IMPROVING PRODUCTIVITY THROUGH PROFESSIONAL ASSOCIATIONS (CPM, ASPA, Research Paper

IMPROVING PRODUCTIVITY THROUGH PROFESSIONAL ASSOCIATIONS (CPM, ASPA, TCMA, IG, ETC.) - Research Paper Example Increasing productivity does not merely mean to give the output or product in the industry in a very minute time rather it is the collection of number of quantitative and qualitative determinants which ensure the productivity. The first determinant to measure the productivity is the quality of the product that is produced by the work force. If the requirements of the customers are being met in the optimal way and the satisfaction graph of the client is increasing then definitely the work force, machinery and managerial group of that organization will be called as productive (Bradford, 1997). Increasing productivity through professional organization has been an emerging phenomenon of the present time as every organization cannot sort out the way to ensure the increase of productivity within or outside the premises of the work place. There are certain factors which have to be analyzed prior to the start of the process of increasing and augmenting productivity. The Professional associat ions make sure that the productivity factors are increased according to the demand and needs of the customers and the peculiar requirement analysis is done in order to fulfill the requirements of the organization and individuals (Alchian & Demsetz, 1972). The productivity factor largely depends upon the input given at the start. The input can be in the form of hired workforce, raw materials and hardware. The professional associations make sure that the productivity is increase by taking the perspective of the ratio and proportion of the input and output terms so that the efficiency also remain the focus of the organization. For example if the firm will produce the output of a very good quality within very less time then no doubt the productivity will said to be greater in the acute terms but the fact of the matter is that the efficiency is lessened because there is not inculcation of the cost effectiveness of the company and the company will shut down within a very less time frame. The productivity has to incur the production cost and the budgeting factors of the locality. The professional associations take all the stakeholders on board in order to make sure that no party is outside the hierarchical structure so that the productivity can be increase in a very effective and nominal way. There is a diverse choice of productivity increasing options in the modern world because the professional organizations are being deployed by almost every organization of good repute. One of the most acclaimed and renowned professional associations that are known for their great performance in helping to increase productivity of organizations and individuals are American society of administrative professionals (ASAP). This association helps the individuals and organization to work on different aspect of the professional and social life to increase and improve the productivity. As far as the professional services are concerned they conduct different training programs, webinars, w orkshops and seminars in order to educate people about nurturing their skills and building interpersonal relationships so that the

Study on Is Accounting Profession under Threat

Study on Is Accounting Profession under Threat Recent events in global financial world that is dissolution of companies due to continuous losses has made people to question the efficiency and honesty of the professional accountants in discharging their duties for the interest of public and society. These events have forced global financial scholars and experts to think about the future scope of this profession. this article mainly focus on challenges to accounting profession in the context of strategic management accounting in connections with business firms expectations and the expectations of stakeholders and communities which ensure that the accountants will function for the benefits of society and public. The expectations of employers of accounting graduates is higher when we compare with the present academic system which indicates that the present academic courses should be upgraded as the business firms are expecting only real professionals who can be able to work any type of business environment and they should be flexible to the future changes in business environment. Their ultimate responsibility is to make the business firm trust worthy in the eyes of customers and other stakeholders and society. Today the demand from business firms for accounting professional with sophisticated modern accounting skills is caused revolutionary changes in the accounting and financial management gra duation courses importance of discipline knowledge. The internal and global challenges on the professions related to financial management may be involve win the confidence of public and stakeholders of the business and operating markets, improving the performance of professional accountants and auditors, understanding the increased role of external auditors, preventing the corruption the system of public audit, and making the financial statements and reports trust worthy in the eyes of concerned parties. Todays business environment is very sensitive to the changes in its components such as technology or markets the accounting professionals to work hard with efficiency and honesty to meet these challenges effectively. Introduction In todays business environment are professional accountants directly responsible to their customers, companies and to the society and also they should know possible legal obligations to the stakeholders. Accounting profession is not only limited to preparing accounting statements but also involves in wide variety of functions which provides inputs to the managerial decision making. If an accounting professional is not able to perform his duty and responsibilities in satisfied level according to the universal standards it is the major liability in the hands of an accountant. Compared to other type of professions this profession has its own code of ethics hence it is dignified and respective profession which provides practical inputs for the effective decision making. Advanced Strategic Management Accounting During the past two decades, many organizations in business and finance sectors have to face changes in their business environment. Economic reform polices by the developing countries, policies, competition from multinational companies in local markets has resulted in a typical situation, where most companies are now competing in a highly competitive global market. In addition there has been a significant reduction in product life cycle arising from rapid changes in technological innovations and the need to meet sophisticated customer demands. To compete successfully in global environment, companies have to work towards to satisfy made customer demands. They have forced to adopt new Management strategies, changed their business systems and invested in new technologies. The increasing competition has affected their profits and more attention is required to be paid to the various aspects of Management accounting aspects. These changes have had a significant influence on strategic Manag ement accounting systems. Role of professional accountant has no longer remained that of an accountant, but he has assumed a significant role in improving the competitiveness of firms. 5Strategic Management Accounting is the branch of management accounting which mainly focus the uncontrollable factors which a business firm should more concentrate, and these factors may be financially or non financially but related to the financial and business decisions of the firm. According to the Ken Simmonds, the formulation of business strategy of the firm mainly depends on the financial information of the firm and the competing firms. This information may involve details of Production costs, product price, production volume, Market size, availability of cash resources and other resources such as raw materials which should be emphasized. But Professor Bromwichn compared the past practices in management accounting which have modified with new directions including the active role of professional accountants in business decision makings. These directions may be towards the inclusive of financial information into strategy for cost analysis that is the basic for all future business decisions. Other directions towards having updated information bank related to the strategies of competitors especially their costing methods, cost structures and costing decisions. The limitation of traditional management accounting in the areas analysis of cost and cost related activities is significant which gives birth to the development of modern strategic management accounting system. Traditional management accounting system has no particular techniques to ascertain the costing methods and situation of competitors but decisions are based on only the information from financial statements. Modern strategic management accounting has its own techniques to ascertain cost position. It also helps business firms to how to achieve cost advantages current as well as future years. In this context the role of Accounting professional is very important for the survival of business firm compared to every angle of the present business environment. Accounting profession In the context of professional accounting, the power and responsibility of an accountant can be justified when financial statements provides expected information according to the objectives functions especially protection of public and social interest. Under flexible business environment Accountants are vested with enough power in order to perform their functions without any interruption for the healthy future of business firm.. According to the scholars the up gradation of accounting skill is a specific task as the accounting profession also one of the component of employment structure which is influenced by policies of government and economic policies. . There is a argument the accounting skills and knowledge should be revised and updated time to time because these skills and knowledge should be according to the changing expectations of the society and the stakeholders of the business firm. But as a professional an accountant should utilize these skills and knowledge in optimum level for the interest of the employer as well as interested parties. . The accounting profession has gained enough importance especially it is the sole body which has the ultimate authority on the financial related issues and matters. The one of the primary objectives is to work for the benefit of social interests that has analyzed for making the accounting progression as an appropriate occupation in modern employment world. And According to some experts.. Accountants with traditional views are no longer sustaining in the present environment. According to the research the Todays accounting and auditing methods are in modified forms compared to traditional m ethods of accounting. Changing role of Accountant Todays accountants should mostly focus on knowledge, skills and ability to manage these as a particular service. This requirement in business environment has created business and ethical issues for the accountants/ auditors and their customers. This includes problem-solving and customer advice features of the skilled professional. Changes also include the over emphasis on specific training for developing practical skills as part preparing of new graduates to the practical business world. The introduction of these practical training in academic degrees involves uncertainty and time frame because the academic institutions should ready for accepting the current changes. Companys especially multinational companies mainly concentrate on these practical skills but facing problems of assessment for right candidates with practical knowledge. Challenges to Accounting Profession Due to the influence of globalization changes in financial strategies have been affecting almost every business and services around the world. Especially Accounting and finance sector is directly affected, financial experts world wide are working for the improvements of the accounting system. Several seminars are going on in this regard; financial professionals, scholars have to share their ideas and views on the present challenges in finance and accounting today, and acquire sophisticated skills in order to face globalization effect. Today global recession and financial conflicts has developed new trend of threats and challenges. According to the experts of International Accounting Standards Board, the global financial conflict is the main which emphasized transference in financial reporting and flexible accounting standard with definite principle to face the new trend in future. The context and dynamics of modern strategic management accounting the changes in the accounting skills have forced to adopt by professional accountants who are cautious to provide value added service for their customers. Globalization process has made the business activities to cross the boundaries of nations. The global financial and business environment has put pressure on professional accountants and auditors as they are the important information providers for the business success. Every company seeks opportunities in global market for the expansion of the business. But uncertainty in market conditions and rapid innovations in technology have made themselves to face any type of business situation for the interest of all their stakeholders where their business strategies, their market share and capital adjustments also subject to changes along with the marginal profit. Internal challenges The first challenge to professional accountant is the measurement of financial performance. Revenue is a single measurable indicator of financial performance. The common feeling is that over-emphasis on revenues, unscientific ways of their analysis and interpretations financial information. But this information is the basis for long term business decisions. Secondly issues regarding historical accounting information and statements. Some times there is feeling that a balance sheet prepared imperfect way and it does not reveal accrued profits based on future changes in market condition. This is the major draw back in disclosing true financial information of the company. Thirdly financial statements do not measure the assets and liabilities on the basis of todays accounting standard. Hence investors may be misled in making investment decisions, which will put them at greater investment risk. They also need the information regarding the value goodwill and other intangibles and capital structure. Lastly the financial and accounting statements show only historical transactions and facts and they dont concentrate much on the future events and transactions. They put limited attention on the hard profits and also limited attention to the required process for maximization of wealth. Challenges of Globalization Innovations in technology are the greatest affect on the profession and present system failure to coop with this challenge may be resulted in the devaluation of the importance of the profession. The introduction of the information technology has greatly influence the system in which companies do business, structure their organization and operate their reporting systems and each of these are the considerable challenges for the accounting profession. E- Business has introduced new business risks along with the great advantages which a professional accountant should take into account. The unauthorized access company information; increased volume of business as created credit risks; and the proper allocation of income and expenses, Accounting firms and professionals should be concentrate on with these risks. The changes in Government financial police and company the annual financial statements and other communications can be communicated to the concerned parties through the electronic media or through web sites. Out of dated information will not reveal clear picture and hence share price of the company affected. Market expects the clear picture of financial and business performance and there are pressures on firms o provide such information when required. Lastly the centralization of accounting system and accounting information systems will be the top management based decision where accounting is considered as secondary issue. Branch accounting is in declining trend today information will be directly flow to the head office of the firms. Globalization can be defined as the existence of a situation where there is an easy access to any part of the world. It is in the form of information on any subject matter. A professional accountant should face several challenges with this situation; businesses expand sometimes beyond country borders in response to globalization. In market led globalization model an accounting professionals should play a dominant role. To make the Global markets to function properly, the accounting profession must adapt and modernize in response to the globalization of finance and investment. In corporate-led model of globalization the accounting profession does not merely adapt to forces of globalization. But accounting industry has played and continues to play an active role in the structuring global markets for accounting services. Due to the globalization there are some threats to accountants and the accounting profession as a whole Accountants working for foreign-owned companies, their knowledge, skills, and abilities may be restrict them to performing only low-value, compliance-oriented work. Accounting professionals can be also benefited from the effects of globalization. These are Accountants who are ready to expand their financial accounting knowledge, skills, and abilities they can become expertise in understanding of changing business requirements. Accountants with their theoretical knowledge, skills, and abilities with the performance oriented knowledge, skills, and abilities of management accounting can be achieve high level of experience in this context. Today businesses become increasingly globalize, 10there is clearly more pressure on accountants to increase the knowledge, skill, and abilities beyond their present limit of functioning in order to fit well into the globalization of the 21st century. In this context the accounting profession has an important role in assisting firms to face competitive finance and business environment Implications of Academicians The role of the accountant in past was just recording the facts and figures but the role of the professional accountant has been criticized by many scholars and analysts over the decades, especially the accounting skills developed by students of accounting management schools This demand primarily developed in Academic level, the. The need for this change is based on a number of draw backs identified in the skills taught in graduation schools that students when bring to the practical world. Another criticism is these 1skills cannot be efficiently being taught in schools where the employment is dominated by specialized technical skills. Requisite skills required by future professional accountants and auditors will include easy learnable professional skills along with ethics. These specific skills are necessary for modern business environment because it helps business entities to 1solve the diversity of business challenges. This is the main challenge for the academic institutions to balance between accounting graduate skills which are theoretical in nature and skills sought by modern business entities. There is gap between the actual school syllabus and the knowledge expected by companies. The academic institutions should try to train accounting graduates to suit the interest and expectations o the employers. The accounting1graduates with sophisticated skills are in an environment that requires accountants to show high level of technical performance to meet the demands of financial and business entities. Number of comments and opinions from global academicians and practitioners has forced the Government authorities and International Regulatory Bodies related to accounting issues to make revolutionary changes in the accounting standards, methods and techni ques which are relevant to future years. Majority Charted accountants and Accounting professionals feels present accounting system is not according to the requirements of modern business and it is less flexible to the changing environment. These academicians and practitioners agree that if accounting is to serve a useful role in the changing environment, academic education in accounting and scope of research should become broader, dynamic and not limited by a single approach. Despite these matters, the academicians and practitioners feel that present academic programmes in Accounting and finance area should be reviewed according to the demand from job market. Professional Ethics The corporate financial conflicts has given good inputs to finance professionals and for the monitoring of accounting system. Continuous effort from academicians and financial experts in developed countries there are strategic changes in academic education and training programmes, professional accountants should be able to develop the specific skills they need to successfully compete in the employment market for new types of information and financial services. This vision is used by many of the professions leaders. As per the study in U.S.A there are considerable increase in the number of professional accountants and AICPA membership during the period from 1970 to 1994.  This indicates that in developed courtiers are ready to face the challenges. Study in U.S.A (Courtesy: Annual report AICPA) Table 1 Total Accounting Employment Year Numbers in Thousands 1970 646 1980 1013 1990 1446 1994 1483 Table 2 Membership in AICPA Year Numbers in Thousands 1970 74 1980 161 1990 296 1994 319 Impact of Challenges on Strategic Management Accounting During the past two decades, many organizations in business and finance sectors have to face changes in their business environment. Economic reform polices by the developing countries, business policies and competition from multinational companies in local markets has resulted in a typical situation, where most companies have to face severe competition from rival business firms in a highly competitive situation. In addition there has been a change observed in business life cycle due to rapid changes in technological innovations and the need to meet sophisticated customer demands because production of each product is considered as a independent business. To compete successfully in global environment, companies have to work towards to satisfy made customer demands. They have forced to adopt new Management and financial strategies, changed their accounting systems and investment in new technologies. The increasing competition has affected their profits and more attention is required to be paid to the various aspects of strategic Management accounting aspects. These global challenges have had a significant influence on strategic Management accounting systems. Role of professional accountant has no longer remained that of an accountant, but he has assumed a significant role in improving the competitiveness of firms. Professional Ethics The financial crisis has given good inputs to finance professionals and for the monitoring of accounting system. Today accounting professionals in the business sector should not only concentrate on earning of revenue, but also take into account the public and external parties related to the business. The present accounting system should be able to create ethical environment for the benefit of society in generally and stakeholders particularly. Directions for Ethical Performance The directions towards performing the duty in ethical way Global Charted Accountants Associations encourage accountants and Auditors to conduct them effectively and to do quality internal and external auditing in appropriate manner and other accounting functions. Professional Institutes should develop high level auditing standards and ethics their applications in practical world. There are so many ethical obligations which make auditors in right path of accounting standards and legal obligations. Figure 1. Ethical codes Geographical study requirements Quality control Legal registration Professional programs, training and examinations Continuing education requirements Legal liability Accounting standards Conduct of professional Accounting firm personnel Future of the Accounting Profession: Introduction of specific knowledge and the increased expectations from global business world today accounting profession is a specialized profession, which is resulted in great the movement toward up gradation of accounting graduate or professional education. Advanced programmes in computer technology and its role in updating the information for concerned parties of the business, financial experts are expecting t the new trend in information technology and communications which will reshape the accounting employment structure. Computers are today important part of the accounting information system. Introduction of new computer software programmes has given considerable contribution for the modification of business and accounting from the last decade and will continue to the future also. These days we can observe that the new accounting softwares decrease the work load of accounting firms which is resulted in the decrease of employing fresh candidates for accounting work. But developments in accounting profession have shown steady growth from last 20 years despite the increased use of computer information systems to perform routine accounting tasks. Suggestions and Recommendations accounting profession have an significant role in assisting the management for business decisions to not only contribute for strengthening the financial position but also should be modified to analyze management risk factors as the parallel profession to management graduation, for firms operational and strategic decisions . These personnel should also be able to anticipate and manage risks factors arising from bulk volume of financial transactions which made the firms vulnerable to uncertainty and unexpected price variations. As the scope for this profession increased, it will find itself facing increasingly conflicting pressures arising from convergence. It should be designed to establish proper balance manage internal financial conflicts and external conflicts related to firms financial matter and should be able to these commercial interests to introduce the ability to act as a trusted and independent professional business consultant and advisor. The accounting profession should extend its role and responsibility for promoting good corporate business environment. It should also be concerned for sustaining of good corporate governance is not only fulfilling legal obligations but also should be based on values and ethics.

Employee Attitudes Essay -- GCSE Business Marketing Coursework

Employee Attitudes Introduction A happy worker makes for a good worker you say? Well, United Airlines had somewhat of an â€Å"all for one† employee attitude in July 1994. They announced the purchase of their own company for which they work for $5 billion through ESOP (Employee Stock Ownership Plan). So now, in the case of United Airlines, there obviously is a soar in employee productivity and spirits. Stocks have risen 120% due to this buyout (almost three times higher than the airline industry average gain). Every company or small business owner desires a positive employee attitude within his or her organization for high productivity and quality. United Airlines achieved this because the employees themselves took action, but for the majority, it is the management’s first move. Taking the Apple from the tree The Idiot’s Guide for Changing Employee Attitudes would say to pay the employee what O.J. paid his defense team. Take away the money part of a job then no one except an old volunteer worker for a Save the World Foundation or a simple dork is going to show favorable attitudes towards the job. Now let’s get real†¦but I thought that we were! Money can hypnotize some employees to become a more productive worker, but not all employees. (And even the ones that are motivated at the first glimpse of dead presidents will soon want†¦. you guessed it, more money in order to drag their lazy ass up the next step). What about Bill Gate’s techno wizards at Microsoft? What sum of money short of Bill’s own bank account is going to motivate these 30-year-old Gulfstream owners to change their snobbish attitudes? On a more practical basis, what about those employees who value intrinsic rewards over the monetary type? Not all employees will be weaned with the flash of cash. So we all must consider the fact that human beings will be consistent towards the general sense of satisfaction, but what sort of things lead to this satisfaction? What kind of satisfaction are we looking for? More so, what is going to satisfy an employee? Most of the research in the study of OB (Organizational Behavior) are concerned with job satisfaction, job involvement and organizational commitment. (Robbins, 1997) The second two attitudes, job involvement and organizational commitment, are more or less the results of job satisfaction. An employee who has a high level of job ... ...e to work for me. This was exactly the case. I hated that girl for professional and personal reasons, but couldn’t really fire her for two reasons. First, if she leaves, then he leaves. Second, she really liked the type of work she was doing for my business, and it is this second reason that I changed. Of course, if an employee likes the work that they are doing then it is an advantage to the organization, but I felt that I had to make her believe that she really didn’t like working at my store so that she leaves on her own terms. This way, I get rid of her without loosing the husband employee. To make a long story short, I don’t believe a small business should hire a married couple due to problems which can arise from personal feelings (If just one of the two employees find a disagreeable situation, then the other will be enticed to follow. Now, there is double the problem.), but in the beginning, I had no choice since she wanted to tag along. Her h usband was the prime choice for my store due to his extensive knowledge and experience in this field, and for the amount of pay that he was willing to take, I wasn’t willing to give up that opportunity. So lesson well learned.

Movie Analysis of Hotel Rwanda

Hotel Rwanda, released in December of 2004, is based on the true story on the life of Paul Rusesabagina, a hotel manager of Hotel des Mille Collines, who saved the lives of 1,268 people in the face of genocide. This movie is based on the true events of the Rwandan Genocide in 1994 that occurred in Kigali, the capital and largest city of Rwanda in Africa. It touches upon when the Hutu extremists of Rwanda initiated an act of genocide on thousands of the minority group, Tutsis. This movie was directed/written by Terry George and Keir Pearson.Major cast include Don Cheadle (Paul Rusesabagina), Sophie Okonedo (Tatiana), Joaquin Phoenix (Jack), and Nick Nolte (Colonel Oliver of the UN). Other cast members include Fana Mokoena (General Bizimungu of Kigali Police), Hakeem Kae-Kazim (Georges Rutaganda, leader of Interhamwe militia), and Jean Reno (Mr. Tillens, President of Sabena Airlines in Belgium). The movie’s main location of filming was done in Kigali, Rwanda, and Johannesburg, S outh Africa. Tensions between the Hutu and Tutsi groups are what lead to the war, and eventual genocide, in Rwanda.Paul and his family witness killings in the neighborhood. Although his wife is Tutsi, and himself Hutu, Paul carries protection with people of influence, bribing them with money and alcohol, seeking to maintain sufficient influence to keep his family safe. When the war erupts and a Rwandan Army officer threatens Paul and his neighbors, Paul barely negotiates their safety, and is forced to the decision of bringing everyone to the hotel. More refugees come to the hotel from the overburdened United Nations camp, the Red Cross, and orphanages from all over the country.Paul must divert the Hutu soldiers, care for the refugees, be a source of strength to his family, and maintain the appearance of a functioning luxury hotel as the situation becomes more dangerous. The UN Peacekeeping forces, led by Canadian Colonel Oliver (Nolte), are unable to take assertive action against th e Interahamwe since they are forbidden to intervene in the genocide. The foreign nationals are evacuated, but the Rwandans are left behind. When the UN forces attempt to evacuate a group of refugees, including Paul's family, they are ambushed and must turn back.In a last-ditch effort to save the refugees, Paul pleads with the Rwandan Army General, Augustin Bizimungu (Mokoena) for assistance. However, when Paul's bribes no longer work, he blackmails the General with threats of being tried as a war criminal. Soon after, the family and the hotel refugees are finally able to leave the besieged hotel in a UN convoy. They travel through retreating masses of refugees and militia to reach safety behind Tutsi rebel lines. From the beginning, it is clearly displayed that there are more than two sides of the story, with various groups representing each side.The Tutsis are the ones accused in the killing of the Kigali president after his offer of an agreement of peace, and just want peace betwe en both parties. The Hutu are attempting to kill off any person that is Tutsis. They believe that the Tutsis killed the president because they want to keep the power that was left in their hands when the Belgium left Kigali. There is also the UN peacekeepers and other foreign armies (French, Italian etc†¦), referred in the movie as ‘the West’. One is trying to help the Rwandans stay alive, while the other is stay out of the issue.In the movie, Hutu extremist views’ are specified through the character of George Rutaganda. They reference the Tutsis as ‘cockroaches’, and how the Hutu must rise up and get rid of any Tutsis, along with any of the next generation. As said in the movie by Rutaganda, â€Å"Hutu, we must get rid of these cockroaches that are infecting our country†. Most of this encouragement comes from Georges Rutaganda, the leader of the Interhamwe militia, who speaks to the Hutu extremists through the radio, which is the only wa y you see the Hutu people communicate with one another throughout the whole film.Although communication is solely this, the mission of the Hutu is successfully showed. In contrast, while the mission is known, as mentioned before, all communication is through the radio, with no actual physical meetings. This was weird to me, sending the message that decisions were not made by the group as a whole, but rather militia taking orders from one leader (Rutaganda). Also it gave off the feeling of spontaneity, although the movie showed that many Hutu were angry since power was given to the Tutsis, and not only when the Kigali president was killed.On the other end, the Tutsis are constantly running searching for protection from the Hutu, trying not to be killed. Those on their side are Rusesabagina, Colonel Oliver, and Mr. Tillens, through their own actions, respectively. Multiple times throughout the film, it shows how the Tutsis cannot even stay in their own homes and once they cannot show identity cards stating their status as Hutu, they are beaten, homes burnt to the ground, and most roads to leave are blocked off. Rusesabagina obviously uses the hotel as a refugee camp, and Colonel Oliver fights through the whole movie to get the influence of the West to stop the enocide, for he cannot himself. Mr. Tillens does what he can to keep off the Hutu extremists away from the hotel by keeping contact with the French, who supply the Hutu armies. Before watching, the reviews portrayed Rusesabagina as ‘a clear hero for the Rwandans’. This was evident while seeing the movie. Obviously, Paul shelters thousands of Tutsi people in the hotel, doing everything he can to keep the Hutu away. In the first few scenes of the movie, this same determination is not seen. Paul makes it clear that he does everything only to protect his family.As he tells his wife when she tells him to call his people to help the neighbors being attacked, â€Å"I give the powerful guests of the hotel everything, so that in return, they will protect my family when troubling times come. They are our neighbors, not family. † As the attacks get worse, this mindset changes as a threat to kill a group of Tutsis in front of him is presented. Toward the beginning of the movie, after the attacks begin in Paul’s neighborhood, a large group of other Tutsis neighbors are hiding in the Rusesabagina home. Hutu armies come to kill all the ‘cockroaches’ in his home, including his wife and kids.At first, Paul offers bribes of money and alcohol to save only his family, but later offers almost triple the amount of money for the whole group, including expensive jewels. This is only one of the first scenes that Paul bribes armies to avoid the killing of those he is protecting. With the character of Rusesabagina, the filmmaker portrayed him as a humble man, with no inconstancies in any of his actions. This goes along with the purpose of the film, which was to show the actions of a hero, who saved thousands from genocide. The main antagonists of the film would be the Hutu.They could be considered villains not only for their hate for Tutsis, but for the ruthless killing of close to a million. The directors, did just enough in every scene to remind the ones watching that this group of people did not want anything to do with the Tutsis. Another antagonist in the film, in my opinion, was the foreign armies (Belgium, French and Italian). In the first attempt to remove the Tutsis from Kigali, it was believed that all these armies were coming to the aid of the people. When they actually arrived, it was then explained by Colonel Oliver, that they would only be helping evacuate the Americans and those from ‘the West’.This scene gives them the portrayal of a villain, because as Colonel Oliver says in a following scene to Paul, â€Å"You are considered dirt to them Paul, you are not even Black, you are an African†. This line was very comp elling for me because it showed a type of ranking between other races, as compared with the Africans, with all of them showing superiority over them. The same scene also showed how people who may see what was going on in Kigali would not take action, like the conversation between Paul and Jack. Jack has just filmed footage of a group of people being beaten and even chopped up with machetes.Paul says to him, â€Å"How could they not intervene, after seeing such brutality? † Jack doesn’t have the same faith, replying, â€Å"When people see this, they will say â€Å"Oh, how horrible† and go on eating dinner. † It was after these scenes that Paul realizes that believing he was one of them, and everything he has done (adapting to their ways, conforming to every need and want), was for nothing. After this scene, it is said many times, especially by Rusesabagina, that they were on their own, and everyone had abandoned them.If this were true, then they would not even have the UN peacekeepers, who were consistent allies. This was the only contradiction I found with the antagonists. If someone only watched the first few scenes of the movie, it could be misinterpreted that Paul had many influences aiding him through the end of the genocide (or in this case, the movie). His main allies in the movie were Colonel Oliver, Mr. Tillens in Belgium, and General Bizumungu. Of these allies, it was perceived that the General was only helping because he was constantly being bribed, and not out of kindness.With Colonel Oliver, he always came back to Paul once he knew of any opportunities to get the people out of Kigali. At first, I assumed that the UN was against the people of Kigali, because they were given orders to not attempt to stop the genocide, or in the words of Oliver, â€Å"We are peacekeepers, not peacemakers†. This is where the audience can think that everyone has abandoned them. This assumption was put away once the UN peacekeepers go t hrough multiple attempts, and are eventually successful; at getting everyone pass Tutsi rebel lines, even after the Hutu showed that they killed some of Oliver’s men.Mr. Tillens, the president of Sabena Airlines, was only present in a few parts, but his was visibly one of Paul’s most powerful influences and had a big impact on their survival. In another scene where the hotel is under attack by Hutu extremists, Paul is given ten minutes to come downstairs and provide a list of all the ‘cockroaches’ staying in the hotel. In this time, he sneaks away to call Tillens. As they are talking, this is when a vulnerable side of Rusesabagina is seen.When asked if there is anything that can be done, it is the first time that Paul mentions any doubt in surviving the genocide, but stating, â€Å"I do not know what you can do, because I am positive that it is too late, they have already arrived, and I am sure we are going to die. † When Tillens says to buy him tim e, that he will get in contact with the French, who supply the Hutu, Paul is doubtful of his words. As Paul is outside negotiating with the armies, who are threatening to kill everyone, they are given orders (in French, but are obvious) to back off and leave the hotel, along with everyone in it.With the General, he is always talking with Paul in the first part of the movie of just how much the Kigali police have got him protected, but this is while Paul is still able to send him off with the best cigars from Cuba and Africa’s finest scotch. In a scene when Paul asks the General for help, but has no bribe, he is quick to say, â€Å"No more police, no more protection†. Paul begs for his help, insisting that these are troubling times, and they all need to stick together. The General answers Paul with a stern, â€Å"How are you going to help me Paul? The General briefly helps once Paul threatened him with the idea that everyone believed he was a war criminal involved in t he massacres. This is why it was necessary to show all sides, because if they were not, it would be perceived in the movie that no one tried to help the Tutsis survive the genocide, and that they were truly on their own. Many reviews said that the movie did not properly exhibit the actual events of the Rwandan Genocide, but after watching the film, I have to disagree. While watching certain scenes, it really made the tears fall in remembering that the movie is not fictional.It made you feel as if you were there, and put your emotions into each scene, while hitting you with the harsh realization that the event actually occurred. There was an equal stability between showing tidbits of the genocide, but also of how a single man became a hero by saving thousands. Overall, it left the message of how this should have never happened and gave moments as to how it could have been avoided. As one reviewer says, â€Å"The Rwandan Genocide is one of the most horrific events of this time, and u nfortunately, the most unknown†, but this movie gives audience a respectable summary that shall leave us knowledgeable.

Management and Weber Essay

Drawing on Weber’s ideal type, critically consider the relevance of bureaucratic administration to the management of twenty-first century organizations. Max Weber was a German sociologist in the twentieth century; he was famous for his classical management theory. Weber classified three different types of authority, traditional, charismatic and legitimate authority. Traditional authority is based on traditions and customs that the leader has the legitimate right to use authority. Charismatic authority is the belief that the leader whose mission and visions will inspire others. Legitimate authority is based on formal, system of rules. In the 1930s, Weber introduced that the bureaucratic form as being the ideal way of organizing government agencies. This soon became popular in both the private and public sectors. Weber believes that the development of rational forms to be the most important characteristics in the development of Western society and capitalism. He considered the traditional and charismatic forms as irrational. Rationality is based on reasoning, calculation and logic. One of the many types of rationality includes the formal rationality. The notion of formal rationality is important to the emergence of industrial capitalism as capitalism values reason, calculation and precision, science and logic. Formal rationality is a form of rationality that characterizes bureaucratic organizations. Bureaucracy refers to the execution of tasks that are governed by official administrative and formal rules of an organization. Weber’s bureaucratic management theory focuses on dividing organizations into hierarchies with authorities and control. The ideal type is extreme, empirically based and yardstick for comparison. Weber has 6 major principles for his ideal type of management style. Firstly, the organization has a formal hierarchical structure, which refers to the ranking system within in the management. A hierarchical structure management style also suggests a centralized decision making process, where the vast majority of decisions are made by a small number of people, usually the senior management teams. Secondly, the organization follows a management by rules system; the organization is controlled by rules, which allows decisions to be made at high level then executed by the lower levels. Thirdly, the organization is organized by functional specialty, which means that there is specialization within the organization; employees are divided into separate departments based on their abilities and skills. Specialization allows the employee to be efficient and more skilled at a specific task, which increases productivity. Furthermore, all decisions and rules are recorded in writing to ensure continuity over time. In addition, in an ideal system, there is equality between all employees, applying to both managerial and non-managerial workers. Lastly, employment is wholly based on technical qualifications, which means employees are hired on a basis of their abilities and competence. Weber’s bureaucratic management focuses on the authorities in the top level of the hierarchy and causes an â€Å"iron cage† to restrict the lower lever workers which leads to demotivation and a feeling of insignificance. Many researchers argue that weber emphasizes on the positive consequences of bureaucracy and ignores the dysfunctions of it. These researchers include Gouldner, Merton and Thompson. In Gouldner opinions, he does not believe the bureaucracy authority is neither acceptable nor efficient. He proposed three types of bureaucracy, mock bureaucracy, punishment centered bureaucracy and representative bureaucracy. In mock bureaucracy, the rules are ignored because they come from an outside agency; employees feel that there is too much ‘red tape’. In punishment-centered bureaucracy, the rules are imposed on the workers from inside the organization. This type of authority discourages the workers from full commitment; workers would only perform a adequate amount of work. In representative bureaucracy, the rules are developed and supported by managers and the employees. As for Merton, he believes that rational rules and the close control leads to inflexibility. He introduced the idea of ‘goal displacement’; this is when organizational goals are replaced by personal goals. Bureaucracies’ rules become more important than what they were designed to serve, which results in inefficiencies. In bureaucratic systems, specialization consists of different departments with different goals. These goals could cause conflict and these goals may become more important than the organization’s original objectives. Victor Thompson also criticized Weber’s ‘ideal type’, he suggests the bureaupathic behavior, and this is when employees are more interested in the rules than the purposes and goals of the organization. Thompson also argued that in bureaucratic systems, the authorities generate a sense of insecurity that uses rules to protect them from making errors. There are many more dysfunctional consequences of bureaucracy. Firstly, bureaucracy is a rigid management system, it is designed for a stable and predictable business environment, hence it cannot adapt to rapid and unexpected changes. Also, in a bureaucratic system, there is a concentration of power in the higher levels of management, which would create distance between the employees at the lower levels of the hierarchy and leading to a sense of demotivation. There was not only Weber’s theories about management style, there were also Taylorism by Fredrick Winslow Taylor, Fordism by Henry Ford, and McDonaldism by George Ritzer. Taylor was regarded as the father of scientific management. Taylorism was aimed to a) minimize production time, b) achieve divison of labour, c) reduce the amount of work by following a machinelike routine d) separate work equally among the workers and the managers, e) gain control by supervision of work with managers planning, and workers performing the tasks. His ultimate goal was to succeed in gaining efficiency by increasing output from his workers. Taylor also introduced the Time and Motion Study, this was to establish productivity. He first separated the tasks into small steps, then performance was monitored to eliminate wasteful motion, with the exact time recorded, then the production and delivery time and prices can be calculated. However, this is only suitable for repetitive tasks. The idea of taylorism is usually argued that it exploits human beings, it also ignores personal creativity and there is a loss of autonomy to the employees. Fordism was the system of mass production that was introduced by Henry Ford, the founder of the Ford Motor Company. His aim was to achieve higher productivity by standardizing the output by his company. He was also the first to introduce the use of assembly lines. In Taylorism, it focused on machine and worker efficiency, however, in Fordism, ford replaced labour with machinery and he minimizes costs instead of maximizing profits. Critics argued that Fordism destroys craftsmanship and de-skilled jobs as it focuses on machinery to perform the tasks, and with the small number of workers of the workplace, the repetitiveness of the job is believed to lead to stress and alienation of the workers. After Fordism, George Ritzer introduced the idea of McDonaldism, the term was to refer to the process of fast food restaurants dominating the world. This new structure of Ritzer’s replaced Weber’s bureaucratic structure. He proposed four principles of McDonaldization. 1) Efficiency: In McDonaldized structures, the ideal way for completing a task was the whole of the organization aims to minimize time of production. 2) Calculability: McDonaldism suggests that a large amount of product delivered in a short period of time is equivalent to a quality product. 3) Predictability: In McDonaldism, products and services are standardized, despite the location or time. 4) Control: According to McDonaldism, employees perform specific tasks with non-human technologies to replace them when needed. Bureaucracy belongs to the twentieth century when the business environment is stable and predictable, however, in the twenty-first century; the business environment is forever changing and is in need for a flexible structure. There are five key organizational trends in the twenty-first century. Firstly, globalization is the increase integration of national economies into global markets rather than national markets. Over the past years, there is an increased globalized labour market. The increased globalized markets are mainly due to improvements in transportation and communication such as the Internet. Secondly, the workforce is becoming more diversified due to changing demographics and the globalization of the labour market. Thirdly, in the twenty-first century, organizations are becoming more flexible; there are fewer detailed rules and procedures within the workplace. Employees are receiving greater autonomy with a more flexible organizational structure. Furthermore, businesses prefer to adapt to a flat organizational structure with less management levels, bringing the top management closer to the lower levels of employees hence improving the flow of information and speeding up communication within the organization. Lastly, organizations are mostly networked; there is direct communication between different departments, ignoring the chains of command. Business decision-making is decentralized in networked organizations, which improves the speed of decision-making, encourages input from the workforce and improves accountability of the employees. In conclusion, Weber’s theory of the ideal type of organization is inappropriate for the management of the twenty-first century organizations; the business environment in the current days is rapidly changing. Bureaucracy is a rigid system that does not allow easy changes which is required in the modern world. Hence, bureaucratic system is only suitable in the twentieth century where the business environment is static. Bibliography: Max Weber – Wikipedia, the free encyclopedia. 2011. Max Weber – Wikipedia, the free encyclopedia. [ONLINE] Available at: http://en.wikipedia.org/wiki/Max_Weber. [Accessed 17 October 2011] Bureaucracy — Max Weber’s six characteristics of the bureaucratic form. 2011. Bureaucracy — Max Weber’s six characteristics of the bureaucratic form. [ONLINE] Available at: http://www.bustingbureaucracy.com/excerpts/weber.htm. [Accessed 17 October 2011]. WEBER ON BUREAUCRACY. 2011. WEBER ON BUREAUCRACY. [ONLINE] Available at: http://www.humanities.mq.edu.au/Ockham/y64l09.html. [Accessed 19 October 2011]. Bureaucratic Management. 2011. Bureaucratic Management. [ONLINE] Available at: http://www.vectorstudy.com/management_schools/bureaucratic_management.htm. [Accessed 19 October 2011]. What is Wrong with Weberian Bureaucracy?. 2011. What is Wrong with Weberian Bureaucracy?. [ONLINE] Available at: http://www.change.freeuk.com/learning/business/ratlegal.html. [Accessed 24 October 2011]. Bureaucracy (Advantages and Dis-Advantages)  « Michael Wiriadinata. 2011. Bureaucracy (Advantages and Dis-Advantages)  « Michael Wiriadinata. [ONLINE] Available at: http://mamikikeyu.wordpress.com/2011/05/12/bureaucracy-advantages-and-dis-advantages/. [Accessed 24 October 2011]. Scientific Management (Taylorism). 2011. Scientific Management (Taylorism). [ONLINE] Available at: http://www.12manage.com/methods_taylor_scientific_management.html. [Accessed 24 October 2011]. McDonaldization – Wikipedia, the free encyclopedia. 2011. McDonaldization – Wikipedia, the free encyclopedia. [ONLINE] Available at: http://en.wikipedia.org/wiki/McDonaldization. [Accessed 27 October 2011].

The Old British Imperial System essays

The Old British Imperial System essays The British Imperial system was fundamentally based on the policy, mercantilism. Where each colonial possession should provide wealth to the mother country, in these circumstances, the American colonies provided wealth to the British. Colonies were not supposed to compete with the mother countrys home industries. The British Empire was a closed system, designed to keep competition out. The mercantile policy turned Britain into the preeminent center of trade in the world. Through out the seventeenth and eighteenth centuries, the basic purpose of the colonies was to support the mother country. The colonies acted as tenants for the British. The colonies had to produce raw materials, such as, tobacco, corn, tomatoes, potatoes, timber, indigo and beans. Britain produced a surplus amount of goods, and the colonies were forced to buy the surplus, there for the colonies can also be viewed as an outlet for surplus manufacturers. The colonies were also and outlet for surplus population. For example, some religious groups, such as the Quakers, were persecuted through out Britain; consequently they were forced to move to the new world. In order to instigate the mercantilist policy, on the colonies, the British composed a series of enactments. The most important act passed, was the navigation acts, implemented to regulate trade and commerce. The acts limited the colonies to trading exclusively with the British. The vessels had to be assembled by shipbuilders of the British Empire, and three quarters of the crew, had to be English. To expand the mercantilist policy, the British implemented restrictions on colonial manufacturing and trade. The Wool Act of 1699 stated that none of the colonies could sell or produce wool, the Hat Act of 1732, made the British the primary manufacturers and sellers of hats. The Iron Act of 1750, declared that Iron was to be sold and produced, only by the British. The Mol ...

Social policy as an academic subject is both descriptive and analytical Essays

Social policy as an academic subject is both descriptive and analytical Essays Social policy as an academic subject is both descriptive and analytical Essay Social policy as an academic subject is both descriptive and analytical Essay Payne, Sarah. , Sullivan, Michael. ( 2004 ) Introducing Social Policy, England: Pearson Education Limited Alcock. Pete. ( 2008 ) The Subject of Social Policy , p. 3 in Alcock, Pete. , May, Margaret and Rowlingson, Karen ( explosive detection systems ) , The Students Companion to Social Policy, 3rd erectile dysfunction. Oxford: Blackwell Publishing. Baldock, John. , ( 2007 ) Welfare, Ideology, and Social Theory in Baldock, John. , Manning, Nick. , Vickerstaff, Sarah. , ( explosive detection systems ) Social Policy 3rd erectile dysfunction, Oxford: Oxford University Press. Becker Saul. ( 2008 ) Methods and Approaches in Social Policy Research in Alcock, Peter, May. Margaret and Rowlingson, Karen. , ( explosive detection systems ) The Students Companion to Social Policy 3rd erectile dysfunction. Oxford: Blackwell Publishing Blakemore, Kenneth ( 2003 ) Social Policy an Introduction 2nd erectile dysfunction, Berkshire: Open University Press Bochel, Hugh ( 2005 ) Introducing Social Policy in Bochel, Hugh. , Bochel, Catherine. , Page, Robert and Sykes, Rob. , Social Policy: Issues and Developments, Essex: Pearson Education Limited. Carlson, Judith ( 2004 ) Theoretical Principles and Concepts in Alcock, Cliff. , Payne, Sarah. , Sullivan, Michael. , Introducing Social Policy, Essex: Pearson Education Limited Considine, Mair A ; eacute ; ad. , Dukelow, Fiona. , ( 2009 ) Irish Social Policy, A Critical Introduction Dublin: Gill A ; Macmillan Ltd Fitzpatrick, Tony ( 2001 ) Welfare Theory: An Introduction, Campling, Jo ( adviser editor ) London: Palgrave George, Vic. , Wilding, Paul. , ( 1994 ) Welfare and Ideology Essex: Prentice Hall Europe Hartnoll, Richard ( 2004 ) Drugs and drug dependance: linking research, policy and pattern, background paper for Pompidou Group s Strategic Conference on linking research, policy and pattern, Strasbourg. Germany: Koelblin-Fortuna-Druck Lavalette, Michael. , Pratt, Alan. , ( explosive detection systems ) ( 1998 ) Social Policy A Conceptual and Theoretical Introduction, London: Sage Publications Inc Spicker, Paul ( 2008 ) Social Policy Themes and Approaches 2nd erectile dysfunction, Bristol: The Policy Press Titmuss, Richard. ( 1974 ) The International Perspective , in Abel-Smith, Brian and Titmuss, Kay ( explosive detection systems ) , Social Policy an Introduction, London: Unwin Hyman Ltd

Beyond The Writers Market Seven Ways to Find New Magazines

Beyond The Writers Market Seven Ways to Find New Magazines Feel like you’re out of ideas to pitch the magazines you know? Then find new magazines. There are more magazines out there than you can imagine. Despite what you may have heard, new titles continue to evolve (over 130 in 2017 alone,  Statista reports).You’ve dogs include Modern Materials Handling and Industrial Heating. Due to their more specialized target audiences, trades tend to pay well.Another little-known but great-paying type of glossy are company magazines, known in the mag trade as custom pubs. The best-known of these is  Costco Connection  magazine, along with all the airlines’ in-flight mags, but there are more. Find more at the  Custom Content Council’s  site with its handy members’ directory search tab to sort

Corporate Social Responsibility - A code of ethics Essay

Corporate Social Responsibility - A code of ethics - Essay Example Over the past 3 years Bibbyoffshore have seen a exponential growth in their business, the company now operates 2 dive support vessels (DSV's) with a third due to come online in late 2007. The company is now of such a size that it is able to compete with the larger existing oil and gas service companies who have dominated the market over the past 15 years. As Bibbyoffshore desire to attract more complex, higher value contracts, certain client expectations, such as the way in which Bibbyoffshore view their responsibility to the environment and society, need to be met. This is reinforced by Bibbyline' own mission to maintain growth whilst operating within their core values of: This management report aims to investigate the relevance of a Corporate Social Responsibility (CSR) Ethics strategy for Bibbyoffshore. Initially the development of CSR and Ethics within the Oil and Gas industry will be discussed followed by a short business case for a CSR strategy. A three year implementation strategy will be suggested along with a code of ethics and finally some concluding remarks. Corporate Social Responsibility (CSR) is the contribution of the business to the sustainable development goals of the Government. It is about how the business takes account of its economic, social and environmental impacts in the way it operates-maximizing the benefits and minimising the downsides. CSR is a voluntary actions that business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society. (csr.gov.uk). Working within developing countries the oil and gas industry has the opportunity to be to be a positive force in generating the hard currency revenue that governments need to help reach national development goals. While a company is working in a country they invest and develop infrastructure, such as roads, that serve the community. This helps develop the economy of the country as supporting services such as material supply for roads is purchased within the country pouring funds into the economy. The oil and gas industry plays a key role in technology cooperation and capacity building. It means helping the host country to meet the basic needs such as infrastructure, health, education, training, job creation, and water supply. In order to

Middle East culture in business Essay Example | Topics and Well Written Essays - 500 words

Middle East culture in business - Essay Example This research will begin with the statement that in this age of globalization, partnerships and outsourcing are becoming to be the model of businesses.   In this deal, it is important to try and learn the customs and traditions of the country, one has to deal with so as not to offend the hosts. The Middle East is a very large group of diverse culture. The researcher will begin with the discussion of religion.   Religion is a way life for the Muslims, and it has an important bearing when doing business with them.   Muslims pray five times a day, so sometimes, in meetings, they have to be excused. Employers should also understand that Muslim employees have to leave their workplace on Friday afternoons for the mosque.  Ã‚   In contrast, religious practices of Christians found in the Western and Asian culture do not interfere with business because they do only go to Church on Sundays and special occasions and has no need to leave their places when praying. Like the Islam nations, Western faith is based on the Bible. It is not good to do business with Muslims during their celebration of the holy month of Ramadan because businesses are closed and they tend to spend the holidays with their families or at their holy shrine. They observe fasting from dawn to dusk and extensively engaged in their worship, so business must wait as it becomes their second priority.   The month of Ramadan is observed every tenth month of the Islamic calendar. Westerns do not observe this month-long religious activity that often interferes with business.

Corporate Productivity and the New Economy Personal Statement

Corporate Productivity and the New Economy - Personal Statement Example And, I learned that the unique educational program of the Graduate School of Computer and Information Science at Nova Southeastern University is one of the many features why many students study and research here. For, one of the main reasons for my selection of Nova Southeastern University is its Cluster classroom format. Since I am a firm believer in the concept of teamwork, I believe the cluster meetings will be beneficial for me as I network and team with others in my field with the guidance and wisdom of my instructors. Further, I believe I will also be able to make a formidable contribution to my classmates and professors as we exchange prior experiences, expertise, and hopes in a bond that will last a lifetime. Furthermore, the online aspect of the program is equally as attractive to me as the cluster meetings. I am no stranger to online learning since at least 50% of my undergraduate courses and 90% of my Master's courses took advantage of the online format. For, the schoolâ⠂¬â„¢s unique learning environment is the missing link that will help me maximize my current skills and capabilities in the field of Information Technology in my zeal to improve the lives of people using information technology. Evidently, my entire life has been seriously focused on the complex but rewarding world information technology.  

SLP 4 HR Training, Development, and Career Management Essay

SLP 4 HR Training, Development, and Career Management - Essay Example Perhaps the time management is one of the most important topics that every employee ought to be trained on (Kaushik, 2012). Obviously, every training and development program must be in accordance with the organizations policies although the methods used could have some strengths and shortcomings. Essentially, training and development can take different approaches in various organizations, particularly when it comes to the topic of time management (Saks, Haccoun, Belcourt, & Belcourt, 2010). It means that the method of training used plays an important role in determining the effectiveness of the training program (Dowling, Festing, & Engle, 2008). The best training method for the SLP organization would be conferences and seminars, especially if it is to be conducted on a group of eighteen employees. In this respect, the conferences work best when the number of staff involved is considerably high and the program is general to all (Fee, 2011). Before any training and development program commences, Human Resource Departments that offer the training, have to consider certain factors. The factors include planning for the training program, identifying the best methods of the training, working on the logistics of the training program, and providing and evaluation framework (Kaushik, 2012). The three concepts will feature in the training namely, training, education, and development with all of them geared towards the growth of the employees and the organization (Fee, 2011). Since most organizations conduct a performance appraisal regularly, it is important to mention that such organizations realize that poor time management is their worst enemy as far as overall productivity is concerned (Dowling, Festing, & Engle, 2008). Therefore, the employees have to undergo regular and robust training, especially on time management. Unlike other

Why do you wish to study MBA in International Management with Essay

Why do you wish to study MBA in International Management with University of London through Hong Kong University SPACE - Essay Example These aspects have come to earn me much admiration and respect from colleagues, superiors and junior staff alike. For almost 7 years I have worked with a global investment bank, UBS where I worked as Head of Corporate Services while overseeing a team of 60 staff managing all in-house facilities and services. I moved to Regional Travel Management last year and focuses now on corporate travel management. Under this new line of operation my responsibilities have been hugely expanded due to my evident skills and experience in managerial positions to cover regional level. I have taken MBA as a my degree of choice since it will definitely give me the much needed impetus to take my career in management to the next level in terms of knowledge acquisition, expanded scope of thinking as well as better approaches to managerial tasks more so from an international perspective. Through the many years I have worked in management capacity, acquisition of more knowledge and exposure to new management approaches has been proving to be vital tools in overcoming the rapid changes occurring in the global business environment. My interest in having a global outlook in management sparked from the time I entered in UBS where I was bound to think in broader sense than local in order to ensure goals are met as required. I therefore, take my 13 years work experience as a huge boost towards achieving success in the MBA course where I have a wide range of management areas to choose from and more so those suiting my management tasks. I wish to pursue higher levels and positi ons within the management circles and after careful consideration I have seen pursuing the MBA will definitely take me far much closer to achieving this. I have found this to be the opportune moment and as my slogan goes, seize the opportunity while you still have it. I am now more than enthusiastic to bring on board my expertise, abilities, skills and strong commitment in ensuring

Family Theories Paper Research Example | Topics and Well Written Essays - 2750 words

Family Theories - Research Paper Example Not only are they traumatized for an extended period of their life (as will become apparent in the literature review), they face life with the same fear and are known to instil it into their children. It is a vicious cycle that must be broken. Literature Review According to Hague, children in households where their mothers are abused suffer greatly from distress, mental abuse and are prone to exhibiting adverse reactions in social situations. Even if the children are not being abused, many academics and intellectuals term this as indirect abuse (Mullender & Hague, 2002). â€Å"It is only recently that researches have focused on the children being affected by families suffering from domestic violence† (Fantuzzo, 1999). Not much literature had been written on children suffering in families with domestic violence, especially on a national basis. However, the need for such researches has been felt and is now being carried out by academics and governments increasingly. Nonetheless, quantifying the intangible effects of domestic violence on children is proving to be hard as the methodologies are, as yet, still weak. The article, in the year 1999, focused on finding worthy methodologies. Then in 2000, the department of paediatrics of the University of Arizona carried out a research. According to their findings, domestic violence in a child's home was more frequent â€Å"if the mother had experienced physical abuse during childhood (65 %,) than if she had not (48 %)†, (Bowen, 2000). These statistics can be explained by Levendosky’s findings on the parenting in battered women a year later (USA). They found the women were depressed, had low self esteem, and felt powerless to do anything. In addition to this, â€Å"an increasing number... There is an obvious need for more research on this topic. Many aspects that arise from domestic violence in families with small children remain untouched. And while there are many solutions now available for members of such families to pursue, there is little that the children can do to safeguard themselves. They must depend on their parents and/or elder siblings. This leaves no choice but to uproot the problem, so that it never harms the children or other members of the family again. However, little has been done to prevent issues of domestic violence from arising in the first place compared to what has been done to solve the problem in this day and age. While the problem that is occurring IS being addressed, the main focus has been on how to stop it, not to eradicate it from the society completely. Small children form the future generations of this world. They are pure in their thoughts and heart, bear no malice for others, and love unconditionally. However, they are dependent on o thers. In exposing them to the violence in their families, parents/guardians ensure that the children grow up to be either, traumatized and socially underdeveloped, or to follow their examples. They may become the abusers when they grow up, or end up in abusive relationships. Awareness and prevention campaigns must be carried out on a wide scale as well as more research into this issue.

Why do you wish to study MBA in International Management with Essay

Why do you wish to study MBA in International Management with University of London through Hong Kong University SPACE - Essay Example These aspects have come to earn me much admiration and respect from colleagues, superiors and junior staff alike. For almost 7 years I have worked with a global investment bank, UBS where I worked as Head of Corporate Services while overseeing a team of 60 staff managing all in-house facilities and services. I moved to Regional Travel Management last year and focuses now on corporate travel management. Under this new line of operation my responsibilities have been hugely expanded due to my evident skills and experience in managerial positions to cover regional level. I have taken MBA as a my degree of choice since it will definitely give me the much needed impetus to take my career in management to the next level in terms of knowledge acquisition, expanded scope of thinking as well as better approaches to managerial tasks more so from an international perspective. Through the many years I have worked in management capacity, acquisition of more knowledge and exposure to new management approaches has been proving to be vital tools in overcoming the rapid changes occurring in the global business environment. My interest in having a global outlook in management sparked from the time I entered in UBS where I was bound to think in broader sense than local in order to ensure goals are met as required. I therefore, take my 13 years work experience as a huge boost towards achieving success in the MBA course where I have a wide range of management areas to choose from and more so those suiting my management tasks. I wish to pursue higher levels and positi ons within the management circles and after careful consideration I have seen pursuing the MBA will definitely take me far much closer to achieving this. I have found this to be the opportune moment and as my slogan goes, seize the opportunity while you still have it. I am now more than enthusiastic to bring on board my expertise, abilities, skills and strong commitment in ensuring

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Theme 3 - Essay Example change process within an organization, and thus there is a lot that the management can do to enhance the success of the change process (MartinÄ iÄ , 2010:82). In arguing for the assertion by (Mullins 2010: 753), that the management has little it can do about resistance to change, it is apparent that the management cannot force change on the organizational stakeholders such as the employees, considering that change has to emanate from within (Shao-His, Ying-Fang & Shao-Wen, 2012:747). Whenever change is externally driven, it will result to resistance and where resistance is not apparent, the change process will be sabotaged by those opposed to it, or they may quit where it is apparent that change must occur. The problem with this is that, the organization may lose its valuable assets in the quitting employees (Phillips, 1983:191). Nevertheless, to argue against the assertion by (Mullins 2010: 753), it is apparent that the management can do a lot about resistance to change within an organization. This principle can be demonstrated well by the case â€Å"Remaking JC Penney’s Organizational Culture†, where Myron E. Ullman, who was appointed to the position of the chairman and CEO of JC Penney Corporation in 2004, had an elaborate plan on how he could introduce change to the organization, through making the organization a great work place for the employees (ICMR, 2007:2). However, he was faced with a lot of resistance, considering that the organization had a culture of rigidity and formal employee relationship spanning over the past 100 years (ICMR, 2007:2). The rigid rules of addressing the managers formally and dressing strictly in accordance with the organizational dress code had made the environment in the organization tense. This resulted to the inability of the organization to attract new talent or retain new recruits, while the employee turnover increased (ICMR, 2007:3). Nevertheless, after Ullman and the newly hired human resource manager, Michael Theilmann

Indigenous health as an important issue in Australia

Indigenous health as an important issue in Australia Perspectives on Nursing Health, Culture And Society. This essay will discuss Indigenous health as an important issue to the Australian community and the problems that Indigenous Australian may experience within the current health care system. This will firstly analysis in depth the historical, cultural, social and political factors that have affected the healthcare for the Indigenous Australians. Secondly, some strategies that may improve the health care system. Indigenous Australians culture is complex and diverse. The indigenous culture of Australia is the oldest living cultural history in the world dating back at least 50,000years. The reason why its survived this long is their ability to adapt and change over time. Aboriginals keep their cultural heritage rich and alive by passing their knowledge, arts, rituals and performances the passing from one generation to the next. The fundamental wellbeing of the Aboriginal people is their land, its environment that sustained by the people and culture, full of spiritual wellbeing. Aboriginal people were hunter-gathers who foraged for uncultivated plant and wild animals. The traditional diet was high in carbohydrates, proteins and nutrients and low in fat and sugars. However, modern Aboriginal diet are heavily westernised and tend to be high in fat and sugar but low in carbohydrate, fibre and nutritional value. The World Health Organisation, social determination of health (SODH)are defined as the fundamental structures of social hierarchy and the socially determined conditions these structures create in which people grow, live, work and age. The structural organisation for the Aboriginal people is to settle them with housing, employment, educations and health services so they can live in a well presented environment. Health interventions have a clinical focus on individual behaviours such as diet, condom use, exercise, alcohol, etc despite the fact that when structural issues such as poverty is not addressed. Poverty, as represents most Indigenous people as lower socio economic status shows unhealthy behaviour, smoking, poor diet and physical activity which put a risk for numerous health problems. Indigenous people have been victims of societal and racism since colonial times. The dominant culture promotes exclusion, inclusion, inferior conditions or assimilation (loss of individual, unique culture). Though education is available it is often unmet to the needs of the indigenous children resulting to have low enrolment rate, poor school performance and high dropout rate which increase the vulnerability to child labours. It is important to have tradition Indigenous education to be acknowledged and valued. Literacy for the Indigenous must be proficient in their own languages but also to the nation language. Also education should include the land establishment forms of livelihoods that usual involve the land to understand the tradition competencies. The underinvestment in health care in areas in which Indigenous people live is due to rural/remote nature. There are a number of cultural barriers that prevent access to health care. Indigenous languages are often difficult leading to poor communication between nurse and patient. The may experience discrimination by the staff. The traditional land is vital source of material and spiritual well being serving a crucial resource for their reproduction. The loss of land due to polices of dominant culture creates a social problem. The restored relationship to the land is central to restore sense of identity, social status and political power as well as economic, food security, rehabilitation of land. It is important for health care workers to have a degree of cultural competence and work with traditional healing modalities to make cultural safety. In 1788 European settlers colonised Australia. Upon settlement, the aboriginal people lost their land, their social and economical structure and in general, their way of life. Since colonisation Indigenous Australians have experienced extreme levels of loss, grief, disempowerment, cultural alienation, and loss of identity (Australian Institute of Health and Welfare, 2002, 2003; Hunter, 1993) The trauma suffered by the stolen generations as a result of the assimilation policies of the Australian Government has direct relevance to the psychological adjustment of indigenous Australians when considered within the framework of attachment theory. Attachment theory is the quality of early parent-child bonding, as well as the infants actual experience of the relationship with their parents has important implications for psychological and emotional adjustment later in life. (Strahan, 1995). There is enough evidence to suggest that Aboriginal people do not have the same degree of access to many of the health services as other Australians. This implies negative implications for the outcomes of Indigenous health. The access of primary health care is compromised or obstructed as they are more likely to present care later stage meaning more unhealthy state. I was shocked by the poverty, disadvantage and a medical model of care working downstream patching local people up and sending them home again without any longer term, preventative care. The issues are not only health services offering primary health care but also acute care providing in hospitals and specialists services. Issues such as distance, transport, affordability, availability, language, and cultural stability are all potential hindrances to access health services. Transport, long waiting time, cost to be some of the most commonly cited barriers. Indigenous people also feel disempowered and are less likely to use health services. It is also very important to note that communication difficulties come from those living in remote areas. However the presence of an Aboriginal health worker can be a strong determinant in whether an Indigenous person will access health services. It is important that primary health care services are run by Aboriginal communities to aim to offer health care in a culturally appropriate setting. This causes to a major source of providing education and training for staff. Indigenous health workers and nurses are to provide primary care services based to interlinked with a holistic Indigenous specific definition of health that states: Aboriginal Health is not just the physical well being of an individual but is the social, emotional and cultural well being of the whole community in which each individuals is able to achieve their full potential thereby about the total well being of their community. It is a whole -of- life view and includes the cyclical concept of life- d eath-life (NAHS, 1989) It is also important to build a shared understanding of how community input will inform policy or decision making processes. Numerous attempt to define Indigenous mental health concepts, the common theme has consistently been the holistic nature of health and wellbeing. The word punyu (Ngaringman) encompasses both person and country. In fact caring for the country has been associated with improvements in wellbeing. Suggesting that for Indigenous people our identity as human beings remains tied to our land , to our cultural practices, our systems of authority and social control, our intellectual traditions, our concepts of spirituality, and to our systems of resource ownership and exchange. Destroy this relationship and you damage- sometimes irrevocably-individual human beings and their health'(cited in Burgess et al.,2008,p.2). On February 13 2008, the Prime Minister of Australia, Mr Kevin Rudd, offered an apology to members of the stolen generation. The apology attracted words and gestures of gratitude, relief, pride and sorrow. Also for some closure to a painful emotional wound. This let the healing begin it was an act of hope, dignity and respect acknowledging the existence and impacts of past policies and practices of forcibly removing indigenous children from their families. The apology represented that the past of mistreatment and blemished chapter in our country to reconcile indigenous and non indigenous people to a better future. The Prime Minister and opposition leader Brendan Nelson both pledged to close the 17 year life expectancy gap between Indigenous and non- Indigenous Aboriginals by 2030. Promising that Indigenous Australians to have access to same quality health services. As Mr Rudd said he is determined to make a difference. Curtins University professor of health economics, Gavin Mooney sa id it is important that Aboriginal people are involved in the process It is important to involve the indigenous and ask what they want. As it is important to ensure that the voice of ordinary Aboriginal people to be heard and what it is that they want. In conclusion à ¢Ã¢â€š ¬Ã‚ ¦.. the services of Aboriginal health à ¢Ã¢â€š ¬Ã‚ ¦.. Aboriginal and Torres Strait Islander peoples health disadvantage needs to be considered in the broader context of social disadvantage, inequality and exclusion, political marginalisation and the historical currents of colonialism. In order to find strategies for health services for the Indigenous Australian need to take account of historical, social, cultural and political factors in order to understand the health disadvantage faced by Aboriginal peoples in contemporary society. This enhances our knowledge of unequal health outcomes between Aboriginal and non Aboriginal people by focusing on the impacts of social structures and cultural appropriateness of health care services.

Analysis of J Sainsbury’s Essay -- essays research papers

Analysis of J Sainsbury’s Unit 1- Business at work Businesses exist to produce goods and services. If someone is thinking of starting up their own business or becoming part of an existing business, they would have to have the knowledge of what makes business work successfully and know how to how to apply that knowledge in the particular area of business. For this unit I will be entering and exploring the world of business. For this unit I will encounter and evaluate information provided by certain businesses and actually gather my own information from at least one business. The business I have chosen to study is J Sainsbury’s. There are many types businesses in this world; these include Sole trader, Plc, Ltd, Partnership, Co-op and franchise. These types of businesses are all different from each other. Some of them need just one owner, some have hundreds. Sole Trader A sole trader is a one man business. There is just one manager. Although they are the sole manager and owner they can employ staff to work for them. They can employ as many as they want to work for them. A sole trader is self employed, this means they work for themselves, they employed themselves, they for nobody. Sole traders trade with others. They may trade expertise, an example of this would be a business consultant taking on a big job and needing an extra hand just for that job, so this person may employ a person with the expertise he/she needs. Because a sole trader is the sole owner he/she keeps all the profits, unless he/she has any employees. The owner of the business makes all the decisions, he/she will not have anyone telling them what to do. When one wants to set up a sole trader business it is relatively easy. There is little paper work involved bec... ...nagement practices which result in measurable continous quality improvement. It is this ongoing procceess of quality improvement. It is this ongoing process of quality improvement which contribute to changes in production. Advantages Prevents errors Prevents poor quality products Features of TQM: Quality Chains Company policy and accountability Control Monitering the process. Monitering the process. Quality Certification This is where the item being sold has been given a kite mark from the british standards institite for being at a certain standard of quality. Advantages: Marketing necessity Saving in cost Fewer problems and complaints Reduction of waste in internal process Disadvantages: Costly Lots of processes to go through Takes time Many take time to produced new products Lots of paperwork   Ã‚  Ã‚  Ã‚  Ã‚  

Dante Gabriel Rossetti :: Biography Biographies Essays

Dante Gabriel Rossetti    Dante Gabriel Rossetti was born in 1828, but not with that name; not entirely, that is. In truth, he was born Gabriel Charles Dante Rossetti, son of an Italian scholar living in London, but later changed the arrangement of his name so as to closer identify himself with the great 13th-14th century Italian poet Dante Aligheri, author of la Divina Comedia and Vita Nuova (Everett, np). His obsession with Dante impacted his work, both literary and artistic; from his masterpiece "Beata Beatrix" to his poetry buried with wife Elizabeth Siddal, he lived and worked under the duality of beauty, the fight between the body and the soul, best expressed in "The House of Life," particularly sonnets 77 and 78, "Soul's Beauty" and "Body's Beauty" respectively. Even early in his career, Rossetti's interest in Dante is apparent. In 1848, he translated portions of Aligheri's Vita Nuova, which details Dante's unconsummated love for Beatrice, a theme that also runs through the Divine Comedy. It is at this time that Rossetti changed the order of his name and initials, dropping "Charles" altogether. This would become a lifelong identification with the poet, emphasized by his relationship with Elizabeth Siddal (Rodgers, p 16). In 1860, Rossetti married Siddal, a model and artist with whom he had an affair. This wasn't a happy marriage, both partners suffering from depression and drug addiction. Moreover, this was a "pity" marriage, done not out of love but out of loyalty to Siddal, believing he could save her from herself. Part of Rossetti's obsession with Dante became an identification of two kinds of love, one being chaste and spiritual and identified with the person of Beatrice, the other being earthly and physical. In marrying Siddal, Rossetti felt he was destroying her position as Beatrice, despite the fact that they were already lovers. The marriage was a short, tumultuous one, ending in the suicide of Siddal by way of a drug overdose of Laudanum, an opiate. Depressed, especially since the miscarriage of their only child, and no doubt also by Rossetti's infidelities, particularly with Jane Morris, wife of friend and fellow Pre-Raphaelite William Morris, Siddal is thought to have intention ally overdosed on the narcotic.

Agriculture in India Essay Essay

India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 18.6% of the GDP in 2005, employed 60% of the total workforce[7] and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India. Yields per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the green revolution.[citation needed] India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper.[8] It also has the world’s largest cattle population (193 million).[9] It is the second largest producer of wheat, rice, sugar, groundnut and inland fish.[10] It is the third largest producer of tobacco.[10] India accounts for 10% of the world fruit production with first rank in the production of banana and sapota.[10] The required level of investment for the development of marketing, storage and cold storage infrastructure is estimated to be huge. The government has implemented various schemes to raise investment in marketing infrastructure. Among these schemes are Construction of Rural Go downs, Market Research and Information Network, and Development / Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization.[11] Main problems in the agricultural sector, as listed by the World Bank, are:[12] * India’s large agricultural subsidies are hampering productivity-enhancing investment. * Overregulation of agriculture has increased costs, price risks and uncertainty. * Government interventions in labour, land, and credit markets. * Inadequate infrastructure and services. Research and development The Indian Agricultural Research Institute (IARI), established in 1905, was responsible for the research leading to the â€Å"Indian Green Revolution† of the 1970s. The Indian Council of Agricultural Research (ICAR) is the apex body in kundiure and related allied fields, including research and education.[13] The Union Minister of Agriculture is the President of the ICAR. The Indian Agricultural Statistics Research Institute develops new techniques for the design of agricultural experiments, analyses data in agriculture, and specializes in statistical techniques for animal and plant breeding. Prof. M.S. Swaminathan is known as â€Å"Father of the Green Revolution† and heads the MS Swaminathan Research Foundation.[14] He is known for his advocacy of environmentally sustainable agriculture and sustainable food security.

Capital Market Theory Rsm 332 – Week 2

CAPITAL MARKET THEORY RSM 332 – Week 2 Week 1 – Introduction – Financial Accounting (Review) Week 2 – Financial Markets and Net Present Value Week 3 – Present Value Concepts Week 4 – Bond Valuation and Term Structure Theory Week 5 – Valuation of Stocks Week 6 – Risk and Return – Problem Set #1 Due Week 7* – Midterm (Tuesday*) Week 8 – Portfolio Theory Week 9 – Capital Asset Pricing Model Week 10 – Arbitrage Pricing Theory Week 11 – Operation and Efficiency of Capital Markets Week 12 – Course Review – Problem Set #2 Due Contact: otto. [email  protected] utoronto. ca CAPITAL MARKET THEORY RSM 332 – Week 2AGENDA 1. 2. 3. 4. 5. Announcements Financial Markets and Net Present Value Survey Results Optional Material (e. g. Cases, Practical Knowledge, News, etc. ) Suggestions/Practice for Exam(s) Contact: otto. [email  protected] utoronto. ca Extended Office Hours Friday , October 19th (11:00am-3:00pm) †¢ Room 6 – TZ6 (Tanz Neuroscience Bldg – 6 Queen’s Park Crescent West) TBD – Saturday, October 20th †¢ Depends if there is enough demand Thursday, October 25th (5:00pm-7:00pm and 7:00pm-9:00pm) †¢ During regular timeslot †¢ Cover optional material (e. g. cases, practical knowledge, etc. ) Contact: otto. [email  protected] utoronto. ca Exams Midterm (Tuesday, October 23rd – 8:00pm-10:00pm): †¢ EX 100 (Examination Facility – 255 McCaul Street) †¢ 2 Hours Final (TBA): †¢ 2 Hours Preparation: †¢ Problem Sets 1 & 2 †¢ Crib Sheet (Start Early and 1-Sided) †¢ Calculator (Silent) Contact: otto. [email  protected] utoronto. ca Tutorials †¢ Starting – September 19/20/21 †¢ Wednesday (6:00pm-8:00pm) †¢ TZ6 (Tanz Neuroscience Bldg – 6 Queen’s Park Crescent West) †¢ Thursday (11:00am-1:00pm) †¢ RW 110 (Ramsay Wright Laborat ories – 25 Harbord Street) †¢ Friday (5:00pm-7:00pm) †¢ RW 110 (Ramsay Wright Laboratories – 25 Harbord Street) Review: †¢ Midterms and Finals (2008-2011) Xiaofei Zhao (xiaofei. [email  protected] utoronto. ca) †¢ http://332ta. raykan. com †¢ Contact: otto. [email  protected] utoronto. ca Outside of Lecture Office Hours (Drop-In): †¢ Wednesdays: 4:00pm-6:00pm †¢ 105 St. George Street – Rotman (North Building) Room 413 or 417 Office Hours (Other Days/Times): †¢ Extended Hours †¢ By Appointment Contact: otto. [email  protected] utoronto. ca Corporate Finance: What is Going On? 3) Firm’s Financial (5) Investors (4) (Financial Institutions, (1) Individuals, Other Firms) (1) (2) (3) (4) (5) Cash raised from investors by selling financial assets Cash invested in real assets (some are intangible) Cash generated by operations Cash reinvested in the firm (retained earnings) Cash repaid to investors (interest, divi dends, etc. ) Operations (2) Decision Maker Reference: Alex MacKay Financial Markets: What is Going On? Firms (Users of Capital) Initial Public Offering (IPO) Secondary Offerings (SEO) Borrowing (Loans, Bonds)Dividends, $ Repurchases, Interest Payments $ Market Mechanisms or Market Makers (Stock Exchanges, Banks, Investment Funds, †¦) $ $ Firms Issue Stock Certificates and Bonds $ $$$ Invested in Stocks and Bonds Investors (Providers of Capital) Investment Banks help firms make transactions Brokers/Dealers help investors make transactions Reference: Alex MacKay Financial Theory and Corporate Policy Chapter 1 (Copeland, Weston and Shastri) Course Reserve FINANCIAL MARKETS AND NET PRESENT VALUE Consumption Plan and Investment RuleConsider 1 period problems Assumptions: †¢ No uncertainty †¢ One period (two dates), consumptions occur on date 0 and date 1 †¢ A consumer is endowed with initial wealth (Y0) on date 0, and will receive income (Y1) on date 1 †¢ Simple interest rate (r) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule 4 CASES †¢ Case I: †¢ Case II: No Capital Market, No Production Opportunities With Capital Market, No Production Opportunities †¢ Case III: No Capital Market, With Production Opportunities †¢ Case IV: With Capital Market, With Production OpportunitiesReference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption and Investment without Capital Markets C1 U2 U1 U0 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Slope of the Tangent (-ve) = (Marginal Rate of Substitution) (MRS) MRS = ? C1 ? C0 U1 U(C0, C1) MRS = ? U / ? C0 ?U / ? C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Poli cy) 4 th Edition 2004 Consumption and Investment without Capital MarketsC1 Production/Investment Opportunity Set C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Rate at which a dollar of consumption today (C0) is transformed by productive investment into a dollar of consumption (C1) tomorrow. C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Marginal Rate of Transformation (MRT) MRT = ? C1 ? C0 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Y1 U1 Resource Bundle: (Y0, Y1) Y0Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment without Capital Markets C1 Increase investment until MRT = MRS U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U2 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital MarketsC1 MRT = MRS U2 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U2 U1 (Increase Investment) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Slope = -(1+r) Borrowing and Lending opportunities (Capital Market Line) (at market interest rate r) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets C1 Interest plus Principal (Invest/Lending) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Interest plus Princip al (Borrowed Amount – Principal) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 C0Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets C1 Y1 U1 Endowment: (Y0, Y1) Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 (Invest) Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1Market rate of return > Subjective Time Preference (1+r) > (1+rtime preference) Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 (Consume Less) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 (Invest) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0Edition 2004 Consumption and Investment with Capital Markets C1 U2 Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Market Interest Rate = Subjective Time Preference U2 Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] toronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, W eston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 U3 = (production and capital market) U2 = (with production alone) U1 = (initial endowment) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption Plan and Investment RuleConsider 1 period problems Assumptions: †¢ No uncertainty †¢ One period (two dates), consumptions occur on date 0 and date 1 †¢ A consumer is endowed with initial wealth (Y0) on date 0, and will receive income (Y1) on date 1 †¢ Simple interest rate (r) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule 4 CASES †¢ Case I: †¢ Case II: No Capital Market, No Production Opportunities With Capital Market, No Production Opportuni ties †¢ Case III: No Capital Market, With Production Opportunities †¢ Case IV: With Capital Market, With Production Opportunities Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE I – No Capital Market, No Production Opportunities †¢ Consumer can consume Y0 on date 0, and Y1 on date 1 Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities The set of consumption plans is broadened 1. 2. Consumer can save from Y0, invests in financial assets, and consumes more on date 1 Borrow against Y1, consume more on date 0, pay back loan with interest on date 1 from Y1, and consume less on date 1 Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunitie s †¢ Denote C0 and C1 as date 0 and date 1 consumption respectively †¢ Constraint on them is: C1 = (Y0 – C0) (1+r) + Y1 Consumption Budget Line (Constraint) C0 + C1 = Y0 + Y1 1+ r 1+ r Y Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 In general, the consumer will be better off with capital markets Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities Present Value †¢ For any cash flow, C0, C1, define its present value as: PV = C0 + C1 + r †¢ Budget constraint can be restated as: †¢ The present value of consumption equals the present value of income Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities Example: †¢ Assume an investor has a wealth of $1. 5M on date 0, and will have an income of $0. 55M on date 1 †¢ The intere st rate is 10%. †¢ The present value of total income is: $2M = $1. 5M + $0. 55M (1+ 0. 10) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment RuleCASE III – No Capital Market, With Production Opportunities Physical Investment †¢ Suppose the consumer is also an entrepreneur who identifies a physical investment opportunity †¢ Initial investment requires $0. 5M on date 0 †¢ Return of $0. 85M on date 1 †¢ Should this consumer/investor take this project? †¢ Without a capital market, it depends on her/his utility function Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities †¢ By investing $0. 5M in a financial asset, receive $0. 55M in return (i. . 10% return) †¢ By investing $0. 5M in a physical asset, receive $0. 85M in return (i. e. 70% return) †¢ Consumer/Investor should take this project †¢ Interest rate is also called the opportunity cost of capital †¢ i. e. Return foregone by investing in a project rather than in comparable investment alternatives Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities Net Present Value (NPV) †¢ Is the project’s net contribution to wealth (i. e. present value minus initial investment) NPV = C0 + C1 1+ r In the above example, the NPV of the project is: NPV = -$0. 5M + $0. 85M = $0. 2727M (1 + 0. 10) Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities NPV Rule †¢ States that: †¢ If a project has a positive NPV, we should accept it †¢ If a project has a negative NPV, we should reject it Equivalent Rules †¢ NPV Rule – Accept positive NPV projects †¢ Rate-of-Return Rule – Invest in projects which offer a rate higher than the cost of capital Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem You are at a Honda (HMC) shareholders’ meeting †¢ Three shareholders are quite vocal about what the company should do Shareholder #1 – Old Lady †¢ Wants money right now †¢ Wants HMC to invest in sports cars which will yield a quick profit Shareholder #2 – Representative of a Little Boy’s Trust Fund †¢ Wants money a long way in the future †¢ Wants HMC to invest in building electric cars Shareholder #3 – Young Professional †¢ Wants money at some specified time in future (i. e. 10 years) †¢ Wants HMC to build smaller cars because of an expected oil crisis Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation TheoremWhat do you think Honda manag ers should do? Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem What do you think Honda managers should do? MAXIMIZE VALUE Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securitiesEQUITY (CAPITAL GAINS, DIVIDENDS) Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securities EQUITY (CAPITAL GAINS, DIVIDENDS) DEBT (INTEREST) TAX AGENCY COSTS Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: WHAT TYPE OF INCOME DO YOU PREFER? †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securities EQUITY (CAPITAL GAINS, DIVIDENDS) DEBT (INTEREST) TAX AGENCY COSTS Reference: Raymond Kan Contact: otto. [email  protected] utoronto. caConsumption and Investment with Capital Markets (With Production Set) C1 U3 = (production and capital market) U2 = (with producti on alone) U1 = (initial endowment) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 Choose the optimal production decision by taking on projects until the marginal rate of return on investment equals the objective market rate) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Choose the optimal consumption pattern by borrowing or lending along the capital market line to equate your subjective time preference with the market rate of return) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] toronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) (Fisher Separation Theorem) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004Consumption and Investment with Capital Markets (With Production Set) C1 (Fisher Separation Theorem) Given perfect and complete capital markets, the production decision is governed solely by an objective market criterion (represented by maximizing attained wealth ) without regard to individuals’ subjective preferences that enter into consumption decisions C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) Fisher Separation Theorem) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) (Fisher Separation Theorem) MRS = MRT = 1+r C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 ALL INDIVIDUALS USE THE SAME TIME VALUE OF MONEY (i. e. ame market interest rate) IN MAKING THEIR PRODUCTION/INVESTMENT DECISIONS (Fisher Separation Theorem) MRS = MRT = 1+r C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). Contact: otto. [email  protected] utoronto. caReference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. 2. 3. Which investment should Ronal d invest in, AAA or BBB? How much should he invest? If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today).Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? 2. How much should he invest? Contact: otto. [email  protected] toronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally i n present value terms) Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother.Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) PV of Wealth = PV of Consumption PV (C0) = PV (C1) (i. e. C0 = C1 / (1+r) ) NPVBBB Ronald’s PV of Wealth = $400 + $1,000 + $87. 27 = $1,487. 27 $1,487. 27 = C0 + C1 / (1+r) = C0 + [C0 (1+r)] / (1+r) C0 = $743. 64 and C1 = $818 Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest r ate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) C0 = $743. 64 Investment in BBB Cash Flow Requirement (CF0) = ($743. 64 + $300) = $1,043. 64 Borrowing Requirement = CF0 – $400 = $643. 64 Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) C1 = $818 Return from BBB Cash Inflow (next year) = $1,100 + $426 = $1,526 Cash Ou tflow (next year) = $818 + $643. 64 + $64. 36 = $1,526 Loan Repayment Interest on Loan @ 10% Contact: otto. [email  protected] utoronto. a Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). CONCLUDING THOUGHT Ronald’s optimal investment decision (i. e. $300 in BBB) is independent or separate from his decision as to how he inter-temporally allocates his consumption (i. e. C0 and C1) The independence of those two decisions is referred to as the Fisher Separation Theorem. Contact: otto. [email  protected] utoronto. ca Reference: Don Brean â€Å"GET TO KNOW YOU† SURVEY (Name: Optional) Question #1: †¢ What has occurred in your other courses that you were happy about and would like to be i ncorporated into this course ? †¢ What has occurred in your other courses that you were NOT happy about? Question #2: †¢ Anything specific you would like to learn? What are your learning goals in this course? †¢ Any specific requests from the instructor, TAs, program, other support staff, etc? Question #3: †¢ Are you thinking of pursuing further education in Finance, if not then what do you have in mind? And/or†¦ What job(s) are you interested in?Question #4: †¢ Tell me more about yourself (e. g. goals, program concentration, 2nd or 3rd year, etc†¦ ) Question #5: †¢ Any other comments, requests, suggestions, etc? TAKE ~3 MINUTES INDIVIDUALLY TO FILL OUT SURVEY TAKE ~ 5 MINUTES TO TALK TO 5 CLASSMATES WHOM YOU HAVEN’T MET YET (write down initials) SURVEY RESULTS (SUMMARY) †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Real world experiences, practica l (real-world) examples, cases†¦ Relevant news (where to find news), Current issues in the market Relate course material to real world Exam tips/techniques Applications and excel models used in the real world Interactive class, games, videos†¦Extended office hours (availability) to address questions Humour Practice questions and solutions; Past exams and solutions Capital markets (high-level overview) Typical jobs in finance, Leading finance organizations Additional tutorial time Stock picking, portfolio allocation/analysis, investment tools/strategies, trading tips Learning topics that can be applied in real life Relate designations/roles to course material and applications Better understanding of financial instruments (e. g. Mortgages, bonds, etc†¦ ) View of finance from other functional areas (e. g. Marketing) 13 Popular Case Studies (Failures) 1. 2. 3. 4. 5. . Barings (Bank) – Operational Risk (Trading Activities – From arbitrageur to speculator) Nat ional Australia Bank – Operational and Market Risks (Currency Trading) Bankgesellschaft Berlin (Bank) – Credit and Operational Risks (Loans to Property Developers) Taisei Fire and Marine Insurance Co – Insurance & Governance Risks (Uninsured exposure – Lack of understanding) Washington Mutual (Bank) – Credit, Regulatory and Governance Risks; Stress and Scenario Testing (Low lending standards and bad quality acquisitions) Fannie Mae and Freddie Mac – Credit, Market, Operational, Regulatory Governance and Moral Risk; Politicians vs.Financial Risk Management (Sub-prime loans) Long-Term Capital Management – LTCM (Hedge Fund) – Market & Model Risks (Short liquid vs. Long Illiquid Investments (e. g.Bonds) – Russia Defaulted) Bankers Trust (Bank) – Operational Risk (Misled clients on derivatives sold to them) Orange County – Market and Interest Rate Risks (Wrong way bet on interest rates – Borrowing Short a nd Investing Long – Interest Rates Increased) Northern Rock (UK Bank) – Portfolio, Capital Funding, Operational and Reputational Risks; Stress and Scenario Testing (Sub-prime mortgages – Bank Run) Metallgesellschaft AG (Energy Group) – Market Risks (Cash Flow Issues from Written Forwards) Worldcom (Telecom) – Operational Risks (Accounting Fraud – Massive cquisitions & Debt) China Aviation Oil (Singapore) – Market and Governance Risks (Misreported oil futures trading losses, Un-hedged open short positions, Oil Prices Increased) Source: PRMIA 7. 8. 9. 10. 11. 12. 13. SURVEY AND BREAK 13 POPULAR CASE STUDIES Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A  œ Assume that there is no capital market, which investment, A or B, will Jack choose?Justify your answer with calculations (6 marks) †¢ If Jack does not invest, his utility is zero †¢ If Jack makes investment A (Utility is ? ) †¢ If Jack makes investment B (Utility is ? ) †¢ Y0 = $500 and Y1 = $0 †¢ Savings = Investment = Y – C Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Investment A †¢ UA = (500-244)1/4 (400)1/2 = 80 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. caPart A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Investment B †¢ UB (I) = (500-I)1/4 (50(I)1/2)1/2 †¢ UB (I) = (5 0)1/2 [(500-I)I]1/4 †¢ Find I* by differentiating UB (I) wrt I (set to zero) †¢ dUB(I) = (50)1/2 (1/4) [(500-I)I]-3/4 (500-2I) dI I* = 250 Derivatives (Review) Reference: Martin J. Osborne http://www. economics. utoronto. ca/osborne/MathTutorial/CLCF. HTM Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose?Justify your answer with calculations (6 marks) †¢ Investment B †¢ UB (250) = (50)1/2 [(500-I)I]1/4 †¢ UB (250) = 111. 80 †¢ UB > UA Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Note: Two methods to calculate I* †¢ 1st method (take derivative of Utility Function) †¢ What’s the 2nd method? Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Alternatively – Investment B Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) (Assume a perfect capital market for borrowing and lending exists and the market interest rate is 20%) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ Jack will choose the investment with the highest NPV †¢ Calculate NPVA and NPVB Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ NPVA = -$244 + ($400)/(1+0. 20) = $89. 33 Contact: otto. [email  p rotected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for NPVB †¢ Need to find optimal investment (I*) †¢ set MRT = -(1+r) = -1. 20 I* = $434. 03 †¢ MRT = – dF/dI = -25/(I1/2) = -1. 20 †¢ F = 50 ($434. 31/2) = $1041. 67 †¢ NPVB = -$434. 03 + ($1041. 67/1. 20) = $434. 03 Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) †¢ Total Wealth = $500 + $434. 03 = $934. 3 (set equal to C0 + C1/(1+r)) †¢ PV Wealth = PV Consumption †¢ C1 = 1120. 84 – 1. 2C0 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) †¢ Total Wealth = $500 + $434. 03 = $934. 03 (set equal to C0 + C1/(1+r)) †¢ U(C0, C1) = C01/4 (1120. 84 – 1. 2C0 )1/2 †¢ dU/dC0 = (1/4)C0-3/4 (1120. 84 – 1. 2C0)1/2 – 1. 2 x (1/2)C01/4(1120. 4 – 1. 2C0)-1/2 †¢ Setting it equal to zero: 1120. 84 – 1. 2C0 = 2. 4C0 C0* = $311. 34 †¢ C1* = 1120. 84 – 1. 2C0 = $747. 22 Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) (Assume a perfect capital market for borrowing and lending exists and the market interest rate is 20%) †¢ Alternatively: To solve for optimal consumption plan (i. e. C0*and C1*) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose?What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ Alternatively: To solve for optimal consumption plan (i. e. C0*and C1*) †¢ MRS = – (1+r), which leads to †¢ – (C1/2C0) = 1. 2 C1 = 2. 4 C0 †¢ Budget constraint: C0 + C1 / (1+r) = Total Wealth = $934. 03 C1 = 1120. 84 – 1. 2C0 C0* = $311. 34 C1* = $747. 22 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part C – Jack can hire a worker to supervise one investment for him. As a result, he can now invest in both production opportunities if he wants.If he hires a worker, he has to pay wages in equal instalments (i. e. Same wage today and next period). What maximum wage per period would Jack be willing to pay? (4 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part C – Jack can hire a worker to supervise one investment for him. As a result, he can now invest in both production opportunities if he wants. If he hires a worker, he has to pay wages in equal instalments (i. e. Same wage today and next period). What maximum wage per period would Jack be willing to pay? (4 marks) †¢ NPVA = $89. 33 = W + (W/1. 20) †¢ W = $48. 3 (i. e. Maximum wage per period) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part D – Jill earns an income of $250 today and $250 next period but has no access to any production opportunities. She can, however spend some money today to purchase investment opportunity B. Her utility function is: U(C0, C1) = C0 + 2C1 + min(C0, C1) What is the highest price that Jill is willing to pay? (4 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part D – Jill earns an income of $250 today and $250 next period but has no access to any production opportunities.She can, however spend some money today to purchase investment opportunity B. Her utility function is: U(C0, C1) = C0 + 2C1 + min(C0, C1) What is the highest price that Jill is willing to pay? (4 marks) †¢ With a perfect capital market, the Fisher Separation Theorem applies †¢ So the maximum amount she will pay is $434. 03 (i. e. NPVB) Contact: otto. [email  protected] utoronto. ca FINANCIAL MARKETS AND NET PRESENT VALUE (TO SUCCEED – PRACTICE, PRACTICE, PRACTICE) Week 3 – Quick Review (Self-Evaluation) of Week 2 â€Å"GET TO KNOW YOU† SURVEY (Name: Optional)Question #1: †¢ What has occurred in your other courses that you were happy about and would like to be incorporated int o this course ? †¢ What has occurred in your other courses that you were NOT happy about? Question #2: †¢ Anything specific you would like to learn? What are your learning goals in this course? †¢ Any specific requests from the instructor, TAs, program, other support staff, etc? Question #3: †¢ Are you thinking of pursuing further education in Finance, if not then what do you have in mind? And/or†¦ What job(s) are you interested in? Question #4: †¢ Tell me more about yourself (e. . goals, program concentration, 2nd or 3rd year, etc†¦ ) Question #5: †¢ Any other comments, requests, suggestions, etc? TAKE ~3 MINUTES INDIVIDUALLY TO FILL OUT SURVEY TAKE ~ 5 MINUTES TO TALK TO 5 CLASSMATES WHOM YOU HAVEN’T MET YET (write down initials) SURVEY RESULTS (SUMMARY) †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Real world experiences, practical (real-world) examples, cases†¦ Relevant news (where to find news), Current issues in the market Relate course material to real world Exam tips/techniques Applications and excel models used in the real world Interactive class, games, videos†¦Extended office hours (availability) to address questions Humour Practice questions and solutions; Past exams and solutions Capital markets (high-level overview) Typical jobs in finance, Leading finance organizations Additional tutorial time Stock picking, portfolio allocation/analysis, investment tools/strategies, trading tips Learning topics that can be applied in real life Relate designations/roles to course material and applications Better understanding of financial instruments (e. g. Mortgages, bonds, etc†¦ ) View of finance from other functional areas (e. g. Marketing) http://www. explorefinancialservices. om/Options http://www. explorefinancialservices. com/ Financial Markets: What is Going On? Firms (Users of Capital) Initial Public Off ering (IPO) Secondary Offerings (SEO) Borrowing (Loans, Bonds) Dividends, $ Repurchases, Interest Payments $ Market Mechanisms or Market Makers (Stock Exchanges, Banks, Investment Funds, †¦) $ $ Firms Issue Stock Certificates and Bonds $ $$$ Invested in Stocks and Bonds Investors (Providers of Capital) Investment Banks help firms make transactions Brokers/Dealers help investors make transactions Reference: Alex MacKay 113 Hedge Fund Strategies Dedicated ShortSource: AIMA Canada Further Reading Hedge Funds – Emerging Market Strategy †¢ Emerging Markets (American Depository Receipts – ADRs vs. Foreign Securities) http://www. sec. gov/pdf/ininvest. pdf (Page 12) (SAP) Hedge Fund – Quants †¢ Jim Simons (Renaissance Technologies) – Commodities/Futures – (Rapid Fire Trading) – (computer and system specialists, researchers and traders) (computational linguists–speech recognition/investing) †¢ http://chinese-school. netfir ms. com/abacus-hedge-funds-Jim-Simons. html †¢ †¢ Kenneth Griffin (Citadel Investment Group) – Convertible Bonds –> Long-Short †¢ http://money. cnn. om/2008/12/08/news/companies/citadel_vickers. boyd. fortune/index. htm The Quants (Scott Patterson – Wall Street Journal Reporter) †¢ †¢ http://www. businessweek. com/magazine/content/10_09/b4168070829612. htm http://online. wsj. com/article/SB10001424052748704509704575019032416477138. html Steven Palmer (AlphaNorth Asset Management Inc) (Microcap – Tech) †¢ http://www. theglobeandmail. com/globe-investor/funds-and-etfs/funds/top-hedge-fund-manager-turns-to-techmicro-caps/article1884049/ House Dems propose taxing equity trades to fund new federal programs †¢ †¢ †¢ Financial transaction tax on all stock (0. 5%), bond (0. %) and derivatives (0. 005%) trades Protects financial markets from speculation Make high-frequency trading â€Å"unprofitable† http://thehi ll. com/blogs/floor-action/house/249893-house-dems-propose-taxing-equity-trades-to-fund-new-federal-programs Harsh HFT curbs could sneak into MiFID †¢ †¢ †¢ †¢ Introduction of minimum resting times between trades Could force HFT firms out of the market, widening spreads and making trading more costly Meetings held with the European Parliament’s Economic and Monetary Affairs Committee (ECON) MiFID (Markets in Financial Instruments Directive) – European Union Law http://www. hetradenews. com/news/Regions/Europe/Harsh_HFT_curbs_could_sneak_into_MiFID_II. aspx CAPITAL MARKET THEORY RSM 332 – Week 2 Week 1 – Introduction – Financial Accounting (Review) Week 2 – Financial Markets and Net Present Value Week 3 – Present Value Concepts Week 4 – Bond Valuation and Term Structure Theory Week 5 – Valuation of Stocks Week 6 – Risk and Return – Problem Set #1 Due Week 7* – Midterm (Tuesday*) We ek 8 – Portfolio Theory Week 9 – Capital Asset Pricing Model Week 10 – Arbitrage Pricing Theory Week 11 – Operation and Efficiency of Capital Markets Week 12 – Course Review – Problem Set #2 DueContact: otto. [email  protected] utoronto. ca THANK YOU SEE YOU NEXT WEEK! OFFICE HOURS WEDNESDAYS – 4:00PM-6:00PM ROOM 413 OR 417 105 ST. GEORGE STREET ROTMAN (NORTH BUILDING)