Analysis Annual Report 2010 Bayer Essay Example for Free (#2010)

Analysis Annual Report 2010 Bayer Essay Which indicators have been brought forward in the annual report of the company? Which specific targets are aimed at? How does the group state and assess the evolution of profitability in the annual report? Is there more recent public information about this issue? Where? Is this information in line with the one mentioned in the annual report? Is it indicating a similar evolution? What are the main propositions of the company to improve its profitability? What is the global financing strategy of the group? What is the evolution of the financing cost (several indicators)? What is the shareholders’ remuneration program? What are your sources (of information) regarding this issue? What are the main investment / disinvestment policies? How are these investments financed? What is the outlook of the company regarding this issue? What are the most important consolidated subsidiaries? (Eventually mention the approximate number of subsidiaries)? Are there associated companies? What is the evolution of the income attributable to shareholders (or result part of the group)? What are the comments of the company regarding this issue? What kind of indicators does the company report about shareholder value? Are those indicators compared with other information? Does the group announce the non-publication of some standards? If yes, for which reasons? Among explanatory notes associated with the consolidated accounts, choose one that is relative to a specific standard. For this note, report essential characteristics that highlight the differences in terms of recording and reporting in the relation to Belgian GAAPs. What is the impact of IAS/IFRS referential (if any) on the account that is concerned by this note? Global diagnostic Is there important recent information about this company? Would you invest in this company? Why? Business sector What is the main business of the group? Firstly, we have to know that Bayer was founded in Barmen, Germany in 1963 by Friedrich Bayer and Johann Friedrich Weskott his partner. It is a global and an inventor company with core competencies in the domain of health care, nutrition and high-tech materials. They produce and provide services to benefit people and improve their quality of life. In addition, they seek to create value with the help of innovation, growth and high earning power. For them, sustainability is very important for their social and ethical responsibilities. Its headquarters are in Leverkusen. This is one of the largest phamarceutical companies in the world and has three sebgroups: Bayer CropScience, Bayer HealthCare and Bayer MaterialScience. Led by the management holding company, they also have three services companies which operate independently: Bayer Business Services, Bayer Technology Services and Currenta. Are there other activities, complementary businesses within the group? Bayer CropScience has products in crop protection and nonagricultural pest control. It also has activities in seeds and plant traits. Bayer HealthCare is Bayer’s pharmaceutical and medical products subgroup. It is involved in the research, development, manufacture and marketing of products. It comprises a further four subdivisions: Bayer Schering Pharma, Bayer Consumer Care, Bayer Animal Health and Bayer Medical Care. Bayer MaterialScience is a supplier of high-tech  ­polymers, and develops solutions for a broad range of applications relevant to everyday life. Bayer Business Services located at the Bayer USA Headquarters in Pennsylvania. It handles the information technology infrastructure and technical support aspect of Bayer Canada and USA. Bayer Technology Services is engaged in process development and in process and plant engineering, construction and optimization. Currenta offers services for the chemical industry, including utility supply, waste management, infrastructure, safety, security, analytics and vocational training. What are the main group’s competitors? The main group’s competitors are Merck & Co, GlaxoSmithKline, Pfizer and Sanofi Aventis. Indeed, GlaxoSmithKline have the second post in the pharmaceutical’s world just behind Pfizer. Sanofi Aventis is in fourth place and Merck & Co and Bayer share the third place. Which main risks (that are inherent to this business sector) does the company mention? Which hedging policies are put in place? Business operations necessarily involve risks. So according to Bayer, effective management of risks is a key factor in sustainably safeguarding a company’s value. Risks are assessed both qualitatively and quantitatively in determining strategies of the strategic business entities. The risk management system is set on the Group Intranet. Directive published explains the basic principles of this management in accordance with German Law.According to Bayer Group, the definition of the risk is represented by events and possible developments within or outside of the group that would decrease the value of the company. These risks are described as follows: Legal risksBayer Group is exposed to numerous legal risks from legal disputes or proceedings to which they are currently a party †¦ So it is therefore possible that legal or regulatory judgments could significantly affect the revenues and earnings of the company.Industry-specific risksSome governments intervene directly in setting prices and the government reimbursement systems favoring less expensive generic pharmaceuticals over brand-name products, which diminish earnings from Bayer’s pharmaceutical products and could potentially render the market introduction of a new product unprofitable. So if it necessary, Bayer’s Group adjusts his business plans according to the significance of governmental intervention. Sales of the Group are subject to seasonal fluctuations and CropScience business particularly affected by weather conditions. Moreover the early identification of trends in the economic market is important elements of the Bayer’s Group business management. Finally where it appears strategically advantageous they may acquire a company or part of a company and combine it with their existing business. The integration processes associated with their acquisitions are steered by integration teams. Appropriate resources are provided to support the integration processes.Product development risksThe Group’s competitive position, sales and earnings depend significantly on the development of commercially viable new products and technologies’ production. So they therefore devote substantial resources to research and development. Furthermore it is possible that effects of their products may be discovered after regulatory approval or registration. So litigations and associated claims for damages due to negative effects can materially diminish their earnings.Regulatory risksOur life science businesses, in particular are subject to strict regulatory regimes relating to the testing, manufacturing and marketing of many of our products. In some countries regulatory controls have become increasingly demanding like in the USA or in EU. That may increase product development costs. So Projects have been initiated to coordinate the implementation of new regulatory controls and mitigate any negative implications for the business. Patent risksA large proportion of Bayer’s products is protected by patents. When a patent defense is unsuccessful, or if one of our patents expires, our prices are likely to come under pressure because of increased competition from generic products entering the market. The legal department, in conjunction with the relevant functional departments, regularly reviews the patent situation. Potential infringements of Bayer’s patents by other companies are carefully monitored so that legal action can be taken if necessary. Production, procurement market and environmental risksProduction capacities at some of their manufacturing facilities could be adversely affected by, for instance, technical failures, natural disasters †¦ This applies particularly to the biotech products because of the highly complex manufacturing processes. If in such cases they are unable to meet demand they may suffer declines in sales revenues. So they address product and environmental risks by way of suitable quality assurance measures. In addition, they are committed to the international Responsible Care initiative of the chemical industry. IT risksMajor disruptions or failure of global or regional business systems may result in loss of data and impairment of business and production processes. As a consequence technical precautions such as data recovery and continuity plans have been established together with the internal it service provider to address this risk. Risk to pension obligations from capital market developmentsThe Bayer Group has obligations to current and former employees related to pensions and other post-employment benefits. Changes in relevant valuation parameters such as interest rates, mortality and rates of increases in compensation may raise the present value of the pension obligations. This may lead to increased pension costs or diminish stockholders’ equity. Financial risksIn this part we are speaking about the management of financial and commodity price risks. As a global enterprise, Bayer is exposed in the normal course of business to credit risks, liquidity risks and various market price risks that could materially affect its net assets, financial position and results of operations. The various risks associated with financial instruments are outlined below together with the relevant risk management systems. In this risk there is a lot of subcategories: Credit risks: arise from the possibility of the value of receivables or other financial assets being impaired because counterparties cannot meet their payment or other performance obligations. To effectively manage the credit risks from trade receivables, Bayer has put in place a standardized risk management system Credit limits are set for all customers. Finally to minimize credit risks, financial transactions are only conducted with banks and other partners of first-class credit standing in line with predefined exposure limits. Liquidity risks: arise from the possibility of not being able to meet current or future payment obligations because insufficient cash is available. Those problems are centrally managed in the Bayer Group. Sufficient liquid assets are held to meet all of the Group’s payment obligations when they fall due, thereby ensuring solvency at all times. The size of this reserve is regularly reviewed and adjusted as necessary to current conditions. Then credit facilities also exist with banks. Markets risks: relate to the possibility that the fair value or future cash flows of financial instruments may fluctuate due to variations in market prices. Market risks include currency, interest rate and other price risks, especially commodity price risks. Currency risks: since the Bayer Group conducts a significant portion of its operations outside the euro zone, fluctuations in currency exchange rates can materially affect earnings. Currency risks are identified, analyzed and managed centrally and systematically. The scope of hedging is evaluated regularly and defined in a corporate directive. Then a significant proportion of contractual and foreseeable currency risks is hedged, mainly through forward exchange contracts and currency options. Interest rate risks: The Bayer Group’s interest rate risks arise primarily from financial assets and liabilities with maturities exceeding one year. Interest rate risks in the Group are analyzed centrally and managed by the central finance department. This is done in line with the duration set by the Board of Management, which implicitly also includes the ration of fixed-rate to floating-rate debt. Then the duration is subject to regular review. Other price risks (especially price risks): The Bayer Group requires significant quantities of petrochemical feed stocks and energy for its various production processes. The prices of these inputs may fluctuate considerably depending on market conditions. This applies particularly tothe MaterialScience business. They have addressed this risk by concluding long-term contracts with multiple suppliers. The operation of their production facilities requires large amounts of energy, mostly in the form of electricity and steam. To minimize the exposure to energy price fluctuations, they aim for a balanced diversification of fuels for steam production and a mix of external procurement and captive production for power generation. As we can see the overall risk assessment is based on a consolidated view of risk each. There were no risks identified may endanger the existence of the group in 2010. And this is the continuation of the previous year. Which indicators have been brought forward in the annual report of the company? Which specific targets are aimed at? The profitability of a company makes the relationship between the results obtained by the company and the means used to achieve this result. The result of a business can be estimated thanks to different criterion, such as:Operating income: Which one measures the earnings generated from the production activity of the company? The profit of the year: Which measures the net result of the company, when expenses and benefits have been taken into account? The Value Added: which measures the wealth created thanks to the production function of the company? Similarly, the means used by a business can be measured by:The total of assets: this corresponds to the measurement of assets used by the company to produce. The equity: measurement of all financial resources used to produce starting. Capital stock: it is all the financial resources made available to the company by shareholders. We must not forget that a business can be profitable but still have a lower profitability of its sector. That’s why its profitability should be compared with the one of its main competitors. Thus a possible lack of competitiveness could be detected. There are 3 kind of profitability: Return on assets ; Return on equity. The profitability indicators highlighted by the Bayer Group in its annual report are the following: EBIT (before special items) & EBITDA (before special items); Cash flow return on investment ; Earnings per share ; ROE (return on equity); ROA (return on assets). So concerning specific targets we believe that shareholders, investors and potential investors, suppliers and staff are the key audiences that are intended profitability indicators. How does the group state and assess the evolution of profitability in the annual report? Is there more recent public information about this issue? Where? Is this information in line with the one mentioned in the annual report? Is it indicating a similar evolution? The group assesses its profitability by focusing on the various indicators mentioned above. In its annual report, the group highlights a number of indicators of profitability, which are: EBIT & EBITDAThese indicators are reported in order to allow a more accurate assessment of business operations. The company considers EBITDA before special items to be a more suitable indicator of operating performance since it is not affected by depreciation, amortization, impairments or special items. By reporting this indicator, the company aims to give readers a clearer picture of the results of operations and ensure greater comparability of data over time. EBIT for 2010 came in at â‚ ¬ 2,730 million whereas it was â‚ ¬ 3,006 million in 2009. This decrease is due to several factors that are: Sales of the Bayer Group rose by 12.6% from the previous year to â‚ ¬35,088 million; in 2009 the amount was â‚ ¬31,168 million, thanks largely to the recovery in the Material Science business. Adjusted for currency and portfolio effects, sales grew by 8.0% ; The cost of goods sold advanced by 13.0% to â‚ ¬17,103 million. This was mainly due to a considerable increase at MaterialScience, which in turn resulted chiefly from the growth in volumes and higher average raw material prices for the year. The ratio of the cost of goods sold to total sales was 48.7%, this ratio increased by 0, 1%, it was 48, 6% in 2009. Selling expenses rose by 11.1% year on year to â‚ ¬8,803million, it was â‚ ¬7,923million in 2009, and were thus equivalent to 25.1% of sales. Health Care accounted for the greater part of the increase. The group raised their research and development expenses in 2010 by a further 11.2%,the amount increased from â‚ ¬2,746million in 2009 to â‚ ¬3,053million in 2010; Analysis Annual Report 2010 Bayer. (2016, Dec 09).

Analysis of the Business Environment - Oil Prices Coursework

Analysis of the Business Environment - Oil Prices - Coursework Example There are a number of intrinsic features of oil supply and demand that are significant to any study of crude oil price instability. Important features encompass competing price and income elasticity, a bifurcated and complex supply response, variable data quality, single currency prizing and the interaction of multiple refined oil product market with discrete elasticity of supply and demand. Consequently they do have a shock on elasticity of supply and demand and can have an impact on the wide-ranging elasticity of the crude oil market (Williams 1996). It is generally understood that OPEC (organization of petroleum exporting counties), has the biggest oil reserves in the world, and is accountable for most of the supply and pricing of petroleum products. OPEC is a permanent intergovernmental organization which at present consists of 12 oil producing and exporting countries, as members spread across three continents of America, Asia and Africa (Taylor 2006). The 12 member’s stat es of OPEC are: Algeria, UAE, Angola, Qatar, Ecuador, Kuwait, Iraq, Libya, Nigeria, Saudi Arabia and the Islamic Republic of Iran. Causes of Short Run Price Movement of Oil Global oil prices have more than tripled since the year 2003, and volatility has become the rule rather than the expectation. The market price of oil is volatile in the short run. This is because of the following causes: 1. The price elasticity of supply The price elasticity of supply is a measure used to measure the connection between the change in quantity supplied and change in price (Kellick 1995). If supply is elastic, producers can raise output without rise in cost or time delay. If supply is inelastic, firms find it hard to alter production in a given period of time. The price elasticity of supply is equated to the Percentage change in quantity supplied divided by the percentage change in price When the result of this is: More than one, then supply is elastic, Less than one then supply is price inelastic, Zero, then supply is preferably inelastic and When the result is infinity supply is perfectible elastic following a change in demand. Factors That Affect Price Elasticity of Supply of Oil Several factors affect the price elasticity of supply of oil, these are: a) The spare production capacity- the spare production capacity of oil have reduced over the years, this has been one of the major reason for the rapid increase in the prices of crude oil. When there is spare capacity, businesses can expand output easily to meet rising demand pressure on cost (Wakeford, 2010). However, when this spare capacity lacks then the business cannot be able to increase production and would mean that the high prices will persist due to the scarceness of the commodity (Clo, 2000). b) The period involved in the production process – when supply is more price elastic the longer the time period that a firm is permissible to adjust its production levels. In some markets for example in agricultural mark ets, the quick supply is fixed and is determined generally by planting decision made mouths before, and also the climatic condition, which have an effect on the overall production (Gibbs 2010). c) Factors substitution possibility-when factors substitution is achievable at low cost, then supply will be elastic. When factors are highly specialized as in our case here then

What factors should be considered by researchers when defining the Essay

What factors should be considered by researchers when defining the data required for their research;using two empirical studies - Essay Example duct the research in the best way to ensure that the investigated research question leads to data findings that contribute to the knowledge in the investigated field. Basing on two empirical studies, this paper therefore, investigates various factors, which must be considered by researchers in their definition of data that is required for their research. The reference point in explaining the facts of this essay bases on two empirical studies conducted in different areas. One study was conducted in Vietnam among injection drug users in two districts, to compare the prevalence of HIV and other associated risks among the drug users in the two different districts (Bergenstrom et al, 2008). Another study was conducted in the USA, involving different HVC treatment programs for HVC positive clients. This study however, studied two categories of these treatment programs, including the HVC drug free programs and the HVC MMTPs programs (Astone-Twerell et al, 2006). The two studies were conducted for different reasons, thus, the difference in their objectives. The study among the injection drug users in Vietnam was conducted with the purpose of establishing the prevalence of drug overdose in the region, including the main reasons behind this phenomenon. The additional voluntary HIV testing was aimed at helping to get more information about the relationship between drug use, age, and HIV prevalence. Therefore, the study samples were studied differently to establish and assess the prevalence rate, as well as the characteristics that are associated with non-fatal drug overdose among the injection drug users in the two districts of North Vietnam (Bergenstrom et al, 2008). On the other hand, the second study aimed at establishing the range of Hepatitis C Virus services, which are provided to HVC positive clients by treatment programs. In both studies, the research was based on drug use and the relationship with a specific disease. While the Vietnam study compares the injection

Choose 1 public Uk company and 1 charity company Assignment

Choose 1 public Uk company and 1 charity company - Assignment Example Today, the firm sells tens of thousands of products and operates in over 12 countries in the Euro and Asia markets. The mission of Tesco is to offer its customers the best products at the best prices ever. It intends to help its customers to save some money on grocery shopping through providing pocket-friendlily high quality prices (Rohwedder, 2006). Tearfund is a UK nongovernmental organization and a Christian charity fund that was founded in 1968 in London (Hollow, 2008). From the organization some more charity organizations have been formed such as the Disaster Emergency Committee and the Micah Network. Tearfund was created from an already existing organization called the Evangelical Alliance as well as the evangelical Refugee Fund which were initially created by the UN. Its initial name was Evangelical Alliance Fund Committee and was headed by George Hoffman. The mission for Tearfund is to give relief funds in places that face some sort of disaster whether it is poverty, war or natural calamity (Barry, 2000). Tearfund also gives funds for development purposes in places where there is minimal development. A look at these two firms reveals that there is a different between nonprofit firms and the for profit firms. The growth rate for the two firms is different. The private for profit firms seem to grow faster as they look for more market. A good example is the Tesco which has been exploring markets outside UK, even in the US where it failed dramatically (Kamal, 2014). The other difference that comes between these two firms is with regard to their expansion strategy. While a profit oriented firm seeks to expand to the markets where the economies are doing well in order to profit from the economy, a charity organization like Tearfund seeks to expand to areas where the economy is not doing so well, because their intention of to give money rather

Film Analysis of City of God Essay Example | Topics and Well Written Essays - 750 words

Film Analysis of City of God - Essay Example The story of City of God was adapted from the novel of the same name written by Paulo Sins. The central idea and the events portrayed in both the movie and the book are based upon actual incidents. The theme of City of God showcases the emerging criminal activities taking place in the sub-urban town of Rio de Janeiro. The criminal events showed in the movie were thought to be taking place between the end of 60s and in the early years of 80s. The movie discusses different social and political events which are present everywhere in every society of the world. It also shows that how these issues are eating the fabrics of a civilized society, what impact these issues are leaving on the minds of young generation and how lives of people are being affected by such events. City of God has received positive acclamation from all around the world due to the fact that the director has tried to convey the message of injustice and social infringement taking place not just in Brazil but everywhere in all parts of the world. Analysis of the movie: The director of the movie has made an effort to raise the questions concerning the social infrastructure, declining social values and growing youth crimes emerging in Brazil particularly in Robert de Janeiro which holds a strong position as a centre of all criminal activities. ... me of the movie revolve around the central idea that how lives of the poor people living in slums (favelas) of Rio were affected to the worse end in the time period of two decades. The movie is based upon real life events that are told through the eyes and words of a photographer Rocket who witness children and the youth of Rio taking a keen interest in forming street gangs and getting involved in drugs dealing and other criminal activities. The movie shows the clear transition of poor becoming poorer and rich becoming richer in Rio due to political instability and social injustice. The message conveyed through this movie is simple; it shows that how social inequality can harm the delicate minds of kids (in an imbalanced society as showed in the movie) which push them to transform into drug dealer, gangsters and wanted criminals. From â€Å"being a good human† their motive changes to â€Å"being rich and powerful.† The movie also raises the questions of political instab ility and corruption that are prevailing in Brazil from early times. Corruption in the country has further given rise to unequal distribution of wealth, divided society and racial discrimination which is expanding its sphere day by day greatly in different parts of Latin America (Jan Rocha). The story of City of God spans around two decades with 13 different characters; each representing a new face of violence with a tormented unrest soul. The movie revolves around violence which is an outcome of unjust social structure. The movie also highlights the burning question that how government fails to provide better living conditions and a promising future to the people of favelas. Civilized societies are known for their values, excellent social infrastructure, equality and justice. In advanced civilized

Optimism Essay Example | Topics and Well Written Essays - 2500 words

Optimism - Essay Example Furthermore, the study concludes that irrespective of its nature, components, and roots, optimism has remarkably positive impact on human life and conditions. Defining Optimism Anthropologist, Lionel Tiger defines optimism as â€Å"a mood or attitude associated with an expectation about the social or material future-one which the evaluator regards as socially desirable, to his [or her] advantage, or for his [or her] pleasure† (18 qtd. in Peterson 44).On the other hand, optimism is attributed to be a sense of personal control, and ability to identify meaning in one’s own life experiences. Optimism is a valuable psychological resource which is long believed to be associated with mental health (Frankle, 1963; Seligman, 1998; Taylor, 1989 qtd. in Taylor et al. 99).Such psychological resources become extremely important when individuals are exposed to challenging or threatening occurrences (Taylor 1164).These resources work as reserves which enables people to cope with diffi cult situations in an efficient manner (Taylor et al. 99).Theorists Scheier and Carver(1985) referred optimism as a generalized anticipation that good as compared to bad will happen an individual confronts problem in crucial domains of life(qtd. in Franken 476). In general, the idea of optimism refers to an individual’s overall positive approach towards life and what it has to offer. Biological Component of Optimism Lionel Tiger (1979) puts forth the biological explanation of optimism. He maintains that in early days, when human left forests, being hunters they had to face death and injuries continuously. Because human mind is inclined towards learning from experiences, he abandoned the tasks associated with negative results. Therefore, it is biological adaption for humans to develop a basic sense of optimism. Furthermore, Tiger argues that when human body is injured, it releases endorphins. Generally, endorphins have two attributes; analgesic attributes which decreases the f eeling of pain, and feelings of euphoria. Humans are biologically adaptive to positive emotions when injured in order to keep the process going (hunting) due to our ancestors’ experiences, therefore, optimism is a trait which is induced biologically (Franken 1994, qtd. in Dunavold 4). Several theorists believe that optimism is a personality trait rather than an emotion. They regard optimism as an inborn temperament which means that people are inherently optimistic or pessimistic ( Dunavold 4). Learned Component of Optimism Many researchers believed that optimism is a way of thinking which can be learned. As Martin Seligman’s idea of learned optimism, in addition to Daniel Goleman confirm that the concept that both hope and optimism can be learned. He identifies that self-efficacy leads to hope and optimistic view in life. Self-efficacy refers to the belief that one has control over life events and his ability to meet the challenges as they appear in life (qtd. in Dunav old 4). However, Dunavold disagrees with the theory and states that, â€Å"... optimism can (not) be learned. Dr. Seligman’s method of teaching optimism relies heavily on active thought processes which I believe is more of a cognitive activity...Optimism can (not) be reinforced or stifled. Additionally†¦

Methods of Interrogation Essay Example for Free

Methods of Interrogation Essay An important component on a methodical approach to criminological research is the aspect of investigation. Utilizing the techniques of interview and investigation, it is primarily bordered by government policies and social regulations. The techniques employed by both draws heavily from the studies of psychology and sociology, as a tool to facilitate the enforcement of law in the society. In probing towards a case, the objective of the entire investigation would be to ascertain the details of the crime that would eventually lead to the offender’s arrest and meet its just punishment. But before this could be achieved, investigators had to go first through the process of discovering and identifying the criminal. Upon the offender’s positive identification, law enforcers or investigators go the tedious process of locating the criminal and establish his responsibility over the crime before the court. In whatever stage the investigation may be in, whether in the process of identification, location, or court litigation, the investigator relies heavily on gathered information that could be extracted through techniques of interview and interrogation. With the fast development of technology used in crime investigation, the method of interview and interrogation might be perceived as having of no use. However, investigators still continue to depend on these methods particularly on cases wherein there is scarce or no physical evidence to work on. II. Reasons for Conducting an Interview or Interrogation The basic reason for utilizing interview or interrogation is to obtain information. The endpoint would be for the investigator to bring a subject to admit or confess of having done a crime. The objective of the entire course of investigation of course, is to arrive at the truth of the situation. Specifically, these are: †¢ Provoke the guilty to confess †¢ Allows the investigator to narrow down the list of suspected criminals †¢ To identify the facts and know the circumstances surrounding the crime †¢ To establish the identity of all those who are involved of the crime †¢ To gather information that would help locate physical evidence †¢ Gather information that would lead to hideouts, crime operations, organizations or individuals involved, especially crimes involving drug trafficking †¢ Gather information that could be used as reference for future investigation †¢ It is also utilized as a pre-test and post-test in conducting polygraph tests of suspected criminals (Aubry, Caputo. 1980) III. Difference Between Interview and Interrogation The nature or circumstances by which an interview and interrogation is used vastly differ, although the terms are frequently associated together. Interviews are carried out in a more genial atmosphere. The person from whom information is taken out is set to feel at ease. It is assumed that when a person feels no anxiety or unthreatened by person questioning, the greater the tendency that a person would speak more and thus give out more information. An interview is usually used by an investigator towards a possible witness. On the other hand, when a person is subjected to sever psychological (and sometimes physical) pressure, placing the person in great discomfort, such method is called an interrogation. This is usually employed when the one being questioned is uncooperative. The investigator uses psychological warfare, to gain control and force a confession over the person. Success in interrogation is achieved when the investigator has learned to skillfully practice it both as a technique and art. Conducting an investigation requires a good understanding of human behavior as well as knowing how to influence the situation by acting, since the person being questioned could range from a respected professional, a teenager, or even as young as a child. It is highly relevant to the success of the case that the investigator know how to adapt to the varying demands of the circumstances. A. Methods of Interrogation In conducting interrogation, it is important that the subject be properly classified whether it is an emotional or non-emotional offender. The classification dictates the course of action that the investigator will undertake his approach towards the offender. †¢ Emotional Offender In carrying out an interrogation under this classification is much easier, compared to a non-emotional offender. Often emotional offenders commit a crime out of passion, therefore most are first-time offenders. They are driven by strong emotions in committing the crime such as jealousy, lust, or anger. The investigator will find it easier to drive him to confession by dealing through his emotions. There are a variety of ways with which this can be done. The investigator primarily wins the confidence of the offender by demonstrating sympathy or compassion, and being pleasant where hostility was expected (i. e. giving a cup of coffee). It is also vital that overt reactions towards the crime or any association, reference to it be closely observed. An emotional, first-time offender would less likely be good at hiding his emotions. When lying, his tension would easily be observable. The tension in his body will lead to dryness in the mouth. The offender might relieve himself of the tension by playing with his fingers or by tapping his foot. Frequently, lying goes with poor eye contact. When confronted by hard data proving his guilt, emotional offenders often break down for confession.