Cleopatra was the last queen of Egypt. She was born in 69 BC and died in 30 BC by committing suicide. She had two husbands, Ptolemy XIII and Mark Antony. She also had an affair with Caesar. In spite of all her love affairs and the wars during her reign, some people still think Cleopatra was the best queen of Egypt.
Cleopatra had excellent military back-up at the beginning of her life. First of all, Cleopatra was a Ptolemy and the Ptolemies had ruled for over 200 years! How? The answer to that is power. The Ptolemies started with Alexander the Great the person that Alexandria was named after. While Alexander was dying, he muttered To the strongest,(He meant Egypt goes to the strongest.) or maybe he didnt say that, but the generals said that he did. Each of the generals boasted about how strong they were, all wanting to rule Egypt, the richest country in the world at that time.
The generals were Ptolemy, Seleucus, and Antigonus. Ptolemy was a rich spoiled brat from Macedonia (It was also rumored that he was a half brother to Alexander. Ptolemy probably started the rumor to give him a better chance to get Egypt.) As soon as Alexander died, Ptolemy stole the throne from his fellow generals saying that it was rightfully his and that is how the Ptolemies became rulers of Egypt.!Now back to Cleopatra, who was the last pharaoh of Egypt before the Romans took over.
Cleopatra had a little of Ptolemy I in her blood maybe more than her father (Ptolemy XI Auletes). When Cleopatra was 17-18 years old her father died leaving the throne to his son Ptolemy XIII and his daughter Cleopatra VII. He wrote in his will that they would be married and rule Egypt hand in hand. They despised that, but still they got married. Ptolemy XIII exiled Cleopatra from Egypt, so he could rule Egypt all alone. He through her out in the desert and said that she was dead. Caesar thought it was fishy, so he went out to see if Cleopatra had really died.
On the night of his arrival, Cleopatra had a friend, Apollodorus, from Sicily carry her in a carpet to meet Caesar. Caesar saw that she was alive and restored her to her throne. Ptolemy XIII thought that Caesar could not just restore her to the thrown so Ptolemy became enraged and started a war against Cleopatra and Caesar.!Of course Caesar and Cleopatra won because of the military back-up Caesar had with his Roman soldiers, the best army in the world. The Romans then started to hate Cleopatra and her exotic ways and charms. Cleopatra was powerful. She was optimistic, high-spirited, always a winner using skill or just plain cheating, popular, a queen, and a loyal friend.
Now, if youre thinking Cleopatra is too flirtatious and a slut, youre wrong. Cleopatra also was very smart. She knew eleven languages. She knew Egyptian, Parathion, Ethiopian, Arabic, Hebrew, Troglodytian, Syrian, Latin, Median, Macedonian, and Greek. She was taught by the smartest people in the world (the Romans). She also had skills that most women in Egypt did not have. They were political and intellectual skills. She was also talented. She could impress anyone with her wit and money. She impressed Caesar by meeting him in a carpet when everyone thought she was dead.
There, now you know about this powerful and smart queen, thats not all she was. In addition she was dramatically unique. Cleopatra, amazing but true, had no Egyptian blood in her at all. She had Macedonian and Greek blood. Cleopatras father was also a little bizarre. He was a follower of Dionysus, he LOVED wine. He believed in playing the flute like Pan. He did not believe in ruling. Egypt rejected him for that. All day no work, but play was most likely her fathers motto. Cleopatra was also a beliver in the gods similar to her father. She worshipped Dionysus, Apollo, Pan, Athena, Aphrodite, and mother earth. She had a sense of humor. She was also praised by Egypt for her strength and intelligence. Another unique fact is that Cleopatra played a game like chess. She probably cheated too.
Cleopatra had a large family, larger than most families are today. She had two older sisters ( Cleopatra VI and Berenice IV), one younger half sister (Arsinoe, two!younger half brothers (Ptolemy XIII and Ptolemy XIV). Her father was Ptolemy Auletes XII. Cleopatras mother died shortly after her birth and nobody really knew who she was. After her mothers death, her father remarried. Cleopatra never really liked her step-mother.
Now, the queen whom people thought was too flirtatious, was also powerful, smart, and unique, but there is even more to her sad enchanting life as queen of a lost rich country. She was glamorous, dazzling on the inside and out. Cleopatra was also known as extremely breathtakingly beautiful. She had long henna-brown hair, deep and full body, olive-tan skin, smooth and without wrinkles. She had a long graceful neck that was so elegant and straight. She had a round slim chin.
Even though people say that Cleopatras nose was Egyptian, it couldnt have been Egyptian because Cleopatra had no Egyptian blood in her at all. Then youre probably wondering what background her nose came from. The answer is that her nose was either Jewish or Arabic. She had well chiseled lips, very indented and engraved. Her voice was supposedly sweet and gentle, like a canary. Cleopatra could have been blond, pale skinned, and blue eyed but the coins with her picture strongly suggest t!hat she was dark haired, dark-skinned, and dark-eyed. She was also very thin boned. She was tall, thin, slim, and slender because she wanted to attract young men. As shown in many drawings and coins Cleopatra had her ears pierced.
Cleopatra always loved to be beautiful. She never let her hair go down plain because it wasnt elegant enough. Cleopatra had put her hair in ringlets, a bun, in a braid, in a crown, or something that was not plain down. Cleopatra wore globs of make-up. She probably wore some sort of a foundation to make her skin clear of all freckles and sun marks. She wore a cream that made her wrinkles go away.
She wore dark eyeliner, eye shadow, and mascara (brown, black, or green). Her nails were henna red from the manicure she had every single morning. She dyed her lips red for royalty. Cleopatra not only looked nice but smelled nice too. Her servants rubbed lotions, oils, and incense on her morning after morning. The smells were of jasmine, sanda!lwood, vanilla, and a papyrus smell.
Cleopatra had a busy morning. First, she would wake up and get out silk covers in all kinds of pastel colors. Her bed was made of gold. Second, she would get her manicure in red henna nail polish. She did not get the nail polish from K-mart. She bought it from a make-up shop. Third, she would put on her lotions,oils, and incence. The smells were Egyptian or imported from Italy. Fourth, her servants would do her make-up.
The make-up was always perfect; not a line curved, not a curve straight. Fifth, she would be dressed by servants in her silks and clothes. They were scented too, just like herself. Sixth, her maids would do her hair (normally in ringlets or a bun). Seventh, her maids would put on her three pounds made of gold earrings. Eighth, she would eat her breakfast. It would probably be fish, wine, quail eggs, pheasant, caviar, fruit, vegetables, and tea from China.
Cleopatra was really spoiled. She was so spoiled that if she were walking down the streets of Alexandria with her bodyguards and maids and she saw something she liked , she would just take it. She went on shopping sprees all the time. I think that she must have spent all of Egypts money. She threw parties and receptions all the time. She was addicted to spending money like people are addicted to smoking. She loved to spend money. She was a party animal.
Cleopatra lived in one of the most luxurious places in the world. She lived in Alexandria, the capital of Egypt, the main center of trade in the Mediterranean Sea. She lived on the limestone island of Pharos. From Cleopatras balcony she could see the lighthouse, Pharos, one of the seven wonders of the world.Underneath her balcony were gardens, with all kinds of colorful flowers. While traveling, Cleopatra lived in a large cruise ship, full of luxury. Most likely in Rome, she lived in one of the nicest penth!ouses in Rome. But her palace on the lonely island of Pharos is where Cleopatra spent most of her years.
The lighthouse on Pharos, as I mentioned, is where Cleopatra lived. The lighthouse is considered one of the seven wonders of the world. It was to guide traders and people coming in from the Mediterranean Sea. It made sure the ships did not crash into the island of Pharos. On the island of Pharos there was a library near to where Cleopatra lived. It was maybe 1/10 of a mile from Cleopatras palace. She could walk there in five minutes.
The library had over 40,000 scrolls. The scrolls were contracts, history, birth dates, death dates, burial ceremonies, things about Rome, things about their civilization, novels, special dates, time lines, newspapers, clay tablets, and a whole lot more! Its name is the library of Alexandria. The writings there were probably written in Greek, Roman, Latin, Hieroglyphics, Hebrew, and a lot more most likely.
Cleopatra was very romantic. Cleopatra was married to two people, Ptolemy XIII and Mark Antony. Cleopatra had affairs with two people, Julius Caesar and Mark Antony. Cleopatra had four children, Caesarion ( with Caesar), Cleopatra Selene, Alexander Helois, and Ptolemy Philadelphos ( all three of them she had with Antony). Cleopatra and Alexander were twins. Cleopatras best friend could have been Apollodorus from Sicily who carried her in a carpet to meet Caesar. Her best friend could have been either Iras or Charmion. Both of them were her favorite maids who ever so faithfully died with her.
Cleopatra and Antony loved each other. He was Cleopatras lover than husband. Antony was known as Osiris and Cleopatra was known as the New Isis. Antony went to Cleopatra for supplies and food. Cleopatra went to Antony for military support. Antony thought of Cleopatra as more than a mistress. Cleopatra had Antonys twins, Cleopatra Selene and Alexander Helois. She also ha!d Ptolemy Philadelphos for him. In 30 B.C., the Egyptian army led by Antony lost to the Roman army. Antony then died in Cleopatras arms. Mourning by his grave, the lonely Cleopatra committed suicide.
But before meeting Antony, Cleopatra met Caesar and liked him a lot, but Caesar only liked Cleopatras riches and gold. Cleopatra did have Caesarion with him, but Caesar still didnt want to marry her. But Cleopatra thought he actually did like her. He did not. So, when Caesar was murdered, Cleopatra was superbly sad. Their dream was to rule the world together. But Caesar never really loved her so if they ever would have gotten the world, Caesar would not have given her a fair share.
Cleopatra had wanted to get on Caesars good side so, she killed Pompey because Caesar was against him. She chopped his head off. But the saddest love story isnt about her and Caesar. Its about her and her brother. Now that is sad! Cleopatra married her younger brother, Ptolemy XIII, because it is a tradition that she either marry her son or brother, but Cleopatra didnt have a son yet so she had to marry her brother. One trait of Cleopatras romantic ways was that she was a use!r. She could walk over anyone and still get a good nights sleep. She was very flirtatious. She would do anything to get her way.
Cleopatra died when she was very young. She was 39 years old.She died on August 12 in 30 B.C.She died in Antonys tomb. They died in the same year. She committed suicide so she did not have to go through the embarrassment of walking through the streets of Rome in chains, being laughed at and humiliated. Rumor has it that Cleopatra asked a servant to put a poisonous snake (an asp or Egyptian cobra) in a basket of ripe figs, the asp because it is painless and it is a sign for royalty. It bit her and ran away. People could not find tracks of the snake in Antonys tomb but found them on a beach near by. Along with Cleopatra were her servants Charmion and Iras who also died with her, cause unknown.
Odyssey Hospitality
Hospitality In The Odyssey by Homer, hospitality plays a very important role. There are certain rules of hospitality needed, such as inviting a stranger intoyour home, not asking them their name before they have dined at your table, and sometimes even gift offerings. If these rules of hospitality are not carriedout, the consequences are very severe. Hospitality is to be given to all by all. Being a good host is very important in The Odyssey, even to the gods. It is asign of respect for all no matter where they are from or how poor they appear to be.
This means that as soon as you see a stranger, you invite them into yourhome to sit at your table just as king Nestor did. “As soon as they saw the strangers, all came crowding down, waving them on in welcome, urging them tosit.” (III, 38) After you have invited them into your home, you must invite them to dine at your table. Only after they have dined, you have the permissionto ask for their names, like King Menelaus did, “‘Help yourselves to food, and welcome! Once you’ve dined we’ll ask you who you are.’” (IV, 68-69) Manytimes before dining “…women had washed them, rubbed them down with oil and drawn warm fleece and shirts around their shoulders…” (IV, 56-57) If thehost enjoyed the company of the guests, many times they will honor them with gifts. The kind of gifts given varied depending on the wealth and generosityof the host. For example, Aeolus, the king of the winds, gave Odysseus a leather bag which contained all the adverse winds which could drive his ships offcourse.
Other generous gift givers are the Phaeacians who give Odysseus many valuable gifts, such as “…bronze and hoards of gold and robes…” (XIII, 155)and transported him to Ithaca in one of their magic ships. If you are unable to host the strangers, it is your duty to “send them to someone who could hostthem well”. (IV, 34) Although, if the host is not willing to help, it is considered to be bad hospitality and proper punishments will be taken into effect. Just asgood hospitality was rewarded, bad hospitality had its consequences. Not being a good host means that you do not respect the gods, and that means trouble. A bad host does things that are out of the ordinary, such as: eat the guests, try to kill them, or both.
Just as the Cyclops named Polyphemus does to twoAchaeans that he discovers are in his den. Unfortunately for him, he did receive his punishment for the way he treated his guests. Since Polyphemus did nottreat Odysseys and his men well, Odysseys wanted his revenge. They seized their “…stake with its fiery tip and bored it round and round in the giant’s eye tillblood came boiling up around the smoking shaft and the hot blast singed his brow and the eyelids round the core and the broiling eyeball burst.” (IV,433-437) Odysseys got revenge on another group of men that weren’t very hospitable to him, not even in his own house. When he returned home,disguised as an old man, the suitors that were guests in his house, did not give him a very warm welcome. Antinous, one of the suitors, hit him with a stoolwhile the others “…
all gave to the beggar, filled his sack with handouts, bread and meat.” (XVII, 53-54) Odysseus waited patiently for a chance to get revengeon Antinous and the other suitors for not being good hosts. After asking Apollo, the god of archery for glory, “…Odysseus aimed and shot Antinous squarein the throat and the point went stabbing clean through the soft neck and out…” (XXII, 15-16) After that, Odysseus also killed all of those that were disloyalto him and that were bad hosts. The Odyssey depicts the importance of good hospitality and also the consequences that follow bad hospitality. Inviting,dining, and gift gifting are the rules of being a good host and are very pleasing to the gods. Although, when good hospitality is not given, even to the poor,the outcome is very severe and sometimes is the cause of death.
Work Cited Homer. The Odyssey. Trans. Robert Fagles.
New York: Penguin, 1997. Bibliography:
Bertelsmann AG Financial Analysis
Bertelsmann AG Financial Analysis ReportHistoryBertelsmann AG was founded in July 1835 by Carl Bertelsmann as a print shop. Initially the company concentrated on Christian books and songs. In 1849 Carl Bertelsmann’s son Heinrich took over the publishing business, which employed 14, and extended the inventory of the publishing house to novels. At the time of his death in 1887, the staff had grown to 60.
Next to head the company was Johannes Mohn, son-in-law of Heinrich. The company’s growth slowed during this period and the focus was redirected to theological subjects. In 1910 he introduced paid vacation to the company. By 1921, when he turned control of the company over to his son Heinrich, the company had grown to 85 people.
Under the leadership of Heinrich Bertelsmann, the company experienced rapid growth and by 1939, the publishing house had grown to employ 400 people. New marketing channels were added as the readership became more mainstream in the late 1920’s. On the verge of World War II, the company moved from classical literature and fiction to include books with militaristic themes and eventually published books with nationalistic, racial and anti-Semitic content. The publisher insured its survival for most of the war by linking itself with the Nationalist Socialist ideology. Trouble started in 1944 when it was shut down by the German government as non-essential to the war effort and then crippled in March 1945 during an allied air raid on Gutersloh, in which only some of the printing machines survived. After the war, the publisher was rebuilt by the fifth generation to lead Bertelsmann, Reinhart Hohn, whose influence continues to the present. He took the company from a medium-size printing company to a media conglomerate. In 1950 he established the Reader’s Circle, which bypassed the traditional marketing channels and allowed books to go directly to the reader. Within a year, it had 100,000 members and by 1954 membership had reached 1,000,000. The LP label Ariola Records was founded in 1958 which signaled the company’s entry into the music market. Bertelsmann entered the film industry with the purchase of Ufa Filmproduktionsgesellschaft in 1964. Mohn’s transition of the company culminated in 1971 with incorporation. He remained CEO and was the majority shareholder.
The 1980’s and 1990’s saw an emphasis on foreign markets, which had begun in 1962 with Spain. In the United States, Arista Records (1979), Bantam Books (1980), Doubleday (1986), RCA (1986) and Windham Hill Records (1992) joined the Bertelsmann family. In the 1990’s the company went digital with the establishment of AOL Europe and the network company mediaWays, Europe’s second largest network provider, and in 1999 launched BOL, an international media shop. In 1998 Thomas Middelhoff became CEO and acquired Random House and concentrated book publishing in the United States under this label. The year 2000 saw the creation of the RTL Group, which was taken public. It was the result of a merger between CLT-UFA and the British company Pearson TV. In 2002 Bertelsmann acquired Zomba, the world’s largest independent music company. This move, along with the addition of superstars like the Backstreet Boys and Britney Spears to its stable, pushed the BMG division into third place worldwide in music publishing. In August 2004, a 50/50 merger was completed with Sony Music Entertainment to create Sony BMG Music Entertainment. Among the labels included are: Arista, Columbia Records, Epic, Jive, J Records, LaFace, RCA Records, RLG-Nashville, Sony Music Nashville, Sony Classical, BMG UK, BMG Japan, BMG Ricordi and Sony Music International.
Financial Condition of CompanyCurrently Bertelsmann is a non-public stock corporation. Its capital shareholders are Bertelsmann Stiftung (57.6%), Groupe Bruxelles Lambert (25.1%) and the Mohn family (17.3%). Bertelsmann Verwaltungsgesellschaft controls 75% of the voting rights, representing the Mohn family and Bertelsmann Stiftung. The remaining 25% of the voting rights are controlled by Groupe Bruxelles Lambert. The current CEO and CFO are Gunter Thielen and Siegfried Luther respectively, and the company employed over 76,000 people worldwide by the end of 2004. On March 17, 2005, Bertelsmann announced earnings of $1.28 billion on revenues of $21.17 billion.
The largest division within Bertelsmann is the RTG Group. It accounted for about 28% of total revenue in 2004, and is comprised of television (RTL II, SUPER RTL, VOX, n-tv, M6, Five, RTL 4, Yorin and RTL TV1), radio (Bel RTL, Yorin FM, RTL, RTL 2, Fun Radio, 104.6 RTL, and Radio Hamburg) and production (FremantleMedia, SPORTFIVE, teamWorx and UFA Film ; TV Productions). These holdings are primarily European. It is one of the slowest growing divisions, showing an increase in revenue for 2004 of only 0.8%.
The smallest division in terms of revenue in 2004 was Random House. It is made up of Ballantine (Ballantine Books, Ballantine Reader’s Circle, Del Rey, Del Rey/LucasBooks, Fawcett, Ivy, One World and Wellspring), Bantam Dell Publishing Group (Bantam Hardcover, Bantam Mass Market, Bantam Trade Paperbacks, Crimeline, Delacorte Press, Dell, Delta, Domain, DTP, Fanfare, Island, Spectra and the Dial Press), Crown Publishing Group (Bell Tower, Clarkson Potter, Crown Business, Crown Publishers Inc., Harmony Books, Prima, Shaye Areheart Books, and Three Rivers Press), Doubleday Broadway Publishing Group (Broadway Books, Currency, Doubleday, Doubleday Image, Doubleday Religious Publishing, Main Street Books, Nan A. Talese and Harlem Moon), Knopf Publishing Group (Alfred A. Knopf, Anchor, Everyman’s Library, Pantheon Books, Schocken Books and Vintage), Random House Audio Publishing Group (Villard Books, the Modern Library, RH Trade Paperbacks and Striver’s Row Books), Random House Children’s Books (Dell/Delacorte/Dell Young Reader’s Group, Alfred A. Knopf, Bantam, Crown, David Fickling Books, Delacorte Press, Dell Dragonfly, Dell Laurel-Leaf, Dell Yearling Books, Doubleday, and Wendy Lamb Books), Random House Diversified Publishing Group (RH Value Publishing), Random House Information Group (Fodor’s Travel Publications, Living Language, Prima Games, Princeton Review, RH Espanol, RH Puzzles and Games, and RH Reference Publishing) and Waterbrook Press (Shaw Books and Fisherman Bible Study Guides). It accounted for about 10% of revenues, but was second in terms of growth at 2.8%. To Americans, this division is the most well-known of the Bertelsmann holdings. Interestingly, one of the major factors in the profitability of this division is the popularity of a novel by Dan Brown, “The Da Vinci Code”. It is the best selling novel in company history.
Financial RatiosRatio200420032002Short Term LiquidityCurrent Ratio2.532.373.33Acid Test1.331.221.57Capital Structure ; Long Term SolvencyNet Worth to Total Debt.74.61.54Net Worth to Long Term Debt1.871.631.35Net Worth to Total Assets.42.38.35Return on InvestmentReturn on Total Assets5.9%1.0%4.2%Return on Equity Capital15.8%2.7.5%Operating Performance RatiosGross Margin Ratio61.9.5.8%Operating Profits to Sales10.3%8.1%7.1%Net Income to Sales7.2%1.2%5.3%Asset Utilization RatiosSales to Cash8.1310.2318.74Sales to Accounts Receivables6.025.525.63Sales to Working Capital3.023.202.91Sales to Total Assets.81.83.83Current Ratio – measures the ability of the business to meet the maturing claims of creditors plus the current operating costs, and has a direct impact on the amount of short-term credit that may be granted.
Acid Test – also called the quick ratio, it is a test of immediate solvency, and represents funds that may be made readily available for paying current obligations.
Net Worth to Total Debt – measures relative amounts of resources provided by owners and creditors and reflects strengths and weaknesses in basic financing of operations.
Net Worth to Long Term Debt – is similar to Net Worth to Total Debt ratio, but is a measure of the use of long term debt in financing operations.
Net Worth to Total Assets – measures the proportion of assets provided by owners and reflects financial strength and cushion for creditors.
Return on Total Assets – measures the efficiency of all resources in providing a return to investors and allows the analyst to compare it to alternative uses of capital as well as to the return realized by enterprises subject to similar degrees of risk.
Return on Equity Capital – measures the efficiency of owner’s equity, exclusive of debt, in providing a return to investors and allows the analyst to compare it to alternative uses of equity as well as to the return realized by enterprises subject to similar degrees of risk.
Gross Margin Ratio – indicates the net profitability of each dollar of sales and has primary value in the evaluation of trends and comparison with industry and competitor statistics.
Operating Profits to Sales – measures the relationship between the earnings before interest and taxes, and sales, and is a further refinement of the Gross Margin Ratio.
Net Income to Sales – measures the percentage of total revenue brought down to net income. It is useful as an index of profitability, and represents the main component of the return on investment. Sales to Cash – measures the relationship of sales and the cash level. Too high a rate of turnover of cash may be due to a cash shortage. Too low a rate of turnover may be due to holding idle and unnecessary cash balances. It is the tradeoff between liquidity and tying up funds which may yield little or no return.
Sales to Accounts Receivables – measures the credit extension policies of an organization. A low rate of turnover may be due to an overextension of credit, an inability of customers to pay, or a poor collection job. A high rate of turnover may indicate too strict credit policies or an inability to extend credit. It is the tradeoff between sales and tying up funds in receivables.
Sales to Working Capital – measures the relationship between sales and the working capital of a business. Too high a ratio may indicate an insufficient amount of working capital. Too low a ratio may indicate unproductive assets.
Sales to Total Assets – measures the ability of a business to use assets productively. This ratio may be indicating conditions of excess capacity, inefficient or obsolete equipment, or temporary changes inn demand.
Bertelsmann appears to be healthy in terms of short term liquidity. The Acid Test Ratio is normal for companies of this size and the Current Ratio is higher than normal and indicates that the company should have no trouble meeting short term financial commitments. The capital structure ratios also appear to indicate that the company is able to finance operations, but does not have too large exposure in terms of debt. The Return on Assets and Return on Investment are also strong, although there was a downturn in 2003. This was most likely due to higher interest expenses and a charge for amortization of goodwill.
The Gross Margin appears extremely high, but this is due to the nature of the business. Bertelsmann does not have a large cost of goods sold. Because it is partially a service business, a large part of operating expenses are personnel costs. Operating Profits to Sales and Net Income to Sales Ratios are within norms, although the increased expenses in 2003 are reflected by the 1.2% Net Income to Sales Ratio. The Sales to Cash Ratio indicates that Bertelsmann may be holding an excess amount of cash, providing little or no return. The other asset utilization ratios are within industry norms, further highlighting the large amount of cash on hand.
Other Factors in Assessment of Company’s HealthBertelsmann is a complete media company encompassing books, newspapers, magazines, music, television, movies and radio. It is well known for its music labels, such as Arista and Columbia, and the publishing houses, Random House, Dell, Doubleday and Ballatine. Less well known to Americans are the television and radio networks and the extensive list of newspapers and magazines in Europe, but they are a core part of the business. It also includes some holdings which seem unusual, such as Dynamic Graphic Finishing, which provides foil stamping, embossing, die-cutting, and related graphic arts services. Another holding somewhat out of the mainstream of the media business is the investment in Arvato Mobile, a European cell phone provider. Arvato Services has also purchased the majority of shares in Phone Assistance, a Moroccan Call Center Services provider with operations in Morocco, India, Poland, Ireland and Turkey.
Probably the most significant recent development within Bertelsmann has been the 2004 merger of BMG with Sony Music Entertainment. This venture includes some of the most important labels in the music business and has a stable of many of today’s most prominent artists. It also includes an archive of works from such artists as Miles Davis, The Byrds, John Denver, Johnny Cash, Robert Johnson, Janis Joplin, Barry Manilow, Louis Armstrong, Dolly Parton, Elvis Presley, Mahalia Jackson, Vladimir Horowitz, Glenn Gould, Laura Nyro, Lou Reed and Stevie Ray Vaughan. While initial results seem to be very positive, at least in terms of revenue and awards, the long-term outlook for this merger is uncertain.
Problem AreaA very recent occurrence that may cloud the future of the division was reported recently by the Associated Press. On April 1, 2005, music agent James Walker filed suit against Sony BMG alleging that they tricked gospel music artists into firing their agents in order to reduce costs and maintain control over these artists. The suit could cost Sony BMG millions of dollars should there be an unfavorable court decision. Although this amount would not be material to the overall financial position of the company, it could have adverse results due to negative publicity. Gospel music is one of the fastest-growing segments of the music industry.
Key Management InitiativeDuring the press conference on March 17, 2005, Bertelsmann announced GAIN, which stands for growth and innovation initiative. This initiative is centered on expansion of market position through innovation around the core businesses, for example Avrato Direct Services UK, RTL TV Germany and Gruner + Jahr France. Bertelsmann will also engage in regional expansion by entering high-growth markets in Eastern Europe and Asia through RTL in Croatia, Random House in Korea and Direct Group in the Ukraine. This will be coupled with the strengthening of core businesses, by increasing profitability in Sony BMG, strengthening the market position in the Gravure printing plants through combination, and acquisition of the majority stake in Motor-Presse Stutgart. The Sales to Asset Ratio of the Gruner + Jahr group is very high, at 1.90 (corporate is .81) which could indicate that demand is very strong. Sales to Asset Ratio of Random House is close to the corporate ratio at 1.02. The parent company also has a strong cash position, so operations in this division will have solid financial backing. Whether these efforts will be successful cannot be determined at this time, but Bertelsmann has a rich history and culture upon which to build.
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