119.62 plus Wages 53.00 minus Closing Stock 0.00 Cost of Sales 2172.62 Cash Flow ? m Opening Bank Balance 518.99 Revenue from Debtors 2878.88 Share Investment Income Gilt Interest Received Share Issue Income Investment Disposal Income Corporate Subsidy Government Subsidy Insurance Claim Factory Sale Income Bank Interest Extraordinary Events Paid to Creditors 2076.70 Wage Costs 53.00 Total Overheads 674.77 Factory Cost Redundancy Costs Automation Expenditure 10.00 Loan Repayments Tax Payments 13.89 Bank Interest 42.93 New Model Production Costs 212.50 Investments Purchased Dividend Costs 25.00 Balance Before Loan 289.09 New Loan 300.00 Closing Bank Balance 589.09 Balance Sheet ? m Fixed Assets Cost 902.50 Depreciation -151.45 Book Value of Fixed Assets 751.05 Investment Value External Investments Investment Value Current Assets Stock Value 0.00 Debtors 320.00 Bank Balance / Overdraft 589.09 Current Liabilities Tax 0.00 Creditors 406.50 Dividend Cost 25.00 Overdraft Net Current Assets (or Liabilities) 477.59 Total Assets Less Current Liabilities 1,228.64 Capital and Reserves Share Equity 550.00 Share Premium Retained Profit (Loss) -71.36 Total Subsidies Total Shareholders Funds 428.64 Long Term Liabilities Loan 800.00 Total Capital Employed 1,228.64 Financial Indicators Return on Shareholders Funds % -12.54 Return on Capital Employed % -0.88 Gross Margin % 25.60 Sales Margin % -0.37 Post Tax Profit / Sales % -1.84 Profit / Employee ? -21813.92 Gearing % 0.65 Net Gearing % 0.33 Current Ratio 2.11 Quick Ratio 2.11 Liquidity Ratio 1.37 Share Price ? 75.50 Market Value ?m 377.48 EPS ? -10.75 PE Ratio -7.02 Dividend per Share ? 5.00 Dividend Cover -2.15 Interest Cover 0.00 Borrowing Limit ?m 57.27 Net Debt ?m 210.91 Net Capital Employed ?m 639.55 Recent Industry News Gilts are to be offered at 100% face value giving 14.48% interest per annum for 5 years. Economists predict that next year inflation will be around 5.58%. The company is offering 500000 shares for sale to the General Public only. Within the last financial year the company created 225 new jobs and increased staffing on the EMC2 model by 21%. The company has invested ?425m in a new model for 2011. Options Available Option EMC 2 EMC 5 Multi Location Airbags Yes Yes Satellite Navigation Yes Xenon Headlights Yes Alloy Wheels Yes Automatic Transmission Yes Parking Sensors Yes Rain Sensing Wipers/Lights Yes Heated Elec Wing Mirrors Yes Electric Adjustable Seats Yes Air Conditioning Yes Yes Superior Sound System Yes Yes Blue tooth Phone Preparation Yes Security Package Yes Yes Safety Package Yes Yes Research and Development Projects (Estimated year of completion) Project EMC 2 EMC 5 Advanced Diesel Engine 3 Fuel Efficient Engine 3 Wiperless Windscreen 3 Zero Emissions Engine 6 Lower Emissions 3 3 Improved Build Quality Online Online Promotion Spend ?m Media Channel Total Spend ?m Television 30.00 Radio 5.00 Periodicals/Reviews 5.00 Internet 20.00 Dealer Incentives 55.00 Promotional offers 65.00 Sponsorship 30.00 Total Spend 210.00 Workforce, Wages and Automation Expenditure No of Employees Wages Paid (pp/week) Automation Spend Automation Spend Cumulative R&D Expenditure (excluding new model investment) 2465 ?430 ?10m ?40m ?35.11m Debtor and Creditor days Creditor days (time allowed for customers to pay) 40 days Debtor days (time take to pay suppliers) 70 days Market Predictions and Information A reputable Market Research Company has made the following predictions for the car market. Overall, the market will fall from 15.6m to 14.6m cars sold. The City car market is expected to shrink by around 6%. The Medium car market is expected to shrink by around 5%. The Large car market is expected to shrink by around 7%. The Luxury car market is expected to shrink by around 11%. Inflation this year was 3.81% and is expected to be around 6% next year. Appendix III - European Motor Company plc Financial Results Summary for Prior Years A: Profit and Loss Account Year Ended 30 September ?m 2010 2011 No of Employees 2240 2465 No of Units Sold 107649 120984 Sales Revenue 2545 2920 Cost of Sales 1943 2173 Gross Profit 602 747 Gross Margin % 23.67 25.6 Total Overheads 520 758 Post Tax Profit (Loss)/Sales % 1.27 -1.84 Net Profit/Loss after Tax 32.41 -78.77 B: Balance Sheet Year Ended 30 September ?m 2010 2011 Non Current Assets 612 751 Current Assets 798 909 Total Assets 1410 1660 Current Liabilities 403 432 Long Term Liabilities 500 800 Total Liabilities 903 1232 Net Asset Value 395 478 Capital Employed (Equity + Long Term Liabilities) 1007 1229 No of Shares 5m 5m Current Share Price (?) 176.57 75.70 Market Value ?m 882.83 377.48 Return On Capital Employed % 8.18 -0.88 Financial Gearing % 50 65 Current Ratio 1.98 2.11 Gross Profit Margin % 23.67 25.60 Sales Margin % 3.24 -0.37 Read More