Corporate Finance Paper Procter and Gamble

Corporate Finance Paper : Procter and Gamble Procter Gamble Introduction    Procter Gamble (PG) started n 1837 as a tiny, family-operated soap and candle company. In twenty years, its sales have already rocketed to $1 million and after another twenty years, the company was able to create Ivory Soap. (Webb, et. al., 2007) In 1890, the family owned company was then incorporated in Cincinnati, Ohio. At that point, it was already selling more than thirty different types of soap. By the nineteen nineties, PG was producing and marketing some of the world’s most recognizable brands such as Tide, Pampers, Bounty, Pantene, Vicks, Pringles, and Crest. PG built its first transnational manufacturing facility in 1915 in Canada and has established its first overseas subsidiary in 1930. This was brought by the sale of a soap manufacturer in Great Britain. In 1935, it has established itself in the Southeast Asian region, specifically in the Philippines. PG’s internationalization process modestly started after World War II. In 1948, it also started it operations in Mexico through an Overseas Division. In 1960, PG opened its first European office in Germany and after a year, it opened a Middle Eastern office in Saudi Arabia. PG started manufacturing and marketing its products in Japan in 1973, through an acquisition. Despite these multinational efforts, PG still considers itself as a local U.S. company and it is focused relatively on the global market. (Ibid.) It officially turned its attention to the global markets by the 1980s after it has calculated its strong position in the U.S. and with the support of improved infrastructures such as transportation and communication technologies and the consistent economic growth n the foreign consumer markets. Basing its boldness on the success of its Mexican subsidiary, the company bought a soap business in Brazil n the late 1980s. It has also expanded into Colombia, Chile, Peru, and Argentina up to the early 1990s. It also expanded its business in Japan and in 1988 started a joint venture to manufacture products in China. It has also started its Eastern European operations in 1991, particularly in Czechoslovakia, Hungary, and Poland – and Russia. (Ibid.) Procter Gamble provides branded consumer goods around the world. It aims to dominate the global market with superior quality and valuable product that can improve the lives of the worlds consumers. Its products are sold in more than 180 countries, mainly through mass merchandisers, grocery stores, membership club stores and drug stores. It expands its global presence through high frequency stores, which is the neighborhood stores which serve many consumers in developing markets. (Yahoo Finance Website, 2010) In fiscal year 2010, PG earned $79 billion in sales all over the world throughout its 24 brands with $1 billion of sales each. (PG Website, 2011) As it is, PG is a global giant for household and personal goods. PG compete in multiple product lines and it has three global business units (GBUs) namely, Beauty, Health and Well-Being, and Household Care. Under the U.S. Generally Accepted Accounting Principles, the multinational company’s business units comprising the GBUs are aggregated into six reportable segments: Beauty; Grooming; Health Care; Snacks and Pet Care; Fabric Care and Home Care; and Baby Care and Family Care. P G operates on-the-ground operations in approximately 80 countries through our Market Development Organization, which leads country business teams to build our brands in local markets and is organized along seven geographic areas comprised of three developed regions (North America, Western Europe and Japan) and four developing regions (Latin America, Central and Eastern Europe/Middle East/Africa, Greater China and ASEAN/Australasia/India/Korea) (Ibid.). For March 2009, P G’s net sales declined 1% to $60.4 billion. Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange, grew by 3%. Its unit and organic volume, which excludes the impact of acquisitions and divestitures, both decreased 2% versus the prior-year period. The company’s net earnings increased 21% to $11.0 billion. Net earnings increased due to the gain on the Folgers transaction. Net earnings from continuing operations were flat versus the prior year period as lower net sales and a decline in operating margin were offset by lower interest expense, higher gains from divestitures and a lower tax rate. Its diluted net earnings per share were $3.46, an increase of 27% versus the comparable prior-year period (Ibid.) The company’s operating cash flow was $9.9 billion, a decrease of 11% versus the prior year period. Free cash flow productivity, defined as the ratio of operating cash flow less capital expenditures to net earnings, was 71%. Generally, the business operations and sales were affected by the global economic changes, terrorist activity and political unrest. It has also affected P G’s credit or liquidity issues, inflation, deflation or decreased demand for its products. Foreign Exchange (FX) Risk Management Policy. Foreign exchange risk management has received additional attention in corporate finance practice. This is because a thorough and a contextual understanding of foreign exchange risk management are essential for multinational company’s management. This is especially true for PG in today’s global business market and inconsistent foreign exchange rates. This will contribute to a company’s increase or decrease in exports or imports. At present, multinational companies such as PG is eyeing the emerging markets. This is because it is one of the major growth areas for them in a global scale. PG already secures large and growing market shares in emerging markets of China and Russia. Its Downy Single Rinse, low-water volume detergent, and Naturella, a cheap feminine protection product especially target emerging economies. In light of the growth strategy on emerging markets, it opens up to almost 20 new manufacturing facilities outside its mature markets. Having diversified products, P G are greatly exposed to various risks in the market such as interest rates fluctuations and changes in the exchange rates and commodity prices. It assesses these various risks on a systematized basis to benefit from the regular exposure correlation and netting. PG chooses to take care of its volatility related to net exposures. It comes into several financial transactions which it records for applying respective accounting consultation for instruments of derivatives and for hedging activities. PG’s financial accounts are ruled by its policies covering acceptable exposure of counter party, other types of instruments and other hedging practices. (P G 2009 Annual Report, 2010) At inception, P G formally designates and records respective instruments as hedges of several exposures. It normally evaluates at both the incurrence and at least every three months, if the said instruments applied in hedging transactions are successful in offsetting the alterations in either fair market value or cash flows of the directed subsequent exposure. The changes in the values of these instruments are usually offset by alterations in the flow of cash or fair market value of the sbseqent exposures being hedged. The offsetting is de to the high level of effectiveness between the exposure being hedged and the instrment used for hedging. The unsuccessful part of an alteration in the fair market value of a respectve instrument is rgently acknowledged in income. The amount of ineffectiveness merited is unijmportant for all periods presented. Manufacturing and selling its products in various global markets, the company is exposed to foreign currency exchange rates fluctuations. Its program for foreign currency hedging aims to control the volatility associated with short-term fluctations in the rates of exchange. To control this risk in excange rates, P G has traditionally used a proportion of currency swaping, forward contracts and options. The Company has also utilized options and forward contracts to reduce the impact of the changes in exchange rate on projected sales, buying of inventory and internal PG royalties pegged in international currencies (Ibid.). The alteration in value of specific non-qualifying instruments applied to control the exposure to foreign exchange of internal PG financing accounts, earnings from multinational operations and other headings in the company’s balance sheet are scrutinized to revaluation and are rgently acknowledged in income, particularly reducing the foreign currency effect o f the subseqent exposres from one market to another. As per PG’s 2009 financial statement, the net earnings impact of these instruments was a $1,047 loss in 2009 and an erarnings of $1,397 and $56 in 2008 and 2007, respectively. (Ibid.) As early as 1996, PG’s Treasury had linked itself with various investment banks. By the 1990’s, they have imbibed new techniques to significantly improve ther cost of capital methodology. Interestingly, the Treasury and Corporate Finance of PG work independently. Their new meetings recommended that the company use sovereign spreads in the emerging bond market as a country risk proxy, with the spread referring to the difference between the maturity yield on a specific country’s dollar-denominated bonds and the US-Treasury bond yields with comparable maturities. (Webb, et. al., 2007) Arguments centered on the new procedure’s differentiated investments. The other managers were concerned that this would result in increased costs of capital in less stable economies, hence, discriminating against investments in them. Because emerging market are generally more volatile and volatility, in a way, creates opportunity, forcing a higher cost of capital there would likely result in unrealized opportunities. (Ibid.) The Types of exposure P G measured and managed Since it is exposed to foreign currency fluctuations, P G manages its exchange rates exposures through the following: transaction exposure, economic exposure, and translation exposure. To measure its transaction exposure, the company estimates its net cash flows in each currency and measures the potential impact of the currency exposure. To measure the impact of currency exposure, the company uses a series of monthly percentages changes in each currency. To measure its economic exposure, the company uses sensitivity analysis which considers different sales and expense categories, depending on various exchange rates scenarios (Madura, p. 292). Lastly, to translate its earnings, P G follows the FASB guidelines for valuing existing currency derivative contracts. Other Comprehensive Income Procter Gamble showed a decreased comprehensive income than their net income by roughly -11% in 2009. Total comprehensive income is comprised primarily of net earnings, net currency translation gains and losses and net unrealized gains and losses on securities and cash flow hedges. Other comprehensive income includes financial statement translation and hedges and investment securities (P G 2009 Annual Report, Consolidated Statements of Shareholder’s Equity). What hedging transactions are used for each type of exposure? P G uses long term forward contract to accommodate its specific needs. It also uses net investment positions in major foreign subsidiaries. To accomplish this, P G either borrows directly in foreign currencies and designates all or a portion of foreign currency debt as a hedge of the applicable net investment position or enter into foreign currency swaps that are designated as hedges of its related foreign net investments. Changes in the fair value of these instruments are immediately recognized in OCI to offset the change in the value of the net investment being hedged (Ibid.). Emory, Finnerty Stowe (2007) wrote several ways to manage transactional exposure and these include the following: Invoice currency hedging: this is an operational technique whch is less known than swap, forward contract, future and option contracts. Wth ths, P G can share or shift or diversify exchange risk by specifically electing the currency of invoice. It can avoid exchange rate risk by invoicing in domestic currency, thus, it is able to shift exchange rate risk on the buyer. However, ths cannot be overly applied becase this may lead to the company’s loss of customers to competitors. Only an exporter with significant market power can utlize this approach. Also, if the exporter and importer’ currences are not suitable for international trade settlement, then, neither party can use risk shifting to deal with exchange exposure. (Emory, Finnerty Stowe, 2007) Lead and lag hedging: ths is also an operational technique to reduce transaction exposure. To â€Å"lead† means that the firm will pay or collect early, whereas to â€Å"lag† means that it will pay or collect late. As practiced, the compnay will lead soft currency receivables and lag hard currency receivables to avoid the loss from depreciation of the soft currency and take advanatge of the appreciation of the hard currency. For the same reason, the firm will attempt to lead the hard currency payables and lag soft currency payables. The extent by whch a ocmpany can effectively se ths strategy reslts to the redction of their transaction exposure. (Ibid.) Other strategies to manage operating exposure include: Choosing low cost production sites: companies can choose to locate ts production facilities to foreign places where its local or domestic currencies are strong or will become stronger. They can also select to build and maintain production facilities in various countries to deal with the impact of the changes in exchange rate. (Ibid.) Flexible sourcing policy: a company can signficantly reduce the effect/s of exchange rate changes by sourcing from where raw materials or input costs are low. This can be taken advanatage by the company even when its manufacturing facilities are in the domestic country. For greater competitiveness, flexible sourcing can be used not only in materials and parts but also in low cost guest workers from foreign countries instead of high cost domestic workers. (Ibid.) Market diversification: this is a great way of dealing with exchange exposure. A company will jst diversify its market for its products. This can be applied as long as the exchange rates move in different direction, hence, the company can maintain its operating cash flow by export market diversification. (Ibid.) RD and product differentiation: RD investments can enable a company to sustain and empower its competitiveness in the face of adverse exchange rate movements. Positive RD efforts enable the company to reduce costs and improve its productivity. Also, RD initiatives can lead to the introduction of new and unique products that close competitors cannot match. Since the demand for unique products tend to be consistent, the company becomes less exposed to exchange risk. Likewise, it can atempt to make an impression that its product is really different. This helps firm to pass-through any negative effect of exchange rate to the customers. (Ibid.) Financial hedging: this can be used to maintain the company’s cash flow. Also, the company can use currency forward of options contracts and roll them over if necessary. (Ibid.) Time frame to manage risk Due to market diversification and sophisticated derivatives, there are various time frames used by the company in its risk management strategies to its various investments and derivatives. In order to create a coherent risk-management strategy, companies should carefully determine the nature of both their cash flows and investment opportunities. After doing this, their initiatives of aligning their supply of financial resources with the demand for funds will lead to the right strategies for risk management. Companies may take advantage of risk management even if they have no large investments in plant and equipment. This takes on the meaning of investment to include not just the traditional investments like capital expenditures but also investments in intangible assets like highly trained workforce, brand-name recognition and market share. Indeed, companies that make these various forms of investments may need to be even more aggressive in risk management. This is because a capital-intensive company can utilize its recently purchased plant and equipment as collateral to obtain a loan. â€Å"Softer† investments are more difficult to collateralize. (Ibid.) It may be more difficult for a company to increase its capital from a bank to fund, for instance, short-term losses that are outcomes of a low pricing policy to build market share. For companies that make these types of investments, internally generated funds are more vital. As an outcome, there may be a greater need to parallel the supply of funds with the demand for funds by managing risk. One optional strategy is for the company to take on more debt and then directly hedge those risks in the derivatives markets. However, this strategy is riskier in terms of the ability to make good investments than the low-debt/no-hedging strategy. In various countries, however, the extra debt allowed by hedging enables a company to benefit from the tax deductibility of interest payments. (Ibid.) Multinational companies must acknowledge that foreign-exchange risk affects both cash flows and investment opportunities. Companies must also pay close attention to the hedging strategies of their rivals. Financial managers must realize that it is not merely the case of not hedging when the competitors are not hedging. There are specific situations in which a company may have even greater reason to hedge even when its competitors are not hedging. Thus, the company should hedge to make sure it has ample cash for this investment. As it is, the investment opportunities depend on the general structure of the industry and on the financial strength of its rivals. As such, the same forces which are required in formulating a company’s competitive strategy must also be applied when it is creating its risk management strategy/ies. How does the company use Derivatives for funding, investing, and other price risks?       Derivatives are the instruments most commonly used in financial risk management. Because unique derivative contracts tend to be costly to create and monitor, the most cost-effective financial risk management methods usually involve derivatives that trade on well-established financial markets. These standard derivative instruments include options, futures contracts, forward contracts, and swaps. Companies may use derivatives to transfer the risks just lie in the case of insurance. A derivative can also be used as a hedge fund, which can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk (Madera, p. 293). What is the extent of the company’s offshore and Euromarket funding and investing activities? Being a large, diversified multinational company, Procter Gamble extensively invest in offshoring activities. It has been fully integrated into the Euromarket economy. It subsidiaries hide under classified operating, investing and financing activities so that it can overcome its capitalization of Borrowing Cost and Foreign Exchange Losses. Diagrams This table provides the PG’s percentage of net sales and net earnings from continuing operations by reportable business segment for the three months ended March 31, 2009 (excludes net sales and net earnings in Corporate): Net Sales Net Earnings Beauty GBU Beauty 23 % 20 % Grooming 9 % 12 % Health and Well-Being GBU Health Care 17 % 22 % Snacks and Pet Care 4 % 2 % Household Care GBU Fabric Care and Home Care 29 % 28 % Baby Care and Family Care 18 % 16 % Total 100 % 100 % This table represents the rise and fall of P G’s stock and it is generally described as being lackluster in the last five years. PG’s relative valuation appears attractive compared to other brand-management and personal care stocks such as Clorox. Its dividend and earning performances have also been good. It is a good opportunity for buy and hold investors (Repp, Weigand Xi, p. 1). Conclusion It is very important to highlight the important of corporate finance management in the light of global market expansions and the visibilities of various companies in the global markets. Just like PG, many global companies are now operating internationally. It must be emphasized that the extent of the multinational companies’ global concentration, global synergies and global strategic motivations indicate the MNCs more strategic motives and purpose and operations in host countries and elsewhere as related with how it entered the local markets. Global strategies play a critical role in differentiating among distinct entry modes of each MNC in each different host country. However, collectively, the major factors are all equally considered in making the decision to enter a local market for foreign direct investments. It hinges on the importance of financial management for every multinational company.

Fanconi Anemia (FA) Bone Marrow Failure - 802 Words

Fanconi anemia (fan-KO-nee uh-NEE-me-uh), or FA, is a rare, inherited blood disorder that generally leads to bone marrow failure. While it is rare, only effecting less than 2% of the worlds population is more commonly seen in South Africa. It is named after the Swiss pediatrician who first published information after clinical observations in 1927. FA is the result of a genetic defect in a cluster of proteins responsible for the DNA repair. As a result, the majority of FA patients develop cancer, most often acute myelogenous leukemia and around 90% develop bone marrow failure by the age of 40. About 60–75% of FA patients are plagued with congenital defects, commonly short stature, abnormalities of the skin, arms, head, eyes, kidneys, and ears, and developmental disabilities. Also around 75% of FA patients have some form of endocrine problem, with varying degrees of severity. Life expectancy for someone with Fanconis Anemia is approximately 22 years. Fanconi anemia is thought to originate from a colony in South Africa. FA is primarily an autosomal recessive genetic disorder, which means that two mutated alleles (one from each parent) are required to cause the disease . There is a 25% risk that each subsequent child will have FA. About 2% of FA cases are X-linked recessive, which means that if the mother carries one mutated Fanconi anemia allele there is a 50% chance that male offspring will present with Fanconi anemia. Fanconi anemia was first described by Guido Fanconi.Show MoreRelatedA Study On Alyscia And Devon Essay1131 Words   |  5 Pagesof moderate to heavy physical exertion. Upon physical examination the boy presented with an enlarged spleen. Pre-screening indicates signs of sickle cell anemia (SCA). Patient’s mother reports no family history; however, paternal aunt passed away at an early age. Ask What are the screen types for SCA, as well as, the other types of genetic anemias and how to differentiate between them? Access This article covers the insights into HbF gene regulation. HbF appears to benefit some complications of

Critical Thinking - Clinical Decision Making and Professional Developme

Question: Discuss about theCritical Thinking, Clinical Decision Making and Professional Development. Answer: Introduction Following the issues in the hospital, I only have three people to help handle them: the ward clerk, an enrolled nurse who is not yet competent and an Assistant in Nursing (AIN). However, deciding the right person to address an issue is also challenging. Therefore, it requires me to think critically and employ clinical decision making so that I may delegate the duties properly (Bailey, 2002). Of course, the available personnel are not equally qualified. This implies that there are duties that one individual can handle, which may not be treated by the other. Besides, I cannot address all the emergency issues at the same time by myself. Therefore, I am forced to assess the situations according to priority and delegate them to the required individuals. In real sense, a patient who collapses and gets unconscious yet initially had a facial surgery is a case which must be attended to immediately with the right person. As such, being an expert in this field, I would be the only person who would achieve this and succeed in it. Therefore, this would be the task to attend to first immediately after giving the other duties to the other individuals. Upon my evaluation, I would ask the enrolled nurse to attend to Mrs. Smiths visitor in the ward who is reported to have fainted. Fainting is simply a short-term loss of consciousness, which could be as a result of emotional stress (Mok, Wang Liaw, 2015). Of course, the enrolled nurse would be the right person for this because it is not a serious issue. Besides, she will be in a position to handle the problem, find out the reason behind it, and further counsel the victim to avoid such issues from cropping up again. In addition to that, it will enable the nurse to get more knowledge and experience on how to deal with such emergencies. Second, Mrs. Chews case is also critical. The fact that she has missed her 14.00 hours IV antibiotic also proves that the situation is beyond the other staff members. Therefore, this is an issue which should get attended to by an expert or the assistant who have the privilege to work in the state (Hartigan, 2016). Being that it is a problem that cannot also wait, I would, thus, give this responsibility to the assistant in nursing, whose role is to help the enrolled nurses and the registered nurses to provide overall patient care. Third, the ward clerk may be in a position to handle two of the issues. Firstly, I would ask him to cancel Mr. Esposito sign out from the hospital because he is yet to complete his medication. Secondly, he will have to look for the plumbers and ensure the issue of the blocked toilets gets resolved fast. The reason for having two responsibilities is that canceling a sign out is simple and can be done fast. Besides, it is his duty to ensure all patient records are secured and completed in the right way. Last, immediately after attending to the unconscious patient, I can then create time to discuss the medical error with the surgical consultant. Once an error has occurred, there is nothing much to be done about it (Odell, 2015). Therefore, I would not give it a priority over the other issues. References Bailey, S. (2002). Decision making in health care: limitations of the substituted judgement principle. Nursing Ethics, 9(5), 483-493. Hartigan, C. (2016). Scope of Practice. Critical Care Nurse, 36(5), 70-72. Mok, W. Q., Wang, W., Liaw, S. Y. (2015). Vital signs monitoring to detect patient deterioration: An integrative literature review. International Journal Of Nursing Practice, 2191-98. Odell, M. (2015). Detection and management of the deteriorating ward patient: an evaluation of nursing practice. Journal Of Clinical Nursing, 24(1/2), 173-182.

Effects on mobile phones at school free essay sample

Mobile phones have become a staple of our society, with everyone from elementary school kids to senior citizens owning at least one. According to Wikipedia, a mobile phone, also known as cell phone, is a device that can make and receive telephone calls over a radio link while moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile phone operator, allowing access to the public telephone network. With the mobile phones increasing demand on younger generation, there are positive effects towards the academic status of the students. From just a slow-paced communication system to a fast and advance method of communicating, all individuals are affected especially the younger generation which include students in schools. So why have mobile phones been very popular these years? Mobile Phones mean technology. Technology is surrounding the world today. Technology has evolved so quickly has become so much more open and seems to be everywhere in our lives these days and has made our existence in this busy world much so much simpler. And these mobile phones have brought positive effects in schools. The assorted applications that cell phones are nowadays employing mean that they are a fascinating device to learn how to use. Mobile Phones have so many positive uses in the classrooms, yet at the same time we aren’t putting our current technology to good use. By keeping our community updated with all the new technologies out there will help make a more useful point to all of these new gadgets. As a student, we feel that the use of cell phones should be allowed. In class there are not always enough calculators for every student to use, most likely every student in the room will have a cell phone, and on that cell phone there is always a calculator, allowing the use of these phones for school use they can then lower the district’s budget now being able to subtract calculators. Every phone has either a memo pad or a notepad, in schools they give each student an assignment book which is supposed to be used throughout the school year to write down their school assignments and work needed to be completed. In this world today every teenage student has their cell phone steady on hand  which their school assignment book should be, but are not. In this case if students could have their cell phones in class they could put their work into their cell phones with an alarm and never miss an assignment due. I think teachers should give their students a certain amount of time to put their assignments in their phones so they will only be able to use their phones for school related things. During class the teacher may ask the students to research something, while taking the whole class down to the library would take too long, many students have internet access on their cell phones which could be used at the tip of their fingers. This would save time and would allow the teachers more time to teach. The camera devices on the cell phones can come in handy also, if a student is absent a friend can take a picture of their work and send it to their friend to keep him/her updated with missing work. Parents think of cell phones as a connection to their children in an emergency. In most cases, contacting the hospital or the police would seem more urgent. And parents can always call the schools main office to reach their children. Mobile phones these days come with calculators, calendars, all types of games, mp3 devices, the World Wide Web, and some with a GPS pursuing system. Mobile phones are additionally utilized to educate. A lot of the programs on mobile phones have a role in teaching or helping students. We feel there is no need to ban the use of cell phones in schools, they can help in many different ways. By keeping our community updated with all the new technologies out there will help make a more useful point to all of these new gadgets. Internet is an influential and astute commodity. Across the net, so much can be done. Formerly mobile phones existed devised to hold the net, the downside to using the net was that one could not really be mobile while using it. Doing something while also busy on the internet was not really an option. In other words, multitasking was a problem. It was made so people could have contact with each other all the time. At that time, mobile phones hadn’t possessed lots of contrasting programs. Its main purpose was so that people could converse with each other in a much easier manner .However once the cell phone possessed the internet, it came to be an influential tool. Suddenly, we could now move around to relish the lack of restrictions of browsing the internet on the move. Not anymore did we have to be in a stationary position to appreciate the advantages that the internet provided. Across the mobile web, various apps  were now accessible which has resulted in the development of mobile phones. Mobile phones grow and change above period, determined by what people’s biggest demand are. They have come to be extremely important in our lives today, and benefits as well as drawbacks exist for mobile phones being present in the classroom. Wireless networking mechanisms enables learners to transfer information swiftly and precisely. Texting undeniably means that it is now simpler accord data. Mobile phones have numerous uses, that it should be referred to some more than just a mobile phone. The World Wide Web has become very useful in terms of students’ widening of knowledge with this, mobile phones has already adapt in this trend. Cell phones increase the ability to exchange and spread information. People with cell phones can spread the word about an important or newsworthy incident as it occurs, giving people the sense of always being in the loop. Camera phones can enhance this exchange of information by adding a visual element. Some teachers and campuses are beginning to take advantage of the educational potential of cell phones. On some college campuses, students can organize their schedules and take quizzes through their phones. Some high schools take advantage of educational games for cell phones. Educators can also teach students how to use their phones as research tools, which encourages youth to take more initiative in their own learning. Nobody’s keeping up; even the most sophisticated teacher isnt keeping up. Hes too busy getting kids ready for testing. Let’s face it, modern technology is fun, and students love to have fun. Moreover, if we bring that exciting technology into the classroom than we can create a more relaxed and enjoyable environment for the students and the teachers. If in science the students do a lab experiment then they can take a video of that lab and replay it for homework and further understanding. Furthermore, classes can download a school program onto their phones and the teachers can use it in the classroom. A study based on a survey of Advanced Placement and National Writing Project, students access to tech at home isnt keeping pace. More than half of teachers (54%) say all or almost all of their students have access to the technology they need at school, but only 18% say students have the digital tools they need for learning at home. Cellphones are still a classroom annoyance. Even as more teachers let kids use cellphones as a classroom resource, 28% find the devices a major distraction, and 44% say  they’re a minor distraction. Teachers use the Internet at least once a week. Teachers are most likely to go online to find instructional materials (84%), keep up with developments in the field (80%) and create lesson plans (80%). Even though a majority of teachers think their schools do a good job of supporting their efforts, 85% also look for new ways to use tech for classroom instruction on their own. Teachers concede students are more tech-savvy. More than four of 10 teachers (42%) believe their students know more than they do about new digital technologies, compared with 18% who feel they’re more knowledgeable than their students. Furthermore, in terms of minimizing the cost both by parents and school administrators, the mobile phones could definitely lessen it down at a higher cost, since gadgets like cameras, audio recorder, video recorder, and/or computers are somehow neglected due to the fact that advance mobile phones are up to these extreme level of usage. It can also create a database such that it records and link these data on higher aspect. Mobile phones can be used as well in doing creative stuffs such like making podcast and blogs. These and more have become my driving force towards this study, such that it will twist the common perspective of both educators and parents so that it will be helping the education style of all institutions. Above all of these, cell phones popularize cheating. With today’s technology, cell phones can now access the internet and take pictures and save notes containing information for tests and other school projects. Cheating also reveals short-term and long-term effects on students. Some short-term effects include receiving a zero on an assignment and failing to learn important material, while long-term effects include acquiring bad habits. So, if parents express growing concerns with the issue of cheating, why do they allow their children to take their cell phones, the root of the issue, to school? Parents want their children to display good morals, and cheating destroys this principal along with their sense of responsibility. School is there mainly for education, and to prepare people for the future but when we have our own jobs nobody will give us little warnings to put our phones away, you will be fired if youre on the phone too much or maybe even just once at the wrong time. If it distracts the student and they fail a class, then they will learn their lesson and if they dont learn that phones can be distracting then they isn’t prepared to leave high school. Phones can also be used to stop students from needlessly talking over the teacher who is desperately trying to teach when they can easily text across the classroom on a silent phone instead of interrupting the teacher and making the day that much slower. Some may argue that cell phones can be a distraction. However, if we use them correct way then maybe they shouldn’t be a banded in school. There are some very good uses to have cell phones in school. Students use them in school because there is an emergency, to keep them in contact, it’s educational sometimes. There will always be distractions in the classroom, but why not make it a distraction where other students who want to learn can still hear the teacher and not have to talk over other people? There are few things that need to be considered when mobile phones are involved in Education and that is rebuilding the structure of these gadgets towards its positive and negative. This is due to a fact that some educators consider texting to be a major distraction, and diminishing to vocabulary, communication skills, and writing skills, others consider texting to be as valid of a teaching tool as the overhead projector. Recent studies have shown that texting in class not only has the opposite effect of what teachers previously thought but also has a positive effect on a childs ability to write lengthier papers and has made their writing skills stronger in general. In sum, mobile phones may be harmful at the field of education but the challenge here is that by the use of multiple applications with educational purposes, the mobile phones will be one of the major keys towards another level of learning style. Students and administrators must be willing to take part in this integral growth on learning. Cell phones in class should not be banned but should be welcomed with open arms and used as a teaching tool and not a means of distraction as so many teachers perceive them to be. Texting and cell phones are the future of the world of teaching and are the gateway to higher learning. By using the text alerts to notify students of class cancelations and possible on campus threats; keeping the students safe and notified about these possible situations. Cell phones with their internet capabilities can now allow students to look up information about what ever subject they decide to want know more about. This cuts down the cost of hundreds of computers for each student and saves schools thousands of peso each year and allows schools to use the money for other things that the school might need whether it is hiring teachers. Without the  use of cell phones in the classroom the world would still be bland and students would lose interest in certain subject and the system would fail.