Commercial Casino Industry

Commercial Casino Industry Commercial Casino Industry has been occurring in United States over 75 years since Nevada legalizing it. When Chef Wolfgang initiated to out fine dining restaurant in commercial casino, this is the beginning of food and beverage revolution in industry in 1992. In 1995, American Gaming Association was created. MGM Mirage acquired Mandalay Resort Group, Harrahs Entertainment Inc. and Caesar Entertainment in 2005 and the commercial casino industry started booming and other states started legalize opening casinos since then. The international gaming industry is expanding. Many U.S. casino companies expanded or planned to expand to other countries such as Macao, Korea, Taiwan and Singapore. The international casino industry tends to have rapidly growth as gross gaming revenue in Macao has been more than gross gaming revenue in Las Vegas strip since 2006. Know your enemy and know yourself, and in a hundred battles you will never be defeated. (Sun Tzus The Art of War Writings). This Chinese wisdom of warfare probably helps companies deploy a better strategy in many business situations. The MGM Mirage Inc. is the largest company in the Hotel and Casio industry by revenue in the U.S., but MGM financial statement showed that company bottom-line in debt. The company was facing bankruptcy code in the early 2010. In this project, the report had been organized and presented MGM Mirage Inc. or MGM Resorts International in 4W framework: (1) Who are we? (Company profile, Hotel and Casino industry profile), (2) Where are we? (Sophisticated tools in Management, Technology, Marketing, Financial and Accounting were used to analyze the company position with competitor in the industry.), (3)What are problems? (SWOT analysis) and (4) What are solutions? Who are we? : Know yourself MGM History The Beginning of Las Vegas Race: 2005: MGM Merged Mandalay Bay Group. MGM Profile in 2009 Organization Structure Company Strategy The MGM Mirage Inc. strategy is to generate sustainable, profitable growth by creating and maintaining competitive advantages and through the execution of our business plan, which is focused on: Owning, developing, operating and strategically investing in a strong portfolio of resorts; Operating our resorts in a manner that emphasizes the delivery of excellent customer service with the goal of maximizing revenue and profit; and Leveraging our strong brands and taking advantage of significant management experience and expertise. (Source: MGM Mirage 2010 Form 10-K) Current Operation As of 2009, the MGM Mirage reported that the company has completed control of 14 casino resorts and hold 50% of investment in 5 casino resorts. In addition, the MGM Mirage also owned 3 golf courses in Las Vegas, Mississippi and California.(Source: MGM Mirage 2010 Form 10-K) Casio Resort ( Completely owned) Nevada MGM Grand Las Vegas Mandalay Bay The Mirage Excalibur Monte Carlo Railroad Pass, Henderson Gold Strike, Jean Luxor Bellagio New York New York Circus Circus Las Vegas Other MGM Grand Detroit Beau Rivage , Biloxi, Mississippi Gold Strike Tunica ,Mississippi Casio Resort ( hold 50% in stock) Nevada City Center (Joint Venture with Dubai World) Circus Circus Reno Siler Legacy Other Borgata, Atlantic City, NJ Gran Victoia , Elgin, IL MGM Grand Macau, China Industry Analysis Industry Analysis process is an essential assessment tools for every company to deeply understand industry current trends and opportunities. In fact, company will gain a better position and achieve a competitive advantage when it truly understanding marketplace. In the complex marketplace, the U.S. government is categorized industry with 4-digits Standard Industrial Classification (SIC) system. In addition to SIC, the North American Industry Classification System (NAICS) is a new standard for the industry. The NAICS with 6-digits code contains more details than the SIC system. The purpose of SIC and NAICS are economy analysis. The MGM Mirage Inc. has been classified with SIC into three major categories: Hotels and Motels (SIC 7011), Coin-Operated Amusement Devices (SIC 7993) and Amusement and Recreation Services, Not Elsewhere Classified (SIC 7999). In addition, the MGM Mirage inc. also has been classified with NAICS into two categories: All Other Amusement and Recreation Industries and Hotels (except Casino Hotels) (713990) and Motels (721110). To thoroughly understand MGM Mirage Inc. marketplace, the hotel industry and casino industry had been analyzed. Hotels and Motels Industry (SIC 7011) The U.S. government defined a company in Hotels and Motels Industry as Commercial establishments, known to the public as hotels, motor hotels, motels, or tourist courts, primarily engaged in providing lodging, or lodging and meals, for the general public. Hotels which are operated by membership organizations and open to the general public are included in this industry. Hotels operated by organizations for their members only are classified in Industry 7041. Apartment hotels are classified in Real Estate, Industry 6513; rooming and boarding houses are classified in Industry 7021; and sporting and recreational camps are classified in Industry 7032. Recession impacts hotel industry In May 2010, Standard Poors industry report stated the hotel industry is still in an unstable condition. The industry will require a longer period to recover from the 2008 recession. Currently, the industry is operating in a difficult situation. The hotel industry is facing drastic competition that forces hotel businesses to lower room rates, which in turn results in lower profit. The data from Smith Travel Research (STR) Inc. indicated that on average the hotel industry has lost its Revenue Per Available Room (RevPAR) since 2008. The 2008 recession has also brought the hotel occupancy rate down from 60% to 55%. In addition, average daily roommate also dropped significantly 8.8% in 2009. Moreover, room demand dropped 6% in 2009. In contrast, the supply of rooms rose 3.2% in 2009 (refer to figure1). While the U.S. government is making their way out from 2008 recession, SPs forecasted that the hotel industry will not return to the same pre-recession level for the next eight to ten years. Real GDP helps the hotel industry in predicting room demand In the hotel industry, a high accuracy in room demand elasticity estimation provides CEO with essential information for a long term planning and deploying strategies. In 2009, the research by Dr. Hanson from Global Hospitality Group Hospitality Lawyers shows approximately a 1-to-1 relationship that holds between the U.S. Real GDP and room demand until the 2001 economic crisis. The real Gross Domestic Product (GDP) is the total output of goods and services produced in a country and adjusted for priced change. The demand is more elastic when the greater the proportion of income spent on the good. After the 2001 recession, the demand retract and continue to grow in a slower pace when compare with the real GDP. The GDP is increasing 4 times faster than the room demand does. The 5 factors that researcher believes that might have an influence GDP and room demand relationship are: Long-term deterioration in consumer confidence, Higher consumer saving rate, consumers trying to recover lost investment, new pattern of behavior and proposed levels of tax increase affecting disposable income. Moreover, in the 2008 recession, the researcher also believes that the recession might create an additional snap back for room demand. U.S. Business and group travel The hotel industry profitability can be influenced by a demand from business travel. According to a member survey, the Association of Corporate Travel Executives (ACTE) reports hotel expense represents, on average, 40% of all business travel expense. In addition, American Express stated that airfare will increase from 2% to 10% in 2011, and hotel rates will increase 1% to 10% (Paurowski, 2010). The survey also indicated that 35% of its member strongly considered optimizing hotel expense in 2011 and 50% of its member expressed concern regard increasing in expenses. Passenger Name Record (PNR) in Computer Reservation System (CRS) showed that cooperate travelers have shifted booking methods from Travel Management Companies (TMCs) to Online Travel Agency (OTA). In fact, 30% of its members stated that online hotel rates offered are lower than negotiated rates. The complementary items that are preferred by the majority corporate travelers are: complementary cocktails, free WiFi-internet ac cess and comfort. In conclusion, the demand for business and group travel will likely be for cheaper rooms at lower rates with free complementary. (Michael Boult, 2010). Domestic and international travelers Shifts in airline schedules and passenger booking have a direct impact on hotel occupancy. According to the data from Air Transport Association (ATA) 2010 annual report, the static in figure 3 shows that domestic capacity had a declining trend since 2000, and the data also showed that passenger enplaned has dropped significantly from 743 million passengers in 2008 to 703 million in 2009 reflecting a 5.3% decrease of airline industry capacity. In fact, profit margin in the airline industry has been on the negative side. Airliners cut back routes and canceled destinations. For international travelers, The U.S. Department of Commerce (DOC) and Office of Travel and Tourism Industries (OTTI) expect the industry growth in 2010 and gradual increase to approximately 6-9% through 2015. Five countries, excluding Canada and Mexico, that rank highest in number of visitors to the U.S. in 2010 by volume are: China (40%), Brazil (35%), Korea (35%), Hong Kong (27%), New Zealand (24%) and Australia (19%). A weakening in U.S. currency helps the hotel industry by stimulating the demand from international travelers. Medical tourism -a little hope for the hotel industry In the economic downturn, hotel industry needs a stimulant plan to boot-up its occupancy rate. In 2009, Reuters Health section provided some interesting facts about medical tourism in the U.S. The report indicated that U.S. health providers have lost 650,000 patients to hospital oversea such as Thailand, India, and Singapore. In addition, the health providers are predicted to lose as much as $67.7 billion in revenue in 2010. Oscar Goodman, Mayor of Las Vegas, foresee the opportunity for the hotel industry in Las Vegas. Mayor encourages a local business to support the idea of medial tourism. The medical tourism will be an alternative business in the area, the national public radio reported. Casio Industry Casinos are the largest revenue generator in the gambling industry. The industry provided approximately 350,000 jobs in the U.S. market. The American Gaming Association and the National Indian Gaming Association (NIGA) are the main organizations in the U.S. casino industry. The AGA encourages its members and their employee to be aligned with updated law and regulations. Moreover, AGA is a realizable source for a gaming industry providing gaming history, educational program, and statistic data on the Casino industry. In addition, the NIGA under the Indian Gaming Regulatory Act has provided Native Americans opportunities to legally run casinos. U.S. casino trends The casino industry has been hard-hit by the recession. According to the United States department of labor, the Mass Layoff statistics (MLS) program showed that the hotel-casino industry eliminated 13,000 jobs in 2008 (Labor, 2010). The revenue trend in the casino industry has been on a downturn for the last two consecutive years. The SP expected a slow recovery from the casino industry. Las Vegas, Nevada As of 2009, the American Gaming Association reported that Las Vegas with $5.55 billion in revenue was a dominant U.S. market. According to Las Vegas Convention and Visitors Authority (LVCVA), the statistic in figure 5 showed a 2.4% increase in the number of visitors from 2009. The Las Vegas Strip gaming revenue was increased by 4.3%, but the downtown area gaming revenue was decreased by -7.3% from 2009. In 2009, the 14% unemployment rate in the state Nevada plummeted the economic trail. On a carryover impact from the economic crisis in 2008, the number of attendees at conventions, and a number of scheduled conventions and number of meetings held remained on the decline with decreases of -1.1% and -6.7% respectively. According to the Las Vegas Visitor Profile, Market Segment reported by LVCVA (2009) that 76% of Casino guests were most likely to be traveling in a party of two and average stay in Las Vegas is 4 nights. Casino guests on LVCVA survey stated that 87% of visitors called the hotel-casino directly to book their accommodation. In 2010, SPs industry report estimated casino revenue on the Strip to be 35%-45% of total revenues, and the revenue from hotel rooms was 20-30% of the total revenue. A total enplaned and deplaned air passenger continued to decline. The number of air travelers accounts for 42% of all visitors. (LVCVA visitor profile: ir visitor version). The SPs report indicated strong growth from Las Vegas. Atlantic City, New Jersey The Atlantic City is a second large of the U.S. casino marketplace. The static in figure 4 shows that casinos in the area have been losing revenue -5.7%, -7.6% and 13.2% in three consecutive years. According to SP, casinos in Atlantic City are facing heavily competition from New York and Pennsylvania. Macau, China: New Era of Asia Gold rush Macau is a special administrative region of China. The CIA The World Factbook reported that, in 2006, Macaus gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. The Macau market attracted many casino operators from Las Vegas to come and establish a new home-based outside the U.S. In 2010, the profit in Macau market increased 9.7% in revenue from its loss in 2009. The gaming industry in Macau was expected to rise, but, SP reported a concern about the room surplus of 40% in 2011 and 2012. In the long-term, SP still believes that the Macau gaming industry will generate a significant profit for China. Singapore: A hidden dragon Singapore is the one of the most strategic locations in South-East Asia. According to Economy Watch and World Bank, Singapore is considered to be a very attractive country for new business. Sources in the Wall Street Journal on October 7, 2010 reported that the Marina Bay Sands project is a 8-billion dollar casino in Singapore, known to be the cleanest city in the world. The casino includes three 50-story structure with approximately 2,500 rooms; a casino, retail stores, dining and 800,000 square feet entertainment complex. The SP 2010 industry report predicted that the top five markets for Singapore casinos are: Indonesia, China, Australia, India and Malaysia. In addition, the Marina Bay Sands should have no effect on Macau market because the hotel presents a more family-orientated appeal. Legal and Regulation Internet/Online gambling Online gambling is illegal in the U.S. as of November, 2010. Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 2266) was introduced to congress in May 2009 by Frank, Barney (Rep). The bill is aimed to Unlawful Internet Gambling Enforcement Act of 2006, which prohibits internet gambling operators from receiving money related to any online gambling that violates State or Federal law (Frank, 2010). Online gambling is also on a serious debate among AGA members regarding a safety and government regulation. The concerns regarding an online gambling are a security technology such as firewall to protect million online users. Summary Key Fact from Industry Analysis Room demand dropped because economic recession. Occupancy rate dropped because dropped in demand and increasing room surplus. Real GDP could be used as atool for the hotel industry to future demand. Business Travel booking trends changed from Travel agency to online travel agency. China is a number one inbound visitor by volume from oversea. Medical tourism could be an alternative route for simulating demand. Gaming on Las Vegas Strip continues generating profit. Atlantic City market for casino is not pleasant after loss in profit of 3 consecutive years. Macau is growing and generated more revenue than Las Vegas Strip. Singapore could be a new growing casino market in South-East Asia. Legalize an online gambling is an ongoing process. Casino Market: Oligopoly Market Competition In 2009, the casinos industry had revenue in total of $US 21.8 billion. To determine an economic competitive type of market in the industry, the company uses a four-firm concentration ratio as the indicator. The ratio is the percentage of total industry sales made by the four largest firms (Fig. 4). The four-firm ratio for the casinos industry is approximately 70%, which had created an oligopoly form of market competition. In oligopoly, one firm decision can have a direct influence on demand, price, and profit of competitor in the industry. Figure 5: Companies in the casino industry by revenue Furthermore, external assessment of the industry is a critical process for management in decision making. The Porters Five-Forces Model, competitive analysis tool, has been utilized for in-depth industry analysis. The model analysis is provided five perspectives in assessing the industry: Rivalry among competing firms, Potential entry of new competitor, Potential development of substitute products, Bargaining power of suppliers, and Bargaining power of consumers. Porters Five-Forces Model Analysis Rivalry among existing competitors: MGM : Rivalry among existing competitors : HIGH Same-size competitors High exit barrier Indifferent in product and service among competitors Table x: Threat of existing competitors The competitive atmosphere in hotel industry is high. There are a lot of competitors in industry. Furthermore, it seems that competitors compete in same dimension because in commercial casino industry, customers are not much diverse. Therefore, players in this industry found it hard to target different customers with different needs There are a lot of competitors with equal power and size. Exit barrier in commercial casino industry is high because a company invests huge amount of money, especially, building cost. Even a company wants to exit from the industry, sometimes it force to stay in because exit costs are high. Product and service in commercial casino industry are identical. Moreover, there is no switching cost for buyers. Thus, competitor might cut price to attract buyers. Fixed costs are high. In order to compete in hotel industry, a casino manager adopts revenue management. The process allows buyers to stay in same type of room in different price. Even a hotels products and service are not rapidly become outdated but competitive atmosphere in commercial casino industry is hot, therefore, companies cannot make high profit from this industry. Threat of new entrants: The threat of new entrants for hotel and motels industry is low. The industry has significant barriers to entry which include: MGM : Threat of new entrants : LOW Supply-side economies of scale Demand-side benefits of scale Customers switching costs Capital requirements Restrictive government policy Position advantages independent of size Unequal access to distribution channels Table x: Threat of new entrants Supply-side economies of scale: In commercial casino industry these economies hardly appear. Even a company built more rooms or more recreations in its casino, these economies will not appear. Moreover, the company has to carry more cost, more maintenance cost and more employees cost. Demand-side benefits of scale (network effects): These benefits occur when the numbers of buyer patronize the company. However, these benefits might not occur in commercial casino industry. In commercial casino industry, a company will find advantages in location, facilities and characteristics of personal working in direct contract with customers. Therefore, having a lot of customers patronize a company will not provide huge demand-side benefits of scale. Customers switching costs: In commercial casino industry, when customers purchase service from a casino, it is one time use. Therefore, there is no switching cost. Capital requirements: In order to enter commercial casino industry, a company needs to finance huge budget and the industry return is not attractive. Thus this industry has high barrier. Position advantages independent of size: These advantages are not depends on a companys size, incumbents can have competitive advantages that not available to competitors. These advantages in commercial casino industry can stem from locations, brand identities and service. Unequal access to distribution channels: It is not hard to establish or find distribution channels in commercial casino industry. A company could use agents or let customer books rooms via its websites. Restrictive government policy: There might be some restriction related to commercial industry such in some area government do not allow a company to build a building that higher than 2 floors or in some countries, a company has to has citizens hold more than half of a companys shares to operate in that country. In U.S., commercial casino industry is the most regulated and monitored industry. The threat of substitutes: MGM : Threat of substitutes : HIGH Competitor Table x: Threat of substitutes There are some substitutes for commercial casino such as hostels, apartments or houses. Customers can stay in hostel, apartment or houses and go to gaming or using recreation facilities at casinos. If buyers concern convenience, they might prefer casino. Because they will have maids clean their room and casinos always locate in a convenience location. If buyers concerns price, they might stay in hostel. However, if buyers concern privacy, they might prefer house. There is no cost of switching to substitute. Buyers can change to substitutes anytime if they would like. Hostels, apartments and house can be substitutes for casinos. They perform similar products and service to casinos, if you concern only hospitality part. However, there are some differences which made substitutes have huge different from hotels. Buyers have to determine trade-off between hotels and substitutes. In this industry, the threat of substitutes is not high because substitutes have too many differences in facilities and service from casinos. Thus, industrys profitability is not suffered from substitutes. The power of suppliers: If suppliers have power over a company, suppliers might set its price higher, limit quality of service and shift its cost to other parties. In commercial casino industry, a company uses wide range of different suppliers such as supplier for construction, supplier for food and beverages and supplier for hotel equipment. There is almost no monopoly in hotel suppliers. Moreover, only a few supplies that have switching cost such as securities equipment and suppliers did not differentiate their products. The company has to differentiate itself by choosing good location, providing well-maintenance facilities and providing supreme service. Furthermore, the company can easily find substitute suppliers. Therefore, the power of suppliers in commercial casino industry is low. The power of buyers: MGM : The Power of Buyer : Table x: The power of buyer There are various customers in commercial casino industry. However, there are some buyers that have ability to negotiate such as group tour. Products and service in commercial casino industry are not much different. If customers find that a hotel that they always stay in is full, they have to stay in other hotel. They have to purchase products and service in some hotel anyway. Buyers have no switch cost. If buyers want to change from a hotel to a hotel, they can just check-in to another hotel without any switching cost. Buyers cannot produce industrys product if buyers found that a hotel is too profitable. Buyers can switch to other hotels but they cannot produce it by their selves. In commercial casino industry, buyers do not stick with brands. Buyers might concerns about quality of product and service. If they find another casino that cheaper but quality and facility are same, they will switch to another casino. In sum, in commercial casino industry, buyers are relatively price sensitive. From analysis given above, buyers in commercial casino industry have high power and seem to be price sensitive. They can press companies to lower their price and can ask for more quality and service. Financial and Accounting Analysis The financial information was published annually to external and internal users. MGM Mirage Inc. financial statements had been analyzed using financial ratio analysis and information in management discussion. The median number of industry ratio in 2009 is used in this report. By the nature of hotel business, MGM contains a high fix-cost in normal business operation and profits are driven by tourism and business travel demand. MGM requires a large capital to run its hotels and casinos. In 2010, MGM is in process of development a City Center, a capital intensive driven project. The delayed of City Center project has enormous impact on MGM financial statement. Liquidity and Financial Position Credit Risk: Facing Bankruptcy As of December 31, 2009, MGM is in a weak financial position because of its indebtedness. MGM with credit rating of CCC+ operated the business with 39% on the long-term debt. The management team declared unpleasant statement about the $1.1 billion senior credit facility debt which might be defaulted on maturity date in 2010. The management suggests that MGM must extent the payback period by negotiating with their creditors. Also, management has predicted that future revenue from operation and tax refunds would help reducing MGM debt. The current and quick ratio indicated that MGM has had insufficient fund to operate its casino since 2005. With the ratio less than 1 and below the industry average in both current ratio and quick ratio, MGM has been operated on the line of bankruptcy if the company defaults on its debt. Revenue base and mix MGM primary source of revenue came from Las Vegas Strip. As December 31, 2009, the majority of MGM revenue came from three sources: casino (44%), hotel room (23%), and food beverage (23%). Casino revenue dropped 12% from 2008 and it had been on decline trends since 2007. In 2009 MGM financial statement, revenue from casino had been divided into three sub-categories: Table games (36% of total casino revenue), Slots (60% of total casino revenue), and Other revenue. The table game revenue decreased 11%, even though there is 33% increases in demand for baccarat. Sustainability of revenues and earning MGM profitability ratios are negative in 2010 and 2009 for some ratios. ROA in both 2009 and 2010 are negative. We can break ROA to net profit margin multiply total assets turnover to deepen our analyzing. Assets turnover ratio shows MGMs ability to use assets generate revenues. MGMs assets turnover ratio decreases from 2007 to 2009. Even this ratio does not decrease much during 3 year period, it made ROA go down. The main factor that has impact on ROA is net profit margin. The MGM has very low net profit margin since 2008. MGMs bad signal shows since 2008. After its net profit margin ratio plunge to -11.86% in 2008 and -21.61% in 2009 which a major factor lowing ROA. From analyzing ROA, we can see that MGM has a problem with maintaining its profit margin. MGMs revenues in 2008 are not much different from 2007, however, MGM cannot control operating expenses, operating expenses in 2007 exceeds revenues. In 2009 MGM revenues decreases by 17%, further, MGMs ability to control its operat ing expense decreased. MGMs operating expenses in 2009 is 114.65% from revenues. The major increase in operating expenses in 2008 and 2009 is property transactions. MGMs ability to fulfill its short term obligation is getting better in 2009. Both quick and current ratios go up. The reason both quick and current ratios increase because in 2009 MGM carries more cash. However, MGM debt management ratios worsen. Long term debt to equity ratio increases from 2007 to 2009 results increase in total debt to equity ratio. These ratio shows MGM has larger portion of debt compare to equity. Even MGM carries more long term debt recently; MGM has interest coverage ratio high enough to pay back its interest. But this ratio trend increase in recent year. Hotel operating statistics Strengths Strengths Various portfolios of products and services: MGM mainly operates casino resorts which include gabling, hotel, restaurant, entertainment and retail. The main operation is in Las Vegas, Nevada, the world famous gambling and entertainment center. Properties in Las Vegas include CityCenter (50% owned), Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, New York-New York, Excalibur, Monte Carlo and Circus Circus LasVegas. MGM operates outside Las Vegas includes casinos in Michigan, Mississippi, New Jersey and Illinois. Not only operate in U.S. but MGM also own 50% MGM Grand Macau ownership. Because each MGMs casino offers different theme, amenities such as restaurants, spas, private gaming and swimming pool facilities ;and difference pricing to target each customer segment, MGM enjoy competitive advantages over competitors. Moreover, MGM is continuously reinvesting in its business to keep this competitive advantage. Strengths-Strong Brand Recognition: MGM operates in tourism and leisure sectors which are gaming, hospitality and entertainment in two continental. MGM offers different casino for different segment, therefore, casinos brand that are operated by MGM are recognized by people all around the world. Moreover, Forbes Travel Guide bestowed AAA five-diamond awards to Bellagio and MGM Grand in 2010. Strengths-Location: MGM has properties in the top destination for traveler to go for gaming and entertainment. MGM has 10 casinos in Las Vegas, the world largest gaming and entertainment center and has MGM Grand Macau in Macau, the world second largest gaming and entertainment center. The reason behind this selection, these two places are the major tourism destination not only for gaming activities but also n

Organic Farming

Mary Sears Taylor ENG 1120 Blair Date Sustainable Agriculture: The Switch from Industrial to Organic P1: Agriculture is the most important user of environmental resources and plays a crucial role in the economy, human health, and production of food and fiber. Currently the debate over agriculture is how to feed the world’s growing population, but in a non-damaging process. Agriculture needs a change resulting in sustainability, but the debate begins with how to achieve sustainability in agriculture. One side insists on expanding the current system of industrial agriculture, which depends on monoculture and mechanization.This modern approach to agriculture, which developed during the 20th century, has successfully fed the growing population, but has resulted in devastating effects on the environment and human health. Organic farming techniques, on the other hand, have recently been introduced as another possible solution to sustainable agriculture. Organic methods, including of crop rotation, pest management, and cover crops, have proven to be less damaging to the environment. Despite the proven benefits, some believe that organic farming methods will not produce enough food to feed the world’s growing population.Therefore, this side of the agricultural debate insists on merging organic farming and industrial agriculture together. Even though feeding the world’s growing population is essential, human health should never be at cost. Organic farming needs to completely replace industrial agriculture. According to Gracelinks. org, â€Å"Sustainable agriculture is the production of food, fiber, or other plant or animal products using farming techniques that protect the environment, public health, human communities, and animal welfare. This definition proves that industrial agriculture does not meet the requirements of sustainability due to its cause of land degradation, loss of biodiversity, and pollution. Industrial agriculture has successfull y produced an abundant amount of food, but the harmful effects it causes on the environment and public health are unacceptable and unsustainable. P2: Sustainable agriculture techniques aim to embrace farming practices that mimic natural ecological practices.Methods that are sustainable will benefit the farmer, the land, and the community as a whole. Brodt Sonja from The Nature Education Knowledge Project states, â€Å"Agricultural sustainability rests on the principle that we must meet the needs of the present without compromising the ability of future generations to meet their own needs. † This definition only begins to prove that organic farming is more sustainable than industrial agriculture. Industrial techniques compromise future generations’ ability to meet their needs.Even though industrial methods produce an abundant amount of food, the impacts are overwhelming on the environment and human health, resulting in an unsustainable world. Despite those who support i ndustrial agriculture or a combination of industrial and organic methods, I found research which proves that organic farming is solely the answer. The results I found confirm that the key to sustainable agriculture involves a complete shift of methods. After researching the debate, I am confident that a change from industrial to organic is vital to improve our environment and attain a sustainable agriculture.The organic farming approach to agriculture has proven to be more beneficial to the environment and public health, along with producing high yields. Agriculture will be made sustainable and ecologically sound by adopting organic farming techniques such as crop rotation, crop diversity, cover crops and pest management. These organic farming methods will continue to feed the world’s growing population without damaging consequences. P3: Sustainable agriculture strives to provide an abundance of food while using methods that do not harm the environment and improve human healt h.The Union of Concerned Scientists states, â€Å"Sustainable agriculture is grounded in the idea of stewardship: preserving the resources that allow us to meet our own needs, so that future generations can meet theirs too. † This means that an approach to farming needs to be economically viable, environmentally friendly, and beneficial to the society in order to be sustainable. Impacts of agriculture currently include land degradation, limits to water availability, loss of biodiversity, and pollution. These negative outcomes are caused by industrial agriculture methods.Yet, some people argue that industrial agriculture is more sustainable than organic farming. P4: Industrial agriculture is the current form of agriculture used in the United States and other developed countries. Economy Watch defines industrial agriculture as a â€Å"modern form of capital intensive farming which requires huge amounts of innovation in agriculture machinery. † The properties of industria l agriculture, which include monoculture, the practice of growing a single crop year after year, and reliance on chemical fertilizer, both result in destructive effects on the environment.Despite these consequences, industrial agriculture produces an abundant amount of food. Therefore, some people argue that the techniques of industrial farming need to be adjusted, not replaced. The article, â€Å"Will Organic Food Fail to Feed the World,† written by David Biello, argues a hybrid approach to sustainable agriculture. Biello states that industrial technologies have â€Å"fed the swelling human population† and â€Å"the world already produces 22 trillion calories annually via agriculture. The evidence supports his argument that the methods of industrial agriculture result in an abundant production of food that successfully feeds the growing population. However, the methods used to produce the great amount of food are harmful to the environment. David Biello also attempts to argue that organic farming will not supply enough food. Quoting environmental scientist Verena Seufert, from McGill University, Biello states, â€Å"We found that, overall, organic yields are considerably lower than conventional yields. By quoting Verena Seufert, Biello uses an ethical appeal to support his argument. It proves the importance of industrial agriculture due to its high yields and food production. His solution to agriculture, combining methods of both industrial and organic farming techniques, is not sustainable. The impacts caused by industrial agriculture out way the benefits. There is a completely sustainable approach that allows farmers to produce enough food without harming human health or the environment. The approach is organic farming.Even though industrial agriculture produces an abundant amount of food, the methods rely on mechanization, monoculture, and synthetic fertilizers and chemical pesticides. The reliance on these methods exhaust the natural resou rces that human life depends on. The Pesticide Action Network states, â€Å"Industrial agriculture treats the farm as a factory, with inputs (pesticides and fertilizers), and outputs (crops. )† The use of comparison between farms and factories, two very opposite areas, informs the reader of the negative impacts of industrial farming.The production of food in factories and the use of chemicals result in negative externalities. The reliance on monoculture in industrial agriculture results in a threat to biodiversity. Monoculture farming depends heavily on chemical inputs because growing the same plant in the same place year after year quickly depletes nutrients that plants rely on. The only way to replenish the nutrients lost, is by adding synthetic fertilizers. The synthetic products added to soil deplete the nutrients in crops as well as producing harmful pollutants into the air.The Pesticide Action Network notes that industrial agriculture uses 70% of the planet’s fre sh water along with being responsible for 1/3 of global greenhouse gas emissions. These outrageous percentages can be reduced only if industrial agriculture is replaced. Industrial agriculture has a high price tag as well. In the article â€Å"Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems,† David Pimentel quotes the National Research Council when stating, â€Å"The cost of excessive fertilizer use- that is, fertilizer inputs that exceed the amount crops can use- is $2. billion per year. † Pimentel’s use of ethos and logos together successfully persuades the reader away from industrial farming. The harmful chemicals and high costs make industrial farming unsustainable. If sustainable agriculture is the goal, industrial methods and techniques must be replaced all together. Despite the arguments supporting industrial agriculture, organic farming has proven to be the solution to sustainable agriculture. The beneficial results include more fertile soil, greater biodiversity and healthier food products for consumers.These benefits support the requirements of sustainability and are achieved through organic agriculture techniques. Organic farming methods include crop rotation, pest management, crop diversity, and absence of chemicals. By adopting these methods, farmers will produce sustainable farms that can feed the world’s growing population, without negative externalities that halt future generations from succeeding. Crop rotation is the process of growing different crops in succession in the same field or area. When farmers use this organic farming method they avoid consequences such as soil degradation.Crop rotations help to replenish nitrogen in the crop’s soil, therefor chemicals are not needed to replenish the soil’s nutrients. Crop rotation also provides a solution to pest problems. Many pests prefer a specific crop, therefore continuing to grow the same in crop year af ter year guarantees pests a steady food supply. The Union of Concerned Scientists’ article, â€Å"Sustainable Agriculture Techniques,† states that â€Å"rotation reduces pest pressure on all the crops in the rotation by breaking the pest reproductive cycles. † This statement proves that organic farming methods are able to reduce the presence of pests.By planting different crops in a series, farmers decrease the chance of pest problems, in addition to using non-chemical fertilizers. The use of crop rotation allows farmers to produce healthier soil due to the absence of chemical fertilizers and pesticides. The use of different plants in a row allows for an increase in soil organic matter which is healthier for the soil and crops being grown. The article, â€Å"Sustainable Development: Five Ways to Get Rid of Pests without Using Chemicals,† argues that the switch from chemical pesticides has led to better soil health.The article quotes Thakur Das, a rice far mer with experience from switching to organic farming, and states, â€Å"Most farmers use chemicals, but their soil is totally dead. † This use of ethos sways the reader to believe the argument. Interviewing a farmer with experience, proves that organic farmers have healthier soil in comparison to farmers who use chemicals. Healthy soil is one of the most important elements of agriculture. Enriched healthy soil can improve yields and produce crops less vulnerable to pests. Another unique benefit of organic farming is its ability to improve biodiversity.Biodiversity in farming is a key contributor to sustainable agriculture. While industrial techniques lack in biodiversity, organic methods increase and support biodiversity. James Randerson, author of the article â€Å"Organic Farming Boosts Biodiversity,† discusses seventy-six studies that measured biodiversity. After the studies were reviewed, the results proved that sixty-six out of ninety-nine found organic farming m ore beneficial to wildlife. Randerson states, â€Å"Organic farming increases biodiversity at ever level of the food chain. His use of logos blatantly displays the evidence to the reader, supporting the argument that biodiversity is increased through organic farming. In addition to Randerson’s proof regarding biodiversity, the article, â€Å"Sustainable Development: Five Ways to Get Rid of Pests without Using Chemicals,† also proves that crop diversity improves agricultural biodiversity. Currently, pests thrive in monocultures. Monoculture is simply the practice of growing a single crop over a large area. This results in negative effects on the environment. An easy solution to this is crop diversity.The article quotes sustainable agriculture expert, Jules Pretty, when stating, â€Å"Farm biodiversity is a more sustainable method of dealing with pests. † The use of ethos helps persuade the reader that crop diversity is a sustainable method. Due to Pretty’ s expertise, the information provided is likely to be true. Chemical additives, which pollute air and destroy crops, are in no way helpful to agriculture. Using techniques such as crop diversity will decrease the need for chemicals. Organic farming methods have proven to increase biodiversity in agriculture, making it a more sustainable approach.The use of organic farming methods result is a sustainable farm. Sustainable farms produce foods without excessive use of pesticides. This process makes the food healthier for the consumer. Research from the Green Peace Corporation states that â€Å"organic crops contain significantly more vitamin C, iron, and magnesium. † Each of these are important to human health. The research supports organic farming, as opposed to industrial agriculture. Sustainable farming successfully produces healthy food in an environmentally friendly manner.

Personal Change Essay

Every day I hear people talking about how they do not like this or how they want to change that. Oddly enough, I do not often hear someone say I really need to make a personal change. The thought that people point fingers at others and take not fault weighted on my mind for quite a while. So I decided if I could change one thing about myself in a positive way, it would be to stop being so self-centered. This change would not only be beneficial to me, but also the people around me. They would be a lot happier around me, it would open my eyes to a new perspective on life as a whole, and last but not least, I would not be as irresponsible. From my experience nobody likes to be around a selfish inconsiderate person. Making this change in my life would transform me from that selfish guy, to a caring, considerate and positive individual. Socially my world would sky rocket almost instantly. When someone is fun and considerate, they are easy to be around. This means I would attract more peop le, which leads me to my next point. The more people we meet in life, the more we learn. I feel that if I do not meet new people and experience new things, I will have that same old one tract mind. It is ok to be wrong and do what someone else wants to do from time to time. This will allow me to explore not only the world differently, but myself as well. A basic outlook on life is the direct product of being self-centered and hard to be around. Part of having a new perspective means, seeing that my old self interpretation or old opinion of myself may change. Ultimately this could lead to me looking at how I act and do things honestly. After looking at myself and how I actually am, there is no doubt in my mind I would come to the conclusion that I am not the most responsible person in the world. As a result, the logical thing for me to do next is to fix that problem. If I were more responsible I could take a lot more control of my life. Open new doors for myself in my school life, work life, and social life. Responsibility is the glue that holds a successful life together . All I really want in the end is to be successful anyway, so being responsible would defiantly be a great trait to have. All in all the change to stop being so self-centered would only change my life for the better. I can not think of any other change that would benefit me more. So I say to myself and anyone who will listen â€Å"Don’t let yourself hold you back.†

Carbon Family - Element Group 14

One way to classify elements is by family. A family consists of a homologous element with atoms having the same number of valence electrons and thus similar chemical properties. Examples of element families are the nitrogen family, oxygen family, and carbon family. Key Takeaways: Carbon Family of Elements The carbon family consists of the elements carbon (C), silicon (Si), germanium (Ge), tin (Sn), lead (Pb), and flerovium (Fl).Atoms of elements in this group have four valence electrons.The carbon family is also known as the carbon group, group 14, or the tetrels.Elements in this family are of key importance for semiconductor technology. What Is the Carbon Family? The carbon family is element group 14 of the periodic table. The carbon family consists of five elements: carbon, silicon, germanium, tin,  and lead. It is likely that element 114, flerovium, will also behave in some respects as a member of the family. In other words, the group consists of carbon and the elements directly below it on the periodic table. The carbon family is located very nearly in the middle of the periodic table, with nonmetals to its right and metals to its left. The carbon family is also called the carbon group, group 14, or group IV. At one time, this family was called the tetrels or tetragens because the elements belonged to group IV or as a reference to the four valence electrons of atoms of these elements. The family is also called the crystallogens. Carbon Family Properties Here are some facts about the carbon family: Carbon family elements contain atoms that have 4 electrons in their outer energy level. Two of these electrons are in the s subshell, while 2 are in the p subshell. Only carbon has the s2 outer configuration, which accounts for some of the differences between carbon and other elements in the family.As you move down the periodic table in the carbon family, the atomic radius and ionic radius increase while electronegativity and  ionization energy decrease.  Atom size increases moving down the group because an additional electron shell is added.Element density increases moving down the group.The carbon family consists of one nonmetal (carbon), two metalloids (silicon and germanium), and two metals (tin and lead). In other words, the elements gain metallicity moving down the group.These elements are found in a wide variety of compounds. Carbon is the only element in the group that can be found pure in nature.The carbon family elements have widely variable physical and chemical proper ties.Overall, the carbon family elements are stable and tend to be fairly unreactive.The elements tend to form covalent compounds, though tin and lead also form ionic compounds.Except for lead, all of the carbon family elements exist as different forms or allotropes. Carbon, for example, occurs in diamond, graphite, fullerene, and amorphous carbon allotropes. Tin occurs as white tin, gray tin, and rhombic tin. Lead is only found as a dense blue-gray metal.Group 14 (carbon family) elements have much higher melting points and boiling points than the group 13 elements. Melting and boiling points in the carbon family tend to decrease moving down the group, mainly because atomic forces within the larger molecules are not as strong. Lead, for example, has such a low melting point that its easily liquefied by a flame. This makes it useful as a base for solder. Uses of Carbon Family Elements and Compounds The carbon family elements are important in daily life and in industry. Carbon is the basis for organic life. Its allotrope graphite is used in pencils and rockets. Living organisms, proteins, plastics, food, and organic building materials all contain carbon. Silicones, which are silicon compounds, are used to make lubricants and for vacuum pumps. Silicon is used as its oxide to make glass. Germanium and silicon are important semiconductors. Tin and lead are used in alloys and to make pigments. Carbon Family - Group 14 - Element Facts C Si Ge Sn Pb melting point ( °C) 3500 (diamond) 1410 937.4 231.88 327.502 boiling point ( °C) 4827 2355 2830 2260 1740 density (g/cm3) 3.51 (diamond) 2.33 5.323 7.28 11.343 ionization energy (kJ/mol) 1086 787 762 709 716 atomic radius (pm) 77 118 122 140 175 ionic radius (pm) 260 (C4-) -- -- 118 (Sn2+) 119 (Pb2+) usual oxidation number +3, -4 +4 +2, +4 +2, +4 +2, +3 hardness (Mohs) 10 (diamond) 6.5 6.0 1.5 1.5 crystal structure cubic (diamond) cubic cubic tetragonal fcc Source Holt, Rinehart and Winston. Modern Chemistry (South Carolina). Harcourt Education, 2009.