The Measures Of Performance For The Beer Industry

The Measures Of Performance For The Beer Industry Beer is at present worlds most consumed and oldest alcoholic beverage in the world (Max N, (2005). According to Heineken International (2011), it is expected that worldwide beer consumption will grow by 2% to 3 % annually, but growth forecasts different vary substantially in regions. Heineken is one of the worlds great brewers and is committed to growth and remaining independent. The Heineken brand is available in almost every country around the globe and it is the worlds most valuable international premium beer brand. The companys aim is to be a leading brewer in each of the markets in which it operates and to have the worlds most valuable brand portfolio. According to Heineken International (2011), The Company operates 140 breweries in more than 70 countries and Heineken is Europes largest brewer and the worlds third largest by volume and the average number of people employed is more than 75,000. According to Heineken International (2011), Annual Report (2009), Revenue is EUR 14,701 million gains from the sale of products. Consolidated beer volume is 125.2 million hectolitres and Heineken volume in premium segment is 25.1 million hectolitres, Other revenues are gains from rental income and pub management services also technical services that are giving to third parties. When the services have been delivered Rental income and technical services are state in the income statement. Also, some incomes are gains from the property sale, equipment and plant, intangible assets and (interests in) subsidiaries which are accounted for EUR 41 million, (Heineken International, 2011, Annual Report,  2009). This includes the cost of the Raw materials EUR 1,140 million, non-refundable packaging cost EUR 1,739 million, Goods for resale cost EUR 2,253 million, Inventory movements, marketing and selling expenses EUR 1,664 million, Transport expenses EUR 934 million, Energy and water cost EUR 319 million, Repair and Maintenance cost EUR 299 million. Other expenses include rentals of EUR 184 million, consultant expenses of EUR 158 million, telecom and office automation cost of EUR 145 million and other fixed expenses of EUR 820 million, Heineken International (2011), Annual Report (2009) ,[Online]. Research,  Development , Software and other intangible assets costs. According to Heineken International (2011), Annual Report (2009), [Online], Research, Development, Software and other intangible assets costs is EUR 1,083 million these includes purchase of softwares and expenditure on internally development and maintain of software. Also Expenditure on research activities such as design and improve product brand image (Heineken DraughtKeg, improved design of the new iconic Bottle) . Government Grants According to Heineken International (2011), Annual Report (2009) ,[Online],cost is EUR 70 million Government grants has been surety to the authorities in a number of countries as security for the payment of taxation where Heineken operates, especially excise tax paid for beers and non-alcoholic beverages , spirits and import duties. Other net finance expenses including income Tax According to Heineken International (2011), Annual Report (2009), [Online], Other net finance expenses including income Tax , impairment losses recognised on investments, and gains or losses on hedging instruments that are recognised in the income statement cost is EUR 214 million. Personnel expenses This includes Wages and salaries EUR 1,554 million, compulsory social security contributions EUR 287 million, contributions to defined benefit plans EUR 17 million, increase in other long term employee benefits EUR 7 million, Expenses related to define benefit plans EUR 107 million, Equity-settled share-based payment plan EUR 10 million, Other personnel expenses EUR 397 million, Heineken International (2011), Annual Report (2009),[Online]. The measures of performance for the Beer Industry According to Plato Logic Limited (2011),Global beer consumption grew by 1.8% in 2008, but a sharp slowdown to less than 1% growth forecasted for 2009, also China market is strengthened its position further as the worlds biggest beer market in 2008 by achieving record sale of 407mhl. Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg beer brands accounting for 50% of beer sales volumes and up to 75% of the global profit, Plato Logic Limited (2011). Over the past 5 years the beer category average growth rate was 3.5% globally. However according to SABMiller (2011), this reflects different pictures in growing and developed markets with growing at an average rate of 6.8% .while developed markets gradually become less by 3.4%.The largest contributor to this growth rate is China, which is now the worlds largest beer market, Africa and Eastern Europe. China recorded a rise of over 7%, despite being hindered by heavy weather conditions that affected consumer demand, SABMiller (2011). The measures of performance of the Heineken Company and beer Industry Financial performance Source: Heineken International (2011), Annual Report (2009) via http://www.annualreport.heineken.com/report_of_the_executive_board/financial_review/index.html Revenue and expenses According to Heineken International (2011), Annual Report (2009), [Online], Heineken revenue increased by 2.7 % from EUR 14.3 billion in 2008 to EUR 14.7 billion in 2009 and decreased organic growth by 0.2 %. However Heineken Annual Report noted that other income is increased from EUR 32 million in 2008 to EUR 41 million in 2009.Main reason is of increased cost of sale of property, plant and equipment. Furthermore Total cost management (TCM), Heinekens wide cost reduction programme for the period 2009 to 2011 which is delivered mainly savings in fixed cost spending. Therefore other expenses were decreased by EUR 36 million. In 2009, exceptional restructuring charges as part of personnel expenses related to Total cost management amounted to EUR 63 million before the tax, Heineken International (2011), Annual Report (2009). Heineken International (2011), Annual Report (2009) further noted that Costs of raw materials and packaging decreased by 4.4 %, of which 3.2 % which was due to low volumes and low purchasing prices for barley the end of 2009.Furtthermore Marketing and selling expenses reduce organically by 3.7% to11.3 % of revenue in 2009 from 11.7 % in 2008, Heineken Signs Sponsorship Deal With ESPNSoccernet According to adoimagazine.com, Interactive Hub has secured a sponsorship deal with Heineken on ESPNSoccernet for three seasons of the UEFA Champions League (UCL). The three-season agreement will run until the 2012/2013 season. Heineken supply lager for London Olympics 2012 According to Ruddick G., (04 Feb 2011), London Olympics Business, Heineken UK will be the official lager supplier in a tier three deal, typically worth around  £10m, that pushes London 2012 closer to its target of raising  £2bn from sponsorship. Heineken profits up According to BBC News (25 August 2010), Business, Heineken Net profits for the first half of the year hit 621m Euros ( £510m; $788m), up 17% on the same period last year. Heinekens acquisition of FEMSA increases its exposure to key Latin American markets According to Curran P., (01-12-2010),The Heinekens acquisition of FEMSA strengthen Heinekens position in the Americas and substantially increase its share in Mexico and Brazil as well as securing its joint venture with FEMSA in the US premium beer import market. Mexico and Brazil are other two leading markets in Latin America and those countries accounted of 63% beer volume of those regions in 2009. Heineken NV sees profits grow According to Canadeans,( 17/02/11), latest beer news Heinekens Non-organic net profit rose by 41 per cent to à ¢Ã¢â‚¬Å¡Ã‚ ¬1.4 billion ( £1.2 billion), while its premium volumes climbed by 3.4 per cent. Nearly 1 million jobs rely on sector According to Canadeans news ,(17/02/11), A new report, conducted by Oxford Economics and commissioned by the British Beer Pub Association (BBPA), showed that 980,000 people are reliant on the licensing sector for employment, with the beer and pub trade bringing  £21 billion into the economy annually. Value Chain for the Heineken International Firm infrastructure According to Heineken International (2011), Heineken structured like Holding Company. The role of the Heineken Holding N.V. has performed for the Heineken group since 1952.It has been set to safeguard Heineken continuity with independence, stability and steady growth of the Heineken groups activities. Management Heineken International (2011) noted that Heineken Holding N.V. is head of the Heineken Group with a Board of Directors. The management of Heineken N.V. is run by the Executive Board, which has two members and is chaired by Jean-Franà §ois van Boxmeer. Heineken currently operate in 5 regions, which are The Americas, Western Europe, Central and Eastern Europe, Africa and the Middle East as well as Asia-Pacific. Each operating region is headed by a Regional President. The five Regional Presidents, two members of the Executive Board and five Group Directors are included in the Executive Committee. The Executive Committee ensures the alignment and implementation of key priorities, strategies across the organisation and supports the development of organisation policy. Heineken International (2011). Primary Activities Inbound logistics Heineken operates in many different countries, therefore Heineken purchase raw materials (malt, hops and adjuncts), equipment and other goods and services within in order to meet the needs of customers and consumers and distributed beer worldwide, stored in warehouses strategically placed throughout to minimize shipping costs to stores. Supplier Code is designed to ensure both ethical and effective sourcing processes that reduce the risk of reputational and financial damage through the supply chain, Heineken International (2011). Operations Heineken main operation is Brew beer and it operates in more than 170 countries. With total consolidated beer volume of 125.2 million hectoliters in 2009, producing beer in more than 70 countries through its 140 breweries and also through other brewers under license, Heineken International (2011), AMCO Heineken Prospectus [Online]. Outbound logistics Heineken is the largest beer and beverage distributor in Western Europe. In every market where Heineken active, Heineken strive for comprehensive coverage through alliances with independent distributors or via Heineken own beverage wholesalers. Often, Heineken wholesalers also distribute wine, spirits and soft drinks to the on-trade. Heineken also has brewers throughout the world so that it can ship its finished products to local areas to minimize shipping costs, Heineken International (2011). Marketing and sales Heineken has worlds leading portfolios of premiere beer brands and is the 3rd most recognized brand of beer in the world. By acquiring smaller brewers in the world Heineken spread brand name even more also in achieving sustainable growth. National advertising play a prominent role in promoting Heineken strengthened brand equity through associations with high-impact, high-profile sports and music events (Heineken cup and OPENER music festival), Social networking sites and video blogs, films. Heineken remain fully committed to the responsible brewing, Respect for the consumer and an acknowledgement of the dangers associated with the misuse of alcohol drives to market Heineken products in a responsible way, Heineken International (2011). Service In the brewing industry there is little to no after sales service. The company encourage consumers to visit the internet site and register to become part of the Heineken. As part of this, the company could send out periodical surveys to gain input from consumers on product related issues. Heineken International (2011). Support Activities Human Resource Management According to Heineken International (2011), Heineken has the ability to develop leaders by exposing employees to a wide variety of businesses, with responsibility. Heineken allows them to take prudent risks as they improve their own leadership and business skills. Heineken focused on leadership development that ensures smooth succession through Heinekens most senior management levels. Heineken average number of people employed is more than 75, 000, Heineken International (2011). Technology Development Heinekens worldwide operations are relying on information systems. Information Technology processes, infrastructures and IT Risk monitoring processes are centralised and outsourced to professional outsourcing partners. Which are includes agreements on assurance from IT outsourcing partners, Heineken International (2011). Procurement Thermal energy Heineken use heat for brewing and 41% of heat generated by natural gas in their own sites and from diesel or gas oil, light fuel oil, heavy fuel oil or coal at the remainder 7% of Heineken sites utilise waste heat supplied by neighbouring industrial plants. Heineken gets biogas from the anaerobic treatment of wastewater and Heineken control nineteen anaerobic treatment plants and its the 7th largest company that uses the biogas as an energy source, Heineken International (2011). Electricity Heineken buy most of the electricity and remaining 45% of electricity generate in the site by combining heat and power systems as well as diesel generators. Around 6% of Heineken sites are not connected to urban electricity systems and all the electricity use on those generated on-site, Heineken International (2011). Water water is the main raw material used in brewing. Water is also used to cleaning tanks, packaging, production equipment and pipe work, Heineken International (2011). Raw materials (grains and hops) Heineken get most of raw materials by participating in joint development projects with malting companies in countries where Heineken operates. In 2009, Heineken UK launched a new supply chain code of conduct and focused on improving its responsible supply chain performance. Heineken operates some of own local Agriculture projects to get raw materials such as Sierra Leone Sorghum Project which is local sourcing project in Sierra Leone is part of the companys Africa-wide strategy to procure at least 60% of its raw materials locally, Heineken International (2011). Furthermore Heineken has developed subsidiaries and partnerships for many of the inputs required to produce beer including screw cap manufacturers, freight companies, and can manufacturers, glass bottlers, cardboard manufacturers, and machinery manufacturers, (Heineken International, 2011). Goals of Heineken International Green Commerce According to Heineken Sustainability Report (2009), by 2012 Heineken aims to reduce carbon footprint of their brands and business. This also includes transparently report against clear benchmarks and carbon reduction throughout the value chain support of the new supplier code. Also significantly reduce the total carbon per hectolitre by 2020.Also by 2012 design carbon reduction new package policy, Energy reduction of 15% in cooling, introduce new product evaluation criteria in all regions where Heineken operate. Green brewer Heineken Sustainability Report (2009) noted that Use energy in an efficient way and reduce the associated fossil CO2 emissions and develop this concept of the CO2 natural brewery and implement it in at least three breweries. By 2012 Heineken aim to keep specific water consumption to 4.3 hl/hl also designed energy efficient breweries and keep fossil CO2 emission to average 8.5 kg/hl. Engaging Employees The secure and safe working environment develops for all employees by achieve zero fatalities across Heineken business. By 2012 implement and audit employee rights and policy by developing training modules for employees in high and medium safety risk functions, also set safety targets for other activities that are not relevant for production, Heineken Sustainability Report (2009). Heineken cares According to Heineken Sustainability Report (2009), Heineken aims to increase the level of corporate social investment in developing markets, by In 2010 increase funds for the Heineken Africa Foundation to EUR 20 million enabling EUR 1 million investment per year thereafter and develop standards for sustainable agriculture and verified by stakeholders. Responsible beer consumption programme The combine actions of Heineken and all stakeholders promote and develop Enjoy Heineken Responsibility(provide consumers with information about alcohol consumption and health issues) by 2012 and develop and deliver 100% of commerce or marketing employees a specific workshop for support rules on responsible commercial communication, Heineken Sustainability Report (2009). Partnership for future progress According to Heineken Sustainability Report (2009), by 2012 increase the Heineken partnership with markets to at least 50 with third party to address alcohol abuse and implement and evaluate UK and Ireland Government or industry partnership projects.

Effect of Anxiety Disorder

EFFECT OF ANXIETY DISORDER Nowadays people suffer from not only physical healt peoblems but mental problems are also quite common. Anxiety disorder is one of the mental problem which people face to handle commonly. Therefore; what is anxiety disorder ? In article of Anxiety Attacks and Anxiety Disorders explained that ;’’ Anxiety attacks( panic attacks ), are episodes of intense panic or fear’’ (2012)*. Some Effects of the anxiety disorder are faster heart beating and breathing,changing social behaviour. Firstly, one of the main effect of anxiety disorder, faster heart beating and breathing happen with increase adrenalin in human body.Because of the this health problem, people feel always warning and they don’t want to meet and see people around. therefore; this people want to be alone because they afraid if they can be disgraced. One of the point that people should care,not every faster heart beating and breathing mean anxiety disorder,faster heart beating and breathing is quite normal symptom of human being sensation;however,anxiety disorder patients have this beating immediately;moreover,without any symbol. Faster heart beating and breathing is simple and common effect of anxiety disorder problem.Secondly,it is really important and bad effect of anxiety disorder;changing human behaviour. people with anxiety disorder,assume that if they can have panic when they speak or meet someone,As    Lyness, PhD state that â€Å"people who have this illnesses,fear if others dont understand their problem;moreover, if they dont show understandablity,if others can ciriticise his or her behaviour unrighteously. Patient afraid of if they can meet misunderstanding,eventhough the anxiety problem is common,people with the illnesses feel alone and misunderstood (October,2012)**.Anxiety disorder effect of changing behaviour is affect even people social,school and family life. Finaly,effects of anxiety disorder problem are faster heart beating and changing behaviour change human life profoundly. Although it has unwell effects,it isnt unrecover illnesses,it has solution. In article Anxiety disorder,according to Mr. Lyness,PhD,steps of treatment are that Tell a parent or other adult about physical sensations, worries, or fears. Get a checkup and make sure wheather it can be physical problem. Work with a mental health professional.Get regular exercise, good nutrition, and sleep(October,2010). RESOURCES **http://kidshealth. org/teen/your_mind/mental_health/anxiety. html#a_How_Are_Anxiety_Disorders_Treated_(first one: summury from under head of How Anxiety Disorders Affect People,second paragraph.. second one(in final part) is summary of under head of What to Do in article start from second paragraph. ) ————————————————- *http://www. helpguide. org/mental/anxiety_types_symptoms_treatment. htm (Under the head of Anxie ty attacks and their symptoms,first sentence,direct quatation)

Australian Corporations Law Essay

There are two company classifications, proprietary and public. Most Australian companies are proprietary limited companies because this classification and type suits the needs of most businesses. (i) Reasons to Choose a Proprietary Company A proprietary company by comparison to a public company has simpler and therefore lower cost reporting obligations, is limited to 50 non employee shareholders’, ‘and between 1 to 50 members’ , a public company can have more. A proprietary company requires a minimum of one director a public company requires a minimum of three directors. The director or directors of proprietary company must ordinarily reside in Australia and be 18 years of age or older. A public company can be listed on the stock exchange and raise funds directly from the public by offering shares or debentures for sale’ a proprietary company cannot, however a proprietary company can offer shares to existing shareholders or employees. (b) Company Types There are two types of proprietary companies, companies limited by shares and companies unlimited with share capital. (i) Reason to Choose a Company Limited by Shares In the event that a company limited by shares does not have sufficient assets to meet its debts, each member is only liable for the amount, if any, that remains unpaid on their shares , ‘[L]imited liability means that members of a company are not personally liable for the full extent of their company’s debts. ’ This limitation of personal liability is the great advantage of this type of company. (ii) Reason Not to Choose a Company Unlimited with Share Capital An ‘unlimited company means a company whose members have no limit placed on their liability’ for their company’s debts. Unlimited companies are rarely used. Company Names A company name is optional; the company’s ACN can be used instead. The name ‘Sai Kung’ has been chosen and so an application for reservation of the name, form 410, must be lodged with ASIC prior to the application to register the company. See attachment 1. ‘A limited proprietary company must have the words â€Å"Proprietary Limited† [or Pty Ltd] at the end of its name. ’ B Application for Registration 1 Application Form To register the company, ASIC form 201 must be completed and lodged with ASIC. See attachment 2. 2 Additional Information Required for Registration In addition to the classification, type and proposed name of the company the following information must be provided: †¢Ã¢â‚¬Ëœthe name and address of each person who consents to become a member’ †¢ ‘the present given and family name, all former given and family names and the date and place of birth of each person who consents in writing to become a director †¢Ã¢â‚¬Ëœthe present given and family name, all former given and family names and the date and place of birth of each person who consents in writing to become a company secretary;’ A proprietary company is not required to have a secretary †¢Ã¢â‚¬Ëœthe address of the company’s registered office;’ †¢Ã¢â‚¬Ëœthe address of the company’s proposed principal place of business (if it is not the address of the proposed registered office);’ †¢Ã¢â‚¬Ëœthe number of shares each member agrees in writing to take up;’ The price of each share, whether the share wi ll be fully paid on registration, if not fully paid, the amount that will be unpaid on each share and whether or not the shares each member agrees to take up will be beneficially owned by the member on registration of the company. 3 Consents and Agreements Consents and agreements of nominated directors, secretary and members must be obtained prior to the application for registration being accepted by ASIC. 4 Rules for Internal Management of a Company Regarding the rules for the internal management of a company, a company can either use the ‘replaceable rules’ as stated in the Corporation Act, or form a constitution, the company’s own rules, or a combination of replaceable rules and the constitution. C Registration by ASIC Registration is at ASIC’s discretion. 1 Issue of Certificate of Registration Sai Kung Pty Ltd will not exist, will not become incorporated, until ASIC registers the company and issues a certificate of registration. 2 Corporate Key ‘Within two days of registration, ASIC will also issue a corporate key to the company’s registered office address. ’ This is an eight digit number used to lodge forms with ASIC, access company records and receive annual statements online. This number should be kept confidential. D Alternative: A Shelf Company If you do not wish to go through the process of registration alternatively you could purchase a shelf company, this is a company that has already been registered and is therefore available for immediate use. A shelf company can be renamed with the name of your choosing. The Facts 5 January Toto acting as a promoter, entered into a contract on behalf of Sai Kung (‘SK’), a yet to be registered company. The contract was with Television Broadcasts Limited (‘TVB’), to pay TVB for their professional and technical assistance in producing a television seafood cooking show. 12 January SK was registered by ASIC, the company did not adopt a constitution, did choose to have a common seal and Flora and Toto were both appointed as directors. SK did not appoint a company secretary. TVB commenced providing SK with professional and technical assistance to produce the television show. 2 February The contract with TVB was ratified by SK on 2 February. 20 February As at 20 February the shows production has not commenced and TVB has not been paid for its assistance. B The Law Applied to the Facts When Toto, on behalf of SK, entered into the contract with TVB, he acted as a promoter, ‘anyone who exerts themselves on behalf of a not-existent company’ . Toto the promoter was liable to pay TVB for their services in the event that SK did not register or SK did register but did not ratify the contract. On 2 February SK, a registered company since 12 January, ratified the contract with TVB. SK is now liable and bound by the contract made on its behalf on 5 January. However, in the event that SK does not pay TVB part or all of what is owed, Toto, as the promoter, remains liable. If Toto had obtained a release from TVB he would no longer be liable or ‘[a]n alternative way in which a company [SK] can become primarily liable is where the company [SK] and the other party [TVB] substitute a new contract in place of the pre-registration contract (otherwise known as â€Å"novation†). This discharges any liability of the promoter [Toto] in relation to the pre-registration contract. An effective novation requires the consent of both the company [SK] and the third party [TVB]. ’ C The Objective of the Section 133 of the Corporations Act ‘At common law, if a pre-registration contract was not performed †¦ neither the company †¦ nor the promoter were liable. The innocent other party was left with an unenforceable contract’, an example is the case Black v Smallwood . A promoter ‘was only bound if they intended to be bound’ as in the case Kelner v Baxter where ‘[t]he court examined the written contract and imputed and intention by [the promoter] Baxter to bind himself personally. ’ Section 133 of the Corporations Act states that Part 2B. replaces any rights or liabilities anyone would otherwise have on the pre-registration contract’ , ending the ‘uncertainty arising out of the laws of agency and contract. ’ ‘The issue of where liability lay for not fulfilling obligations incurred under p re-registration contracts is now governed entirely by the Corporations Act and its overriding aim is to ensure that the innocent other party [in this case TVB] is not left without legal remedy.

The Capture of Inca Atahualpa

On November 16, 1532, Atahualpa, lord of the Inca Empire, was attacked and captured by Spanish conquistadors under Francisco Pizarro. Once he was captured, the Spanish forced him to pay a mind-boggling ransom amounting to tons of gold and silver. Although Atahualpa produced the ransom, the Spanish executed him anyway. Atahualpa and the Inca Empire in 1532: Atahualpa was the reigning Inca (a word similar in meaning to King or Emperor) of the Inca Empire, which stretched from present-day Colombia into parts of Chile. Atahualpas father, Huayna Capac, had died sometime around 1527: his heir apparent died around the same time, throwing the Empire into chaos. Two of Huayna Capacs many sons began to fight over the Empire: Atahualpa had the support of Quito and the northern part of the Empire and Huà ¡scar had the support of Cuzco and the southern part of the Empire. More importantly, Atahualpa had the allegiance of three great generals: Chulcuchima, Rumià ±ahui and Quisquis. In early 1532 Huà ¡scar was defeated and captured and Atahualpa was lord of the Andes. Pizarro and the Spanish: Francisco Pizarro was a seasoned soldier and conquistador who had played a large role in the conquest and exploration of Panama. He was already a wealthy man in the New World, but he believed that there was a rich native kingdom somewhere in South America just waiting to be plundered. He organized three expeditions along the Pacific coast of South America between 1525 and 1530. On his second expedition, he met with representatives of the Inca Empire. On the third journey, he followed tales of great wealth inland, eventually making his way to the town of Cajamarca in November of 1532. He had about 160 men with him, as well as horses, arms and four small cannons. The Meeting in Cajamarca: Atahualpa happened to be in Cajamarca, where he was waiting for the captive Huà ¡scar to be brought to him. He heard rumors of this strange group of 160 foreigners making their way inland (looting and pillaging as they went) but he certainly felt secure, as he was surrounded by several thousand veteran warriors. When the Spanish arrived in Cajamarca on November 15, 1532, Atahualpa agreed to meet with them the next day. Meanwhile, the Spanish had seen for themselves the riches of the Inca Empire and with a desperation born of greed, they decided to try and capture the Emperor. The same strategy had worked for Hernà ¡n Cortà ©s some years before in Mexico. The Battle of Cajamarca: Pizarro had occupied a town square in Cajamarca. He placed his cannons on a rooftop and hid his horsemen and footsoldiers in buildings around the square. Atahualpa made them wait on the sixteenth, taking his time to arrive for the royal audience. He eventually showed up in the late afternoon, carried on a litter and surrounded by many important Inca noblemen. When Atahualpa showed up, Pizarro sent Father Vicente de Valverde out to meet with him. Valverde spoke to the Inca through an interpreter and showed him a breviary. After leafing through it, Atahualpa disdainfully threw the book on the ground. Valverde, supposedly angry at this sacrilege, called on the Spanish to attack. Instantly the square was packed with horsemen and footmen, slaughtering natives and fighting their way to the royal litter. The Massacre at Cajamarca: The Inca soldiers and noblemen were taken completely by surprise. The Spanish had several military advantages which were unknown in the Andes. The natives had never seen horses before and were unprepared to resist mounted foes. The Spanish armor made them nearly invulnerable to native weapons and steel swords hacked easily through native armor. The cannon and muskets, fired from the rooftops, rained thunder and death down into the square. The Spanish fought for two hours, massacring thousands of natives, including many important members of the Inca nobility. Horsemen rode down fleeing natives in the fields around Cajamarca. No Spaniard was killed in the attack and Emperor Atahualpa was captured. Atahualpas Ransom: Once the captive Atahualpa was made to understand his situation, he agreed to a ransom in exchange for his freedom. He offered to fill a large room once with gold and twice over with silver and the Spanish quickly agreed. Soon great treasures were being brought from all over the Empire, and greedy Spaniards broke them into pieces so that the room would fill more slowly. On July 26, 1533, however, the Spanish became frightened at rumors that Inca General Rumià ±ahui was in the vicinity and they executed Atahualpa, supposedly for treason in stirring up rebellion against the Spaniards. Atahualpa’s ransom was a great fortune: it added up to some 13,000 pounds of gold and twice that much silver. Sadly, much of the treasure was in the form of priceless works of art which were melted down. Aftermath of the Capture of Atahualpa: The Spanish caught a lucky break when they captured Atahualpa. First of all, he was in Cajamarca, which is relatively close to the coast: had he been in Cuzco or Quito the Spanish would have had a harder time getting there and the Inca may have struck first at these insolent invaders. The natives of the Inca Empire believed that their royal family was semi-divine and they would not lift a hand against the Spanish while Atahualpa was their prisoner. The several months that they held Atahualpa allowed the Spanish to send for reinforcements and come to understand the complex politics of the empire. Once Atahualpa was killed, the Spanish swiftly crowned a puppet Emperor in his place, allowing them to maintain their hold on power. They also marched first on Cuzco and then on Quito, eventually securing the empire. By the time one of their puppet rulers, Manco Inca (Atahualpas brother) realized that the Spanish had come as conquerors and started a rebellion it was too late. There were some repercussions on the Spanish side. After the conquest of Peru was complete, some Spanish reformers - most notably Bartolomà © de las Casas - began asking disturbing questions about the attack. After all, it was an unprovoked attack on a legitimate monarch and resulted in the massacre of thousands of innocents. The Spanish eventually rationalized the attack on the grounds that Atahualpa was younger than his brother Huà ¡scar, which made him a usurper. It should be noted, however, that the Inca did not necessarily believe that the eldest brother should succeed his father in such matters. As for the natives, the capture of Atahualpa was the first step in the near-total destruction of their homes and culture. With Atahualpa neutralized (and Huà ¡scar murdered on his brothers orders) there was no one to rally resistance to the unwanted invaders. Once Atahualpa was gone, the Spanish were able to play off traditional rivalries and bitterness to keep the natives from uniting against them.