Personal Pronouns in Academic Writing

Personal Pronouns in Academic Writing Introduction This paper review on the works of previous studies regarding the usage of personal pronouns in research articles (RA). The review will look at the usage of personal pronouns in written corpora in different aspects; first looking at the use of personal pronouns as a whole in the world of academic writing and the differences in usage of personal pronouns among the native speakers of English and of those who uses English as a second language. In recent study, there has been an interest in investigating voice-related issues in the study of student writing (Zhao Llosa, 2008). McCrostie (n.d.) claims on the lack of research done to investigate the use of voice in non-native academic writing and fewer still, had been done on the studies below advanced level. Gender has also been mentioned as an area of study that has slowly gained attention in the study of second language research. Though this had been said, gender receives lack attention in the study of discourse; though many have claim of its importance as a mean and goal of language instruction. Thus, based on the issues above, the objective of this study is to investigate the usage of personal pronouns by male and female Malaysian academic writers. According to Nordquist (2010), personal pronouns are defined as nouns that are used to substitute the person or people who are talked about. Literature Review Personal pronouns There has been extensive research on various features of academic writing and one of frequently looked at feature is the usage of personal pronouns in academic writing. Using personal pronouns in academic writing has been related to writers voice and the writers position in the academic world. Hyland (2001) states that the use of impersonality has been proposed by manuals and textbooks as means of demonstrating scholarly persuasion and allowing writers to speak to readers in an unmediated approach (as cited in Martin, n.d). The usage of personal pronouns in scientific writing sees a development from traditional notion towards recognition of this particular writing style. Martin further comments that writers choice is announcing their presence in the academic field is viewed as a strategy that is increasingly used by writers of the international English speaking community in promoting and gaining accreditation on their claims in research. This is also supported by Cherry (1998) claimi ng on the importance of self-representation in academic discourse and Groom (1993) in his analysis of academic writing indicates the importance of writers textual voice and states that writers should clearly state when they are reporting the voice of an author or stating their own expressions and personal point of views (as cited in Martin, n.d.) Kuo (1999) investigated the use of personal pronouns in scientific journal articles and discusses on how writers are able to reveal on their own perception of their position in the academic field as well as other readers. Kuo further comments on how knowledge presented in article journals with the use of personal pronouns poses a great value towards writers as it allows writers to share personal contributions and seek solidarity with readers as well as others involved in the particular discipline. Hyland (2001) as cited in Martin (n.d.) supports this notion in his research articles across eight different disciplines on the attributions of personal pronouns, reporting a high proportion in the usage of personal pronouns in social sciences and humanities. Hyland concluded in his study that the usage of personal pronouns in scientific texts seems to be a valuable rhetorical strategy which allows writers to construct academic credibility and gain a certain degree of confidence and authori ty (as cited in Martin, n.d.). Tang John (1999) in Martin (n.d.) also mentions the importance on the usage of personal pronouns however suggests that both teachers and students should be aware on the real presence of how personal pronouns are used differently and other alternatives that can be opted towards the traditional method in claiming academic position and authority. The Use of Personal Pronouns among Non-native Speakers Martinez (2005) states on how using personal pronouns are not problematic for native, yet may pose as one on non-native speakers of English. Hyland (2000) conducted a study and revealed that non-native speakers uses personal pronouns in non-controversial contributions however avoid them when stating expressions, argumentations or opinions (as cited in Martinez, 2005). In a study conducted by Petch-Tyson (1998 in Martinez, 20005), it was found that non-native speakers use personal pronouns at a rate of two to four times more than native speakers thus concluded that learners overused first and second personal pronouns in their writing. A different study done by Tang and John (1999) on 27 Singaporean university students showed the frequency of personal pronoun usage where first person pronoun occurred 92 times in all 27 essays which indicates a similar role to Hyland (1999, 2000) and Harwood (2005 as cited in Martinez, 2005). Chang and Swales (1999) had also published a study concerning the attitudes of 37 non-native speaker graduate students studying at English universities regarding the use of personal pronouns in academic writing. From the study, it was found that regardless of their proficiency in the language, the students felt uncomfortable in using personal pronouns in academic writing. These graduate students believe that the use of personal pronouns is much more suitable to be used by senior scholars and states that using them makes academic writing more challenging. It was also found that these students rarely uses personal pronouns when giving opinions or stating the origin of a new idea (Chang and Swales, 1999 as cited in McCrostie, n.d.). McCrostie further commented that regardless of amount of studies focused on published writings, few studies had been done on unpublished writing of non-native speakers thus suggesting that there is a need to have more studies to compare unpublished writings among both native and non-native speakers which can also contribute knowledge to the study. Gender and Personal Pronouns As mentioned previously, very few researches have been conducted in the area of discourse with gender functions as a variable. Past researches focused on linguistic differences between gender and its role in the studies related to informal writing, speech and electronic messaging (Yazdani Samar, 2010). Yazdani and Samar (2010) further stated that gender; as an effective tool in writing has not given much focus on its impact or role in the methodology of teaching writing thus, needs to cater to the arising issues academically. A study done by Yazdani and Samar (2010) on Iran writers revealed that female writers use more personal pronouns compared to males. A study conducted by Armagon et al. (n.d.) also revealed similar findings in their research. Methodology This study adopts a quantitative approach. 10 articles were randomly selected where there is equal distribution among gender (5 males and 5 females). The articles were selected from GEMA Online Journal (Jurnal Pendidikan), the Malaysian Journal of ELT Research (MELTA) and The Open Applied Linguistics Journal. All research articles are from the Social Sciences field. The articles were then analyzed via Lex Tutor. The limitation to this study includes no control over the writers race; thus the variable is not used as a factor in the study. Secondly, the authorship of research articles varies where several articles are written by single writers and few collaborative writers in single articles. Third, the research articles vary in terms of length resulting in imbalanced amount of words and personal pronouns that could be affected by it. Finally, the approaches regarding to the research articles were not taken into consideration. Few research articles were found to have a qualitative appr oach thus relying heavily on interviews or written transcripts thus may affect the outcome of the study. Findings and Discussion The findings obtained from the analysis are presented as following: Research articles written by Malaysian males in frequency: Articles Personal Pronouns Singular Personal Pronouns Plural 1st 2nd 3rd 1st 2nd 3rd Male 1 (21) it (19) they (2) them Male 2 (13) I (1) me (5) you (44) he (16) him (2) her (3) us (31) we (16) they (6) them Male 3 (26) I (1) you (95) he (15) him (31) it (3) her (7) we (2) us (24) they (11) them Male 4 (4) I (3) she (1) he (1) her (1) him (13) they (11) them Male 5 (41) I (2) me (1) she (10) we (19) they (7) them Total 87 6 234 53 128 Total: Personal Pronouns Singular (327), Personal Pronouns Plural (181) According to the table above, it is found that Malaysian male writers uses more singular personal pronouns compared to plural personal pronouns. Based on results, it is also found that Malaysian academic male writers use more 3rd personal pronouns for both singular and plural categories however the highest frequency among personal pronouns used are 3rd singular personal pronouns with a frequency of 234. Among the personal pronouns used frequently by Malaysian male writers: He HE is very selective towards whom HE directs the venom. (male 2, 2002) In terms of average score, HE is the second highest (male 3, pg. 12) It and the enormous opportunity IT presents to higher education (male 1, pg. 4) engaged in a particular task and how IT will improve their reading skills. (male 3, pg. 2) Him done bad thing to HIM and this made HIM feel bad (male 2, pg. 10) this particular strategy to help HIM comprehend what he is reading. (male 3, pg. 13) They When these students enter university, THEY expect the spoon feeding (male 1, pg. 1) particularly when THEY proceed to tertiary education. (male 3, pg. 2) information elements did THEY instruct learners to find out (male 5, pg. 1) Them , thus prompting THEM to pay more attention to metacognitive reading (male 3, pg. 3) systems of the language that enables THEM to teach effectively. (male 4, pg. 1) Research articles written by Malaysian females in frequency: Articles Personal Pronouns Singular Personal Pronouns Plural 1st 2nd 3rd 1st 2nd 3rd Female 1 (1) he (1) she (3) we (10) they (1) them Female 2 (16) I (1) me (20) you (2) he (5) her (4) his (3) she (40) it (3) us (15) we (59) they (14) them Female 3 (2) I (10) they (6) them Female 4 (3) I* (2) we (24) they (15) them Female 5 (19) I (2) me (62) you (1) she (14) he (11) her (3) him (5) we (3) us (25) they (6) them Total 40 82 85 31 170 Total: Personal Pronouns Singular (207), Personal Pronouns Plural (201) Based on the table above, Malaysian female academic writers use more plural personal pronouns in writing their research articles. This finding is similar of their male counterparts. The findings also reveal that Malaysian female academic writers use more 3rd plural personal pronouns in academic writing unlike their male counterparts who uses a higher frequency of 3rd singular personal pronouns. Among the personal pronouns used frequently by Malaysian female writers: You What assumptions do YOU think administrators make about attire (female 2, pg. 6) If YOU have the main point (female 5, pg. 8) They real audience for the language task THEY were working on (female 2, pg. 1) THEY can be changed through the learning process such as by using (female 4, 2) THEY generally respond in predictable ways rather than be critical. (female 5, pg. 4) Them being presented with predetermined language structures and then practicing THEM. (female 2, pg. 2) It also requires THEM to state their name in order to enable (female 5, pg. 7) Usage total of Personal Pronouns by males and females Gender Male Female Personal Pronouns Singular 327 207 Personal Pronouns Plural 181 201 Total 508 408 Overall, the findings indicate that Malaysian male academic writers use more personal pronouns than Malaysian female academic writers. The findings obtained are not in line with previous research that was done by Yazdani and Samar (2010) in relation to non-native English speakers. Conclusion and Recommendations The findings had shed new insight on the use of personal pronouns between male and female Malaysian academic writers. In conclusion, there is no significant difference between the general use of personal pronouns among male and female writers. Both male and female writers were found to use more singular personal pronouns. However, there is a difference in terms of the personal pronouns used between male and female writers. Male writers were found to use higher frequency of 3rd singular personal pronouns whereas the female writers were found to use a higher frequency of 3rd plural personal pronouns. The findings have also revealed that male writers use more personal pronouns compared to female writers in the overall analysis. However, as mentioned previously, the findings of this study may be affected by factors listed in the limitation section as this study is based on a small scale range. Therefore, the findings obtained in this study are still questionable thus several recommendations are proposed for future researches interested in the same area of study which are (a) to focus on research articles under the same area of study and approach; (b) to consider the writers race as a variable and (c) to take into consideration of the length of research articles planning to be used in the study. List of Research Articles: Male Writers Subramaniam, G. (2006). Stickability in Online Autonomous Literature Learning Programmes: Strategies for Sustaining Learner Interest and Motivation. Malaysian Journal of ELT Research. (2). 80-96. Hazidi, H. A. H. (2002). Similar words, Different Meanings: A Natural Semantic Metalanguage Exploration of Cultural Differences. GEMA Online of Language Studies. (2)1. 1-13. Muhammad Kamarul, K., Chew, J., Abdul Rashid, M. (2006). Metacognitive Reading Strategies of Good Malaysian Chinese Learners. Malaysian Journal of ELT Research. (2). 21-41. Munir, S. (2009). Grammatical Awareness among Primary School English Language Teachers. GEMA Online of Language Studies. 9(1). 35-46. Lim, J. M. H. (2009). Rhetorical Categories and Linguistic Mechanisms in Describing Research Conditions: A Comparative Genre-Based Investigation into Researchers Choices in Education and Applied Linguistics. The Open Applied Linguistics Journal. 2. 67-85. List of Research Articles: Female Writers Ainol, M. Z. Noor Lide, A. K. (2006). Classical and Rasch Analyses Of Dichotomously Scored Reading Comprehension Test Items. Malaysian Journal of ELT Research. (2). 1-20. Mardziah, H. A. Tan, B. H. (2008). Wired Together: Collaborative Problem-Based Language Learning In an Online Forum. Malaysian Journal of ELT Research. (4). 54-71. Nor Shidrah, M. D., Nuraihan, M. D. Noor Lide, A. K. (2005). Second Language Writing Anxiety: Cause or Effect? Malaysian Journal of ELT Research. 1-19. Siti Norliana, G. (2008). Learner Background and their Attitudes towards Studying Literature. Malaysian Journal of ELT Research. (4). 1-17. Tan, K. E. (2006). Writing English Essays within Dominant Discourses in Malaysian Schools. GEMA Online of Language Studies. 21. 23-45.

Reading Autobiography Essay

Although I do not have many vivid memories of my childhood the few things I do recall from my early years mostly seem to focus around school and my academics and interactions with children my own age. It is nearly impossible to pinpoint when exactly it was that I began to read but it must have been somewhere around the end of kindergarten and the beginning of first grade. I didn’t attend preschool so up until kindergarten my primary interaction with others was in my first language, Spanish. I can recall learning the alphabet and the sounds of all letters and I started to make out certain words like ‘see’ and ‘my’. The most influential person in the process of acquiring the skills I needed to read must have been an instructional assistant, Mr. Torres who would help me and other bilingual students regularly in the classroom. Of course the instruction by my teacher set the basis for my learning but the one on one help that he provided helped me make connections to my learning in Spanish and that made me feel very comfortable. The first books I began to read must have been simple stories that I came to memorize. Stories like The Gingerbread Man or Brown Bear that had repetitive lines were probably how I started to make connections with words, sounds and pronunciation of those words and sounds. Learning to read made me feel empowered and I remember wanting to read â€Å"big kids† books once I felt I was capable. Among my favorite types of books were scary chapter books like the series of Goosebumps as well as biographies of famous athletes. Among my least favorite must have been nonfiction and folktale because they never really managed to pull me in and I was always very skeptical about such fantasy. Unfortunately, this thrive to read did not last very long because I started to drift away from the constant practice of reading around the fifth grade and started seeing it more as an obligation rather than a choice. As a whole the literacy environment in my household was actually a very positive one and ever since I can recall my mom has always been a big reader and has many books and magazines throughout the house. All of her reading though was done in Spanish when I was growing up because as I was learning how to read my mom was learning the English language. My dad on the other hand has never been a big reader. Actually I can’t recall a time when I have seen him sit down and read something simply for leisure. I also had an older sister who was just a grade ahead of me in school and she has always been a bit of a bookworm and was constantly going through different books as we grew up. Even with all these things I think the language barrier influenced my detachment from reading. In my household we rarely spoke English, maybe if my mom and dad knew the language or were more comfortable with it they might have pushed me to read more or took the time to sit down and read to me. Come to think of it my mom would read to me but she would do it in Spanish and it was a bit boring for me. She would read common stories that I had already heard like the three little pigs or something of that sort and all I would gain out of this was amusement because the way things translated to me was funny. My mom did take us to the city Library and I remember going to story time or to some sort of show based on books. I remember seeing a magician and also petting a snake. As for having materials to read and write, there was always plenty throughout my house. My mom kept a full stock of pencil and paper as well as of books it was just a matter of me doing the actual work. She constantly asked me to explain to her what I was reading or writing for school but I always seemed to find a way to not spend too much time with it because all I wanted to do was play with the neighborhood kids or run off to soccer practice. In school the literacy environment was very positive as well and I remember how much time and dedication the faculty would place on reading and the development of reading skills. I can’t remember who formally taught me how to read but it must have been either Mrs. Diamond or Miss Falgot my first and second grade teachers, because by third grade I remember being able to read fluently. They used several different types of methods but I remember being read to very often by Miss Falgot. I do recall being placed in groups and having partners whom you read to and vice versa. I believe both Mrs. Diamond and Miss Falgot were key role players in my acquisition of reading skills and although I don’t recall specifics they did their job because by third grade I was at the top of my class. I do remember a particular case that had a bit of a negative effect on me in terms of reading. I remember being in either fourth or fifth grade reading as a class and the teacher called on me to read a paragraph. I don’t remember what I was thinking but I was not listening and wasn’t even on the right page, once I located it I got nervous and couldn’t even read. Luckily the teacher called on someone else but I felt horrible. As a class throughout elementary I remember visiting the library and running to the sport books section. The Library was so calm and always cool and I remembering going in there on hot summer days to get away and read a good book. The librarian I remember was always very sweet and she was very patient with all the students. As for literacy events the only thing that is clear in my mind is the book fairs that occurred maybe twice or three times a year. They were very fun and I remember they made even the boring books seem interesting. They set up all kinds of posters and it was something that I always looked forward to. As an adult I began to pick up old habits especially after I came into college. I can’t say I read a lot but I do find time to fit in a book every once in a while. I am still a big fan of autobiographies and I have recently developed a liking for books in Spanish. I usually read on the weekends when I am well rested and have slept in. I also like to go to parks and sit in the shade and enjoy a good book or story or even an interesting article. I think reading is very important and not only to help us expand our vocabulary or help us academically but when you read a good book you get a chance to escape your everyday and it gives you an insight into a story or a character in the way a TV or radio cannot. It captivates you and manages to get all of your attention but at the same time relaxes you. I think reading is something that should be taught to students but not just in order to help them academically but educators should also focus on showing the importance of literature in our lives and the positive way it influences our lives down the road something the media of today cannot manage to do. Writing equally should be not only taught for the purpose of education but in a way those students value it and continue to practice it even without a teacher pushing them to do so.

Franz Kafka and being an outsider in the society Essay

As the oldest child, after the deaths of his older brothers, Franz Kafka, however, has never reached the dominance and leadership character and failed to live a normal, human life – after his birth he had doubted in his human nature and grew as an outsider inside the community. His father, a successful shopkeeper with giant managing abilities and patriarchal, yet tyrannical, personality, had no other goals, except material stability and social recognition. It was him, who made Franz fail to live, who made him family-limited, unable to create his own household. Indeed, his father, Hermann Kafka, was the one, who broke his nature and drove him into literature. All of the pain, pressure, struggle and aspiration, Franz Kafka described in his writing, some of them depict the struggle between father and son, other between two worlds, yet, in any story, especially in the â€Å"Letter to His Father† (1919) and â€Å"The Metamorphosis† (1915), we can find incomprehension and longing for normal living. His earliest poems were published by Brod in 1908 in Hyperion. His first novel Der Prozess (â€Å"The Trial†) was written after another failure – he broke off an engagement with Felice Bauer – and has started it with the words of somebody’s false accusation against Josef K. Maurice Blanchot has observed that Kafka’s works are â€Å"not always only literary. Salvation is an enormous preoccupation with him, all the stronger because it is hopeless, and all the more hopeless because it is totally uncompromising. †(Banville, 2004). Most of his literary characters were animals: mole, mouse, beetle; seems like Franz was no other than a formless being, who was looking for a way out of tough obstacles, yet is ready to be tortured, punished, destroyed. His characters are seeking for salvation, but they realize how disgusting, insignificant, unimportant they are, along with their problems and hardships. â€Å"The Judgement† is viewed by Herbert Tauber as a â€Å"vital existence in which probability and reservation rule †¦ in which every step has an incalculable importance because it is taken â€Å"Franz Kafka and being an outsider in the society† â€Å"Page #2† under the horizon of an absolute summons to the road† (Tauber, 1948). For him, it is the clash of two worlds, which existed in total isolation from each other and have no points of contacts. That is why the conflict leads to destruction. On the other hand, this conflict between father and son can be considered as a general social state that degrades with every step forward. An early story â€Å"Description of a Struggle† â€Å"is not usually considered one of Kafka’s better works and it is often dismissed by critics turned off by its fragmentary nature and lack of polish† (Pawel, 1984), highlights Ernst Pawel in his â€Å"Nightmare of Reason†; this work will not attract the new reader, yet those, who dive in the philosophy of Kafka’s readings will be encouraged to read it. The character of this three-chapter work is a symbol of discrepancy and contrast of the single community. Franz Kafka’s helplessness to negotiate or get used to the community’s lifestyle is noted in his four stories in â€Å"A Hunger Artist†. Michael Lowy, the Research Director of the National Center for Scientific Research, has viewed Kafka’s symbolism as libertarian socialism or anarchical ideology. â€Å"The libertarian inspiration is inscribed into the heart of Kafka’s novels †¦ [The] state is an impersonal system of domination which crushes, suffocates, or kills individuals, where unfreedom prevails† (Lowy, 1997). The center of the story is a paradoxical notion – artist, who accepts his profession as honor, yet practices fasting, which has an artistic aspect. The system (i. e. people) refuse to recognize him, therefore, refuse to see the reality and truthfulness of life (Dorothy W. , 2006). There is nothing but emptiness in the world. â€Å"The Stoker†, â€Å"The Man Who Disappeared† (â€Å"Der Verschollene†), or â€Å"Amerika† was an American novel for Kafka himself. The variety of names shows the complexity and differences of the novel. It is the state, where â€Å"workers are not on the side of the authorities† (Kafka, 1956). In rather humorous style, Kafka represents the Statue of Liberty with a sword; American democracy, with a shadow of authoritarian policies, is combined with bureaucratic injustice and poverty. â€Å"Franz Kafka and being an outsider in the society† â€Å"Page #3† The fiction â€Å"The Great Wall of China† â€Å"deals (duplicitously) with an other-as-self from an inside which is really an outside† (Kelen). This is another Kafka’s work that deals with symbols and metaphors, internal and external struggle and his own life of an outsider. The wall is a symbol of fear, yet, the end of empire represents the erasure of boundaries between the Western and Chinese worlds. Kafka is using his technique of the narrator to describe relation to one another and what is happening nearby. â€Å"In â€Å"Country Doctor† we witness a second type of infiltration of literary production by theories or methods schooled on Freudian psychoanalysis† (Lecture Notes, conclusion). The work is filled with doubled words (horses, carriages, patent examinations, children songs, homes), and words that have different meanings (dilemma – problem or solution, shame, information’s and people’s mislaying). â€Å"The Castle†, a philosophical novel, depicts the castle’s authorities, bureaucratic attitude and man’s struggle against the existing system. â€Å"The novel’s aesthetic and interpretive complexity, it will be seen, underlines the multi-layered meaning of salvation itself, in a modern world in which salvation is not necessarily one of divine grace, of deliverance from sin and damnation† (Panichas, 2004). The totalitarian authorities, impersonal system that is built in hierarchical order are shown as apparatus that rules over the lay people, who must be subordinated to this machine. It is manipulation and control that is obvious in any modern society and the procedures it governs and inevitable for every citizen. â€Å"K. gains through her personality some insight into a possible solution of his quest, and, when he speaks of her with affection, he seems himself to be breaking through his sense of isolation† (Encyclopedia Britannica). Kafka, as a living example of outsider, who had made his way to live in the community, all through his works has depicted the world of contrasts, where everyone lives in isolation, trying, at the same time, to find his place in the community. Works Cited: 1. Banville J. (October, 2004). The Human Stain. The Nation. October 18 issue. 2. Dorothy W. Franz Kafka’s â€Å"A Hunger Artist† December 15, 2006 Retrieved from the website â€Å"Of Books and Bicycles† on February 25, 2008 http://ofbooksandbikes. blogspot. com/2006/12/franz-kafkas-hunger-artist. html 3. Encyclopedia Britannica. Franz Kafka. Works. Retrieved on February 25, 2008 from http://www. britannica. com/eb/article-3813/Franz-Kafka 4. Humanitas, G. (March, 2004). Kafka’s afflicted vision: a literary-theological critique. (Franz Kafka). Humanitas. 5. F. Kafka. (1956). Amerika. Frankfurt: Fischer Publishing House. pp. 15, 161. 6. Kelen, C. The Great Wall of China and Kafka’s Limitless Tropology. Queen: a journal of rhetoric and power. Vol. 2. 1. Power and Recolonization. 7. Lecture Notes: Franz Kafka, â€Å"A Country Doctor†. Washington Courses. Retrieved on February 25, 2008 from http://courses. washington. edu/freudlit/Doctor. Notes. html 8. Lowy, M. (1997). Franz Kafka and Libertarian Socialism. New Politics. Vol. 6. no. 3. 9. Pawel, Ernst (1984). The Nightmare of Reason: A Life of Franz Kafka. New York: Farrar-Straus-Giroux, p. 160-163. 10. Tauber, Herbert. (1948). Franz Kafka: An interpretation of his works. Yale University Press.

Financial Decision Making In Easyjet Uk Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2508 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Easyjet is a U.K based low-cost airline offering services on 500 routes between 118 European, West Asian and North African airports using fleet size of 182 aircrafts. Unlike its biggest competitor Raynair, Easyjet uses primary airports to operate its services in off-peak time to avoid high airport fees. In 2007/08, despite the economic downturn and high fuel prices the company managed to increase its revenue as compared to last year with an increase load factor of about 85%. Don’t waste time! Our writers will create an original "Financial Decision Making In Easyjet Uk Finance Essay" essay for you Create order However the company failed to increase its profit margin for the share holders in 2008. While writing this report I find out the following key findings about the financial position of the company in 2008. The company is not facing any liquidity problems, possessing a strong cash position and ample amount of short term investments. The gearing level of company is relatively lower than Ryanair; due to this low leverage level it has the advantage over Ryanair to raise the external fiancà © easily in future if needed. The company has increased its efficiency to utilize the resources more effectively as compared to last year in 2007 but still lag behind Ryanair in overall efficiency to utilize the company recourses i.e. debtor and creditor days. In 2008 profitability remained the main problem of the company with low profit margins and Low ROCE in comparison with the previous year and with its main rival, Ryanair. Recommendations The main reason for low Profit margin of the Easyjet in 2008 was the inefficient management of the controllable costs. If the company wants to enjoy high profit margin in future, it has to cut down all the controllable direct and indirect expenses by reviewing its current cost control strategy. Introduction ThiÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ report ÃÆ' Ã‚ °ttemÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬tÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ tÃÆ' Ãƒâ€šÃ‚ ¾ ÃÆ'‘ ÃƒÆ' Ãƒâ€šÃ‚ ¾mÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬ÃƒÆ' Ã‚ °re ÃÆ' Ã‚ °nd ÃÆ'‘ ÃƒÆ' Ãƒâ€šÃ‚ ¾ntrÃÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢t the finÃÆ' Ã‚ °nÃÆ'‘ iÃÆ' Ã‚ °l ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬erfÃÆ' Ãƒâ€šÃ‚ ¾rmÃÆ' Ã‚ °nÃÆ'‘ e ÃÆ' Ãƒâ€šÃ‚ ¾f RyÃÆ' Ã‚ °nÃÆ' Ã‚ °ir ÃÆ' Ã‚ °nd EÃÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢yjet and will ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬reÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬ÃƒÆ' Ã‚ °re ÃÆ' Ã‚ °n ÃÆ' Ã‚ °nÃÆ' Ã‚ °lyÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢iÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ ÃÆ' Ãƒâ€šÃ‚ ¾f the finÃÆ' Ã‚ °nÃÆ'‘ iÃÆ' Ã‚ °l ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬erfÃÆ' Ãƒâ€šÃ‚ ¾rmÃÆ' Ã‚ °nÃÆ'‘ e ÃÆ' Ã‚ °nd ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬ÃƒÆ' Ãƒâ€šÃ‚ ¾ÃƒÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢itiÃÆ' Ãƒâ€šÃ‚ ¾n ÃÆ' Ãƒâ€šÃ ‚ ¾f EÃÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢yjet ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬lÃÆ'‘  in ÃÆ'‘ ÃƒÆ' Ãƒâ€šÃ‚ ¾mÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬ÃƒÆ' Ã‚ °riÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ÃƒÆ' Ãƒâ€šÃ‚ ¾n with thÃÆ' Ã‚ °t ÃÆ' Ãƒâ€šÃ‚ ¾f RyÃÆ' Ã‚ °nÃÆ' Ã‚ °ir holdings. BÃÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢iÃÆ'‘ ÃƒÆ' Ã‚ °lly, thiÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ iÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ ÃÆ' Ã‚ °n ÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢trÃÆ' Ã‚ °tegiÃÆ'‘  ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬erfÃÆ' Ãƒâ€šÃ‚ ¾rmÃÆ' Ã‚ °nÃÆ'‘ e ÃÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬ÃƒÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬rÃÆ' Ã‚ °iÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ÃƒÆ' Ã‚ °l uÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ing ÃÆ' Ãƒâ€šÃ‚ ¡.ÃÆ' Ãƒâ€¦Ã‚ ¾.R.E ÃÆ' Ã‚ °nÃÆ' Ã‚ °lyÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢iÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢. ThiÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ ÃÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬ÃƒÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â‚¬Å¡Ã‚ ¬er will be concluded with ÃÆ'â €˜Ã‚ ertÃÆ' Ã‚ °in reÃÆ'‘ ÃƒÆ' Ãƒâ€šÃ‚ ¾mmendÃÆ' Ã‚ °tiÃÆ' Ãƒâ€šÃ‚ ¾nÃÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢ tÃÆ' Ãƒâ€šÃ‚ ¾ EÃÆ' Ã‚ °ÃƒÆ'‘à ¢Ã¢â€š ¬Ã‚ ¢yjet. Context : Since the aviation deregulation came into force in 1990s, the two lower cost carriers Easyjet and Ryanair emerged into pierce competition with each other. Before the deregulation, these low-cost careers were in competition with their peers but then because of the increasing pricing war, they had started competing with rails and trains as well. Lets conduct a brief PEST analysis in order to understand the nature and competition level in this Low-cost carrier business. Mainly the two suppliers i.e. Air bus and Boeing, supply air-crafts to airline industry thus the competition between these two allows low-cost airlines to get low prices and reliable services. Airport is another supplier to the airlines; To avoid high fee charges, Ryaniar usually operates on regional airports closer to metropolitan areas with low bargaining powers where as Easyjet uses major airports but fly at off-peak time to avoid high fee charges of the airport. The bargaining power of the customer is high, to attr act customers the Low cost Airlines offer low prices with the use of web technology which is cheap and easier way for the customer to buy or exchange the flights with no extra costs. Due to capital-intensive nature of the industry and the presence of key players, possibility of new the entrant is usually very low in aviation industry. The threat of a substitute is high; with the emergence of new and fast rail connections with low fare throughout the Europe might pose a threat to lower-cost airlines in future. The competition among rivals in this field is particularly strong. A price war is a routine activity in this business to attract customers by sacrificing its profit margin but keeping the price lower to attract the customers. Easyjet has rapidly expanded since its establishment in 1995. Due to acquisition and base expansion, Easyjet has become the 2nd largest low-cost airline in U.K behind Ryanair with 184 aircrafts and having 20 bases throughout the Europe. In fact the E asyjet business model is based on the original low-cost carrier model (see appendix A),except that Easyjet has stretched the model further by introducing no-frill concept( no free food and refreshment during the flight), and unlike other low-cost airlines it uses primary airports for its flights operations. The financial year 2007/08 of Easyjet was effected by its acquisition of GB Airways worth 103.5 M in which  £11.5M was held in escrow as a security in that year while on the other side the fuel prices were increased from $643 in 2007 to $1070/metric ton. Overview: In this section we are going to summarize the financial statements of Easyjet to have a quick idea about how the company had been doing financially in the two year i.e. 2007 and 2008 while detailed financial statements for Ryanair are given in appendix C for more information. INCOME STATEMENT: EASYJET 2007  £M 2008  £M Sales/Revenue 1,797.2 2362.8 Cost of sales/revenue 1,529.2 2,148.4 Gross income 268 178.4 operating expenses 96.9 87.5 EBIT (Operating Profit) 171.1 90.9 After-Tax Income 152.3 83.2 EPS Basic 36.62 19.80 EPS Diluted 35.58 19.41 Balance sheet: Easy jet 2007  £(M) 2008  £(M) Current asset Cash and short term investment 942.8 982.3 Account receivable 193.4 187.2 Inventories Other current assets 30.2 245.5 Total current assets 1,166.4 1,415 Net current assets 545.1 505.2 Non-Current assets Property, plant equip 935.8 1102.6 Total investments and advances 33.2 64.2 Long term note receivable 65.5 66.2 Intangible assets 311.4 440.4 Other assets 3.70 6.9 Total non-current assets 1,349.6 1,680.3 Total Assets 2,516 3,095.3 Net Assets 1152.4 1278.2 Current Liabilities Short and portion of long-term debt 40.50 56.70 Account payable 39.60 77.50 Income Tax payable 89.70 75.10 Other current liabilities 451.5 700.5 Total current liabilities 621.3 909.8 Non-current liabilities Long term debts 478.6 570.2 Provision for risk and charges 136.0 160.4 Deferred Taxes 34.60 107.6 Other liabilities 93.10 69.10 Total non-current liabilities 742.3 907.3 Total liabilities 1,363.6 1,817.1 Total Equity 1,152.4 1,278.2 Total liability and share holder equity 2,516 3,095.3 If we look at the above income statement of Easyjet, the 1st thing we will notice is the increase in Total revenue of the company from  £1,797.2 in 2007 to  £2,362, in 2008 giving 31% rise in the figure, which is possibly contributed by GB airway acquired by Easyjet in 2008 as mentioned above. But down further in the income statement the net profit of the year 2008 has dropped to  £83.2M from  £152.3M in the year 2007 giving 45% fall in the net income for 2008 despite the high revenue. In fact this increase in total revenue is devoted to the cost of revenue which can be seen in the income statement, only the fuel charges has increased by 66% excluding all the other expenses. The increase in non- current assets (specially the intangible assets that are increased by 41.42% in 2008) can also be seen on the balance sheet along with a noticeable increase in the current and non-current liabilities. Overall the balance sheet is looking very stable and strong with solid cash and ca sh equivalent assets and a significant increase in total equity and liabilities (23% increased). It means that the business is still in the position to attract creditors and investors. Ratios: The ratios I have selected here to analyse the financial situation of the two companies in year 2007/2008 may not be enough to draw an absolute financial picture for both the companies, however I believe that these are the most common ratios used normally in Financial related decision.(Detail ratio given in appendix B) EFFICIENCY RATIOS Easyjet Ryanair 2008 2007 2008 2007 Creditor days Debtor days Asset Turnover Sales revenue per employee Turnover per aircraft 18.4 28.9 0.84 0.386 14.32M 9.45 39.2 0.77 0.316 13.11M 23.61 days 6.68 days 0.45 0.41M 13.31M 12 days 6.16 0.43 0.44M 13.45M Gearing Ratios Easyjet Ryanair 2008 2007 2008 2007 Gearing Ratio Interest Covering Ratio 30.84% 2.6 29.34% 4.83 43.1% 5.52 39.85% 5.68 LIQUIDITY RATIOS Easyjet Ryanair 2008 2007 2008 2007 Current Ratio Cash Ratio 1.55 1.07 1.87 1.5 1.53 1.3 2.1 2 PROFITABILITY RATIOS Easyjet Ryanair 2008 2007 2008 2007 Gross Profit Margin Operating Profit Margin ROCE 7.55% 3.84% 4.91% 14.91% 9.52% 10.4% 26.36% 19.79% 12.1% 25.77% 21.07% 11.6% Please note that all the values used for Ryanair has been converted to  £ using exchange rate 0.8 as was instructed. Evaluation The trade creditor days ratio of Easyjet shows an increase of about three days only, in 2008(13 Days) as compared to last year i.e. 2007(9.45 Days) but shows a significant improvement in debtor days on the other hand, that has decreased from 39.2 in 2007 to 28.9 Days in 2008. Here Easyjet shows a better efficiency as compared to its last year, but in comparison with Ryanair it is still far behind. Ryanair has creditors day increased (23.61 Days in 2008) by double of the last year (12 Day in 2007) while debtor days is almost the same as last year i.e. 6.50 days on average. As a whole, the efficiency of Easyjet in terms of debts and credits has improved by reducing the debtor days as the company has more trade receivable than the amount of trade payable. By scrutinizing the efficiency for both the companies further, we will notice that the sales revenue per employee ratio of Ryanair is higher than Easyjet, but Easyjet scores on Ryanair in turnover/aircraft; it is because of the ne w aircrafts in the fleet and higher load factor in 2008. The asset turnover ratio of Easyjet shows an increase from 0.77 in 2007 to .84 in 2008, reflects the better utilization of assets in operating the company to generate the revenue as compared to the asset turnover ratio of Ryanair which is .45 in 2008, raised up from .43 in 2007. By studying the overall asset turnover ratio of both the companies, Ryanairs asset turnover is more stable and consistent as compared to Easyjet. Financing analysis The capital structure of Easyjet is not highly geared but mostly dependent on the contribution from its shareholders however, the long term liability or borrowings in the balance sheet is up for 2008 as compared to 2007 as a result the gearing ratio for Easyjet is increased to 30.84% in 2008 from 29.34% in 2007. It is definitely because of the acquisition of GB airways as the cash was used, therefore they needed long-term debt to cover the other expenses. The gearing ratio for Ryanair holdings has been increased significantly from 39.85% in 2007 to 43.1% in 2008. The Inertest covering ratio of Easyjet has decreased from 4.83 in 2007 to 2.6 in 2008, one reason of this is because of the low operating profit and the other reason is the increase in long term debts but still the strong cash position, short term investments and low gearing ratio, Easyjet has net interest income of 17.3M in 2007 and 21.1M in 2008 which make it easy for it to pay the interest on the long-term borrowings . On the other hand Ryanair has net interest expense of 18.9M in 2008 and 20.8M in 2007 as a result the Ryanair has to pay more interest out of its profit as compared to Easyjet. Liquidity Analysis The current ratio of Easyjet in 2007 was 1.87 that has been reduced to 1.55 in 2008, this is because the increase in current liabilities of the company, although the total current assets of the company have increased by 21% but the total current liabilities has increase by 46% in 2008. The current maintence provision is increased from 2.8M to 49 M in 2008 where as the trade payable has increased from 39.6M to 77.5 M in 2008. On the other hand the current ratio of Ryanair has dropped from 2.1 in 2007 to 1.53 in 2008; it is because the increase in current liabilities by almost 40% but only 1.3% increases in current total assets. In case of liquidity Easyjet scores on Ryanair. Profitability Analysis The gross profit margin which highlights the trading performance of a company has declined from 14.9% in 2007 to 7.55% in 2008 indicating a significant increase in cost of revenue of Easyjet plc. In case of Ryanair, the same ratio shows an increase from 25.77 in previous year to 26.36 in 2008. The Operating profit margin of Easyjet shows a decline from 9.52% in 2007 to 3.84% in 2008 although the operation cost seems to be less in 2008 as compared to that in 2007. This decline in operating profit margin is actually the result of a heavy fall in gross profit of the company in 2008. Operating profit margin, being one of the functional components (other one is Asset turn over) of ROCE, the reduction in this has also reduced the overall ROCE of Easyjet from 10.4% in 2007 to 4.91% in 2008. This decline in ROCE is really an alarming signal for the companys profitability as it indicates the return on long-term capital employed by investors. Such a reduction in this figure is quite en ough to scare off the investors. One the other hand again the ROCE of Ryanair has increased by almost 1%. From the discussion so far it is clear that a significant part of revenue has been dedicated by Easyjet to meet its direct and indirect operating expenses. Adrian (2009) shows in the following table, how both of the no-frill companies (Ryanair and Easyjet) carry out their costs in 2008. Easyjet Ryanair Difference March 2008 March 2008 Operating Expenses Staff 6.60 4.48 2.12 Aircraft ownership 7.32 4.79 2.53 Maintence Marketing Distribution 2.00 0.27 1.73 Route charges 4.62 4.07 0.55 Airport handling 14.69 6.22 8.47 Charges Fuel oil 14.42 12.43 1.99 Others 3.20 1.98 1.22 Total Operating 52.85 34.24 18.61 Expenses Adrian (2009), in the above table shows that Despite the Easyjets fare being 40% higher than Ryanair, the operating profit/passenger of Ryanair is twice more than Easyjet, this is because Ryanair costs are above 35% less than that of Easyjet. According to Pitfield (2008), there are certain costs that are not subjected to be controlled by low-cost airlines such as fuel burn and en-route navigation charges but all other influences on cost per seat can be controlled like maintenance cost could be lower by having same commonality of aircrafts, staff cost by reducing the crew size and handling and administrative costs can be reduced by choice of airports and direct selling of tickets to passengers. Conclusion and Recommendations From the above discussion, I reached to the conclusion that it is unlikely for the Easyjet be affected adversely from the economic downturn in short-run as shown by higher load factor and consistent increase in revenue throughout the past years. However if the company keeps failing to control the direct and indirect costs relating to revenue, which results in decreasing the overall profit margin of the company will lead to a situation where investors will think 100 times before investing in the company. By nature, the low-cost airlines (as the name indicating) achieve the high profit margin by reducing its costs, in fact the survival of such airlines depend on keeping their operational cost low. Following are some measures I will like to recommend to Easyjet that might be able to control the overall operational cost of the company. By increasing the ancillary revenue to offset the cost of income arising in generation of operational revenue The company should review its strate gy of operating only from primary airports; I think Easyjet should consider the use of secondary airports with low bargaining powers. The number of flights should be decreased in off-peak seasons to avoid both employee costs and aircraft operating cost. Keeping the crew size to minimal number and also the company should review the current pay structure of the staff that is looking higher in the industry. The company should adopt a better hedging strategy in order to cope up with the future increase in fuel prices or currency exchange rates. Easy jet should give special attention to minimize the advertise expenses. To achieve the objective of being No.1 airline, Easyjet should minimize its overall operational costs. Note: The main sources of my research that I have carried out to complete this report are the official websites of both the companies as they are the primary source of financial information relating to their businesses.