Economic development in China and India Essay

Foreign trade in China is almost completely dominated by the state. In 1979, China relaxed certain trade restrictions, paving the way for increases in the relatively small foreign investment and trade activity. By the late 1980s, yearly exports totaled about $41. 1 billion and imports $46. 4 billion, and both have increased sharply since then. China has been undergoing a dramatic transformation to a market economy. As a result, it currently is the world leader in terms of economic growth, industrial expansion, and exports. It contains an array of potential consumers that far exceeds the markets in Europe or the Western Hemisphere, and it is rapidly emerging as a new epicenter for industry, commerce, and finance. In addition, the so-called â€Å"greater China† has substantial amounts of technology and manufacturing capability, outstanding entrepreneurial, marketing, and services acumen in Hong Kong, a fine communications network and a tremendous pool of financial. When these resources are combined with the very large endowment of land, resources, and labor on the mainland, China already is a major superpower in the global economy. The people’s Republic of China (PRC or China, for short) has had a long tradition of isolation. In 1979, Deng Xiaoping opened his country to the world. Although his bloody 1989 put-down of protestors in Tiananmen Square was a definite setback for progress, China is rapidly trying to close the gap between itself and economically advance nations and to establish itself as an economic power in the Pacific Rim. Southeast China in particular has become a hotbed of business activity. Presently, China is actively encouraging trade with the West, and it is a major trading partner of the United States. Despite this progress, many U. S. and European multinationals find that doing business in the PRC can be a long, grueling process that often results in failure. One primary reason is that Western-based MNCs do not understand the role and impact of Chinese culture. Since the last few decades there has been a multifold increase in the FDI in China. The Chinese economy has now gaining the power of effecting the decisions of the economic bodies of the world. History of FDI growth in China: The country launched its open door policy 26 years ago. Since the policy introduction the FDI flows in the country received a quick response. In 2004 China was at no. 2nd position in the world of FDI with $64 billion. The Chinese FDI trends can be examined in two phases. First phase: 1979-82 Second phase: 1984-91 Third phase: 1992-99 In the first phase the government establish for special zones with incentive policies. Although there was a high inflow into those regions, the total FDI flow reached US $ 1. 8 billion. In the second phase the provinces were opened and recorded US $ 10. 3 billion. In 1989 however the trend dropped. In the third phase Deny Xiaoping opened China for overall economic reform. The phase was very fruitful for China. The government introduced new policies and market oriented economic reform. In result of these reforms the FDI’s started flowing into the Chinese economy at rocket speed. In November 1999 US-China had an agreement regarding the WTO, according to which many new reforms were made (Sandra, 2001) those included †¢ The sectors relating to the distribution services will be opened for repair and maintenance and China will phase in trading rights and distribution services over three years. The Government for the investment opened the telecommunication industry of China. †¢ The professionals were also allowed access to the service markets of China. The services included according, consulting, Information Technology and Engineering. (Lardy, 2000). FDI in China rose to a peak level of US $ 45463 million in 1998. In the first six months of 2002, actual foreign direct investment (FDI) in China rocketed to 24. 58 billion U. S. dollars, setting a record growth rate of 18. 69 percent year-on-year. (Beijing Time, 2002) On June 22, 2005, CNOOC, a Chinese company made a $18. billion bid to purchase Unocal Corporation, an U. S. energy company. News of the bid raised concern among several Members, many of who contend that the deal would threaten U. S. national security. On June 30, 2005, the House passed H. Res. 344 (Pombo) by a vote of 398 to 15, expressing the sense of the House of Representatives that a Chinese state-owned energy company exercising control of critical United States energy infrastructure and energy production capacity could take action that would threaten to impair the national security of the United States. On the same day, the House passed an amendment (H.  Amdt. 431) to an appropriations bill (H. R. 3058) that would prohibit the use of funds from being made available to recommend approval of the sale of Unocal Corporation to CNOOC. On May 20, 2005, the Chinese government reported that first quarter real GDP grew by 9. 4% in 2005 over the same period in 2004. On April 15, 2005, the Chinese government reported that its foreign exchange reserves had risen to $659. 1 billion by the end of May 2005. (Morrison, 2005) Some researchers state the fact that the data reported for FDI in China is different from the reality. The Chinese FDI data is overstated. About ? of flight capital later returns (â€Å"round-trips†) as FDI when opportunities emerge. (Gunter, 2004) From the early 1990s most of the researchers from International bodies have calculated wrong FDI. It is Mainland Chinese monies that flowed out to access better financial, regulatory and legal services and round-trip by returning to China as apparent FDI to access the fiscal incentives and improved investor protection offered in China to foreign investors. (Erskine, 2004) Outward FDI: â€Å"The figures on FDI outflows vary. According to China’s BOP statistics, the cumulative total during 1990 to 1997 was US$18. 9 billion, consisting exclusively of equity capital. Since the 1980s, China has been fast acquiring assets abroad. Researchers7 estimate that Chinese FDI in Hong Kong totaled US$20-30 billion by the end of 1993 or 1994. In fact the net wealth of Chinese affiliates abroad can be measured in hundreds of billion dollars. Officially, the Chinese SOEs had as many as 5 666 affiliates abroad at the end of 1998 with a combined FDI of US$6. 33 billion. (Chandra) Both the in-ward and the out-ward FDIs are a strong influencing forces which effect the trade performance of a country. This can be further explained by conducting the following case study. The study reveals increased value to Economy of China due to FDI. Source countries: Among the developed countries Japan & United States are the most important investors in China. Hong Kong is also an important investor and newly industrialized (NIEs. From 1990’s some of the countries like Philippines Malaysia & Indonesia have also increased their investment levels in China. Other countries are also showing interest in investing in China in future. In 2003, Sino-Japan trade reached a record high $132 billion. Examining the fast expansion of the bilateral trade suggests that direct investment from Japan performed a critical role in strengthening the economic integration between the two economies. Japanese affiliated manufacturers in China contributed to the soaring bilateral trade in dual ways: exporting their products as final products and intermediate inputs to Japan, and importing intermediates inputs from Japan for their production in China. In 2002, Japanese affiliated manufacturers exported 1,057 billion yen products to Japanese market (METI, 2003). The effect on China’s exports and its national economy is tremendous. (Xing, 2004) FDI from China: Not much material is provided regarding the subject. Although Hong Kong can be viewed as the destination for out ward flow of FDI from China. Sector and geographical distribution of FDI in China Sector Distribution: â€Å"So far, the major proportion of FDI is drawn for the manufacturing field, which takes up almost 60 per cent of the total contracted FDI by 1998. Next follows real estate with the share of 24. 4 percent. The portion of the distribution industry including transport, wholesale and retailing is 6. 0 percent. Construction comes next with 3. 1 percent. The primary industry such as agriculture, forestry and fishing takes 1. 8 per cent. In the future, service trade, such as finances, telecommunications and wholesale and resale commerce, will take up a larger share as a result of Chinese accession to WTO and further liberalization. Further investment liberalization should also take place in traditional industries. Especially, the expansion of FDI in agriculture will depend on the degree of opening up to the market circulation of agricultural products and the industrialized process of production operations. FIEs also generated nearly one fifth of the total tax revenues and 23. 5 million job opportunities, employing about one 10th of urban workers. These numbers suggest FDI has contributed nearly one quarter to one third of China’s GDP growth. †(OECD, 2004) Barriers in the way of FDI in China: The Chinese government has applied a controlled competition culture which against the liberalization provided by the WTO which lift most of the regulations from the trade & commerce (Yoost, 2005) Many assets in commercial and industrial sectors are state owned. This in turn gives rise to the problem of hidden state regulation imposition of the government on the foreign investors. This strengthens the view that China does not practice liberty in Business. Some of the sectors of economy are still protected by the government. Due to the situation the WTO commitments are not fulfilled which gives rise to local competition for foreign investors Factors attracting FDI in India: â€Å"India is a prime offshore location for low and high-tech activities, its low-cost, English-speaking and IT-savvy labor force, coupled with a large market potential, underpin global executives’ improved outlook and investment confidence this year. † (Rediff. com, 2003) The first set of factors which was involved in bringing the FDI to India was the improvement in technology, cheap labor, cost effective production of the goods, cheap and efficient supply chain. The Indian Government also has the cutting edge of Channeling the FDI in the right direction. They are attracting most of the MNEs towards India because at present the Chinese economy can provide them with all the suitable factors desired. Due to its increase in population India has become a growing and profitable market for most of the MNEs & products (Ahluwalia) The second set of factors, relating to SOEs, will change significantly and alter the market environment that foreign firms will face in India. Many if not the majority, of India’s best SOEs in industries accessible to foreign investors have set up joint ventures with foreign companies. In the foreseeable future, as the number of SOEs in the national economy continues to shrink, India will facilitate the entry of private domestic firms. MNCs will tend to build up their own affiliates rather than look for Indian domestic partners. At the same time, they will face more competition from private Indian firms as their numbers increase. All of these will become attractive features of the Indian market. Foreign invested enterprises (FIEs) have provided an alternative to private entrepreneurship because private Indian firms have been largely discriminated against. In the past 20 years, the highly efficient FIEs have contributed a great deal to the Indian economy. In 2002, even though FDI accounted for only one 10th of the gross fixed capital formation, FIEs contributed one third of the industrial output, one quarter of the value added, more than half of the exports, and nearly three quarters of the foreign exchange balances held in Chinese banks by corporations (Zhang, 2005). â€Å"The government of India eliminated export quotas as part of its effort to double Indian exports to more than $80 billion by 2007. India is the largest cotton cultivating country. The country has vast reservoir of scientific talent, established pharmaceutical industry, diversity of population and unique natural resources. Key to India’s development of biotechnology is the need for a science-based, rules-based regulatory approach, which is the best way to attract private sector investment. † (Larson, 2002) The major empirical conclusions of this paper are: (1) Much of the measured trade effect is through FDI rather than cost, as the theory of FDI would indicate, and that studies which concentrate on cost as the channel significantly understate the extent of such expansion. 2) On the whole bilateral country level, outward FDI has a larger predicted impact on China’s exports than does inward FDI. On the other hand, inward FDI is found having a larger predicted impact on China’s imports than does outward FDI. (3) There is much cross-regional variation and differences in the patterns of FDI-trade links. Regarding to the impact of inward FDI on Chinese trade, FDI is found to boost both export and import growth in Asia, Europe and Oceania. As far as outward FDI is concerned, a unanimous complement link between FDI and trade exists only for Asia, and Africa. (Yong, 2003) The work undertaken in this paper is an improved one because it takes into account all the aspects related to the FDI including a set of countries which contributes towards the FDI in China & India, the contribution made by this paper is in more fully evaluating an important policy question regarding the effect of FDI. Second, it takes into account national changes both in inward FDI and outward FDI over a considerable period of time.

How To Stop Violence In Schools Essay

We all know there is violence in schools. Like in the past a couple of years there has been many shootings in school and I wonder how we could stop that. We could have a police officer on campus at all times. We could also have a group of students be a crime watch team. But the most important is to have kids be in a non-violent environment at home. If schools would have a police officer there, it would stop most violence because he knows all of the laws. When anything suspicious happened, he could investigate the situation. If he found resulting in violence, he could give the person punishment, so the situation doesn’t result in violence. Schools with crime watch teams would probably have a lower violence rate because there would be more people trying to stop violence. The school could have some of the students that get good grades and have them look for violence in schools. The most important way to avoid violence in schools isn’t even something at school. The students need to have a non-violent environment at home. They need parents that show positive attitudes because everyone learns from their environment and if its good there more likely to do good things. If it’s bad they’ll probably do bad and violent things. Well now you know some ways violence could be stopped in schools. So spread the information because we don’t want any innocent students getting hurt or even dying.

Ariel case study Essay

Case analysis: Statement of problem: 1. First of all Martin have to find out if the company should improve the equipment. 2. If they decide to improve, then, which currency should they make the purchase in? 3. How can they calculate what their expected rate of return at the most certainty? Analysis: The general question is if the company should make the improvement or not, and if they do (assuming the project is beneficial) which currency will give the highest profit? Since it is calculated that the cost will drop when implementing the new equipment, we assumed that the cash flow equals the difference between the two figures. The NVP is 2,960,532 pesos, but Martin wanted to know whether to make the investment in Euros or Pesos. When we calculated the NPV in euros we can use two different approaches. You can find the NPV (Euro) by either translate NPV (Peso) by dividing it by 15,99. However, the better solution is to use the expected future spot rate on every cash flow, because this estimate is more accurate. Inflation rate is important to look at because, if the inflation rate changes, the NPV also changes and that will effect their decision. So, they have to consider the risk of inflation changes. If the inflation rate drops to 3% in Mexico, the purchase in Euros is more profitable, because the Peso is strengthened. Another variable to consider when deciding between Euros and Pesos is the risks concerning prediction of future currency rates. The short-term exposure, long-term exposure, the political risk and translation exposure could all affect the inflation. Recomendations : The company should go through with the project, because the net present value is positive. However, they should choose which currency to purchase the equipment in carefully, due to the uncertainty of the exchange predictions. They need to take all the risks into account.

Microbiology Essay Example | Topics and Well Written Essays - 1500 words - 1

Microbiology - Essay Example An evaluation of the total viable count and the presence of pathogens in the uncooked chicken were taken into account. The kitchen sponge and the hand wash water of the chicken were considered for the analysis. The analysis for the presence of the pathogenic micro organisms will help us to overcome the toxicity levels. (Mattick et al. 2003; Mattick et al. 2003a). A lot of tests were done to determine the presence of the bacterial load in the micro organisms. Some of them include Gram staining, Catalase test, Oxidase test, coagulase test, API Strip test, the effect of disinfectant hypochloride, cleaning agents and morphological tests. The presence of the pathogens is found using the biochemical tests and the API strip test. The differential staining of the bacteria helps to identify the unknown bacteria present in the sample. Before all the tests the samples are serially diluted and the 4th (10-4) and 5th diluted (10-5) sample are used for the analysis. The API 20E strip consists of 20 individual and miniature tests that contain the reagents for the identification of the metabolic capabilities and specifically the Enterobacteraceae family. (Butler et al. 1975). For the antimicrobial susceptibility testing, the Iso-Sensitest Agar (ISA) media was used. To test the presence o f enterobacteriaceae, the ISA media is enough according to the BSAC. The Molten agar was poured into the sterile Petri plates and they are dried to remove the excess moisture. To these plates, the antimicrobials of choice are used to such that it diffuses into the medium and they interact very well with the micro organism incorporated. The disc diffusion method of AST is the most commonest and effective method for the detection of the microorganisms in the sample. The inoculums was prepared and inoculated in the medium. The plates were incubated at 35-37 degree Celsius for at least 24 hours.

Perspectives on operations management Essay Example | Topics and Well Written Essays - 1250 words

Perspectives on operations management - Essay Example This research will begin with the statement that operations management strategy is simply a tool which can help the organizations to carry out their business inefficient manner. Operations strategies are the main key to the measurement of performance of any business entity. The main concern of business entities is how they will survive and can continue their functions in an effective manner. For this purpose, an efficient operations strategy set the long-term directions for the business and these directions ensure the future success of any organization. An efficient operations strategy can help the business entities to win the race and stand at top of the crowd in a competitive environment. Â  X Company is the chain of independent retail outlets in Hartwell in Essex and opening a new Wal-Mart store at the edge of the town. The advice is needed about the potential operation strategy in response to the recent opening of Wal-Mart store. The authors have prepared a plan for the future b usiness operation strategy for the new Wal-Mart store. According to many successful financial advisors, Operations strategy for any business has a direct impact on the profitability levels and corporate strategy. Structural design is the main element of the operations strategy. As the Company X is running its business as a retail outlet and wants to set the new business operation strategy for new Wal-Mart store. There are some key points for the structural design of new operations strategy in the paper.

Long Term Investment Essay Example | Topics and Well Written Essays - 1250 words

Long Term Investment - Essay Example But for this expansion the selected company has to make some capital budgeting decisions. Merger is not an easy to do activity and involves incorporation of two big organizations. A company could decide for merge because of many reasons, like provide capacity utilization, to gain economies of scale, to gain access to new suppliers, distributors, customers, products etc. although merger is not always helpful to the society (Kaplan, 2006). Merger sometimes reduces competition and the most cited fact known by all is that consumers are always hard to attract in competitive environment (Saari, 2007). Mergers can often result in a great number of social benefits. They also can produce economies that can reduce cost, improve quality, and increase output. 1. Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation. The Samsung Company is trying to expand and gain dominance, but there a re certain regulations that the company has to follow so as to ensure zero breach of law against the regulations settled by the government. The rules and regulations set by the government for merger policy are strict enough to ensure that the merger proves beneficial for the society. The regulations are set by the government on the basis that the merging companies eliminate the competition between them (Saari, 2007). Merger can be for the competitive reasons or for an attempt by the large firms to create enough activity and exercise higher power in the industry (Chatterji & Kuenzi, 2001). To determine the industry sensitivity government actually encourages mergers. The role of government in market economy is very important. The current economic situation did not come out thin air, rather, it is because of the growth of incorrect policies and most of the time because of lack of effective policies by the main entities that mainly empower manages of the economy. If the government fails to perform its functions than negative consequences might be expected. Major reasons for government involvement in a market economy: The following are some of the major reasons for government involvement in a market economy system. Provide economy with legal structure: This is one of the most important functions a government needs practice. In order to perform this function, the government needs to furnish economy with regulations, legislation and mean that ensure product quality. Maintaining competition: Government involvement is another important requirement in order to maintain competition. Government needs to fight monopoly power and non-competitive behavior. Thus anti-monopoly laws are designed to regulate business behavior and promote completion. Redistribution of income: The government needs to design relief programs for poor, handicapped and unemployed lot. This could be a good support for poor people and this program can help in transferring income from high income groups to these limited income people. Stipulation of public goods: When all the market fails to promote the basis and the needed goods the government fills in the space. Promoting growth and stability: The government should promote macroeconomic growth and stability through changes in fiscal and monetary policies. 2. Justify the rationale for the intervention of government in the market process in the U.S.

Introduction to decision making slp Assignment Example | Topics and Well Written Essays - 750 words

Introduction to decision making slp - Assignment Example My direct manager is a low level manager who is in charge of the employees and manages them. He makes operational decisions in the company which are small and deal with the day to day running of the low level affairs in the company. His main role is to report the needs and requirements of the employees to his manager. He is also in charge of the office supplies and his duty is to ensure that the supplies are enough in the office, well distributed, and that each employee maintains (Nutt & Wilson, 2010). His direct manager makes tactical decision and acts as a bridge between my manager and the senior level manager. He handles policy proposals on new products, new technology or new marketing tools. He then hands over the proposals and products to the senior level managers who then make the implementation. He sometimes acts as the human resource manager handling the problems of employees that are minute and do not require the attention of the senior managers. At the very top are senior managers who make strategic decisions which change the direction of affairs within the company and outside. Their decisions are influenced by both internal and external environment. They also work hand in hand with tactical manager to implement the product and project proposals, test new theories and technologies as well as liaise with other companies and the media in case announcements need to be made. The strategic managers are the face of the company as they are the known parties. 2. Give some specific examples of both programmed and non-programmed decisions that you have observed. Give at least one example of each type of decision, and explain why you think this decision falls into this category with references to the background materials. Programmed decisions are those that have been made severally until there is a clear guideline on what steps to take in order to make the decisions. These decisions can be passed down from one

The International Business Environment Essay Example | Topics and Well Written Essays - 3750 words

The International Business Environment - Essay Example This research will begin with the statement that in the present state of the global economic situation, the concept of Foreign Direct Investment (FDI) has attracted significant attention both domestically and globally. As such, FDI has been regarded as a vital element to consider in evaluating the economic development of countries around the world, particularly developing ones. Different empirical studies reveal that the relationships that prevail between economic development and FDI are multifaceted. From a macro aspect, FDI indicators represent high productivity, employment situation, technological spillovers, and competitiveness. For the less developed countries, FDI represents access to international currencies and markets, higher exports, and a source of financing. Research shows that FDI plays a vital role in promoting local firms. The efforts that countries make to help them attract FDIs result from the positive influences they have in an economy. FDI boosts productivity, tran sfer of technology, know-how, managerial skills, unemployment reduction, international production systems, and access to foreign markets. In this case, FDIs should be considered as ways of realizing technological spillovers, which have the significant contribution to the growth of an economy as opposed to the case of national investments. This practice leads to advanced technologies’ spillovers to local enterprises. Conversely, FDI has the potential of crowding out local firms, leading to negative impact on the economic development of a country. Various researchers stipulate that the positive effects associated with FDI are few and that most of the resulting effects are negative. Though FDI is associated with particular positive effects, the relationship that prevails between them and economic development are inconsistent. The potential negative or positive effects resulting from FDI on an economy are also dependent on the sectors nature, in which an investment will be carrie d out. For instance, the benefits of mining and agricultural sectors are limited.

For whom the bell tolls Hemingway Essay Example | Topics and Well Written Essays - 1000 words

For whom the bell tolls Hemingway - Essay Example He takes sides with the natives of Spain fighting against the Nationalist Generalissimo Francisco Franco. Robert Jordan leaves the comforts of his home and the safety of his career to face the challenges of guerilla life. The â€Å"pine needle floor of the forest† (1) is what he chooses when he leaves America, and all the dangers involved with guerilla warfare. A strong sense of duty compels him to make this choice. It is the result of his realization that the suffering of others is not something one can watch from the safety of one’s own home. Instead, it is a call for action to help alleviate the suffering if it is within one’s power. Every suffering individual is not someone different from each one of us, but we ourselves. This is the driving force that brings all the members of this guerilla band together. The intense comradeship felt among the guerillas is remarkable. This feeling reinforces the conviction of the individuals involved that no man is an I-land. The self does not come into concern. It is the others, the common cause that is of vital significance. The sense of belonging to the larger humanity than to a narrow, small group of people is the pervading feeling that binds the people together. The lack of modern machinery and the versatility, power and speed that comes with it are absent among the guerillas. Against the modern, well-equipped, powerful enemies, all that the guerilla group has is quite limited. A comparatively smaller number of people with real commitment, a few horses and some explosives – these are their only strongholds. But what gives them real strength is the intense companionship – the feeling that they are all one entity – for that matter all those in the whole world who are sympathetic towards them. The readiness to let go of themselves for the sake of the common cause, for the sake of others is the hallmark of the guerilla band. Robert Jordan and his elderly guide Auselmo are all geared to face

Why are there many translations of the bible is an advantage and Essay

Why are there many translations of the bible is an advantage and disadvantage - Essay Example glish has been the dominant language for centuries and the translating group (publishers and Bible scholars among others) use different methods to produce various versions that enhance peoples’ comprehension of the teachings. Critics point on the faithfulness of the Bible translations arguing that it contains distorted meanings and words of God. There is the dynamic equivalence method which lays emphasis on the original meaning, formal equivalence on word by word (Wallace 23). However, rather than focusing on the grammatical content in translations, the problem arises in trying to ensure the symbolic language used in the original material of translation makes sense upon paraphrasing and conversions. The benchmark is to ensure that though languages may change, the word of God still remains unchanged. The Greek New Testament has been criticized for its textual underpinnings that demonstrated a departure from the received Greek text. When Westcott Foss and Fenton John Anthony published the Greek New Testament, they considered the available ancient manuscripts that have been discovered to have missed certain passages (â€Å"Why so,† Bible.org). Many Biblical translators have failed to credit the works of these men, despite the fact that they laid a pillar in Biblical translation works. Their work has been claimed to be glorious, but surrounded by controversy on their contradiction from the original sources. Westcott and Anthony used two sources of the manuscripts that came from codex sinaiticus and vaticanus, believed to be false copies of the New Testament. Critiques hold that they entail the fifty falsified manuscripts deliberately corrupted by Eusebius to fulfil the order of neo-pagan emperor Constantine; the two manuscripts not only contradict each other numerously, but 99 per cent disagree with other Koine Greek manuscripts (â€Å"A concordance,† archive.org). Studying the version, there is rising doubt from the contradictions and posing inaccuracies that exist,

Agency Theory and Corporate Governance Research Paper

Agency Theory and Corporate Governance - Research Paper Example The objective of this paper is to evaluate the definition of corporation as a ‘nexus of contracts’ for interpreting its compatibility in the present modern business and thus to examine the importance of corporate governance. For verifying the assumption of the agency theory, the insights of the definition towards the theorists have been researched. It was discovered that there are various critics to this notion of the agency theorists in the modern world. The critics determined that the factor of morality has been ignored by the definition of the agency theorists. Moreover, for measuring the characterization of the definition towards importance of corporate governance, research was done and its was found that the definition has been termed as ‘misleading’ by various critics because of the fact that it incurs legal enforcement of the shareholders while at the same time shareholders hold the least power of legality among all the stakeholders. Introduction The agency theory in relation to the corporate governance represents a two-stage mode of controlling the firm. The two levels are those of the managers and the owners. This research paper is aimed towards discussing the various significant issues related to the existence of agency theory in a corporation. The paper will focus on the interpretation of ‘nexus of contracts’ in relation to the agency theory and corporate governance. ... The use of the phrase, ‘nexus of contracts’ provides a new dimension to the corporation definition. Under this term, the problem of conflicts within a firm is observed as a unit of the contract enforcement. Agency costs are determined as the contract enforcement costs on the basis of the assumption that corporation often acts as ‘nexus of contracts’. Under this definition, the structure of the corporation is defined to be adapting to an attempt aimed towards profit maximization by way of trading among the different parties of contract that meets within the corporation (Maloney, 2003). Relationship between Nexus of Contracts and Agency Theory The definition of the firm ‘nexus of contracts’ has been provided by the agency theory. The nexus of contracts has been defined among various suppliers of a firm’s resource. The nexus of contracts presume two central parties to the agency theory. These are the principals and the agents. Principals are those who supply the capital to the firm and agents are those who manage the operational functions of a firm. Agency costs are encountered by the organization because of the reason that the interests of the two parties do not coincide. The costs of contract enforcement under this presumption consists of the cost of observing the agents’ behavior inclusive of the practices of compensation, restrictions of budget allocation and also the profit and loss because of the rules of operations and that of management restrictions (Proffitt, 2000). Insights of ‘Nexus of Contracts’ for Agency Theorists Under the assumption of the agency theory that defines a firm as a nexus of contracts, it is taken for granted that it is the self-interest of the parties which acts as a

Budget Management and Variance Analysis Essay Example for Free

Budget Management and Variance Analysis Essay A budget is a tool that helps managers to ensure that the required resources are obtained and used effectively and efficiently as the organization moves towards achievement of its objectives. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss a development of operating budget, comparison expense results with budget expectations, description of possible reasons for variances and strategies to keep results aligned with expectations, recommendation some benchmarking techniques that might improve budget accuracy. The operating budget is a plan for the organization’s revenues and expenses that generally covers a period of one year (Finkler, Kovner, Jones, 2007). In healthcare organization the nurse manager of each cost center involves in the preparation and control of the operating budgets (Finkler, Kovner, Jones, 2007). The finance office of the organization provides support throughout the budget process development. The budgets for the costs centers are combined, and the executive management of the organization makes final decisions on a budget to be submitted to the board for approval. The nurse managers need a variety of information to begin the process of preparing operating budgets for their cost centers, such as the information generated by the organization’s environmental review and by its development of general goals, objectives, policies, organization wide assumptions, program priorities, and specific measurable objectives (Finkler, Kovner, Jones, 2007). For example, the environmental review and the general goals, objectives, and policies allow the manager to understand what the organization wants to accomplish and what it believes it will be able to accomplish. For another instance, the organization-wide assumptions and specific measurable objectives then provide the manager with information needed to start preparing the specific details of the budget. In addition, within nursing administration, additional back-ground information is needed before nurse managers can commence cost center budget preparation (Finkler, Kovner, Jones, 2007). Especially the organization’s approach to delivering nursing care must be clearly understood by all nurse managers. For example, responsibilities of LPNs as opposed to RNs, role of nursing assistants, or proportion of staff works on each shift. According to Finkler, Kovner, Jones (2007), the primary steps of the operating budget development include the calculation of expense budget for personnel, the expense budget for costs other than personnel services, and the revenue budget, budget submission, and budget implementation. To prepare the revenue or expense portions of the operating budget, the first step is to ascertain the volume of work for the coming year (Finkler, Kovner, Jones, 2007). The amount of work performed by a unit is referred to as its workload (Finkler, Kovner, Jones, 2007). Workload budget is budget that indicates the amount of work performed by a unit or department, measured in terms of units of service. Workload may be measured in a variety of ways, such as the number of patients, patient days, deliveries, visits, treatments, or procedures. Each cost center must determine the measure that is most appropriate for its unit of service. Once a cost center defines its key unit or units of service, it must predict the number of units of service that will be provided in the coming year. This will allow development of the operating budget. Expense budget for personnel is budget for all personnel under the manager’s direction, generally within a cost center such as RNs, LPNs, aides, and clerical staff (Finkler, Kovner, Jones, 2007). Expense budget for other-than-personnel services is budget for all expenses for other-than personnel services such as supplies, minor equipment, including both direct unit or department expenses and indirect overhead expenses (Finkler, Kovner, Jones, 2007). Budget submission is another step in budget development, when revenue and expense portions of the budget must be summarized and submitted for review together with detailed supporting calculations and narrative justification (Finkler, Kovner, Jones, 2007). Budget revisions may be required as the result of a series of negotiations over the submitted budget (Finkler, Kovner, Jones, 2007). Budget implementation is a final step of budget development, when managers must address a number of issues in implementing an approved budget, including development of a staffing plan that provides coverage for staff weekends, olidays, vacations, and sick leave as well as busy and slow periods (Finkler, Kovner, Jones, 2007). A budget variance occurs when the actual results of financial activity differ from your budgeted projections (Finkler, Kovner, Jones, 2007). The expense reports show the difference between the budget and the actual amount spent and the result is called the variance. Variances may be within the budget, which is favorable, or over the budget, which is unfavorable (Finkler, Kovner, Jones, 2007). The variance is used to predict the budget for upcoming years, help with spending during the current year, and help with evaluating the managers and their departments. To determine the cause of variances the managers must investigate and justify to upper management why the variance occurred. There are a variety reasons for variances, which must be identified and controlled if possible. While analyzing the nursing expense results from various units for a pay period, there were some favorable and unfavorable variances. While reviewing the expense record the paid productive hour’s variance was within the budget and the paid nonproductive hour’s variance was 60 hours over the budgeted hours. The unfavorable variance of paid nonproductive hours may have occurred due to some staff being on modified duty, sick leave, meeting time, or education time, which means they are getting paid with no patient care involved. The overtime percentage of hour’s variance was 7. 5% over the budget and the registry percentage of hour’s variance was 8. % over the budget, both are unfavorable. The overtime may have been caused by bad time management, late arrival of the next shift, or working past shift hours due to not enough staff. The increase in the registry hours may have been due to not enough regular staff due to hiring freeze or staff being off for personal or illness reasons. The hours per patient day (HPPD) licensed productive hours was . 13 over budget, the direct product hours was within budget, and the total productive hours was within budget. The hours per patient day over budget may have been caused by the unit being over staffed or also due to the overtime and registry hours. The average daily census (ADC) per unit varied from being within budget to 7. 50 over the budget. The daily census is very unpredictable and depends on the time of year, the admissions from ER or the clinic, and transfers from other hospitals or facilities. Strategies to keep the results aligned with expectations may be done by performance budgeting, which will analyze key reas such as staffing, cost control, increased productivity, and indirect and direct patient care. The activities affected by analyzing these performance areas would be daily staffing calculations, reduced cost to the unit, working more efficiently and better time management, patient care planning, and time spent on patient charting. Offering incentives could also be a good way to involve the staff by informing them of the budget goals. Benchmarking helps to identify performance gaps and identify where improvement is needed. â€Å"Benchmarking is used by large health systems and smaller practices alike as a tool to identify targets and set goals enabling staff to compare the operation’s service, process, and outcomes with those already attaining best practice† goals† (Borglum, 2008, para 12). There are many benchmarking techniques; for the purpose of this paper three will be discussed, financial, performance, and operational. Financial benchmarking is performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity† (Cimasi, 2006, para 10). â€Å"Financial benchmarking is among the more effective techniques for extracting information from a health care enterprise’s historical operating performance and presenting it in a form that facilitates informed judgments that help predict the subject entity’s future operating performance and financial condition† (Cimasi, 2006, para 16). Performance benchmarking involves comparing the performance levels of organizations for a specific process, this information can then be used for identifying opportunities for improvement and/or setting performance targets† (Business Performance Improvement Resources, 2011, para 26). â€Å"Performance levels of other organizations are normally called benchmarks and the ideal benchmark is one that originates from an organization recognized as being a leader in the related area† (Business Performance Improvement Resources, 2011, para 27). Performance benchmarking may involve the comparison of financial measures (such as expenditure, cost of labor, cost of buildings/equipment, cost of energy, adherence to budget, cash flow, revenue collected) or non-financial measures (such as absenteeism, staff turnover, the percentage of administrative staff to front-line staff, budget processing time, complaints, environmental impact or call center performance)† (Business Performance Improvement Resources, 2011, para 28). In conclusion, the operating budget is a plan for the organization’s revenues and expenses that generally covers a period of one year and developed by the nurse manager with support of the finance office of the organization (Finkler, Kovner, Jones, 2007). Variances may occur at any time, may be internal or external, and in most cases are correctable once investigated by the mangers. Benchmarking is used in strategic management and compares processes and performance to help improve organizations. The use of financial ratios and benchmarking is critical to understanding an entity’s overall historical performance and to the forecasting function of valuation analysis† (Cimasi, 2006, para 28). This paper has discussed specific strategies to manage budgets within forecast, compared five to seven expense results with budget expectations, described possible reasons for variances, gave strategies to keep results aligned with expectations, recommended three benchmarking te chniques, and identified what might improve budget accuracy, and justified the choices made.

The Origins of Human Rights

The Origins of Human Rights Origins of Human Rights Essay – Question 1 ‘How was the idea of rights used to understand the relations between individuals and the state?’ Through the rise of empire, human rights evolves and moulded to fit the shifting political and social changes attributed to the nature between the individual and the state. In particular, several views off several time periods must be observed in order to understand how rights regulated the relationship between the individual and the state. The Social Contract school of thought and the philosophers associated with it are a strong indication of these shifting thoughts: Hugo Grotius (1625), Thomas Hobbes (1651), John Locke (1689), Jean Jacques Rousseau (1762) all discuss this relationship with their own respective theories. Based on these arguments, this essay will aim to show that the idea of rights and their relation to the individual and the state could be understood with the evolution of the concept of what the nation state is. The idea of the role of rights between the individual and the state can be addressed typically under the study of ‘Social Contract’. This school of thought questions the origin of society and the legitimacy of the state’s power over an individual. The arguments often state that an individual, in some form of consent, has willingly forfeited some of their rights and freedoms whilst submitting to an authority which will protect their remaining rights. This is imperative to our understanding of the relationship between the individual and the state for the reason that it deeply explores the prior ‘natural state (the state in which there IS no relationship) and the post political state (Where an institution is created to defend rights). This will be discussed throughout this essay through the opinions of prominent philosophers. In 1625, Hugo Grotius promoted his school of thought during the war between Spain and Portugal and was employed by the Dutch, allowing him to defend ‘seizure in the natural principles of justice’. Grotius furthermore promoted the Natural Rights of individuals, namely that each individual owns natural rights which give their own self-preservation. These natural rights in turn suggested that the power of the state can be returned to the individuals if the political state were to fail the reason it was created. The nature of these examples of natural law could lead one to question how they coincided with their context. Grotius’ ideas as a result reflected both a self-preserving outlook and an emphasis of individuals under their own jurisdiction (Soi Juris). Grotius furthermore notes no significant moral difference between the individual and the state. This draws the conclusion of more justification for the Dutch Trade Empire, stating that ‘It shall be permissib le to acquire for oneself and to retain these things which are useful for life†. Restating that the idea of rights and their relation to the individual and the state evolved alongside the concept of a nation state. Thomas Hobbes in 1651 published his thoughts on the individual and the state in ‘Leviathan’. This stated that an individual deprived of society lived in an anarchic condition which he referred to as â€Å"solitary, Poor, Nasty, Brutish, and short†. Hobbes takes this incredibly cynical outlook and bolsters the argument that this essay makes in that rights of the individual were a reflection of the nation state. This is due to the English civil war around this period. Furthermore emphasised in writing that individuals had to forsake some of their rights, such as the right to kill, (killing in a war context), if others were to forsake theirs too. Ultimately this would create a supreme authority to preserve their lives and property (eventually a ‘monarch’). These subjects had no rights against the monarch, who himself had moral obligations towards natural law. Seeing the above, we can tell that Hobbes is an absolutism-supporter and states that ‘law is dependent upon the sanction of the sovereign and the government without sword are but words and of no strength to secure a man at all†. This further implies that these rights; absolutist during a civil war, reflect Hobbes emphasising civil law as real law due to the enforcement of a sovereign. John Locke’s theory was outlined in 1689, a theory which differed greatly from Hobbes’ pessimistic â€Å"The natural state is cruel† statement. This theory stated that the individual in the state of nature had a â€Å"reasonably good and enjoyable† life, yet retained the issue that property was insecure. It should be further stated that in this state man had all his natural rights and that, in this natural condition, could be considered completely free due to there being no relationship with the state; i.e. no real civil law or enforcement, yet still retained morality thus being a ‘state of liberty’. Locke, unlike the theorists mentioned above, puts particular emphasis on property in the social contract. According to him, property is made when the individual mixes effort with nature and, given with the above discussion of the law of nature, there are limits as to how much an individual can take. One should only take as much as one can use with out leaving others to suffer for not having enough themselves. This emphasis is grounded by his argument for the relationship of social contract and civil government because it is the protection of physical property, whether it is physical property or the property of their own being, which a man will look for when he seeks to leave the state of nature. Locke continues to write that the property of an individual is insecure in relation to the state of nature due to three strong reasons: The absence of established law, The absence of an impartial judge and the absence of a natural power to execute the natural laws. As said before, man in the state of nature needed to protect their property due to these reasons, and as a resolution entered into a ‘social contract’. Locke states that â€Å"Man did not surrender all their rights to one individual, but surrendered only the right to preserve/maintain order and enforce the law of nature†. As such, the rights to life, lib erty and estate were all retained as these were unable to be separated from the natural rights of man. With the relationship to the state being formed, the individual gained three things: the law, judges to make formal judgements on the law and executive power to enforce the law. Locke writes that â€Å"The purpose of government and law is to uphold and protect the natural rights of men. So long as the government fulfils this purpose, the laws given by it are valid and binding but, when it ceases to fulfil it, then the laws would have no validity and the government can be thrown out of power. In Locke’s view, unlimited sovereignty is contrary to natural law.Locke continued to support for a constitutionally limited government. And as such his life liberty and property arguments greatly dominated and influenced the declaration of American independence of 1776 Rousseau in 1762 stated that state, law and government were interchangeable ideas. He wrote ‘The Social Contract’ stating that it was a ‘hypothetical construction of reason’. Rousseau’s view places itself between Locke’s constitutionalism and Hobbes’ absolutism and gives strong reason for observation to the essays argument as this argument and theory on natural law is centred around the liberties and freedoms of the individual. This in turn gave inspiration to American and French revolutions. Rousseau writes that the life in the State of Nature was happy and there was equality among men, yet eventually with population increased, the means by which people could satisfy their needs had to change. Individuals became families, families became communities. Communities caused labour division. This led to reward difference and resulted in envy pride and contempt. The most important creation was of private property which he states is the one tur ning point from a pure state into a greedy, competitive, vain and unequal society. This is to say the creation of property was the complete and utter destruction of the state of nature. The individual surrendered their rights to the community as a whole, which he came to state as ‘general will’. Through social contract, a new form of social organisation – the state- was formed to assure and guarantee rights, liberties, freedom and equality. State and law were the product of the general will of the people. General will was the will of the majority which must be blindly followed as it is supreme.

Foreign Investment In Russia Business Essay

Foreign Investment In Russia Business Essay The case discusses about Schindler which is a company who established itself in 1874 in Switzerland and they manufactured escalators and elevators. For the first time it made a strong decision to develop a fully owned subsidiary in India with the help Mr. Silvio Napoli who will be leading it. He was a Harvard graduate, young, very analytical and had a strong strategic mindset. The case focuses on the problems faced by Mr. Napoli on starting and setting up operations and activities in India which was totally opposite to Switzerland from where he belonged. Mr. Napoli being an expatriate found it very different and difficult to adjust and acquaint him to an Indian culture. He struggled upon Indias protectionist tariff policies, considerations regarding cost and also the staff that was doubtful on his ways as Napoli wanted things carried on his way. All these were a big threaten to his entire career as he wasnt able to go in accordance with his business plan. Mr. Napoli wanted to develop a cost effective solution to make, develop and sell a completely core and standardized product in India. He was a victim to several issues, mainly cultural issues.  [1]  Mr. Napoli being of Swiss origin believes in low context  [2]  communication style where as in India it is mostly of high context and maybe its for the same reason Napoli is regarded as very talkative. Napoli believed in sticking to business plan because of his orderliness as per Swiss. But the Indian management was mostly willing to customize. Mr. Napoli wanted to mix up his orderliness and generate the task-oriented nature which is why he was often regarded as impatient, impulsive and mostly a hard driver while Indian management compared Mr. Singh as an easy going, patient and friendly person. Indians are not very good time keepers and as a result they keep most of the things towards the end and this was strictly not tolerated by Napoli. This was another reason to issues in Schindler India. Another issue that came up is that, Napoli followed the Swiss habit of total accurate precision delivery where as Indians could be represented as they promise more but actually under deliver it. Napoli failed to understand the business culture properly as he was totally shattered with the increased import duties on certain specific noncore goods including elevators. In India the term of outsourcing was new and couldnt be accepted easily, as a result many mangers in India happened to sign agreements against the strategies of the business plan. This can be better understood if we take a look with the help of Hofstedes comparison model.  [3]  The Italian and Indian culture are different from each other and it is such that Italians are much more focused on themselves as a team unlike Indian culture, when we look at the uncertainty avoidance Italians are usually a bit hesitant in coming to an unknown conclusion unlike the Indian culture. He should have more understanding of the Indian culture. Napoli has failed tremendously to execute the plan that he presented at the time of term of sales, but a plus point is that he was able to develop a high leadership team, he also added onto the companys business model certain buy-ins which was also a wise decision. So somewhere he still has a chance. Secondly, I would like to consider the family issues he was having, he didnt make a wise decision in relocating his family and had to fight several personal issues like his pregnant wife, managing her and her issues also his children injuring themselves. Its not appropriate to take in Napolis family problems into account as a reason for his poor performance, since he comes from a typical Corporate Switzerland background. Thus, the strategy should be such that, the inputs from the top level management of India has to be revised and also deep considerations regarding the cultural, technological, economical and governmental elements of India and the target market of India. When the strategy is revised the top level management of Indian subsidiary should be allowed to take and make decisions on their own on several key issues. Napoli should focus only on high end regional decision making. In order to make Schindler India profitable, it is best to properly assess Napolis team and continuously recheck the sales strategy and explore the Indian market and culture more deeply looking into the mindset of people and activities prevailing and then reinforce his ideas. It is such that standard products and service will make the business progressive and even looking at Indias very basic elevator market currently prevailing is the key aspects that will make India branch profitable. UNILEVERS BUTTER BEATER: INNOVATION FOR GLOBAL DIVERSITY CASE SUMMARY BY DEVI SUDHAKARAN This is a case that shows the problems and difficulties country managers were faced with while beginning to start central direction on Pan European/International sales, positioning and product development. It showcases the rollout of Krona which is a new spread alternative. Also showing how this was a failed strategy to maintain a cross country product viewpoints and perceptions also cultural differences and the various biases of the different country managers of Unilever. It is seen that in the case Unilever was focusing completely on a centralized management style and wanted to increase their manufacturing abilities and capabilities, developing new product, economies of scale and even the leveraging of fixed investments in the brands. Local responsiveness was their core strength even while following a centralized management model. In the new organization, the country managers were made to bother about the variety in the tastes and preferences of different countries and also their needs were considered for making a completely new product which was the total opposite to their previous culture. When we look at the strategic rationale that was undertaken for the development of European Margarine, we see that they followed a basis of cost reduction method, there was a potential in the yellow fats category but using different approaches on national basis increased the cost for the development of new products.  [4]  It was seen that the transnational image was made stronger by the development of global brands which concentrated and created EU single market. They also leveraged high global expenses on brand investments. It was extremely difficult to develop a Pan European band with the different cultural diversity across the countries. There were immense problems between the country managers as they we greatly irritated by the various international strategies that have to be coordinated between the countries and also the loss of their autonomy all this resulted in a huge barrier for communication for the county managers. The country managers had to focus on the consumption habits of consumers across Europe and it was not possible to create one single approach as the consumer preference and selection of food and its types varied widely. For instance if we take a German consumer they are bothered on natural products, the environmental considerations and even of the safety of food. But on the other hand French were deeply into the traditional style of taste and enjoyed its pleasure. They also had problems of coordinating themselves as they wasted tremendous amount of time and money as various ICs (Innovation Centers) were spending time working on the very same products. There was also intense competition between the independent local subsidiaries which had their own methods and agendas for development regarding products. Another main issue was that the top-down process of innovation much slower at producing product ideas. There wasnt any financial budgets made for international products and the local managers were given full risk. In the very much declining yellow fat category the local manager required the market share and profit. Also the local managers wanted independence as they were change resistant and had a competition among themselves The underlying result after Krona being developed was very much below the bar, Krona became a huge success in Germany where it was made and developed because it was made only on the local likes and interest, but it failed miserably in the rest of the Europe. Another result in the company was a huge conflict of cultural problems and they also had to face the comments of developing products not according to the preference of consumers interest. Thus, the strategic decision should be such that its made to cater and satisfy the local needs and tastes, doing and performing like that of Coca Cola and McDonalds in China by means of presenting and offering the same nice product and making the consumers enjoy it tremendously, also make the top managers at Unilever such that they process and transfer their vision to the middle management and take away the fear of failing strategies. It is understood that many successful organizations are not ready for changes as it natural that changes alter and hamper their normal routines. Before making any crucial decisions its a must to understand the fact that proper steps and innovations must be taken to meet the national difference of people. FOREIGN INVESTMENT IN RUSSIA CHALLENGING THE BEAR CASE SUMMARY BY DEVI SUDHAKARAN The executive team of MLC Corporation was examining if it should continue to expand and increase its production and distribution into Russia, in May 2008. There was an increase in the Russian economy and there were three reasons that contributed for the same. Firstly, the increase of natural gas exporting to Europe. Secondly, the increase in the energy price which led to the tremendous growth of the energy sector resulting in widening of the economy. Mark Olexi who was the CEO of MLC had basically three alternatives in front of him. The first being, to further expand the plant export and also to continue the exporting because of its success in the past many years. The second one being, to strengthen Russias competition position abroad by building a manufacturing and distributing center. The third option was to wait and take time for both decisions because of the prevailing uncertainties and risk factors in Russian economic and financial aspects. The worldwide recession and the massive internal economic and financial crises were getting worse and it was doubtful if the Russian economy could withstand it or avoid it. Russia is undergoing a number of problems like a change in leadership as Vladimir Putin couldnt run as President for another term; it was also a doubtful and concerning issue of how the foreign companies in Russia would be operating depending on the attitude of Prime Minister Putin and the next successor President Dmitry Medvedev. Another problem being the energy price shooting up. Along with these, Russia and the U.S relationships were being deteriorated by George W. Bushs administration. Finally, the issue with regard to British and U.S financial system following the mortgage crises in 2007. Mark Olexi had to decide which alternative to select to generate maximum results. He could decide on either of the following four decisions: First, export from US, sell in Russia  [5]   while doing this the company could incur huge costs with regard to transportation and hence its very expensive to do so, also the unclear and complicated regulations in Russia can make it difficult for the selling to take place hence the company might suffer losses, even the political situation in the country is not good enough. On a positive note, since the production process is already established MLC would benefit from 70% of income coming from Russia. Second strategy is to produce in Russia, sell in Russia-by doing this even though there is a high risk factor we could generate larger profits, while investing in Russia it is possible to concentrate on the excess demand for the moment or even try a partial investment in Russia to see the success and progress of it. MLC could also make tie ups wi th the government and enhance their relationships with the government and hence form a hybrid / joint venture. Since the oil prices would possibly rise as per the forecast in the case, the Russian government would definitely secure the currency value. The third strategy is to produce in Russia, sell elsewhere- by doing this the company would be certainly risking itself and spending time and immense money in first identifying the pros and cons of that third country to sell and studying the economic and political nature of the third country, also knowing the consumers well, even understanding the unforeseen causes or changes in the environment. The fourth strategy is to produce elsewhere (not US, Russia),sell to Russia- By doing this the company would invest in a country that is geographically close to Russia, here the company can think of investing in an emerging economy, and can save expenses to a limit as its geographically closer, even expect a somewhat same political and economic conditions as its close but will definitely mitigate the currency risk involved in investing in Russia also try to focus and then expand the client base and even keep Russia from being 80% of the revenue generator. It would be ideal for the company to produce and sell in Russia considering the points mentioned above. In the case it is seen that more than half of the revenue generated in the company is from a single client as it is definitely not a good way to continue a firm. The company could be always on the threat of losing that client. If that happens then the company would be under series losses. The company should find a way to generate revenue from more than one client and make it dispersed as possible.  [6]   Thus, from this case it teaches the various skills necessary to analyze the economic country data and even the political situation of country and use the various methods for assessing the prevailing risk factors in order to come up with a right decision. AIRASIA: FLYING LOW COST WITH HIGH HOPES CASE SUMMARY BY DEVI SUDHAKARAN This case talks about an airline company in Asia- AirAsia operating as an LCC (low cost carrier) how it came up in the market fighting between the increasing and rising flight operation costs and competition in the Asia-Pacific region . It is important to first understand what makes Asia an attractive market for LCC, its mainly because of rapidly urbanizing population who are being developed and are ready to travel and see various locations, fewer substitutes for air travel with regard to traveling long distances with low fares, low but rising incomes of the population, the deregulation taking place and even sometimes disruptive innovation  [7]   A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology.  [8]   Tony Fernandez who was a private entrepreneur captured AirAsia airlines from the Malaysian government when it was debt ridden in the year, December 2001. After a month, Tony Fernandez re-launched AirAsia airlines as South-East Asias first LCC (Low Cost Carrier). He was able to generate huge success and increased the profitability tremendously and even expanded its routes. What he did was, he kept immense low cost structure comparing to the competitors and offered the customers extremely low airfare of 40% -60 % less than competitors. He developed the ticketless travel thus being environment friendly and consuming less paper. AirAsia developed also had free seating arrangements. Customers were even attracted as frequent draws were conducted on board and this surprised the passengers. He also developed a tag line Now Everyone Can Fly which attracted the customers and which they considered motivating. A multilingual website was also created; this attracted leisure travelers and purchased air tickets through it which had promotions and offer for specific traveling periods. AirAsia started off with the Easy To Book, Easy To Pay Easy To Fly message and developed the telephone booking centre, sales offices, travel agents and also created tie-ups with several local banks and post offices. Mr. Fernandez conquered and became the first in many new services in t he operation and started a plan which was considered risky by other services; he extended the airline services which included many long- haul routes. AirAsia was even first to stat the booking with the help of cell phones using a simple SMS. This showed how innovative he was and even went down to the corporate bone. AirAsia was ranked as the best LCC in the Asia region in the year 2007. It encouraged many other LCCs in the Asia Pacific area to come up with such ideas and on the other hand threatened MAS Malaysian Airlines a full service operator which was a major competition at home. MAS didnt let go the competition from AirAsia and took stronger steps than AirAsia and started a sudden price war by offering to customers a zero fare for domestic travel and also for short-haul flights. They even built up a campaign Everyday Low Fare which even grabbed the attention of the customers by even immense advertisement war  [9]  and impressing potential passengers. CHABROS INTERNATIONAL GROUP: A WORLD OF WOOD CASE SUMMARY BY DEVI SUDHAKARAN This case shows how Chabros International Group a Lebanese multinational wood company confronting a huge decrease of its largest subsidiary sales after the global economic crisis in 2008. Antoine Chami who was the owner and president of Chabros International Group when reviewed the companys financial statements for the end of year 2009 saw that there was a thirty percent drop in the sales from Dubai. There was a growing lumber sales demand and Antoine Chami had invested $ 11 million to acquire and expand one of the saw mills in Serbia to meet this demand. This happened in 2007 a year before the global economic crises took place. There was high capacity for the production of lumber but with regard to selling, had low profitability. To overcome this problem Chami could either shut certain parts of the Serbia mill or boost Chabros International Groups sales to use up all the capacity available of the sawmill. If that happens, should it continue to increase sales where it was already operating like that of UAE, Saudi Arabia, Qatar, Oman, Egypt or should it try to expand to a new places like Algeria, Bahrain, Iran, Iraq, Jordan, Kuwait, Libya, Syria, Tunisia. He also would have doubts on Morocco, among other places, if it is the best country to expand for this activity? Also if it is the right time to start on such an expansion process FOREIGN DIRECT INVESTMENT IN THE MIDDLE EAST: RIYADH AND DUBAI CASE SUMMARY BY DEVI SUDHAKARAN This is a case that deals with finding out the various key drivers of investing in the Middle East especially in Riyadh and Dubai of Saudi Arabia and United Arab Emirates respectively by foreign rich countries like The United states of America, Japan and several European multinational and financial services and service providers. A considerable sample of foreign companies is interviewed to find out the main aspects in their decision process and what made them select the mode of operation and details about their business model. The case is in three sections, the first is about laws, regulations and requirements have changed considerably and that it has become more adapting to foreign investment in past years, this is performed with the help of several business environmental characteristic index and changes over time. The second part studies the exchange arrangements and framework for capital and financial transactions. The third section studies the various experiences of many multinational companies that have invested in the financial services sector of the Middle East.

Past Contrasted with Present in Faulkners A Rose for Emily :: A Rose for Emily, William Faulkner

Past Contrasted with Present in Faulkner's A Rose for Emily  Ã‚   In "A Rose for Emily", Faulkner contrasted the past with the present era. The past was represented in Emily herself, in Colonel Sartoris, in the old Negro servant, and in the Board of Alderman who accepted the Colonel's attitude toward Emily and rescinded her taxes. The present was expressed chiefly through the words of the unnamed narrator. The new Board of Aldermen, Homer Barron (the representative of Yankee attitudes toward the Griersons and thus toward the entire South), and in what is called "the next generation with its more modern ideas" all represented the present time period (Norton Anthology, 2044). Miss Emily was referred to as a "fallen monument" in the story (Norton Anthology, 2044). She was a "monument" of Southern gentility, an ideal of past values but fallen because she had shown herself susceptible to death (and decay). The description of her house "lifting its stubborn and coquettish decay above the cotton wagons and the gasoline pumps--an eyesore among eyesores" represented a juxtaposition of the past and present and was an emblematic presentation of Emily herself (Norton Anthology, 2044). The house smells of dust and disuse and has a closed, dank smell. A description of Emily in the following paragraph discloses her similarity to the house. "She looked bloated like a body long submerged in motionless water, and of that palled hue" (Norton Anthology, 2045). But she had not always had that appearance. In the picture of a young Emily with her father, she was frail and apparently hungering to participate in the life of the era. After her father's death, she looked like a girl "with a vague resemblance to those angels in colored church windows--sort of tragic and serene" (Norton Anthology, 2046). This suggests that she had already begun her entrance into the nether-world. By the time the representatives of the new, progressive Board of Aldermen waited on her concerning her delinquent taxes, she had already completely retreated to her world of the past. She declared that she had no taxes in Jefferson, basing her belief on a verbal agreement made with Colonel Sartoris, who had been dead for ten years. Just as Emily refused to acknowledge the death of her father, she now refused to recognize the death of Colonel Sartoris. He had given his word and according to the traditional view, his word knew no death.

Use of Theme, Setting, and Time in Ibsens Hedda Gabler Essay -- Hedda

Use of Theme, Setting, and Time in Hedda Gabler    Hedda Gabler, by Henrik Ibsen, is a work about a woman who manipulates the fates of others in order to fulfill her own desires. The title character is a woman who has recently returned from a six month "honeymoon" with her groom, Tesman, a man whom she does not love. She yearns for freedom, but she feels as if she cannot leave her marriage. To occupy her time, she manipulates the lives of everyone around her. Hedda kills herself after becoming engorged in her own manipulations. Through the use of theme, setting, and time period, Ibsen produces a work that uniquely portrays the sources of the motivations of this manipulative woman. Whether it be the burning of her former love’s manuscript or supplying him with the pistol to shoot himself, Hedda’s malevolence shows the ability of man to have total disregard for the life of another. Hedda coldly manipulates the lives of everyone around her. Through these manipulative actions, she ruins the lives of all of her acquaintances. Because she is not happy in her marriage, she attempts to forbid anyone else to live a content life. For example, after she persuades Eljert Là ¶vborg to consume alcohol, he ruins his reputation and loses something that is most precious to him: the manuscript of a book that he had been writing with Mrs. Elvsted. Although Hedda realizes the importance of this manuscript to both Là ¶vborg and Mrs. Elvsted, she chars it. Because Là ¶vborg and Mrs. Elvsted have put their souls into this manuscript, Hedda metaphorically relates her action to burning their child. This cold thoughtlessness demonstrates Hedda’s disregard for th e life of a fellow human being. Hedda’s actions ultimately lead to her demise. After giving ... ...nnot manipulate her own life. She does not want to remain in her marriage, but she lacks the courage to get out of it. Because of the times and her situation, she feels that she cannot leave her husband. It seems as if these manipulations are a sick form of entertainment for Hedda. One could regard this play as a purely feminist work or as the story of a woman who has no regard for human life. In either way in which it is regarded, Ibsen realistically portrays the motivations of Hedda Gabler through his use of theme, setting, and current events. Works Cited Hemmer, Bjorn. "The dramatist Henrik Ibsen." http://odin.dep.no/ud/nornytt/ibsen.html Ibsen, Henrik. Four Major Plays: A Doll’s House, Ghosts, Hedda Gabler, The Master Builder. New York: Oxford University Press, 1998. Mazer, Cary M. "Hedda Gabler." http://www.english.upenn.edu/~cmazer/hedda.html.

The Importance of Giving It Your All Essay -- Personal Narrative

The Importance of Giving It Your All It was a crisp autumn afternoon; the sun was shining and the parched leaves rustled as a cool breeze waltzed through. Today was the day I had anticipated, the day I would go and take the Elementary School Gifted Program test. This was my goal, to succeed the gifted program and be known at the top of my class. I was a little nervous, but I ignored my sweaty palms and scratchy throat as I followed slowly behind my mother, because I knew I had to do this. An elderly woman opened the door. She was slender and fragile-looking. She had thick gray hair that was pulled tightly back into a sleek professional bun. She wore a beige woven sweater with the sleeves rolled just above the elbow and black, freshly pressed slacks. The woman introduced herself as Sandra Schmidt and invited us in. After settling my mother in the family room, she immediately took me to the back of the house where a small card table and two fold-out metal chairs were set up. We sat down and promptly began. She asked me myriad verbal questions of varying degrees of difficulty,...

Ethics and Social Responsibilities of Business Essay

The emergence of management as a distinct and identifiable activity in the modern era has had an important impact on the society with which it developed (Massie 1995). Till the early days of the twentieth century, organizations were predominantly concerned with their respective profit-maximizing activities. However, this singular intention of profit maximization of business farms was protested by the social activists during the later half of the 20th century. They pointed out that, since the organizations drive their business from the society, the former must possess some obligations towards the interests and welfare of the later. The concept of business ethics and corporate responsibility gained immense importance after the publication of Bowen’s Social Responsibilities of Businessman in the year 1953. Bowen opines that business corporations should have certain responsibilities towards the society in which it operates. Often business ethics and its social responsibilities are regarded as their â€Å"science of conduct† (McNamara).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Ethics is the study of morality and standards of conducts (Fred and Richard, 480). The term ‘ethics’ is, in generally, used to refer to the rules and principles that define right and wrong conduct. The study of ethics is of immense importance in international management because ethical behavior in a particular country may be considered as an unethical practice in other countries. Ethical behavior of business has become an important aspect in today’s corporate environment. Even in the United States, trading scandals, bribes etc. have gained considerable media exposures and have aroused public concern regarding ethical practices in international business management. Corporate business ethics is primarily concerned with honesty, truth and justice and should consider several aspects like the expectations of society, fair competition, public relations, consumer autonomy, social responsibilities, adherence to the rules in the operating country, and so on. An organization should be always responsible in creating an environment that fosters ethical decision-making. Corporate social responsibility is seriously considering the impact of the company’s actions on society. In the views of Andrews, social responsibility means the intelligent and objective concern for the welfare of society that restrains individuals and corporate behavior from ultimately destructive activities, no matter how immediately profitable and signifies the positive contribution to human betterment. Social responsibility contends that the business organizations are responsible to all the interest groups with which it interacts. All the interests groups such as employees, customers, suppliers, government and society should be given importance equal to that of the shareholders of the respective companies. Thus, ethical and social responsibilities signifies that the management should pay attention to the welfare of the workers, consumers’ needs and safety, the interests and rights of creditors, government’s rules, regulations and policies, and the obligations of the organization towards society as a whole. Thus, in other words, â€Å"Corporate social responsibility indicates the management’s commitment towards upholding the interests of direct stakeholders and to behave in an economically and environmentally responsible manner† (Davis and Robert, 1975). Ethical and Social Responsibility of Corporate Organizations Corporate organizations which are concerned about business ethics and corporate social responsibility need to identify various interest groups which may influence the functioning of a firm and which, in turn, may be affected by the firm’s decisions. In fact, business enterprises are primarily responsible for the well being of six major interest groups which are discussed hereunder one by one: Protecting Shareholders’ Interests The most important responsibility of business organizations is to protect the interests of its shareholders. The shareholders provide the core resource – the capital – that enables an organization to operate and grow. They expect the management to use the capital judiciously and operate the business in an efficient way that would ensure a healthy return on their investment, both through dividends and through increase in stock value. Shareholders should be provided with adequate and timely information about the functioning of the organization. Protecting Employees’ Interests Employees are the biggest assets of the organizations. In the early days, managers regarded employees merely as one of the factors of production and denied them the right to obtain an equal distribution of income. But, with the passage of time, the situation has changed in a considerable way. Now, it is absolutely mandatory for the management to protect its employees’ interests. Government laws and regulations have now define the responsibilities of the employer – ensuring equal employment rights for men and women, offering timely pensions and other retirement benefits, and providing and maintaining a secure and healthy working environment. To protect the interests of employees, management must Treat the employees as the basic pillars of the organization. Develop administrative processes that promote cooperation between employers and employees. Foster a harmonious work atmosphere by adopting a progressive labor policy. This includes allowing the participation of workers in management, creating a sense of involvement, and improving the working conditions and living standards of workers. Provide fair wages (not merely the one determined by the market forces of demand and supply) and other financial benefits to workers to keep them motivated. Fair selection, training and promotion based on quality and merit – without any discrimination on the grounds of sex, race, religion, physical appearance and so on. Protecting Customers’ Interests In the recent times, great attention is delivered to the customers. In the age of cut-throat competition, business firms have rightly begun to realize the importance of maintaining a healthy relationship with the consumers. The growth and development of consumerism has compelled the organizations to become more aware of their duties and responsibilities towards the customers. â€Å"The most successful businesses put the customer first, instead of the investors† (Mackey). Business firms should fulfill their obligations to their customers by Charging reasonable prices for their products. Ensuring the provision of standardized and quality goods and services. Ensuring the easy availability of goods and services, so that customers do not have to spend too much time and energy in procuring them. Abstaining from unethical practices like hoarding, profiteering or creating artificial scarcity, misleading advertisement and so on. Refraining from deceiving customers by making false or misleading claims. Protecting Creditors and Suppliers’ Interests All the inputs productions are provided by the creditors and suppliers in the form of raw materials and capital. Hence, the management must take proper care in fulfilling its obligations towards the former. This can be done by: Creating a long-term and healthy business relationship with them. Making prompt payments to creditors and suppliers. Providing them with accurate, relevant and needed information. Protecting Society’s Interest Organizations function within a social system and draw their resources from this system. Therefore, they have certain obligations towards society. The management of business organizations can fulfill their obligations toward society by preserving and enhancing the well-being of the members of society. Management can do so in the following ways: Using its technical expertise to solve local problems. Setting socially desirable standards of living and avoiding unnecessary and wasteful expenditure. Playing an important role in civic affairs. Helping the society in events of national calamity, famine, war, and so on. Providing basic amenities, healthcare and education facilities, thus creating better living conditions. Establishing development programmers for the benefit of economically weaker sections of  the society. Protecting Governments’ Interests In any country, the Government provides the basic requirements for the survival and growth of business organizations. Most of the rules and policies which the government imposes are mainly in the favor of the businesses. Hence, the business, in turn, must have certain obligations to the business: Be law-abiding – respect the rules, procedures and policies of the government Pay all taxes and other dues fully, timely and honestly. Not bribe government employees and officials to obtain favors for the company. Not try to use political influence in its favor for own interests. Advantages and Disadvantages of Ethics and Corporate Social Responsibility In the modern era, the expectations of the consumers and the society have immensely changed and, resultantly, modern corporations have become much aware of their ethical and social responsiveness. However, opinions vary from scholars to scholars as to whether business should possess much, at least any, ethical and social responsibilities. Disadvantages The motive of any business is to maximize its profit. However, much ethical values and social responsibilities may act against this objective. Any investment (or loss) incurred by the business as a result of good social or ethical behavior are adjusted by increasing the selling of its products. Hence, â€Å"the motive would be socially less desirable than in the days before when business were concerned with social responsibilities† (Friedman 1970). Business derives immense power through its social involvements and ethical behavior. This power is generally derived from the government or through other political means. This increment in power can lead to corruption and even conflicts with customers, governments and the society as a whole in the subsequent times. Generally, business people lack the required skills to deal with the problems outside the organization. Social responsibility can be an excess burden of duty to them. Advantages Social involvements and strong ethical behavior boost up the image of the business corporations in the eye of the customers. Being socially responsive, business can increase the number of its loyal customers. A favorable public image helps the business to attract more employees, customers and investors. By being socially responsible, business organizations can easily avoid the attention of regulatory agencies and earn government’s trust; resulting in increasing flexibility and independence in their mode of operations. Businesses can increase conservation of natural resources by being socially responsible. For example, Items that were considered as waste before (like empty soft drink cans and plastic bottles) can be recycled and profitably used again. Society and business are equally benefited if a symbiotic relationship exists between the two. Instead of allowing high rate of unemployment leading to social crisis (which may ruin business operations in subsequent periods), businesses can rather be the source of employment in the economy for qualified and eligible people. Conclusion It is beyond any iota of doubt that every civil citizen must possess some moral or ethical values and responsibilities for the society in which he lives. Business organizations, considered as ‘artificial people’, therefore, should have the same values incorporated in it. Obviously, there are certain principles which is directed against this conclusion, but it is a cardinal truth that business corporations must â€Å"behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large† (Holme and Watts). References Bowen, H.R. (1953), Social Responsibilities of the Businessman, Harper & Row, New York, NY Corporate Social Responsibility: Evolution of a Definitional Construct: Carroll Business Society.1999, pp. 268-295 Davis, K. and Robert, L. B. Business and Society, Environment and Responsibility, Revised   Edition, Tata McGraw Hill Book Company Inc. New York, 1975 Friedman, M. The Social Responsibility of Business is to Increase its Profit, New York   Times Magazine, 13 September, 1970 Kuhn, J.W. Issues and Analysis, Values in a Business Society, Harcourt Brace Jonanovich, New York, 1968 Holme, L and Watts, R. The World Business Council for Sustainable Development,â€Å"Making   Good Business Sense† – http://www.mallenbaker.net/csr/CSRfiles/definition.html Joseph, L. M. Ethical and Environmental Foundations, Essentials of Management, Fourth Edition, Thirteenth Indian Reprint, Prentice-Hall of India, New Delhi, 1995 Mackey, J. (adapted from) Rethinking the Social Responsibilities of Business, October 2005   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.reason.com/news/show/32239.html McNamara, C. Complete Guide to Ethics Management: An Ethics Toolkit for Managers http://www.managementhelp.org/ethics/ethxgde.htm Richard, M.H. and Fred, L. Ethics and Social Responsibilities, International Management, Third Edition, McGraw Hill International Editions, 1997 Stehi, S.P, Dimensions of Corporate Social Performance, An analytical Framework,   California Management Review, Vol. 17, No. 3, 1975, p. 58 – 64 The International Seminar on Social Responsibilities of Business: (as quoted by Mukharji, P.B. Social Responsibilities of Business, p. 9

Benchmarking: University and Target Organizations Essay

What is benchmarking? Benchmarking is an approach for departments to neb and compare themselves with higher- transacting departments with the goal of identifying work wait ones, products, go, or strategies that will lead to improvement. Benefits of benchmarking come out ruff practices that ontogeny student propitiation. Achieve efficiencies and increase productivity. Helpful during fourth dimensions of budget outgrowth and reduction. Broaden perspectives and overcome resistance change. border the quality and efficiency of your programs and helpers. Origins of benchmarking Emerged in mid-eighties as a survival shit for Xerox. In 1990, first university benchmark withdraw conducted by the Council for the Advancement and Support of Education. In 1992, the National Association of College and University Business Officers (NACUBO) conducted a national benchmark dissect on administrative operate. Since 1992, hundreds of schools have participated in NACUBOs benchma rk studies on gratuityics ranging from admissions to purchasing. Today legion(predicate) higher bringing up associations conduct benchmark studies. Opportunities for benchmarking in higher education Admissions bear upon of reviewing of applications Registrar fulfilling transcript requests . affectionateness for savant Involvement processing the adjustment of student organizations disciple Health service scheduling doctor appointments Campus Recreation sign students up for recreation classes Career serve registering employers in job fairs Crafts Center registering students in workshops Human Resources processing timesheets and payroll cargo ships Services arranging for special progeny parking services Police electronic computer aided dispatch services Facilities plan project design review process Five steps to benchmarking 1. Planning 2. Identifying bottom organizations 3. data compendium.4. Analysis 5. executing mistreat 1. Planning Limit the study to what is rattling to the performance of your department. Consider highly regarded practices or services that can be do even better. Look into practices or services that students and module regard as disjointed. labor intensive, time consuming processes with hazard waste Services or processes that feed dissatisfaction with students. Processes that affect other key processes in your department or other departments. Processes with bad defined objectives or frequent errors requiring corrections. Prioritizing your benchmarking projects . possible for improvement in student satisfaction or faculty productivity, Extent to which the process or service is broken, Feasibility of re-engineering the service or product. Selecting benchmark study group Involve mental faculty members who are most familiar with the processes or services. If processes or services extend to other departments, involve their round as well. Include a staff member who can successfully gr ow the object glass organizations to participate in the study. tonicity 2. Identifying target organizations Identify recognized leading based on awards, conference presentations, articles in association publications, and leaders in yourfield. keister organizations can be departments internal to the university that perform comparable processes or offer similar services. with similar processes or services at other universities. outside of higher education with similar functions, products, or services. measuring 2. Identifying target organizations To ease the recruiting the process look for institutions that link with one another in nearly manner. They still need to be top performers Secure their cooperation by Ensuring confidentiality of the results. Making their participation easy by minimizing their investment of time in the study. Promising to share the results. Step 3. Data collection The objective of information collection is to examine processes or services, resourc es commit to processes or services, and measure performance. Step 3. Data collection Use methods such as telephone interviews, on line surveys, collection of department information (e. g. , organizational charts, affair manuals) detailed flowcharts of internal processes interviews during meetings at conference, interviews and reflection during site calls Step 3. Data collection Measuring performance involves developing metrics such as QUALITY student satisfaction surveys, EFFICIENCY number of proceedings completed per departmental FTE, or departmental cost per transaction processed. Examples of metrics Benchmarking study of custodial services in Student Centers QUALITY Staff and student ratings of the carriage of various spaces in the knack (e. g. ,bathrooms, eat spaces, meeting spaces, lounge spaces). EFFICIENCY fig of FTE dedicated to custodial services separate by facility square footage routine of FTE dedicated to custodial services change integrity by th e number of people who visit the facility each day meat of supplies and expenses budgeted tocustodial services divided by the number of people who visit the facility each day. Step 4. Analysis Your epitome may focus on Differences in quality and efficiency levels. Factors that contribute to the differences in quality and efficiency including Organizational structure, leaders and mission Organizational stability and staff experience, Policies, Work flows and internal processes, Use of applied science such as the web, email, phone Staffing levels, fosterage of staff, Division of job responsibilities, Funding, Use of discernment to receive student feedback Step 5. Implementation Analysis phase culminates in a documented action plan and recommendations Identify strengths and weaknesses relative to benchmark partners, Recommendation may include changing processes, job responsibilities, staff involved, use of technology and development of software program tools. Resources American Society for Quality http//www. asq. org Student Voice http//www. studentvoice. com Educational Benchmarking Inc. http//www. webebi. com Has national benchmark studies on first year experience, housing, classical life, student centers, student organization leaders. external Benchmarking Clearinghouse http//www. apqc. org