The Toys “R” Us Lbo Case free essay sample

They want to determine the risks and merits of an investment in Toys R Us, evaluate the spectrum of returns using multiple operating model scenarios, and identify strategic actions that might be undertaken to improve the risk/return profile of the investment. Leverage Buyout (LBO) A leveraged buyout is the purchase of a company by an outside individual, another firm, or the incumbent management using large amounts of debt to finance the purchase. Most often, LBOs are undertaken by private equity firms that specialize in these transactions. The purpose of leveraged buyouts is to allow companies to make large acquisitions without having to commit a lot of capital. An LBO analysis determines the maximum purchase price for a business that can be paid based on certain leverage (debt) and equity return parameter, develops a view of the leverage and equity characteristics of a leveraged transaction at a given price, and calculates the minimum valuation for a company. The returns in an LBO are driven by three factors, which we demonstrate in our topic on creating value in LBOs, including the deleveraging (paying down debt), operational improvement (e. . , margin expansion, revenue growth), and multiple expansion (buying low and selling high). Both equity holder and debt holder bear a high risk. For equity holders, in addition to the operational risk assumed risk arises due to significant financial leverage. Interest costs resulting from substantial amounts of debt are fixed costs that can be defaulted if not paid. Furthermore, small changes in the enterprise value of a company can have a magnified effect on the equity value when the company is highly levered and the value of the debt remains constant. Other than these risks, the equity holder hopes to exit an investment within a five year time frame by either issuing IPO to sell to a strategic buyer or another PE fund, or recapitalization. If the equity holder is unable to exit or is delayed in exiting the investment, it has a negative effect on investor returns. The debt holders bear the risk of default equated with higher leverage as well. Since they have the most senior claims on the assets of the company, they are likely to realize a partial, if not full, return on their investment, even in bankruptcy. Industry dynamics The U. S. Retail Toy Industry is in the mature stage of its life cycle. The growth will likely remain stagnant. Sales were suffering from painful revenue losses during the recession. The Industry demand is heavily dependent on economic factors, dwindling consumer sentiment and disposable income pushed consumers to cut back on discretionary spending. The industry has come under increasing pressure from discount department stores and mass Merchandisers. Retailers have also experienced change due to the influx of imported goods into the market, which has stimulated competition within the industry. In addition, as children are getting older younger, age compression is changing the dynamics of toys and games. There is a clear shift from traditional toys and games to video games. Consumers are willing to pay more for toys that they view as being beneficial to children’s play or learning experiences. Toy industry categories with the largest revenue gains were building sets, arts amp; crafts, infant/preschool and Learning and Exploration. Plush, games/puzzles, vehicles and outdoor amp; sports toys experienced the most significant declines. There are several potential options for the company to improve performance. Having exclusive rights to sell certain toys can be an advantage, as large discount department stores generally carry the most popular products at low prices. Retailing the right product at the right season, like outdoor games in the spring, is important to maximize sales. The continual display and presentation of new toys, games and crafts will attract customers and generate higher sales. Looking into expanding operations and product lines towards video games and other growth segments (e. g. Building sets and action figures). Building up a well-designed online marketing channel can promote efficiency and cost savings. Expanding the international market to avoid the intense competition in the U. S. Retail Toy Industry. Closing underperforming stores to improve liquidity through the expertise of Vornado Realty Trust and reinvest the money back into the operation. Approach In the base case, we assumed 11. 0% compounded annual growth rate. This is based on modest growth in domestic sales, and optimistic expectations for the international, Babies R Us, and online sales. Online sales can save relevant costs of physical display of products and associated costs of running a store. EBITDA margin is assumed higher and will be higher in the near future as the sales grow. Capital expenditure and depreciation amortization expenses are assumed fairly constant over the years . Overall operation will generate enough cash to support debt and interest payments. If Toys R Us would be able to specialize some of baby products, video games and pertain exclusive right to offer popular products, it will help boost sales. International, and online sales will turn out good as well. We assumed 16. 5% of compounded annual growth for the upside case. For the downside case, with a compounded annual growth rate of -4. %, the company will not be able to make interest payments later years. This case suggests that the company will highly likely default on its debt obligation. Conclusion Referring to the adjusted balance sheet close after acquisition for the fiscal year ended as of January, 2005, the total debt of the company was 6,712 million dollars. The total debt-to-EBITDA multiples reached 8. 61x high. We dont think the high total debt-to-EBITDA multiple will be a big problem since the multiples will decrease year by year based on our assumptions. In the base case, if exit multiple is 8. 00, the sponsor return including initial fees will be 4,820. million dollars. The return on investment will be 37. 7%. (Exhibit B) In the upside case, the sponsor return including initial fees will be 7,320. 4 million dollars with a higher ROI of 47. 6%, assume that exit multiple remains the same. (Exhibit C) In the downside case, the LBO sponsors probably wont exit after a 5-year period ending 2010 because they cannot pay all debt and add more value to the firm. Even if they sell the company at 10. 00 x, they will still lose money. (Exhibit D) Even though the base case and the upside case could provide nice returns, we don’t want to join the consortium. The risks are too high in the downside scenario. Exhibit A Prioritized Due Diligence List Items Requested| Reasons| Financial auditAnnual income statements, balance sheets, and cash flow statement (last five years)Year to date income statement amp;Current balance sheetCompany’s Properties List ProjectionsDetailed revenue/expenses amp; cash flow/use of funds (12 months)Future capital expendituresFive year summary projections| Access current and historical info to determine overall financial â€Å"health†. Confirmation that the business is what it appears to be. Determine candidates for favorable real estate transaction to boost cash flow. See future sales growth, cost management, and cash flow issues with Toys R Us business. Access future cash needs for growth. | Marketing auditCustomer lists –brief description of target customers in key markets. Interviews with store managers about sales processes and roadmaps. | Ensure future profitability. | Production auditMonthly Toys’ Inventory audit (last three years)Store Visits| To understand the overall stability of toys and how seasonality impact profitability. Verify existing operation and look for inefficiencies. Macro-environment auditIndustry growth trendsInterview with industry expertsOther successful LBOs in the industry| Impact of outside threats and competitions from rivals. Possible exit multiple projection. | Legal/environmental auditBylawsArticles of IncorporationMinutes of all Board of Directors, committee and shareholders meetings and all consents to actions without mee ting. All employment agreements and consultant agreementsAny pending legal actions on Toys R Us and/or felony convictions of its employeesList necessary regulatory approvals and requirements/timeline to achieve. Interview with state / federal government officials| Gain information that will be useful for valuing assets, defining representations and warranties, and/or negotiating price concessionsIdentify potential deal killer defects in the target and avoid a bad business transaction. Understand industry trends and potential governmental involvement down the road. | Management auditFull resumes for key personnelInterviews with Management Team amp; Board MembersInterviews with Company advisors| To understand strengths and backgrounds of each manager. Decide who to keep / who to fire. Dig into company culture. Seek outsiders’ point of view on the company. | Information systems auditList of Legacy systems used| | Compatibility auditIntegration PlanList existing investors and their contact information | Details on execution and different phases of the LBO. Verification that the transaction complies with investment or acquisition criteria. | Reconciliation auditFinal Plan Evaluation| A formal valuation to test whether LP values will be added and where synergies could be generated. | Exhibit B Return Summary (Base Case) Exhibit C Return Summary (Upside Case) Exhibit D Return Summary (Downside Case)

Procedures to Install Eclipse and Android Emulator Essay Example

Procedures to Install Eclipse and Android Emulator Essay Download and install Java Development Kit (JDK) Download and unzip Eclipse IDE go to http://www. eclipse. org/downloads/. Download either Eclipse IDE for Java EE Developers or Eclipse IDE for Java Developers. Download and unzip Android SDK go to http://developer. android. com/index. html Select SDK tab, download SDK of your platform. Install ADT plug-in into Eclipse IDE 3. 4. Android Development Tools (ADT) is a plug-in for the Eclipse IDE that is designed to give you a powerful, integrated environment in which to build Android applications. ADT extends the capabilities of Eclipse to let you quickly set up new Android projects, create an application UI, add components based on the Android Framework API, debug your applications using the Android SDK tools, and even export signed (or unsigned) APKs in order to distribute your application. Developing in Eclipse with ADT is highly recommended and is the fastest way to get started. With the guided project setup it provides, as well as tools integration, custom XML editors, and debug output pane, ADT gives you an incredible boost in developing Android applications. . 1 Start Eclipse IDE. You might see Workspace Launcher/Select a workspace dialog box as shown below. For the Workspace field, either take the given directory or choose a different directory. The Workspace is the directory where Eclipse maintains its projects. Click OK. 4. 2 Add a Repository location (of the Android development tools) to the Eclipse IDE. A Repository is a where software is being maintained. For Na me field, enter Android Plugin (or whatever name of your choice). For the Location field, enter https://dl-ssl. oogle. com/android/eclipse/. Note: If you have trouble acquiring the plug-in, you can try using http in the URL, instead of https (https is preferred for security reasons). 4. 3 Download and install Android development tools (ADT plug-in) to Eclipse IDE. 5. Configure ADT plug-in with the location of Android SDK Once youve successfully downloaded ADT as described above, the next step is to modify your ADT preferences in Eclipse to point to the Android SDK directory: 5. 1 select Windows-gt;Preferences If the location of the Android SDK is not already set, browse to that location and click OK. 6. Install additional Android SDK components platform, add-ons, doc and samples 6. 1 (This is an optional step) Check the android-sdk- directory and observe that it has empty add-ons, empty platforms, and tools directories but it currently does not have docs and samples directories. Vi a Android SDK and AVD Manager, you can update your Android SDK. 6. 2 Run Android SDK and AVD Manager. 6. 3 Download and install available packages. We will write a custom essay sample on Procedures to Install Eclipse and Android Emulator specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Procedures to Install Eclipse and Android Emulator specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Procedures to Install Eclipse and Android Emulator specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The available packages include Documentations, Platforms, Samples, etc. You can selectively choose them. Notice that the packages list may vary from system to system. Install them all. Accept the licenses. Restart ADB. 7. Create Android Virtual Device (AVD) In this step, you are going to create a virtual device which will give options to the emulator to model an actual device. 7. 1 Select Windows-gt;Android SDK and AVD Manager. 7. 2 Click New in the Virtual Devices frame of the Android SDK and AVD Manager The options below are the minimal options to give so that the emulator works correctly. You may further refine them. Enter my_avd_2. 2 (or whatever name you want) as Name for the new device Choose Android 2. 2-update1-API Level 8 for the target. It is the system which will run on the emulator. Optionally enter a minimal size for the SD card – 128 Click on Create AVD The new virtual device has been created. 8. Configure the JRE to use in Eclipse Select Eclipse-gt;Preferences Click on Installed JRES inside Java Check JVM 1. 6. 0 Click OK Procedures to Install Eclipse and Android Emulator Essay Example Procedures to Install Eclipse and Android Emulator Essay Download and install Java Development Kit (JDK) Download and unzip Eclipse IDE go to http://www. eclipse. org/downloads/. Download either Eclipse IDE for Java EE Developers or Eclipse IDE for Java Developers. Download and unzip Android SDK go to http://developer. android. com/index. html Select SDK tab, download SDK of your platform. Install ADT plug-in into Eclipse IDE 3. 4. Android Development Tools (ADT) is a plug-in for the Eclipse IDE that is designed to give you a powerful, integrated environment in which to build Android applications. ADT extends the capabilities of Eclipse to let you quickly set up new Android projects, create an application UI, add components based on the Android Framework API, debug your applications using the Android SDK tools, and even export signed (or unsigned) APKs in order to distribute your application. Developing in Eclipse with ADT is highly recommended and is the fastest way to get started. With the guided project setup it provides, as well as tools integration, custom XML editors, and debug output pane, ADT gives you an incredible boost in developing Android applications. . 1 Start Eclipse IDE. You might see Workspace Launcher/Select a workspace dialog box as shown below. For the Workspace field, either take the given directory or choose a different directory. The Workspace is the directory where Eclipse maintains its projects. Click OK. 4. 2 Add a Repository location (of the Android development tools) to the Eclipse IDE. A Repository is a where software is being maintained. For Na me field, enter Android Plugin (or whatever name of your choice). For the Location field, enter https://dl-ssl. oogle. com/android/eclipse/. Note: If you have trouble acquiring the plug-in, you can try using http in the URL, instead of https (https is preferred for security reasons). 4. 3 Download and install Android development tools (ADT plug-in) to Eclipse IDE. 5. Configure ADT plug-in with the location of Android SDK Once youve successfully downloaded ADT as described above, the next step is to modify your ADT preferences in Eclipse to point to the Android SDK directory: 5. 1 select Windows-gt;Preferences If the location of the Android SDK is not already set, browse to that location and click OK. 6. Install additional Android SDK components platform, add-ons, doc and samples 6. 1 (This is an optional step) Check the android-sdk- directory and observe that it has empty add-ons, empty platforms, and tools directories but it currently does not have docs and samples directories. Vi a Android SDK and AVD Manager, you can update your Android SDK. 6. 2 Run Android SDK and AVD Manager. 6. 3 Download and install available packages. We will write a custom essay sample on Procedures to Install Eclipse and Android Emulator specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Procedures to Install Eclipse and Android Emulator specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Procedures to Install Eclipse and Android Emulator specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The available packages include Documentations, Platforms, Samples, etc. You can selectively choose them. Notice that the packages list may vary from system to system. Install them all. Accept the licenses. Restart ADB. 7. Create Android Virtual Device (AVD) In this step, you are going to create a virtual device which will give options to the emulator to model an actual device. 7. 1 Select Windows-gt;Android SDK and AVD Manager. 7. 2 Click New in the Virtual Devices frame of the Android SDK and AVD Manager The options below are the minimal options to give so that the emulator works correctly. You may further refine them. Enter my_avd_2. 2 (or whatever name you want) as Name for the new device Choose Android 2. 2-update1-API Level 8 for the target. It is the system which will run on the emulator. Optionally enter a minimal size for the SD card – 128 Click on Create AVD The new virtual device has been created. 8. Configure the JRE to use in Eclipse Select Eclipse-gt;Preferences Click on Installed JRES inside Java Check JVM 1. 6. 0 Click OK

Effective Communication Methods

Effective Communication Methods Methods of Communications for Internal and Externals Groups Communication is regarded as the process by which individuals send and receive thoughts, ideas as well as feelings in a manner in which the recipient comprehends the message in its intended form. Thus, communication is taken as a two way process where the binding force is assumed to be the feedback loop. Communication can be done verbally or in writing. In most instances, official communications are done in writing because of documentation purposes. On the other hand, most informal communications are done orally. For effective communication to take place, it is important for the communicating parties to make sure that the receiver clearly understands the message and gives a feedback. Failure of the receiver to provide a feedback breaks the communication loop and communication cannot be sustained any longer. However, when the receiver communicates back, the communication is taken as a two way communication which is essential for communication. Communication can be categorized into three main categories. Communication can be classified as verbal communication that entails both spoken and written communication. The second one is non-verbal communication that includes body language and finally communicating through listening.Advertising We will write a custom essay sample on Effective Communication Methods specifically for you for only $16.05 $11/page Learn More Verbal communication is taken as the process that individual’s use to express their ideas, thoughts or feelings verbally. It is commonly regarded as the spoken language. Individuals use enunciation, words choices, pauses, tone, emphasis and loudness in order to enhance verbal communication. Some examples of verbal communications include: telephone conversations, radio, face-to-face discussions, voicemail, seminars, recorded books as well as videos. Similarly, speakers who use sign languages are also considered to be communicating verbally. In a wider context, verbal communication encompasses written word. Thus, written communications such as letters, books, newspapers, hand written notes, announcements and emails are also taken as examples of verbal communications. The best effective method of verbal communication is face-to-face communication. In face-to-face communication, the receiver gets the relayed message immediately and provides an instant feedback. The method is considered as being highly effective because of its efficiency as well as the ability of the sender to assess the receiver body language (Cherry, 2012). Non –verbal communications accounts for a substantial portion of our day-to-day communications. Some common examples of non-verbal communications include; gestures, facial expressions and handshakes. Deliberate body movements are instrumental in inferring certain meanings. Waving, use of fingers to indicate certain numerical values as well as pointing are some commonly used gestures. Facial expressions accounts for the greatest forms of no-verbal communications. Despite the variation in non-verbal communications across culture, it is noted that facial expressions for happiness, anger, sadness and fear are universal globally (Willey, 2012). Listening which is considered as the third method of communication can be grouped into three types: passive, active and reflective listening. Active listening is the most effective form of listening because apart from the regular listening, the listener encourages the person who shares the information.Advertising Looking for essay on communication strategies? Let's see if we can help you! Get your first paper with 15% OFF Learn More Active listening is instrumental in building strong relationships as it expresses genuine interests. In situations where there is a main speaker, passive listening is the best since the speaker does all the speaking and the audience the listening. Reflective l istening is considered as the best form of communication when someone is frustrated, worried, upset or confused. It mainly acknowledges feelings over content (Bennett Hess, 2007). Analyzes of the Methods for the Case Scenario In order to succeed in establishing the required community policing, there must exist effective communications across all stakeholders that are involved in this project. Because of the existing politics in the internal and external groups, it is essential to ensure that appropriate communication methods are adopted. The group that is spearheading this project should ensure that it engages all the internal departments involved in the implementation of the project to an active listening. The managements should listen actively to the challenges they are encountering and encourage them to propose solutions on how the management can help them overcome the problems. Alternatively, the management can request the complaining factions to write a letter that explains th eir reasons of dissatisfaction and give recommendations on the way forward. The management should read the letters and write back to the groups consoling them for the challenges they are encountering and explaining to them on how the management can intervene to assist them. The management can also organize a seminar/ meeting where all the parties involved in the project will meet and have a face-to-face discussion about the project. The management should make sure that it assumes the role of active listening in order to show genuine interest to parties contributing. Similarly, it should use gestures such as nodding the head, smile or frown accordingly to indicate how they are being affected by the information being provided by the parties’ contributing. In addition, the management should engage in reflective listening in instances where the parties contributing are expressing their dissatisfactions, worry and dismay. The management on the other hand should appoint a key speak er who is very conversant with community policing that pertain to drug issues. The speaker should be given the hand written notes of all the issues raised by the represents of the community and departments. The speaker should then conclude the meeting by educating the group about the benefits that both the government departments as well as the community at range will enjoy by implementation of the community policy. In addition, the speaker should address how the management will cater for the worries and frustrations of affected groups (Davidson, 2000).Advertising We will write a custom essay sample on Effective Communication Methods specifically for you for only $16.05 $11/page Learn More In order to have effective communication in the groups involved, the management should adopt various strategies of communications. Because the community concerned is composed of low- income earners, there is a high possibility that most of the residents in the area are not highly educated. Therefore, the managements overseeing the project should organize seminars at religious centers or in surrounding schools and invite appropriate professionals who will educate the community about the benefits of establishing community policies. In addition, the managements should request the professionals invited to prepare booklets that they will be given to those attending the seminar. The booklet should contain detailed information about community policing. It should explain how community policies are established as well as indicate the benefits they bring to affected societies. The booklet will be used to educate the residents who will not get the opportunity to attend the about the benefits of community policies. Best course of action Effective use of communication methods is essential in ensuring successful communications. The management that is overseeing the implementation of the community policing is being faced with its challenges for lack of appropriate communication strategies. Therefore, the management will succeed in its mission by adopting effective communications such as use of seminars, face-to-face discussions, gestures, active, passive and reflective listening as well as ensuring to give feedbacks to sustain the communication loop. Use of booklets should also be used to educate the public about the importance of community policies. Reference List Bennett, W. W. Hess, K. M. (2007). Management and supervision in law enforcement  (5th ed.). Belmont, CA: Cengage Learning. Cherry, K. (2012).Types of Nonverbal Communications. Web.Advertising Looking for essay on communication strategies? Let's see if we can help you! Get your first paper with 15% OFF Learn More Davidson, M. (2000). Effective Communication Methods. New York: Prentice Hall. Willey, J. (2012). Methods of Communication. Web.

Plus ça Change - French Expression

Plus à §a Change - French Expression Expression: Plus à §a change, plus cest la mà ªme chose Pronunciation: [plu sa sha(n)zh plu say la mem shoz] Meaning: the more things change, the more they stay the same. Literal translation: more it changes, more its the same thing. Register: normal How to Use Plus à §a Change The pessimistic French expression plus à §a change, plus cest la mà ªme chose is very often cut down to just the first clause: plus à §a change... / the more things change... The shortened French expression is often used in English too, particularly British English.In either language, plus à §a change indicates a certain disillusionment or resignation regarding whatever is being talked about. A company makes all kinds of policy changes, for example, but the personnel issues are unaffected. A couple go to marriage counseling, but continue fighting about everything. A new sheriff comes to town, but there is no noticeable impact on crime. New people, new promises, but the same old problems - plus à §a change.... Variations: Plus à §a change, plus cest pareil: The more it changes, the more its the same.Plus à §a change (et) moins à §a change: The more it changes (and) the less it changes

The Hawaiian revolution ( History of the United States ) Essay

The Hawaiian revolution ( History of the United States ) - Essay Example This paper will look at some of the events that led to the Hawaiian Revolution, and what the revolution meant to the people of Hawaii during that period. Being a monarchial state, Hawaii was ruled by a royal family, which ensured the safety and protection of the land. The king, David Kalakaua, got his authority from the people of Hawaii after successfully managing to reduce the power of the missionaries in the region. He ruled but was unsuccessful in completely eliminating the foreign powers in Hawaii, who would later turn against him. This led to the drafting of a new constitution that would limit his authority (Lightner 67). After the death of the king, Liliuokalani, his sister, succeeded him in 1891 and she refused to recognize the constitution in place opting to bring forth another that would give the native Hawaiians the right to vote and restore power to the monarch. It was at this point that the wealthy American class in Hawaii chose to establish the 13-member committee, which would ensure that the queen was overthrown for her treachery against the constitution. The coup took place on January 17, 1893 after the shooting and wounding of a police officer who tried to cease armament meant for the committee. In order to avert violence in the region, the queen opted to surrender peacefully after her palace was surrounded by the committee’s militia. It was at this point that the committee put in place a government that would rule the region and had a president who was given the authority to rule over the dominion. In 1895, however, a group of Hawaiian loyalists who believed in the old ways and traditions started their own coup, but failed in securing the region back to its rightful owners (Fritz 59). In some history books, this has been identified as the counter-revolution, which was brief and the lack of casualties makes it largely forgotten by most people. After its failure, the

Week 3-Sheila Coursework Example | Topics and Well Written Essays - 2000 words

Week 3-Sheila - Coursework Example They make this move with an aim of increasing the knowledge base the organization is going to rely on when making decisions. However, this technological move comes with the challenge of team members lacking trust in one another. Therefore, the management has to consider some factors in order to create trust in team players (Allison, 2013). The first factor is employing of proper communication tools to be used by the globally distributed worker teams. Such tools should be those which can be used to make long distance communications effectively. They should also be appealing enough so that the team can at least trust the channel used to pass the information. For example the use of videoconferencing is appropriate in instilling trust in team members (Boundless.com, 2014). Commitment among the members is another key factor that determines the trust that globally distributed worker teams will have on each other. Committed team members will ensure they are always ready to participate, and the work they do is perfect. In such a case the team players in different parts of the world will trust the knowledge and work done with their fellows as far as they may be situated (Carmody, 2012). Having common goals as a team is another factor that builds trust in the globally distributed team. The common goals are going to bring the team players together and this is a way of building trust among them. For example, with common goals, members will trust the information brought in by another member since they all believe in satisfying same goals (Chesebro, 2012). Organizational portal is one of the new technologies that improve communication among members of an organization or a team who are far away from each other. The tool is based on the idea of creating many platforms that every member will use to communicate to the rest of the team. the technology behind creating a portal for a team or organization is supported with a

Global Warming Essay Example for Free

Global Warming Essay Every day we go about our own business. Many of us never take the time to look around and see how we are affecting our earth’s atmosphere. Everywhere you look today you are bound to see some factory or machinery polluting our air. Just think how many times you have seen those large semi trucks or big fossil fuel factories emitting thick dark smoke into the atmosphere. We need to come to reality and realize that all that polluting we have been doing over the last half-century is finally catching up to us. It is very easy to detect through scientific research that our earth’s climate is changing, Time magazine reports in its 2004 issue that the earth’s average temperature is increasing at a steady rate. Yes, we all have heard the term â€Å"global warming†, however many people don’t know in depth what global warming is, or how our actions will affect our earth if we don’t respond to the issue. If we can educate ourselves on what global warming is and how it will affect us in the near and far future, we can then begin to change our old habits of polluting and create new habits and goals to living in a much healthier and cleaner environment. During the earliest times, the life-styles of our ancestors were very simple. The air they breathed was clean. The streams were clear and free of harmful organisms. They used natural fertilizers for their agricultural crops. The surroundings were free of household throwaways. Today, there has been a tremendous growth in science and technology. Such advances have brought about changes in terms of new products, improved equipment, and more effective methodologies. Unfortunately, this same technology which made life easier for us produced wastes which are now affecting the quality of our surrounding air, water, and land. Factories and motor vehicles send tons of pollutants into our air. Excessive air pollution poses a danger to our health and environment. It can likewise cause stunted growth and even death to our plants. Out streams are polluted by discharges from industrial plants that use chemicals. Garbage and sink wastes are carelessly thrown in our surroundings. Synthetic fertilizers and insecticides pollute our land and farm products. At the same time, the burning of fossil fuels, particularly coal and oil, produces sulfur dioxide and nitrogen oxides which are hazardous to the atmosphere. Findings show that a single smokestack may produce as much as 500 tons of sulfur dioxide a day. When these gases combine with oxygen and moisture, sulfuric acid and nitric acid is formed. The rain will carry the acids to the ground (acid rain) which may cause the depletion of calcium and magnesium in the soil, elements needed by plants for the formation of chlorophyll and wood, or it may cause the release of aluminum in the soil, which are poisonous and can kill the roots of trees. How can we take care of our environment? We must undertake measures to preserve our resources and minimize utilization of energy before it’s too late. Our fight against pollution is an initial step toward conserving our environmental resources and energy. We must all join hands for this common goal. Furthermore, of all issues affecting humanity, climate change is the most pervasive and truly global, posing a very real and serious threat to our environment. Climate change is the alteration of the pattern of global climate that may be due to human activity that alters the composition of the atmosphere.