Hershey Foods Corporation Essays - Hershey, Pennsylvania

Hershey Foods Corporation Carolyn Wright Hershey Foods Corporation manufactures and distributes a wide variety of chocolate and non-chocolate confectionery products. These products include a variety of candy bars, drink mixes, peanut butter, and baking ingredients. They hold important ethics, high quality, and guarantee customer satisfaction. Hershey also participates in preserving the environment. They work hard to minimize waste, and make wrapping materials easy to dispose of responsibly by indicating on the package the proper way to recycle. They are currently the market leader in their industry. (www.hersheys.com) Hershey is a member of the Food-Confectionery Industry. The growth rate for the last five years for the industry has been 10.7%. The S&P 500 top companies have had a growth rate of 10.3% for the past five years. This means that over the past five years the Food-Confectionery Industry has had a higher growth rate than the top companies in other markets. However, Hershey had a 10.2% growth rate, which in less than top companies, and also has a lower rate than its own industry. This year Hershey Foods has had a negative 8.4% growth rate. (www.yahoo.com) This decline in growth could be due to problems that Hershey had with a new information system that was started in July. The problem with the system was that orders were not being filled due to shipping problems, which left overcrowding in warehouses. This overcrowding has increased inventory costs, and has also left customers unsatisfied. The company has predicted that the problems with the new system are fixed and inventories should be regulated in the coming quarters. There is an anticipated growth rate of 16.1% for Hershey next year. This means that the company is confident that it will grow and not decline despite their current problems with shipping. Beta measures the risk of an asset in comparison to the risk that other relative assets have. Average assets have a beta of 1.0. Betas lower than 1 have less risk than the average asset. Respectively a beta over 1 would be more risky than the average asset. Hershey Foods Corporation has a beta of .39. (www.smithbarney.com) This would indicate that investing in Hershey would be less risky than investing in the average stock. The companys stock price has remained stable over this semester. As of November 26, 1999 the stock quote is $49 9/16. Over the past two months the stock has fluctuated from $47.625 on October 15th to $52.625 on November 2nd. This is not enough of a change that would label this stock unstable. However, when I researched back to last years quotes, I found that at the end of November in 1998 the stock was at a high of $68 7/8. (www.yahoo.com) This high could have been caused by the seasonality that this company has. Hershey gets busier during back to school, Halloween, Thanksgiving, and Christmas seasons. The reason why the company has not seen highs like that this year could be do to the inventory problems that I mentioned earlier. (www.sec.gov) In August of 1997 the company made 500 million dollars of debt securities were made available. As of October of 1999 half of the securities remained available. 230 million dollars of the companys common stock was repurchased in February of 1999. This money was used to benefit Milton Hershey School. (www.sec.gov) The company holds 32.2 million dollars worth of Treasury Stock. The company currently holds 576.8 million dollars worth of debt. This can be borrowed to issue commercial paper. (www.sec.gov) In March of 1997 the company issued 6.95% notes. The money raised from these notes and other debt securities will be used to reduce ongoing debt. Funds will also be used for expanding business ventures, and paying off commercial paper borrowings. (www.sec.gov) In the year 2001 the company plans on lowering interest rates from 6.7% to 5.8% on notes that are payable in the year 2005. These notes were issued in October of 1999. A firms capitol structure can be defined by what percent current liabilities and current equity hold in the company. Hershey Food Corporation currently holds 69% debt and 31% equity. (www.smithbarney.com) This would indicate a relatively high risk when considering investing in this company. I say this because when paying dividends on

Explore the Three Laws of Thermodynamics

Explore the Three Laws of Thermodynamics The branch of science called  thermodynamics deals with systems that are able to transfer thermal energy into at least one other form of energy (mechanical, electrical, etc.) or into work. The laws of thermodynamics were developed over the years as some of the most fundamental rules which are followed when a thermodynamic system goes through some sort of energy change. History of Thermodynamics The  history of thermodynamics  begins with  Otto von Guericke  who, in 1650, built the worlds first  vacuum pump  and demonstrated a  vacuum  using his  Magdeburg hemispheres. Guericke was driven to make a vacuum to disprove  Aristotles long-held supposition that nature abhors a vacuum. Shortly after Guericke, the English physicist and chemist  Robert Boyle  had learned of Guerickes designs and, in 1656, in coordination with English scientist  Robert Hooke, built an air pump.  Using this pump, Boyle and Hooke noticed a correlation between  pressure,  temperature, and  volume. In time,  Boyles Law  was formulated, which states that pressure and volume are  inversely proportional.   Consequences of the Laws of Thermodynamics The laws of thermodynamics tend to be fairly easy to state and understand ... so much so that its easy to underestimate the impact they have. Among other things, they put constraints on how energy can be used in the universe. It would be very hard to over-emphasize how significant this concept is. The consequences of the laws of thermodynamics touch on almost every aspect of scientific inquiry in some way. Key Concepts for Understanding the Laws of Thermodynamics To understand the laws of thermodynamics, its essential to understand some other thermodynamics concepts that relate to them. Thermodynamics Overview - an overview of the basic principles of the field of thermodynamicsHeat Energy - a basic definition of heat energyTemperature - a basic definition of temperatureIntroduction to Heat Transfer - an explanation of various heat transfer methods.Thermodynamic Processes - the laws of thermodynamics mostly apply to thermodynamic processes, when a thermodynamic system goes through some sort of energetic transfer. Development of the Laws of Thermodynamics The study of heat as a distinct form of energy began in approximately 1798 when Sir Benjamin Thompson (also known as Count Rumford), a British military engineer, noticed that heat could be generated in proportion to the amount of work done ... a fundamental concept which would ultimately become a consequence of the first law of thermodynamics. French physicist Sadi Carnot first formulated a basic principle of thermodynamics in 1824. The principles which Carnot used to define his Carnot cycle heat engine would ultimately translate into the second law of thermodynamics by the German physicist Rudolf Clausius, who is also frequently credited with the formulation of the first law of thermodynamics. Part of the reason for the rapid development of thermodynamics in the nineteenth century was the need to develop efficient steam engines during the industrial revolution. Kinetic Theory the Laws of Thermodynamics The laws of thermodynamics do not particularly concern themselves with the specific how and why of heat transfer, which makes sense for laws that were formulated before the atomic theory was fully adopted. They deal with the sum total of energy and heat transitions within a system and do not take into account the specific nature of heat transference on the atomic or molecular level. The Zeroeth Law of Thermodynamics This zeroeth law is sort of transitive property of thermal equilibrium. The transitive property of mathematics says that if A B and B C, then A C. The same is true of thermodynamic systems that are in  thermal equilibrium. One consequence of the zeroeth law is the idea that measuring  temperature  has any meaning whatsoever. In order to measure temperature,  thermal equilibrium  must be  reached between the thermometer as a whole, the mercury inside the thermometer, and the substance being measured. This, in turn, results in being able to accurately tell what the temperature of the substance is. This law was understood without being explicitly stated through much of the history of thermodynamics study, and it was only realized that it was a law in its own right at the beginning of the 20th century. It was British physicist Ralph H. Fowler who first coined the term zeroeth  law, based on a belief that it was more fundamental even than the other laws. The First Law of Thermodynamics Though this may sound complex, its really a very simple idea. If you add heat to a system, there are only two things that can be done change the  internal energy  of the system or cause the system to do work (or, of course, some combination of the two). All of the heat energy must go into doing these things. Mathematical Representation of the First Law Physicists typically use uniform conventions for representing the quantities in the first law of thermodynamics. They are: U1  (or  Ui) initial internal energy at the start of the processU2  (or  Uf) final internal energy at the end of the processdelta-U  Ã‚  U2  -  U1   Change in internal energy (used in cases where the specifics of beginning and ending internal energies are irrelevant)Q  Ã‚  heat  transferred into (Q   0) or out of (Q   0) the systemW  Ã‚  work  performed by the system (W   0) or on the system (W   0). This yields a mathematical representation of the first law which proves very useful and can be rewritten in a couple of useful ways: The analysis of a  thermodynamic process, at least within a physics classroom situation, generally involves analyzing a situation where one of these quantities is either 0 or at least controllable in a reasonable manner. For example, in an  adiabatic process, the heat transfer (Q) is equal to 0 while in an  isochoric process  the work (W) is equal to 0. The First Law Conservation of Energy The  first law  of thermodynamics is seen by many as the foundation of the concept of conservation of energy. It basically says that the energy that goes into a system cannot be lost along the way, but has to be used to do something ... in this case, either  change  internal energy or perform work. Taken in this view, the first law of thermodynamics is one of the most far-reaching scientific concepts ever discovered. The Second Law of Thermodynamics Second Law of Thermodynamics:The second law of thermodynamics is formulated in many ways, as will be addressed shortly, but is basically a law which - unlike most other laws in physics - deals not with how to do something, but rather deals entirely with placing a restriction on what can be done. It is a law that says nature constrains us from getting certain kinds of outcomes without putting a lot of work into it, and as such is also closely tied to the  concept of the conservation of energy, much as the first law of thermodynamics is. In practical applications, this law means that any  heat engine  or similar device based  on  the principles of thermodynamics cannot, even in theory, be 100% efficient. This principle was first illuminated by the French physicist and engineer Sadi Carnot, as he developed his  Carnot cycle  engine in 1824, and was later formalized  as a law of thermodynamics  by German physicist Rudolf Clausius. Entropy and the Second Law of Thermodynamics The second law of thermodynamics is perhaps the most popular outside of the realm of  physics because it is closely related to the concept of  entropy or the disorder created during a thermodynamic process. Reformulated as a statement regarding entropy, the second law reads: In any closed system, in other words, each time a system goes through a thermodynamic process, the system can never completely return to precisely the same state it was in before. This is one definition used for the  arrow of  time since entropy of the universe will always increase over time according to the second law of thermodynamics. Other Second Law Formulations A cyclic transformation whose only final result is to transform heat extracted from a source which is at the same temperature throughout into work is impossible. - Scottish physicist William Thompson ( A cyclic transformation whose only final result is to transfer heat from a body at a given temperature to a body at a higher temperature is impossible. - German physicist Rudolf Clausius All the above formulations of the Second Law of Thermodynamics are equivalent statements of the same fundamental principle. The Third Law of Thermodynamics The third law of thermodynamics is essentially a statement about the ability to create an  absolute  temperature scale, for which  absolute zero  is the point at which the internal energy of a solid is precisely 0. Various sources show the following three potential formulations of the  third law  of thermodynamics: It is impossible to reduce any system to absolute zero in a finite series of operations.The entropy of a perfect crystal of an element in its most stable form tends to zero as the temperature approaches  absolute zero.As temperature approaches absolute zero, the entropy of a system approaches a constant What the Third Law Means The third law means a few things, and again all of these formulations result in the same outcome depending upon how much you take into account: Formulation 3 contains the least restraints, merely stating that entropy goes to a constant. In fact, this constant is zero entropy (as stated in formulation 2). However, due to quantum constraints on any physical system, it will collapse into its lowest quantum state but never be able to perfectly reduce to 0 entropy, therefore it is impossible to reduce a physical system to absolute zero in a finite number of steps (which yields us formulation 1).