Racism in the World and how is reflected in the Movie Hotel Rwanda Essay

Racism in the World and how is reflected in the Movie Hotel Rwanda - Essay Example Many factors can contribute themselves to racism and racial discrimination. Racism is always a product of inequality – whether it is cultural, economic or personal. A probe into history reveals to us how many countries and races have considered themselves superior to others and looked down upon others with scorn, contempt and hatred feelings. We know how Adolf Hitler and his belief that the Aryans are the best and most superior race in the world has caused a lot of violence, unrest and anti-humanitarian actions in the past. It is also advisable to bring into mind how the Negros in America and South Africa suffered various setbacks due to racial discrimination. Racism is a product of marginalization; the marginalized and suppressed races or communities strive themselves for existence, whenever they come to the realization that they had been suppressed and oppressed and their own individual human rights and that of the race are very adversely affected and endangered. The only po ssible solution to racism is the understanding that there is only a single race. There is no superior or inferior in the society; every individual equally deserves respect, humanitarian concerns and the opportunity to develop his/her potentialities irrespective of what race or culture he/she belongs. The issue of racism has something to do with culture and education. There are many who believe that the issue of racism is a cultural phenomenon and that effective education and the promotion of various ethnic identities can create better understanding and respect for others in the minds of people. â€Å"Racism has always been both an instrument of discrimination and a lot of exploitation. But it manifests itself as a cultural phenomenon, susceptible to cultural solutions such as multi-cultural education and the promotion of ethnic identities.† (Shah, Anup 2004). In the past many have tried to bring the issue of racism into light through literature, art, science

Checkpoint †Business Organization Essay Example for Free

Checkpoint – Business Organization Essay July 22, 1975, Bill Gates writes a letter to Paul Allen using the name, â€Å"Micro-soft† referring the their 60/40 partnership. Their main product is BASIC. Gates and Allen worked day and night to create the first version of Microsoft Basic, a simple computer software. They realize that the future of personal computers is in the software. The Computer Mart opens on Madison Avenue in New York. Zilog Z-80 chip is introduced. They have 3 employees including themselves and the revenue is $16,000. July 1, 1976, Microsoft refines and enhances BASIC to sell to other customers including DTC, General Electric, NCR, and Citibank. Microsoft develops its first ad campaign called, â€Å"The legend of Micro-Kid.† The partnership is moving right along and gates announces that he would like nothing more than to hire 10 programmers and fill the hobby market with good software. February 3, 1977,A partnership agreement between Paul Allen and Bill Gates is officially executed. Their main product is still BASIC. In November of 1977 the company is free to market BASIC to others. Within months, Microsoft licenses BASIC for the Commodore PET and TRS-80 computers, and begins negotiating with other companies. BASIC product. Bill Gates and Paul Allen shared the title of general partner until 1977, when Bill Gates became president and Paul Allen vice president of Microsoft Corp. January 1, Microsoft moves its offices to Bellevue, Washington from Albuquerque, New Mexico. After moving to Bellevue, Microsoft continues to grow in employees, sales, and vision. Microsoft has a BASIC compiler for virtually every microcomputer on the market. However, the company recognizes that languages are only a part of the picture, which is why Microsoft makes its first foray into the mass-market possibilities of personal computers by forming the Consumer Products Division, created to develop and market retail products and to  provide support for individual users. Microsoft expands its market to the European market with the addition of Vector Microsoft. Vector International signs on to represent Microsoft in the European market. Microsoft begins extending its network worldwide to computer manufacturers; they begin using Microsoft hardware and software for  2  the computers they produce. Microsoft has already established contracts with ICL, Phillips, R2E, and several other OEMs. The arrival of the 16-bit IBM personal computer in 1981 set in motion the new era of computing, the personal computer. Within a few years, the industry would come together around two primary operating systems: Microsoft MS-DOS and the Apple Macintosh. On June 25, 1981 Microsoft reorganizes into a privately held corporation with Bill Gates as President and Chairman of the Board, and Paul Allen as Executive Vice President. Microsoft becomes Microsoft, Inc., an incorporated business in the State of Washington. On June 25, 1982, James Towne, 39, was appointed president and chief operating officer of Microsoft (July 6 1982 June 20 1983). In July, Towne took over all operating responsibilities from Bill Gates. Previously, Towne had been vice president and general manager of the instrument division at Tektronix Inc. ebruary 18, 1983 Paul Allen resigns as Microsofts Executive Vice President, but rem ains on the Board of Directors. June 20, 1983. James Towne resignes as COO  August 1, 1983 Microsoft announces that Jon Shirley, 45, has joined Microsoft as President and Chief Operating Officer and will be on the board from August 1, to June 30,. He is replacing James Towne. Shirley was previously with the Tandy Corporation. In August 1983, Jon Shirley, 45, joined Microsoft as president, chief operating officer, and director. During all these changes Microsoft unveils windows an operating platform that we are all familiar with and use to this day. August 12, Microsoft celebrates its 10th anniversary with sales figures for the fiscal year of 1985 of $140 million. The company has 900 employees and a diverse product line including industry standards like operating systems, languages, business software, hardware, and computer how-to books. September 3, Microsoft announcesv  that it has selected the Republic of Ireland as the site of its first production facility outside the U.S. Th e Ireland facility, located at Sandyford, County Dublin, will be a Duplication and Distribution Center for Microsoft software products to be sold in the European market. On March 13,1986,motivated by a desire to provide value to an increasing number of employee shareholders, Microsoft stock goes public at $21.00 per share, rising to $28.00 per share by the end of the first trading day. Initial public offering raises $61 million. December31, Microsoft announces that, at the end of 1986, Microsoft employees’ number 1,442. 1,162 are employed domestically, and 280 are employed internationally.

Sixth Sense: The Vomeronasal Organ Essay -- Biology Essays Research Pa

Sixth Sense: The Vomeronasal Organ "We are all more influenced by smell than we know." (Hercule Poirot) ....Murder in Retrospect, Agatha Christie Biologists have long realized that the noses of most vertebrates actually contain two sensory channels. The first is the familiar olfactory system, which humans possess. The second channel is the vomeronasal complex, a system that has its own separate organs, nerves, and connecting structures in the brain. The function of the vomeronasal system is the detection of pheromones, chemical messengers that carry information between individuals of the same species. It was widely believed (as I found in some of the older texts I examined) that humans had long ago discarded this sensory system somewhere along evolution's trail. But convincing behavioral and anatomical evidence has since brought the notion of a human vomeronasal organ (VNO) into the realm of scientific fact. Some thirty years ago, when anatomist David Berliner was studying human skin composition using scraped skin cells from the insides of discarded casts, he found that when he left vials containing skin extracts open, his lab assistants would become more friendly and warm than usual (1). When, months later, he decided to cover the vials, the warm and relaxed behavior was noticeably reduced. These findings led him to investigate the possible existence of odorless human pheromones and a "sixth sense" organ to detect their presence, a VNO. While this early evidence was not empirical, anatomists have since found that all humans display two tiny pits, with duct openings, on both sides of the septum just behind the opening of the nose (3). The duct leads into a tubular lumen lacking a thick, distinct sensory epithelium. ... ...ture textbooks will attribute to humans this mysterious, unconscious sixth sense. WWW Sources 1)Chemicals the cause excitement http://www.microscopy-uk.org.uk/mag/indexmag.html?http://www.microscopy-uk.org.uk/mag/art97/pherom.html 2)VNO website http://neuro.fsu.edu/research/vomer.htm 3)Science Frontiers article http://www.science-frontiers.com/sf090/sf090b06.htm 4)Chemical Communication by Willam C. Agosta 5) Olfactory Receptors, Vomeronasal Receptors, and the Organization of Olfactory Information. From Cell, a journal 6)Howard Hughes olfactory website http://www.hhmi.org/senses/d220.html 7)Article from The Scientist http://euclid.ucsd.edu/~weinrich/theScientist2.html 8)Pheromone Book Review http://www.cogsci.soton.ac.uk/psyc-bin/newpsy?7.12 Additional Sources Messages sent through sweat http://www.patscan.ca//sweat.html

Light Essays -- Literary Analysis, Alcott

Louisa May Alcott was said to be â€Å"the pioneer in the delineation of sprightly young-girl life, brim full of animal spirits, yet overflowing with a desire to be true and brave and helpful†(Delamar 150). As a classic, inspiring author, Alcott is best known for her novels concerning poverty, family struggles to overcome obstacles, and female independence. Alcott incorporated these ideas through her works in Eight Cousins and Little Women. Even though Rose in Louisa May Alcott’s Eight Cousins and the March sisters in Little Women are brought up in different types of socioeconomic environments, they share common traits and themes, such as moral lessons, feminist ideas, and coming of age. The character Rose in Eight Cousins and Laurie in Little Women are similar in terms of socioeconomic societies, unlike the March sisters in Little Women who struggle to support themselves during the Civil War. After becoming a recent orphan, Rose was put into the care of several unknown family members, wealthy Scottish descents from Boston, engaged in the China trade. As an heiress, she was expected by her six aunts to attend â€Å"a fashionable finishing school† (Alcott 43) and learn the proper etiquette of a young elite lady. Although Rose is only thirteen, she is treated like an adult who drinks coffee daily and dresses in womanly fashions such as corsets, high heels, veils, and bustles. These high expectations cause Rose a great deal of stress which leads to long-term illness. Unlike Rose, the March family struggles financially. At one point, the March’s were wealthy, until Mr. March lost his job and joined the war in order to provide for his family. This monetary loss caused a major set back to the family and negatively impacts the four daughters, ... ...en, she marries John Brooke, conforming to society’s expectation of women. While her aunts persuade her to marry into wealth, Meg independently makes the decision that love is more important than money, from experiences with high society. Through this experience, Meg becomes more independent and accepts herself as who she truly is and values what she has. Similarly, Amy succumbs to peer-pressure among her classmates. Trying to be like the other girls and popular, she goes against her morals and boldly endures the negative consequences of her action of encompassing pickled limes. Once quitting school, Amy discovers the power women have and becomes a feminist. She travels to Europe to accomplish her desire to be an artist, considered rare for women during the nineteenth century. Amy follows her dreams and becomes a more assertive and independent â€Å"little women†.

Argumentation in the Adventures of Huckleberry Finn Essay

At the beginning of the story, The Adventures of Huckleberry Finn, Huck is constantly under the influence of a mother figure. That mother figure makes him feel guilty when he does something wrong, rewards him when he does something right, and also serves as a kind of protector of him. Although Huck does not realize it, he is always being looked after by something or other. At one point it’s the widow, and throughout most of the story it’s the river. In the story, The Adventures of Huckleberry Finn, the river becomes a provider of food, transportation, and refuge, metaphorically taking over the role as his mother when he runs away with Jim. At the beginning of the story, the Widow takes Huck under her wing and tries to teach him right from wrong. She makes him wear nice clothes, go to school, and say his daily prayers. Throughout his stay with the widow, Huck does not respond to the widow’s ways of teaching very well. When the widow asks Huck to do something, he does it, however, begrudgingly. She tries to teach Huck to become a gentleman and treats him as if he were her own son. When Tom Sawyer comes back into the picture, the widow takes on the motherly role of disapproval. She does not like the way Tom acts and makes believe all the time. This is why, rather than asking to see Tom, Huck usually snuck out when she did not know. The widow can not act as Huck’s mother for long though, because Huck is kidnapped by his father and fakes his own death to get away from everybody. After Huck’s â€Å"death,† he escapes to the river where he hides out on an island while his friends and family are searching for his body. During this time the river, without Huck realizing it, kind of takes over the role of mother. It provides protection from the elements when rain hits. It also hides Huck as the steamboat sails past with all his friends and family on board. Huck does not want the people to see him, or they will know he was just faking and will take him back to the life he is not fond of. Knowing this, Huck hides in the bushes and trees that grow along the river. When a mother knows that its child is in danger, she will hide it from the world so that it won’t get hurt. The river shows this motherly trait to Huck. The first thing a mother does for its child when it is a newborn, is to feed it. While Huck is a runaway, he needs food for survival. The river, in a way, provides this when Huck finds a loaf of bread floating down the river. Also later on in the story, Huck and Jim happen upon a house boat where they find many different types of fruit among other things.

Integration policies in Ireland Essay Example

Integration policies in Ireland Essay Example Integration policies in Ireland Essay Integration policies in Ireland Essay The Lack of Appropriate Integration Policies and the Impacts on Young Immigrants in Ireland For many migratory households, assimilation into society is merely a affair of larning the linguistic communication, happening employment, and get the better ofing the civilization daze. However, in some parts of Europe, it can take several coevalss before fledglings are assimilated into mainstream society- especially if the original migrators do non talk the linguistic communication of their new state or are ethnically distinguishable and hence can non go physically identical from the general population ( as is the instance with Africans and Asians ) . In Europe, many states are host to an inflow of migrators from the Middle East, Asia, and South and Central Africa. Some societies are more welcoming than others. Although anti-immigrant sentiment can be found in any state, England and Sweden are noted for their generous welcoming attitude toward migrators and Ireland and Latvia are two of the least unfastened societies. Although migrators have a lower criterion of life and do non hol d entree to the societal benefits granted to citizens, these jobs are even more important in a more closed society. This paper seeks to research the disadvantages that immature migrators face in Ireland and how it affects them on a psychological and economic degree, and the policy implications our research will hold in making a kinder gentler attack that encourages assimilation of migrators into the civilization instead than making greater animus. In the 21st century, Irish attitudes toward migrators have become more friendly harmonizing to polls of the Irish population. However, this does contrast with the high proportion of refuge searchers and migratory workers describing torment and trouble obtaining entree to basic employment and services. [ 1 ] Anti-immigrant sentiment typically stems from a splanchnic fright of offense. Indeed, this fright is non baseless because rather frequently immigrants from less-developed states are more likely to perpetrate offenses in their adoptive states because certain Acts of the Apostless that were legal at place are no longer so. For illustration, some 3rd universe states have highly slack drug Torahs, but their sale and distribution is prohibited in most industrialized states. Poverty is the primary beginning of offense and many migrators that are asylum searchers are normally really hapless. Many citizens are disquieted that the local substructure is deficient to managing a monolithic inflow of migrators as Ireland had really rapidly transitioned from an agriculturally-based economic system to a post-industrial digital 1. Full industrial development had non taken topographic point until the mid-1970s. [ 2 ] Background Ireland used to be a instead homogenous state with an about entirely Celtic/Gaelic cultural population. Economic problems and nutrient deficits led many Irish citizens to emigrate to the United States and the United Kingdom for calling chances and new lives. Ireland neer truly made anyone’s top 10 list of states to seek work visas or political refuge because so many of its ain citizens were seeking to go forth. In the 21st century, Ireland’s population is going really diverse with many immigrants from Southeast Asia, Northern and Central Africa, and Eastern Europe. However, many surveies have shown that incorporating into Irish society is highly hard. For illustration, about one in three work license holders are insulted and harassed in the workplace, of which Black South and Central Africans having the brunt of the favoritism. Almost one in five reported hapless intervention from in-migration services, which is one of the most prevailing signifiers of institutional favoritism. Approximately 15 % of those seeking lodging study that they have been denied entree to belongings and appropriate funding for racialist grounds, and those non falling into that demographic study torment by neighbors. In the commercial sector, favoritism is somewhat less prevailing as less than 10 % of the participants reported that they have been the victim of a hatred offense, refused service at a eating hous e or store, or abused by service workers or constabularies because of ethnicity. [ 3 ] Common societal attitudes frequently facilitate xenophobic behavior. ‘Surveys of Irish society suggests that dictatorship, Catholicism, anti-intellectualism and neglect for certain Torahs are dominant strains in Irish society†¦For case, although 69.9 % of Irish individuals would non object to being related to Americans, 79 % would object to being related to American Negroes. The interviewees were asked about their willingness to accept members of different groups as relations, friends, neighbors, colleagues, citizens, visitants to the state: 21.2 % would welcome Blacks as relations, 57.7 % as friends, 70.6 % as neighbors, 78.3 % as colleagues, 83 % as citizens.† [ 4 ] The same study unsurprisingly indicated that Irish citizens would be more welcoming to ethnically Caucasic immigrants. Recent motions advancing multiculturalism are trying to control some of the most baneful racialist influences in Ireland, peculiarly institutional racism where persons are discriminated against and so blamed for their ‘failures’ . [ 5 ] Many Irish motions for societal equality are recommending an individual-centred attack of guaranting that the best people are advanced through society, nevertheless, that assumes that everyone has an equal chance for success and that racism and other steps of societal inequality are non present. [ 6 ] ‘In many states black and cultural minorities are disproportionately ill educated, unemployed, populating in poorness and, as such, disproportionately disadvantaged.’ [ 7 ] Certain avenues of redress include: income redistribution, community development programmes, and group rights ; while these steps do non travel really far in bettering the bias within the population, it would do cultural favoritism less socially acceptable. There still remains the job of societal mobility. Free societies by and large allow bright, promising, enterprising persons to progress up the societal hierarchy and make a degree higher than the 1 they were born into. However, this becomes more debatable when there are institutional barriers that overpoweringly favour work forces over adult females, native-born over foreign, and Caucasian over African or Asian. Allowing equal terms to everyone is proven to be good to society, particularly as the best people beforehand independent of race or national beginning. ‘The economic growing of the ninetiess that made Ireland a more attractive and accessible finish for refuge searchers and other immigrants was non matched by increased disbursement on the public assistance state.’ [ 8 ] Aim This research seeks to bring out the psychological and socioeconomic effects of institutional favoritism against migrators, and if assimilation will be possible. As noted in the old paragraphs, 83 % of the interviewees were non opposed to holding Blacks as citizens, which implies that those wishing to deny citizenship to ethnically diverse migrators are a little, but important minority. However, this demographic is typically responsible for the prejudiced intervention reported by migrators in the 2006 McGinnity survey. We besides seek to bring out the root causes of such favoritism. A smattering was listed in the old paragraph, and we will analyze how the dictatorship and strong religionism in Ireland influence societal policy. Positions Aside from the sample interviewed, the research will include common racial attitudes in Ireland as portion of the introduction/background to supply context for the participants’ experience. The study will besides mention longitudinal surveies on racial attitudes of Ireland’s indigens, and perceptual experiences of xenophobia from the migrators. Six old ages ago, the Irish authorities published a booklet entitledConstructing an Inclusive Societyas portion of an anti-poverty step. The intent of this was to hold as its chief nonsubjective ensuring that cultural minorities and migrators are non more likely to see poorness than Caucasic citizens. ‘The end of turn toing poorness amongst migrators and cultural minorities implies a new accent on the integrating of immigrants non explicitly stated elsewhere in Irish authorities policy. In consequence, it articulates a concern about future societal stratification within Irish society on the footing of ethnicity.’ [ 9 ] As Ireland had neer had a important population of cultural minorities, the job of a racial hierarchy as seen in South Africa and the United States was neer genuinely an issue. However, since their recent economic enlargement and credence of migratory workers, the authorities needs to take preventive steps to guarantee that one does non evolve- but current in-migration policies discourage migrators from trying to go a portion of Irish society. Methodology The research worker will utilize longitudinal informations compiled on immigrant groups within Ireland to provide much of the background information of the thesis and treatment subdivisions, particularly with regard to the more psychological and wellness facets ( i.e. degrees of depression, anxiousness, emphasis, and morbidity compared to the native Irish ) . In order to garner original informations, the research worker will see sites that specifically cater to migrators in Ireland and ask for them to take part in a research undertaking that is designed to raise consciousness of the challenges common to migrators in Ireland. We can turn up possible interviewees via college campuses by administering flyers to a smattering of universities and community Centres that are known to incorporate important Numberss of migrators. The sample will include immature grownups age 18-40, as the research is chiefly concerned with how institutional favoritism affects the immature. Tentative Bibliography Baumgartl, Bernd and Adrian Favell.New Xenophobia in Europe. Dutch capital: Martinus Nijhoff, 1995 Fahey, Tony A ; Helen Russell.Best of Times? : The Social Impact of the Celtic Tiger. Irish capital: Institute of Public Administration, 2007 Faning, Bryan.Racism and Social Change in the Republic of Ireland. Manchester: Manchester University Press, 2002 Hermann, Peter.Citizenship Revisited: Menaces or Opportunities of Switching Boundaries. New York: Nova Publishers, 2004 McGinnity, Frances et Al. Migrants’ Experience of Racism and Discrimination in Ireland.EUMC. [ Online ] hypertext transfer protocol: //www.esri.ie/UserFiles/publications/20061106142132/BKMNINT193.pdf. The Economic and Social Research Institute, 2006 Peillon, Michel and Mary P. Corcoran.Topographic point and Non-place: The Reconfiguration of Ireland. Irish capital: Institute of Public Administration, 2004 Probationary Dissertation Structure The concluding study will hold a standard thesis construction get downing with a 300 word abstract, which will present the issue, and summarize the methodological analysis and findings of the survey. The first portion of the Introduction will incorporate a brief overview of Ireland’s emigration/immigration tendencies over the past century. The 2nd portion will concentrate on the current harvest of immigrants in Ireland, specifically observing the regional demographics, native civilization, and challenges of version. The background information will supply some information on today’s immature immigrants and include surveies that have statistical markers of psychological and economic markers every bit good as outline some of the grounds they had chosen to travel to Ireland in the first topographic point. The methodological analysis subdivision will discourse the choice standards for the interviewees, the nature of the surveys/interview inquiries, and addresses whether the research would be a qualitative survey or a quantitative analysis. The consequences subdivision will name the findings and/or a statistical analysis of the informations. The treatment subdivision will analyze the findings and possible accounts. The decision will turn to farther deductions and so offer suggestions for farther research in the field. The study will stop with a comprehensive list of mentions. 1

Problems And Difficulties In Capital Budgeting Accounting Essay Essays

Problems And Difficulties In Capital Budgeting Accounting Essay Essays Problems And Difficulties In Capital Budgeting Accounting Essay Paper Problems And Difficulties In Capital Budgeting Accounting Essay Paper There are several factors and considerations which make the capital budgeting determinations as the most of import determination of finance director. The relevancy and significance of capital budgeting may be stated as follows: Long term consequence: Possibly, the most characteristics of a capital budgeting determinations and which makes the capital budgeting so important is that these determinations have a long footings effects on the hazard and return composing of the house. These determination affect the future place of the house to a considerable extent as the capital budgeting determinations have a long term deductions and effects. By taking a capital budgeting determination, a finance director in fact makes a committedness into the hereafter, both by perpetrating to the hereafter needs of financess of the undertakings and by perpetrating to its future deductions. The masking characteristic between short term determinations and capital budgeting determinations is the clip. Significant Committedness: the capital budgeting determinations by and large involve big committedness of financess and as a consequence significant part of capital financess are block in the capital budgeting determinations. More attending is required for capital is required for capital budgeting determination. In footings hence, more attending is required for capital budgeting determinations, otherwise the house may endure from the heavy capital losingss in clip to come. It is besides possible that the return from a undertakings may non be sufficient plenty to warrant the capital budgeting determination. Irreversible determinations: most of the capital budgeting determinations are irreversible determinations. Once taken, the house may non be in a place to return back unless it is ready to absorb heavy losingss which may ensue due to abandoning a undertaking in midway. Therefore, the capital budgeting determinations should be taken merely after sing and measuring each minute item of the undertaking, otherwise the fiscal effects may be far making. Affect the capacity and strength to vie: the capital budgeting determinations affect the capacity and strength of a house to confront the competition. A house may lose fight if the determination to overhaul is delayed or non justly taken. Similarly, a timely determination to take over a minor rival may finally ensue even in the monopolistic place of the house. Problems and Troubles in Capital Budgeting The job in capital budgeting determinations may be as follows: Future uncertainness: all capital budgeting determinations involve long term which is unsure. Even if every attention is taken and the undertaking is evaluated every minute item, still 100 % correct and certain prognosis is non possible. The finance director covering with the capital budgeting determinations, hence, should seek to be every bit analytical as possible. The uncertainness of the capital budgeting determinations may be mention to cost of the undertaking, hereafter, legal commissariats, political state of affairs etc. Time Component: The deductions of a capital budgeting determination are scattered over a long period, the cost and benefit of a determination may happen at different point of clip. as a consequence, the cost and benefits of a capital budgeting determination are by and large non comparable unless adjusted for the clip value of money. The cost of a undertaking is incurred instantly ; nevertheless, it is recovered in figure of old ages. These entire returns may be more than the cost incurred, still the net benefit can non be ascertained unless the hereafter benefits are adjusted to do them comparable with the cost. Furthermore, the longer the clip period involved, the greater would be the uncertainness. Measurement Problem: sometimes a finance director may besides confront troubles in mensurating the cost and benefits of undertakings in quantitate footings. For illustration: the new merchandise produced to be launched by a house may ensue in addition or lessening due to other factor besides. Types Of Capital Budgeting Decisions The undertaking may besides be classified as gross bring forthing undertakings or cost reducing undertakings. In general, the undertakings can be categorized as follows: From the point position of firmaa‚Â ¬a„?s being: the capital budgeting determinations may be taken by a freshly incorporated house or by an already existing house. New Firm: A new integrated house may be required to take different determinations such as choice of a works to be installed, capacity use at initial phases, to put up or non at the same time the accessory unit etc. Existing Firm: A house which is already bing may besides be required to take assorted determinations from clip to clip to run into the challenges of competition or altering environment. From the point of position of determination state of affairs: The capital budgeting determinations may besides be classified from the point of position of the determination state of affairs as follows: Mutually Exclusive Decisions: Two or more alternate proposals are said to be reciprocally sole when credence of one alternate consequence in automatic rejection of all other proposals. The reciprocally sole determinations occur when a house has more than one alternate but competitory proposal before it. For illustration, choosing one hardship bureau to take attention of the promotional run out justly rejects all other competitory bureaus. Similarly, choice of one location out of different executable locations is a reciprocally sole determination. Accept-Reject Decisions: An Accept-Reject determination occurs when a proposal is independently accepted or rejected without respect to any other alternate proposal. This type of determination is made when proposal is cost and benefits neither consequence nor are affected by the cost and benefits of other proposals. Contingent Decisions: sometimes, a capital budgeting determination is contingent to some other determination. For illustration, cybernation of a bank subdivision may necessitate non merely air-conditioning but besides transportation of some staff member to other subdivisions. Similarly, put ining a undertaking at some distant location may necessitate outgo or development of substructure besides. Solution CALUCATION OF CASH FLOWS Particulars Sum Net income before revenue enhancement and depreciation ( PBT ) Depreciation ( w.note ) 2,00,000 -1,53,343 Net income before revenue enhancement Tax @ 50 % 46,657 23,329 Net income after revenue enhancement ( PAT ) 23,328 Cash influx ( each twelvemonth ) = Net income after revenue enhancement ( PAT ) + depreciation = 23,328 + 1,53,343 = Rs.1,76,671 Terminal influx in the 7th twelvemonth = Rs.30,000 ( trash value ) Working NOTESaa‚Â ¬ : Calculation of depreciation = Cost of works + installing cost aa‚Â ¬ bit value Economic life = 11,00,000 + 3,400 aa‚Â ¬ 30,000 7yrs = Rs.1,53,343 CALCULATION OF NET PRESENT VALUE Year hard currency influx PVF ( 10 % , N ) Entire PVF ( Rs. ) 1 1,76,671 0.909 1,60,594 2 1,76,671 0.826 1,45,931 3 1,76,671 0.751 1,32,680 4 1,76,671 0.683 1,20,667 5 1,76,671 0.621 1,09,713 6 1,76,671 0.564 99,643 7 1,76,671+30,000 =2,06,671 0.513 1,06,022 Sum of influxs 8,75,250 Less: hard currency escape ( at clip 0 ) -11,03,340 ( Plant cost +installation charges ) NPV ( 2,27,975 ) NPV = PRESENT VALUE OF CASH INFLOW PRESENT VALUE OF CASH OUTFLOW Decision Since the NPV of the proposal is negative, the proposal needs to be rejected.

Capital Budgeting Essay Example

Capital Budgeting Essay Example Capital Budgeting Essay Capital Budgeting Essay Corporate Finance Capital Budgeting Course Outline CAPITAL BUDGETING Course outline Key Principles in Capital Budgeting: Criteria for Investment Projects Net Pesent Value Internal Rate of Return Payback Profitability Index Finding Cash Flows Maria Ruiz 1 Financial Management Financial management is largely concerned with financing, dividend and investment decisions of the firm with some overall goal in mind. Corporate finance theory has developed around the goal of shareholder wealth maximization. Financing decisions deal with the firm’s optimal capital structure in terms of debt and equity. Dividend decisions relate to the form in which returns generated by the firm are passed on to equity-holders. Investment decisions deal with the way funds raised in financial markets are employed in productive activities to achieve the firm’s overall goal. Capital budgeting is primarily concerned with sizable investments in long-term assets. These assets may be tangible (property, plant or equipment) or intangible ones such as new technology, patents or trademarks. They are generally long-lived projects with their benefits or cash flows spreading over many years. As such, capital budgeting decisions have a major effect on the value of the firm and its shareholder wealth. Maria Ruiz Capital Budgeting Capital Budgeting: An Introduction Capital budgeting: one of the most important functions a financial manager must perform, required by the strategic planning and expansion of operations by allocating financial resources for the acquisitions of physical resources that will produce incremental future cash-flow and create value for shareholders: Corporate investment projects: Replacement decisions o maintain the business made without detailed analysis for cost reduction or efficiency purposes – fairly detailed analysis Expansion of existing products or markets – complex decision process that require an explicit forecast of future demand, detailed analysis Expansion into new products or markets similar detailed analysis Regulatory, safety and/or environmental projects – mandatory investments for many industries, and often accom pany new revenue producing projects The same ideas also apply to personal investment decisions (for example buying a car vs. leasing it, renting an apartment vs. uying one). Maria Ruiz 2 Capital Budgeting Key Principles Rule 1 : Cash flows after taxes, not net income, is the proper basis for analysis Only the incremental cash flows should form part of an investment decision Sunk Costs should not be included in the analysis Only incremental Cash Flows are analyzed: externalities should be included (i. e. cannibalization) Rule 2 : Cash Flow are based on Opportunity costs Rule 3 : Timing of cash flows is critical Rule 4 : Cash Flows are analyzed on an after-tax basis Rule 5: Financing costs are already reflected in the projects required rate f return Maria Ruiz Key concepts Sunk costs: Cost that has already been incurred RD expenses are $10,000 to-date for your project, and you plan to spend another $20,000, making $30,000 in all. What are cash flows for the project? Opportunity cost: what a resource is worth in its next-best use A company uses idle property, what should it use as the investment outlay? (pruchase price, current market value, nothing ? ) Incremental cash flows: difference between projected cash flows with and without the project Maria Ruiz 3 Key concepts Externality: effect of an investment on other things besides the investment itself Ilustration of Cannibalism: A proposed project will generate $10,000 in revenue, but will causes another product line to lose $3,000 in revenues. How much cash flow should the company consider? Conventional vs. Non conventional cash flows: Conventional: initial outflow followed by a series of inflows Non conventional: different Maria Ruiz Illustration: Underutilized Resources A project uses an existing (non-cancelable) leased warehouse with a remaining life of 20 years, and total annual rent of $100,000 The warehouse is rojected to remain 50% utilized, unless your project is undertaken The lease prohibits sub-leasing The current project is making a loss Your project will use 25% of the warehouse What should the project be charged? Maria Ruiz 4 Illustration: Underutilized Resources SEVERAL POSSIBLE SOLUTIONS: Choose one 1. The original project currently using the warehouse is making a loss: â€Å"Charg e the full $100,000 /year so the company can recover the very real warehousing costs. † 2. Half the warehouse is available: The project should be charged the full $50,000 /year if it needs to use it. A portion of the warehousing costs will not be charged-out otherwise. † 3. 4. The project is going to use only 25% of the space. â€Å"Charge $25,000 /year. † The charge should be proportioned according to revenues generated by each project: â€Å"The old project’s revenues = $9,000,000, and the new project has projected revenues = $1,000,000, so the charge is 10%, or $10,000/year. † 5. 6. This is a new project, so give it a sporting chance: The project should be charged nothing. † The original lease was entered into when warehouse space was cheap, but now space is twice what it was: â€Å"The market value of the leased warehouse is now $200,000, and the project should take its proper share of that amount. † Maria Ruiz Capital Budgeting Classification of projects Independent versus Mutually Exclusive Projects: An independent project is one the acceptance or rejection of which does not directly eliminate other projects from consideration or affe ct the likelihood of their selection. Two or more projects that cannot be pursued simultaneously, the acceptance of one prevents the acceptance of the alternative proposal, are mutually exclusive they involve ‘either-or’ decisions Mutually exclusive projects can be evaluated separately to select the one which yields the highest net present value to the firm. A contingent project is one the acceptance or rejection of which is dependent on the decision to accept or reject one or more other projects. Contingent projects may be complementary or substitutes Maria Ruiz 5 Capital Budgeting Project Sequencing The sequencing of projects is a strategic issue, it creates options on one or more projects as the direct result of undertaking another (previous) project. Old Suppose a firm is evaluating projects to produce a number of consumer products It may be advantageous to implement projects sequentially rather than in parallel. If taken in parallel, management would spend the resources and the value of the option not to spend in case of failure is lost. Extreme case example is RD: The source of value is the options created to undertake other projects. Interproject options are created whenever management makes an investment that places the firm in a position to use new technology to enter a different industry Maria Ruiz Choosing between Investment Projects Investment decision criteria Net Present Value Internal Rate of Return Payback Normal Discounted Profitability Index Maria Ruiz 6 Capital Budgeting The Net Present Value (NPV) NPV : difference between the initial investment and the sum of the present values of cash flows that are generated: NPV0 = ? I 0 + ? t =1 T CFt (1 + r ) t If the project involves investment in installments spread over N years, then the NPV is: NPV0 = ? t =0 N T ? It CFt +? t t (1 + r ) t =1 (1 + r ) A project’s NPV signifies the increase in wealth to stockholders, if the project is undertaken. We apply the DCF model to corporate decision making and we use the Net Present Value (NPV) Rule to evaluate projects and decide which one we should adopt. Maria Ruiz Capital Budgeting Examples NPV Rule 1: Accept the project if its NPV gt; 0 It indicates that only projects that increase the owners’ wealth should be undertaken, ie a project is accepted only if its PV gt; Cost Similarly, a stock or bond is purchased if its PV is greater than its market price (its â€Å"cost†) Example: A wind-power plant will cost â‚ ¬ 50 million to build. The plant will generate annual cash flows of 16 per year for 4 years, plus another 20 millions the fith year. The 6th year, the plant will be scrapped at a cost of 2 millions. What is the NPV of the project if the opportunity cost of capital is 10%? What if the opportunity cost of capital is 20%? Maria Ruiz 7 Capital Budgeting Examples NPV Rule 2: If the projects are not mutually exclusive, all projects for which NPV gt; 0 should be undertaken. If the projects are mutually exclusive, then the project with the highest NPV should be chosen. Example: You are considering buying a network server with a useful life of three years. Two alternatives exist. Model A costs â‚ ¬ 250,000 and will lead to a productivity improvement of â‚ ¬ 110,000 per year for 3 years. Model B costs â‚ ¬ 200,000 and will generate a productivity gain of â‚ ¬ 85,000 for 4 years. Which model would you choose if the cost of capital is 8% for this project? Maria Ruiz Capital Budgeting NPV Profile The NPV profile is convex in a simple relationship between NPV and IRR There are other profiles Maria Ruiz 8 Capital Budgeting Internal Rate of Return (IRR) Internal Rate of Return (IRR) : is the discount rate that equates the NPV of the investment project to zero. In other words, IRR is the solution to the following equation ? T CFt ? (1 + IRR) t ? t =1 ? ? ? I0 = 0 ? ? Decision rule Go ahead with the project if IRR is higher than the (explicit) opportunity cost of capital (i. . , the return on an alternative investment, possibly a financial asset, with the same amount risk) or the implicit WACC. When there are multiple investment projects, you should choose the project with the highest IRR. However, other than the particular case of a positive outcome one period after initial investment, there are important caveats regarding the IRR criterion that you should be awar e of. Maria Ruiz Internal Rate of Return 2500 2000 1500 NPV (,000s) 1000 500 0 IRR -1000 -1500 -2000 Discount rate (%) Maria Ruiz 10 0 -500 40 10 20 30 50 60 70 80 90 9 Capital Budgeting Internal Rate of Return (IRR) Decision rule If IRR gt; discount rate, go ahead with the project Example: A wind-power plant will cost â‚ ¬ 50 million to build. The plant will generate annual cash flows of 16 per year for 4 years, plus another 20 millions the fith year. The 6th year, the plant will be scrapped at a cost of 2 millions. If the cost of capital is 10%, would you go ahead with the project? Maria Ruiz NPV and IRR (CFA 2009) Maria Ruiz 10 Capital Budgeting Ranking Conflicts between NPV and IRR IRR and NPV criteria may not lead to the same conclusion in the case of mutually exclusive projects. NPV rule easily chooses among mutually exclusive projects, IRR does not. lliustration: Which of the following mutually exclusive projects should you choose? Year Project A 0 1 –500 590 2 0 3 0 Year 0 1 2 3_ Project B –500 50 50 620 (see graph next page) Maria Ruiz Capital Budgeting Ranking Conflicts between NPV and IRR Different Cash Flow patterns may lead to a conflict of ranking Pitfalls of IRR Difficulty in Evaluating Mutually Exclusive Projects 250 200 150 100 NPV 50 0 -50 -100 -150 -200 Rate of Return Project A Maria Ruiz 0% 5% 10% 15% 20% 25% 30% Project B 11 Capital Budgeting Ranking Conflicts between NPV and IRR IRR and NPV criteria may not lead to the same conclusion in the case of mutually exclusive projects. NPV rule easily chooses among mutually exclusive projects, IRR does not. lliustration: Which of the following mutually exclusive projects should you choose? Year Project A 0 1 –500 590 2 0 3 0 Year 0 1 2 3_ Project B –500 50 50 620 Choose A Choose B A neither IRR Criterion IRRA=18% gt; IRRB=14% NPV Criterion if OCC lt; 12% then: NPVA lt; NPVB if 12% lt; OCC lt; 18% then: NPVA gt; NPVB if OCC gt; 18% then: NPVB lt; NPVA

Exam 1 Case Study Example | Topics and Well Written Essays - 1000 words

Exam 1 - Case Study Example Edmund Wilson publicized that literary writers worked like modern scientific theory in the new idea of reality. Scientists always work to produce formal explanation of the world whereas poets’ works to interpreted lively models that would help them explain a particular culture. In as much as many studies are related to science researchers have tried to find out hoe matters pertaining to science and literature has some form of relationships (Picasso, 133). It is often said that tradition, like history, is continually being recreated and remodeled. To what extent did writers, painters, and composers of the early twentieth century deliberately break with tradition? Explain how they accomplished that goal. Music took a very different turn in the years’ 1900-2000, with lots of changes due to technological discoveries. Though it is clear that music has grown over the years, it is difficult to point out the exact date and time when music modernized. Researchers try to place their fingers on when exactly the progress officially began and have given their maker as 1907. German and Australian composers made mammoth strides towards wider range of tonal vocabulary. Gustav Mahler who worked amid 1860-1911, at this point, considered more of a romantic musician than a modernistic one (Picasso, 38). As the director, to Vienna Opera Orchestra, Manher set the pace and has done numerous works of art. At that time, German remained rich in culture. The country’s pride was at its peak, theses also led to the rise of Adolf Hitler and Third Reich. John Corigliano and Tan Dun have maintained in composition of music into the twenty first century. The two are internationally approved for integrating famous styles, folks and traditional in their music genres. The genres of music that they have engaged in includes but not limited to

Structure of Society and Social Policy Essay Example | Topics and Well Written Essays - 1000 words

Structure of Society and Social Policy - Essay Example The relevance of this trait to programs for the elderly is that the high percentage of young people shifts government policy priorities away from the needs of older persons (Schulz, 2005). Creating new jobs for young people is much more of a state problem than meeting the service needs of older people. Government attention in health care is also more focused on reducing infant mortality rates than in developing geriatric medical care. The family is the social unit with primary responsibility for the care. This is consistent with social, cultural, and religious mores. Although reliance on the family to care for elderly members has subsided in recent years, for reasons discussed later, there is a pervasive understanding that government policy should be designed to bolster the role of family care (LaVeist, 2002). Low class people often incur higher out-of-pocket costs for medical care and have fewer choices among health care providers. Theoretically critics accepts this to result in fewer health care contacts, far fewer of the routine examinations that are so important for early detection of potential problems, and greater delay in seeking care when ill. Research has found this to be true (Schulz, 2005). Considering the ultimate cost of poor health, it is also uneconomic. The issue of poverty, a major contributing factor to poor health and one that impacts more severely on poor people, is simply too far beyond our purview to treat here. However, it bears remarking that some of the recommendations, in fact, poverty reduction measures. For example, policies that would lead to a reduction in drug and alcohol abuse would also lead to a reduction in poverty, for just as substance abuse is partly a result of poverty, so is it also partly a cause. Even more effective as poverty reduction devices ar e policy proposals yet to appear. Although their primary purpose is to relieve other problems, measures such as family planning services, teen pregnancy prevention programs, parent training classes, infant stimulation programs and early childhood education all attack poverty at its roots. Good education and high paid job leads to social mobility and allows a person to maintain high standards of living and receive better medical help (Schulz, 2005). 2. Social class determines the level of medical care and dietary patterns available for people. Life span has long been the thermometer used to measure the health of the public. Only in this case, assuming quality of life is maintained, elevation indicates better health. We have come to expect greater longevity as one of the benefits of continued economic development. A fall in life expectancies is cause for alarm. Fortunately, this has happened only rarely. Poverty makes it more difficult to lead a healthy life. Shelter and diet may be inadequate. Neighborhood air quality may be poor. Life is generally more stressful. Few people consciously choose to live a life of poverty, but people can and do make unhealthy lifestyle choices. People who are poor and less educated tend to make them more often, perhaps because of lesser understanding of the possible consequences (Schulz, 2005). More likely it is because some of those choices provide considerable utility, particularly in the very sh ort run and particularly to persons whose long-run expectations are low. Poor nutrition can be deadly (LaVeist, 2002). The traditional diet,

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

Urbanization - Essay Example This had led to sprouting of skyscrapers and tall building to house the many people residing in the towns and cities. Similarly, many people are building business empires to provide space for businesses and other economic activities. Therefore, urbanisation in the current world has been significantly improving. However, urbanisation has led to a number of adverse conditions and effects. One of the most dreaded effects of urbanisation is air pollution (Vallero, 2008:13). With an increase in the number of people, businesses, industries and other economic activities, the air becomes polluted. This creates an environment that is not conducive for human existence. There are different types of pollutants that enhance air pollution in the world. First, primary pollutants are directly linked to air pollution. These pollutants are directly involved in making the air impure after the missions. For example, sulphur dioxide is emitted into the air by factories in many urban places. This is considered as primary pollutant, since it is directly linked to polluting the air. Other primary pollutants include emissions from cars, automobiles, trains and offices (Sajimon, 2010:11). Secondly there are the secondary pollutants, which are instrumental in making the air impure. When the primary pollutants react together, they cause a tertiary form of pollution. For example, smog created after reaction of two or more primary pollutants results into secondary pollution. Both secondary and primary pollutants are a threat to life, as they affect the air in the atmosphere. A number of activities have been cited to be the major causes of pollution in the world. The first cause of pollution that is prevalent in the world is burning fossil fuels. In many parts of the world, different people use different sources of energy. In many instances, people burn coal, petroleum and other combustible fuels to produce energy. While burning

Market Research and Business Plan of Apple Essay

Market Research and Business Plan of Apple - Essay Example The essay "Market Research and Business Plan of Apple" presents a plan for an innovative edition of laptops from Apple Inc. The underlying report accounts the performance of tablets of Apple Inc. and its immediate rivals going head to head in competition as current market revolves around it. Assessing market trend and performance with the latest tablet invasion is also very difficult as a large number of companies have landed in with their versions. Tablets are differentiable on the basis of brand, size, features, storage size, etc. There are almost more than 35 brands of tablets present in the market; within three sizes; five types of operating systems; six features variation parameters and four storage sizes. Apple has been in competition with Samsung’s Galaxy, Google’s Nexus and Amazon’s Kindle Fire. The market has been gradually sharing the Apple’s market share pie to Samsung’s broader variation offering as and to Amazon’s reasonable offe ring. Apple has been dominating the market with its high price; Apple Mini iPad launched at a price of $499.00 in the US whereas the analysts presented an estimate of the material bill for Apple Mini iPad to be $188.00; gross profit of $ 311.00 or 62% per unit. Whereas Amazon is offering its latest Fire Kindle for $ 199.00 while latest Samsung Galaxy Tablet is offered with a price of $ 358.00 and Asus Google Nexus tablet is being offered for $267.36. Further, Asus Transformer tablet version is also charging the price of $.499.99; 0.99 cents higher than iPad mini.... e has been dominating market with its high price; for instance, Apple Mini iPad launched at price of $499.00 in US whereas the analysts presented an estimate of material bill for Apple Mini iPad to be $188.00; gross profit of $ 311.00 or 62% per unit. Whereas Amazon is offering its latest Fire Kindle for $ 199.00 while latest Samsung Galaxy Tablet is offered with price of $ 358.00 and Asus Google Nexus tablet is being offered for $267.36 (Bradshaw, 2012; Osawa, 2012 ;PC World, 2013). Further, Asus Transformer tablet version is also charging price of $.499.99; 0.99 cents higher than iPad mini. Prices range for tablet has been from $.79.72 offered by Pan digital  R70D256 1 GB Wi-Fi White E-Reader to $.3199.99 offered by Motion Computing  (HP3C4A3C3C3B2A).   Despite huge variation, various website rate iPad as the first choice and while on second place suggestions are made on the basis of various aspects as shown in the Figure 3. Comprehensive comparison of the iPad’s two c loses competitors is as shown in Figure 4 in the appendix. Analysts have been largely favoring Apple iPad over rivals and associate the presence of competition to Apple’s high price weakness (Dolcourt, 2012). While Apple Inc considers price of Apple iPad mini justified in light of the popularity of the earlier original version of iPad despite its huge price (Westaway, 2012). Moreover, nurturing the debate over price factor, critics also hold opinion that Apple’s price is dominant factor of its strategy to keep product as luxury while superior product and mass market are mutually exclusive factors. Further, despite its most debated high price, it is within capacity of sizeable population (Cox, 2013). Another factor that supports the high priced iPad over other competitors is the fact that over 91%

Is English Intellectual Property Law Incapable of Protecting Essay

Is English Intellectual Property Law Incapable of Protecting Internet's Growth - Essay Example Thus, the question arises that are the existing English Intellectual Property Right Laws adequate and capable of protecting the intellectual property on the Internet from the unlimited means of infringing ways intellectual property thieves can think of? The roots of English Law of Intellectual Property can be traced back to 1709 when Statute of Anne recognized the copyrights of artists, musicians, painters and writers in their respective creative and original works. Later on, the Bern Convention in 1886 obligated all its Member States to amend their local laws to give due consideration to the copyrights of their local authors as well as to respect and provide adequate protection to the copyrighted works of foreign authors. Similarly, the Rome Convention in 1980 recognized the industrial rights of the inventors, designers and trademark owners obligating its Member States to provide protection to novel inventions, designs and marks that have the ability to distinguish the goods and ser vice from another person’s goods and service. However, the Internet was created in 1989 and its potential to disseminate information from one person to another was revealed after a long time after its creation. The intellectual property law, thus, was unaware about the legal implications which will arise once the Internet will become a social necessity of every person around the world. Most importantly, the Internet has become the virtual platform for the businesses, entrepreneurs, individual inventors, and intellectual property stakeholders to sell their products and services online without the need for spending substantial amounts on the physical assets, expenditures and human resources. The Internet allows the musicians, authors and artists to publish their work online for the viewers and readers from around the world to admire and purchase the work without waiting for years to get the music CD or the hardcover book. Thus, Internet has categorically contributed to the succ ess and popularity of the intellectual property owners around the world. On the other hand, Internet has also been criticized to become the ultimate haven for the intellectual property thieves to establish their black practices like illegal downloading of music, peer-to-peer file sharing, counterfeiting of original books, illegal copying of copyrighted pictures, illegally entering into private online databases, copying of software program codes, creation of multiple domain names using popular business trademark, passing-off one’s intellectual property as one’s own, stealing the trade secrets by hacking one’s computer and illegally infringing upon the patented inventions of the inventor and the scientists. The existing English Law of Intellectual Property comprises of Patents Act of 1977, Copyright, Designs and Patents Act of 1988, Trademarks Act of 1994 and Registered Designs Act of 1949 amended by Community Designs Regulation of 2001. These laws protect the cop yrights, designs, patents and trademarks from any use, copying, selling, importing and exporting, licensing and assigning. Moreover, the protection granted to trademarks, patents and designs is territorial in nature. Thus, if one country has granted a patent for an invention in one country, it does not guarantee similar protection in other countries too. Trade Related Intellectual Prop

Market Research and Business Plan of Apple Essay

Market Research and Business Plan of Apple - Essay Example The essay "Market Research and Business Plan of Apple" presents a plan for an innovative edition of laptops from Apple Inc. The underlying report accounts the performance of tablets of Apple Inc. and its immediate rivals going head to head in competition as current market revolves around it. Assessing market trend and performance with the latest tablet invasion is also very difficult as a large number of companies have landed in with their versions. Tablets are differentiable on the basis of brand, size, features, storage size, etc. There are almost more than 35 brands of tablets present in the market; within three sizes; five types of operating systems; six features variation parameters and four storage sizes. Apple has been in competition with Samsung’s Galaxy, Google’s Nexus and Amazon’s Kindle Fire. The market has been gradually sharing the Apple’s market share pie to Samsung’s broader variation offering as and to Amazon’s reasonable offe ring. Apple has been dominating the market with its high price; Apple Mini iPad launched at a price of $499.00 in the US whereas the analysts presented an estimate of the material bill for Apple Mini iPad to be $188.00; gross profit of $ 311.00 or 62% per unit. Whereas Amazon is offering its latest Fire Kindle for $ 199.00 while latest Samsung Galaxy Tablet is offered with a price of $ 358.00 and Asus Google Nexus tablet is being offered for $267.36. Further, Asus Transformer tablet version is also charging the price of $.499.99; 0.99 cents higher than iPad mini.... e has been dominating market with its high price; for instance, Apple Mini iPad launched at price of $499.00 in US whereas the analysts presented an estimate of material bill for Apple Mini iPad to be $188.00; gross profit of $ 311.00 or 62% per unit. Whereas Amazon is offering its latest Fire Kindle for $ 199.00 while latest Samsung Galaxy Tablet is offered with price of $ 358.00 and Asus Google Nexus tablet is being offered for $267.36 (Bradshaw, 2012; Osawa, 2012 ;PC World, 2013). Further, Asus Transformer tablet version is also charging price of $.499.99; 0.99 cents higher than iPad mini. Prices range for tablet has been from $.79.72 offered by Pan digital  R70D256 1 GB Wi-Fi White E-Reader to $.3199.99 offered by Motion Computing  (HP3C4A3C3C3B2A).   Despite huge variation, various website rate iPad as the first choice and while on second place suggestions are made on the basis of various aspects as shown in the Figure 3. Comprehensive comparison of the iPad’s two c loses competitors is as shown in Figure 4 in the appendix. Analysts have been largely favoring Apple iPad over rivals and associate the presence of competition to Apple’s high price weakness (Dolcourt, 2012). While Apple Inc considers price of Apple iPad mini justified in light of the popularity of the earlier original version of iPad despite its huge price (Westaway, 2012). Moreover, nurturing the debate over price factor, critics also hold opinion that Apple’s price is dominant factor of its strategy to keep product as luxury while superior product and mass market are mutually exclusive factors. Further, despite its most debated high price, it is within capacity of sizeable population (Cox, 2013). Another factor that supports the high priced iPad over other competitors is the fact that over 91%

Potential Short-Run Economic Impacts of the Recent Japanese Disaster Essay

Potential Short-Run Economic Impacts of the Recent Japanese Disaster on the Australian Economy - Essay Example According to the research findings, it can, therefore, be said that specifically, the study of microeconomics allow us to have better understanding about the movements of money from the local firms to household which often times is dictated by the movements of a curve in demand and supply of goods and services in domestic and global markets. Furthermore, the study of microeconomics allows us to reflect on interrelated between salary and wages, employment and unemployment rate, its potential effects on business performances, and the economy as a whole. Based on the Keynesian model, economic recession and contractions are usually caused by the presence of inadequate demand for Australian goods and services. In fact, the post-Keynesian economics proposed the theory of aggregate employment such that the distribution of income, economic growth and developments in trading practices are dictated by the demand-side curve, Although the post-Keynesian economic theory suggests that the market o f a competitive economy is dictated by the demand-side curve and will never attain or satisfy the idea of full employment, economists generally believe the presence of inadequate demand for goods and services can cause a serious market failure and economic problems. With this in mind, the presence of inadequate demand can result in the presence of high unemployment rate. The recent tsunami in Japan has to lead to a significant decrease in the demand for Australian coal and iron ore. The problem with a sudden decrease in demand for goods and services is that the business owners of local firms in Australia may simply lay-off some of its current employees.

Success Seen in ED Study Essay Example for Free

Success Seen in ED Study Essay : The process of learning has become more advanced after the development of the information technology. Students can use technology to study their subjects clearly, so that they can understand it better. The environment of the classroom becomes richer as students access to different types of technologies. Technology can increase the knowledge and achievement of the student. Students can generate impressive results. There are many positive benefits by applying information technology in the education department. Students can do research on several topics and represent information in many forms. Students become independent learners and self starters by using technology in the classrooms. Education technology has shown a tremendous positive effect on the students. Using online telecommunication skills in the classrooms among different regions helps to improve the academic skills of the students as a whole. By using technology in the field of education, student shows more interest in learning, they become motivated towards the subjects. Education technology includes video discs, internet, tele-communication and online education from other parts of the world. â€Å"The most important technologies such as computers, communications systems, internet, and interactive video disc provide an environment in which problem solving can be developed. † Impact of information technology on the society The digital divide is the first step which was considered when reflecting on the social changes coming up with the information technology. There after, it has been held that this information technology is going to produce the differences in the development of society and people. Digital divide is nothing but the gap between people who have effective access to information technology and who do not have the access to it. It’s just the imbalances between the society of people with physical access to technology and also imbalances in the skills needed to have access over the digital and information technology to participate as a digital citizen. Digital divide effects globally also. Global digital divide is the difference between the technology accesses between the countries. There are three types of digital divide – the first is based on the access, which is difference between the society who can access the technology and those who do not have enough access over the technology. The second point is based on the usage that is the difference between the society who know how to use technology efficiently and those who does not have enough skills to use the technology. The third point is based on the usage quality that is the efficient use of the technology among the two groups of societies who has enough access to the technology and who do not have the enough knowledge about the information technology. The scope of digital divide has been changing from time to time. First, digital divide has shown the difference in the connectivity problems. Later, when the technology was developed, it introduced the importance of skills required to use the information technology. In the way, digital divide is changing day by day and the technology is being developed. Digital divide mainly focuses on the infrastructure, capacity building and resource usage. The impact of information technology on the society leads to many technological developments which have an influence on every part of the society. The digital divide has tremendous effect on the society. The prominence of the computers, internet and the other developing technologies had a great consequence on the society. It effects on the age, gender, education and income. In some cases, geographical locations and race also plays an important role. The digital divide helps in restructuring the society as a whole. The digital divide shows more development in the countries and societies which have better access opportunities to the technology. This development differs in different ways, it is based on education, gender, income, geographical locations, race, political, social and cultural conditions. For instance, if we take the age factor, there is usually gap between the generations. Every generation feel the gap in one or the other form like difference in clothing, music, style of living etc. few things are dissimilar among the generations, it is because of the amalgamation of the technology. it was seen in a report that about 8 million Americans use the internet, among those 58% of Americans age 50-64, 75% of 30-49 and 77% of 18-29 year old. In High income countries, with 14% of the world’s population, 79% of the people are using the internet. And in south Asia, which is one-fifth of the world’s population, only 0. 4% are online. Progress should be made in associating the digital divide between the developed and the developing countries. There is a wide and growing information divide between the haves and have-nots, Katz said. Consumerism Consumerism is equating the personal happiness with the purchasing of material possessions and consumption. It is multicultural and non geographical. Online commerce or e-commerce is nothing but buying and selling goods and services through online services such as Internet. A wide variety of work can be done such as electronic funds transfer, Internet marketing, online transaction processing, electronic data interchange, etc. through the e-commerce. E-Bay phenomenon is nothing but the transaction between individual to individual (I 2 I). Online auction services like e-Bay help in facilitating these kinds of transactions. Music Industry has also developed a lot due to the advancement of the technology as the cost of equipments has decreased and many new sophisticated instruments have come to the market. Music can be accessed from any part of the World through the Internet or through the Radio and T. V. signals. Development of Information technology has hastened the progress of the world. It is defined as â€Å"the study, design, development, implementation, support or management of computer- based information systems, particularly software applications and computer hardware. † With the advancement and progress of the IT sector it has revolutionized the world in a way by increasing the communications between the people of the world; and also having great impact on service sectors like in banking, insurance, transportation, health care, professional and personal services etc. It also facilitates the consumerism, as a person can sale any article or good from sitting at any part of the world to any person located at any other part. The distance barrier is brought down due to this progress in the field of IT and Consumerism. It has tremendous impact on the person’s life as it gives him easier methods to acquire Knowledge, improving the working potential by providing many jobs, as IT has become one the important service sector in many countries. For example, in developed countries like USA it amounts to 74% of GDP.

Yips Drivers Of Globalisation Management Essay

Yips Drivers Of Globalisation Management Essay There is an increasing trend to market globalisation for a variety of reasons. In some markets, customer needs and preferences are becoming more similar. The opening of McDonalds outlets in most countries of the world signalled similar tendencies in fast food. As some markets globalise, those operating in such markets become global customers and may search for suppliers who an operate on a global basis. The development of global communication and distribution channels may drive globalisation- the obvious example being the impact of the internet. Marketing policies, brand names and identifies, and advertising may all be developed globally. This further generates global demand and expectations from customers, and may also provide marketing cost advantages for global operators. Cost globalisation may give potential for competitive advantage since some organisations will have greater access to and/be more aware of these advantages than others. There might also be cost advantages from the experience built through wider scale operations. Other cost advantages might be achieved by central sourcing efficiencies from lower cost suppliers across the world. Country specific costs such as labour or exchange rates, encourage businesses to search globally for low cost in these respects as ways of matching the costs of competitors that have such advantages because of their location. For example given increased reliability of communication and cost differentials of labour, software companies and call centres are being located in India, where there is highly skilled but low cost staff. Other businesses face high costs of product development and may see advantages in operating globally with fewer products rather than incurring the costs of wide ranges of products on a more limited geographical scale. The activities and policies of governments have also tended to drive the globalisation of industry. Changes in the macro environment are increasing the global competition, which, in turn, encourages further globalisation. If the levels of exports and imports between countries are high, it increases interaction between competitors on a more global scale. If a business is competing globally, it also tends to place globalisation pressures on competitors, especially if customers are also operating on a global scale. Porters 5 forces (diagram p.80) Porters five forces framework was originally developed as a way of assessing the attractiveness of different industries. As such it can help identifying the sources of competition in an industry or sector. Although initially used with businesses in mind, it is of value to most organisations. It must be used at the level of SBUs and not at the level of the whole organisation. For example an airline might compete simultaneously in several different arenas such as domestic and long haul, and target different customer groups such as leisure, business ad freight. The impact of competitive force may be different for each of theses SBUs. Understanding the connections between competitive forces and the key drivers in the macro environment are essential. For example technological changes can destroy many of the competitive advantages and barriers that have protected organisations historically. The five forces are not independent of each other. Pressures from one direction can trigger off changes in another in dynamic process of shifting sources of competition. Competitive behaviour may be concerned with disrupting these forces and not simply accommodating them. Threat of entry will depend on the extent to which there are barriers to entry. These are factors that need to be overcome by new entrants if they are to compete successfully. These should be seen as providing delays to entry and not as permanent barriers to determined potential entrants. They may deter some potential entrants but not others. Typical barriers are as follows- Economies of scale The capital requirement of entry. The capital cost of entry will vary according to technology and scale. Access to supply or distribution channels. In many industries manufacturers have had control over supply or/and distribution channels. Customer or supplier loyalty. It is difficult for a competitor to break into an industry if there are one or more established operators that now the industry well and have good relationships with the key buyers and suppliers. Experience. Early entrants into an industry gain experience sooner than others. This can give them advantage in terms of cost and/or customer/supplier loyalty. Legislation or government action. Legal restraints on competition vary from patent protection, to regulation of markets through to direct government action. Threat of substitutes. Substitutes reduces demand for a particular class of products as customers switch to the alternatives-even to the extent that this lass of products or services become obsolete. This depends on whether a substitute provides a higher perceived benefit or value. Substitution may take different forms- There could be product for product substitution- for example email, substituting for a postal service. There may also be other organisations that are complementors-meaning that they have products and services that make organisations products more competitive-and vice versa. There may be substitution of need by a new product or service, rendering an existing product or service redundant. For example, more reliable and cheaper domestic appliances reducing the need for maintenance and repair services. Generic substitution occurs where products or services compete for disposable income, for example furniture manufacturers compete for available household expenditure with suppliers of televisions, videos, cookers, cars and holidays. The power of buyers and suppliers. Buyer power is likely to be high when some of the following conditions prevail. There is a concentration of buyers, particularly if the volumes purchased by buyers are high and/or the supplying industry comprises a large number of small operators. This is the case on items such as milk in the grocery sector in many European countries, where just a few retailers dominate the market. The cost of switching a supplier is low or involves little risk-for example, if there are no long term contract or supplier approval requirements. There is a threat of the supplier being acquired by the buyer and/or the buyer setting up in competition with the supplier. This is called backward integration and might occur if satisfactory prices or quality from suppliers cannot be obtained. Supplier power is likely to be high when: There is a concentration of suppliers rather than a fragmented source of supply. The switching costs from one supplier to another are high, perhaps because an organisations processes are dependant on the specialist products of a supplier, as in the aerospace industry, or where a product is clearly differentiated-such as Microsoft products. There is the possibility of the suppliers competing directly with their buyers(this s called forward integration) if they do not obtain the prices, and hence the margins, that they seek. Competitive rivals are organisations with similar products and services aimed at the same customer group. There are a number of factors that affect the degree of competitive rivalry in an industry or sector: The extent to which competitors are in balance. Where competitors are of roughly equal size there is the danger of intense competition as on competitor attempts to gain dominance over another. Industry growth rates may affect rivalry. The idea of the life cycle suggests that the stage of development of an industry or sector is important in terms of competitive behaviour. High fixed costs in an industry, perhaps through capital intensity, may result in price wars and low margins if industry capacity exceeds demand as capacity fill becomes a prerogative. Where there are high exit barriers to an industry, there is again likely to be the persistence of excess capacity and, consequently, increased competition. Differentiation can, again, be important. In a commodity market, where products r services are undifferentiated, there is little to stop customers switching between competitors increasing rivalry. The following questions help focus on the implications of these forces- Are some industries ore attractive than others? This was the original purpose of the 5 forces model, the argument being that an industry is attractive when the forces are weak. For example, if entry is difficult, suppliers and/or buyers have little power and rivalry is low. What are the underlying forces in the macro environment that are driving the competitive forces? For example, the lower labour costs for software and service operators located in India are both an opportunity and a threat to European and US companies. So five forces needs to be linked to PESTEL as mentioned earlier. Critical success factors-from the potential providers viewpoint it is valuable to understand which features are of particular importance to a group of customers(market segment). These are known as the critical success factors. Critical success factors are those product features that are particularly valued by a group of customers and, therefore, where the organisation excel to outperform competition. Strategic capability can be defined as the adequacy and suitability of the resources and competences of an organisation for it to survive and prosper. Tangible resources- are the physical assets of an organisation such as plant, labour and finance. Intangible resources- are non physical assets such as information, reputation and knowledge. Typically, an organisations resources can be considered under the following 4 categories: Physical resources- such as the number of machines, buildings or the production capacity of the orgnaisation. The nature of these resources, such as the age, condition, capacity and location of each resource, will determine the usefulness of suc resources. Financial resources- such as captal, cash, debtors, and creditors, and suppliers of money (shareholders, bankers, etc) Human resources- including the number and mix of people in an organisation. The intangible resource of their sills and knowledge is also likely to be important. This applies both to employees and other people in an organisations networks. In knowledge based economies people do genuinely become the most valuable asset. Intellectual capital is an important aspect of the intangible resources of an organisation. This includes patents, brands, business systems and customer databases. There should be no doubt that these intangible resources have a value, since when businesses are sold part of the value is goodwill. In a knowledge based economy intellectual capital is likely to be a major asset of many organisations. Such resources are certainly important but what an organisation does-how it employs and deploys its resources-matters at least as much as what resources it has. There would be no point in having state of the art equipment or valuable knowledge or a valuable brand if they were not used effectively. The efficiency and effectiveness of physical or financial resources, or the people in an organisation, depends on not just their existence bt how they are managed, the cooperation between people, their adaptability, their innovatory capacity, the relationship with customers and suppliers and the experience and learning about what works well and what does not. Competences is used to mean the activities and processes through which n organisation deploys its resources effectively. In understanding strategic capability, the emphasis is, then, not just on what resources exist but on ho they are used. Threshold capabilities are those essential for the organisation to be able to compete in a given market. Without these an organisation is unlikely to be able to survive in the market. The first 2 basic questions are- -what are the threshold resources needed to support particular strategies? If an organisation des not possess these resources it will be unable to meet customers minimum requirements and therefore be unable to continue to exist. For example, the increasing demands by modern multiple retailers made on their suppliers means that those suppliers have to possess quite sophisticated IT infrastructure to stand a chance of meeting retailer requirements. Threshold levels of capabilities will change and will usually rise over time as critical success factors change and through the activities of competitors and new entrants. An example is the way in which the premier league developed during the 1990s created a gulf between those who were able to spend money on players and who were not. While threshold capabilities are fundamentally important they do not of themselves create competitive advantage. Competitive advantage is more likely to be created and sustained if the organisation if the organisation has distinctive or unique capabilities that competitors cannot imitate. This may be because the organisation has unique resources. Unique resources- are those resources that critically underpin competitive advantage and that others cannot imitate or obtain. It is, however, more likely that an organisation is able to achieve competitive advantage because it has distinctive, or core, competences. Core competences- are taken to mean the activities and processes through which resources are deployed in such a way as to achieve competitive advantage in ways that others cannot obtain or imitate. For example, supplier that achieves a competitive advantage in a retail market might have done so on the basis of a unique resource such as powerful brand, or by finding ways of providing service or building relationships with that retailer in ways that its competitors find it difficult to imitate, a core competence. The summary argument is this. To survive and prosper an organisation needs to address the challenges of the environment that it faces. In particular it must be capable of delivering against the critical success factors that arise from demands and needs of its customers. The strategic capability to do so is dependant on the resources plus the competences it has. These must reach a threshold level in order for the organisation to survive. The further challenge is to achieve competitive advantage. This requires it to have strategic capabilities that its competitors find difficult to imitate or obtain. These could be unique resources but are more likely to be the core competences of the organisation. Cost efficiency An important strategic capability in any organisation is to ensure attention is paid to achieving and continually improving cost efficiency. This will involve having both appropriate resources and the competences to manage costs. The management of the cost base of an organisation could be a basis for achieving competitive advantage. However, for many organisations in many markets this is becoming a threshold strategic capability for 2 reasons; First, because customers do not value product features at any price. If the price rises too high they will be prepared to sacrifice value and opt for a lower priced product. Second, competitive rivalry will continually require the driving down of cost because competitors will be trying to reduce their cost so as to under price their rivals while offering similar value. Sustainable competitive advantage If capabilities of an organisation do not meet customer needs, at least to a threshold level, the organisation cannot survive. If it cannot manage its costs efficiently and continue to improve on this, it will be vulnerable to those who can. However, if the aim is to achieve competitive advantage then this itself is not enough. The question then becomes, what resources and competences might provide competitive advantage in ways that can be sustained over time? If this is to be achieved, then strategic capability has to meet other criteria. It is important to emphasise that if an organisation seeks to build competitive advantage it must meet the needs and expectations of its customers. There is little point in having capabilities that are valueless in customer terms; the strategic capabilities must be able to deliver what the customer values in terms of product or service. Given this fundamental requirement, there are then other key capability requirements to achieve sustainable competitive advantage. Rarity of strategic capabilities Competitive advantage cannot be achieved if the strategic capability of an organisation is the same as other organisations. It could, however, be that a competitor possesses some unique r rare capability providing competitive advantage. For example some libraries have unique collections of books unavailable elsewhere. Competitive advantage could also be based on rare competences such as years of experience in, for example, brand management or building relationships with key customers; or perhaps the way in which different parts of a global business have learned to work harmoniously. Rarity may depend on who owns the competence and how easily transferable it is. For example, the competitive advantages of some professional service organisations are built around the competence of specific individuals- such as a doctor in leading edge medicine. An organisation may have secured preferred access to customers or suppliers perhaps through an approval process or by winning a bidding process. This may be particularly advantageous if this approval for access cannot be obtained without a specific history of operation or having followed a specified development programme-say with pharmaceutical products. This means that a competitor cannot find a short cut to imitation. Some competences are situation dependant and not transferable because they are only of value if used in a particular organisation. For example, the systems for operating particular machines are not applicable to organisations that do not use those same machines. Sometimes incumbent organisations have advantage because they have sunk costs that are already written off and they are able to operate at significantly lower overall cost. Other organisations would face much higher costs to set up to compete. Whilst rarity of strategic capabilities can, then, provide the basis of competitive advantage, there are dangers of redundancy. Rare capabilities may come to be core rigidities difficult to change and damaging to the organisation and its markets. Robustness of strategic capabilities (diagram p.128) It should be clear by now that the search for strategic capability that provides sustainable competitive advantage is not straightforward. It involves identifying capabilities that are likely to be durable and which competitors find difficult to imitate or obtain. Indeed the criterion of robustness is sometimes referred to as non-imitable. Advantage is more likely to be determined by the way in which resources are deployed to create competences in the organisations activities. For example, as suggested earlier an IT system itself will not improve an organisations competitive standing; it is how it is used that matters. Indeed what will probably make most difference is how the system is used to bring together customer needs with areas of activities and knowledge both inside and outside the organisation. It is therefore to do with linking sets of competences. Core competences are likely to be the liked activities or processes through which resources are deployed in such a way as to achieve competitive advantage. They create and sustain the ability to meet the critical success factors of particular customer groups better than other providers and in ways that are difficult to imitate. In order to achieve this advantage, core competences therefore need to fulfil the following criteria: -they must relate to an actitvity or process that underpins the value in the product or service features-as seen through the eyes of the customer. -the competences must lead to levels of performance that are significantly better than competitors. -the competences must be robust-that is, difficult for competitors to imitate. Stakeholders are those individuals or groups who depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends. Important external stakeholders usually include financial institutions, customers, suppliers, shareholders and unions. External stakeholders can be usefully divided into 3 types in terms of the nature of their relationship with the organisation and therefore, how they might affect the success or failure of a particular strategy. -stakeholders from the market environment such as suppliers, competitors, distributors, shareholders. These stakeholders have an economic relationship with the organisation and influence the value creation process as members of the value network. -stakeholders from the social/political environment such as policy makers, regulators, government agencies who will influence the social legitimacy. -stakeholders in the technological environment such as key adopters, standards agencies and owners of competitive technologies who will influence the diffusion of new technologies and the adoption of industry standards. These 3 sets of stakeholders are rarely of equal importance in any specific situation. For example the technological group are clearly crucial for strategies of new product introduction whilst the social/political group are usually particularly influential in the public sector context. Since the expectations of stakeholder groups will differ, it is quite normal for conflict to exist regarding the importance or desirability of many aspects of strategy. Stakeholder mapping identifies stakeholder expectations and power and helps in understanding political priorities. It underlines the importance of 2 issues: -How interested each stakeholder group is to impress its expectations on the organisations purposes and choice of specific strategies. -Whether stakeholders have the power to do so. Power/interest matrix(diagram p.182) It seeks to describe the political context within which an individual strategy would be pursued. It does this by classifying stakeholders in relation to the power they hold an the extent to which they are likely to show interest in supporting or opposing a particular strategy. Stakeholder mapping might help in understanding better some of the following issues: -whether the actual levels of interest and power of stakeholders properly reflect the corporate governance framework within which the organisation is operating. -who the key blocker and facilitors of a strategy are likely to be and how this could be responded to. -whether repositioning of certain stakeholders is desirable and/or feasible. -maintaining the level of interest or power of some key stakeholders may be essential. Equally it may be necessary to discourage some stakeholders from repositioning themselves. Stakeholder groups are not usually homogeneous but contain a variety of sub groups with somewhat different expectations and power. Most stakeholder groups consist of large numbers of individuals (such as customers or shareholders), and hence can be thought of largely independently of the expectations of individuals within this group. Power Power is the mechanism by which expectations are able to influence purposes and strategies. It has been seen that, in most organisations, power will be unequally shared between the various stakeholders. For the purposes of this discussion, power is the ability of individuals or groups to persuade, induce or coerce others into following certain courses of action. There are many different sources of power. On the other hand, there is power that people or groups derive from their position within the organisation and through the formal corporate governance arrangement. since there are a variety of different sources of power, it is useful to look for indicators of power, which are the visible signs that stakeholders have been able to exploit one or more of the sources of power. Corporate parent The levels of management above that of business units are referred to as the corporate parent. So, a corporate centre or the divisions within a corporation which look after several business units act in a corporate parenting role. The corporate parent refers to the levels of management above that of business units and therefore without direct interaction with buyers and competitors. The discussion does not only relate to large conglomerate businesses. Even small businesses may consist of a number of business units. For example, a local builder maybe undertaking contract work for local government, work for industrial buyers and for local homeowners. Product/market diversity An underpinning issue related to how a corporate parent may or may not add value to that created by its business units is the extent and nature of the diversity of the products or services it offers. Diversification may be undertaken for a variey of reasons some more value creating than others. These are as follows- First, there may be effieciency gains from applying the organisations existing resources or capabilities to new markets and products or services. These are known as economies of scope. Second, there may also be gains from applying corporate managerial capabilities to new markets and products and services Third, having a diverse range of products or services can increase market power. With a diverse range of products or services, an organisation can afford to susidise one product from the surpluses earned by another, in a way that competitors may not be able to. Related diversification can be defined as strategy development beyond current products and markets, but within the capabilities or value network of the organisation. For example procter and gamble and unilever are diversified corporations, but virtually all of their interests are in fast moving consumer goods distributed to retailers, and increasingly in building global brands in that arena. Related diversification is often seen s superior to unrelated diversification, In particular because it is likely to yield economies of scope. However, it is useful to consider reasons why related diversification can be problematic. These include- -the time and cost involved in top management at the corporate level trying to ensure that the benefits or relatedness are achieved through sharing or transfer across business units. -the difficulty for business unit managers in sharing resources with other business units, or adapting to corporate wide policies, especially when they are incentivised and rewarded primarily on the basis of the performance of their own business alone. Unrelated diversification is the development of products or services beyond the current capabilities or value network. Unrelated diversification is often described as a conglomerate strategy. Because there are no obvious economies of scope between the different businesses, but there is an obvious cost of the headquarters, unrelated diversification companies share prices often suffer. It is important also to recognise that the distinction between related and unrelated diversification is a matter of degree. It is the role of any corporate parent to ensure it does add value rather than to destroy it. Indeed how many corporate parents create value is central not only to the performance of companies but also to their survival. (diagram p.309)The portfolio manager is, in effect, a corporate parent acting as an agent on behalf of financial markets and shareholders with a view to enhancing the value attained from the various businesses in a more efficient and effective way than financial markets could. Its role is to identify and acquire under-valued assets or businesses and improve them. It might do this, for example, by acquiring another corporation, divesting low performance businesses within it and encouraging the improved performance of those with potential. Portfolio managers seek to keep the cost of the centre low, for example by having a small corporate staff with few central services, leaving the business units alone so that their chief executives have a high degree of autonomy. Synergy manager a corporate parent seeking to enhance value across business units by managing synergies cross business units. Resources or activities might be shared, for example, common distribution systems might be used for different businesses, overseas offices may be shared by smaller business units acting in different geographical areas. There may exist common skills or competences across businesses. The parental developer seeks to employ its own competences as a parent to add value to its businesses. Rather parental developers have to be clear about the relevant resources or capabilities they themselves have as parents to enhance the potential of business units. The parental developer; a corporate parent seeking to employ its own competences as a parent to add value to its businesses and build parenting skills that are appropriate for their portfolio of business units. Managing the corporate portfolio This section is to do with the models managers might use to make sense of the nature and diversity of the business units within the portfolio, or businesses they might be considering adding given the different rationales described above. A number of tools have been developed to help managers choose what business units to have in a portfolio. Each tool gives more or less focus on one of these criteria: -the balance of the portfolio, eg in relation to its markets and the needs of the corporation; -the attractiveness of the business units in the portfolio in terms of how profitable they are or are likely to be and how fast they are growing; and -the degree of fit that the business units have with each other in terms of potential synergies or the extent to which the corporate parent will be good at looking after them. The growth share (or BCG) matrix (diagram p.315) One of the most common and long standing ways of conceiving the balance of a portfolio of businesses in terms of the relationship between market share and market growth identified by the Boston Consulting Group. The types f businesses in such a portfolio are- -star is a business unit which has a high market share in a growing market. The business unit may be spending heavily to gain that share. -question mark or problem child is a business unit in a growing market, but without a high market share. Cash cow is a business unit with a high market share in a mature market Dogs are business units with a low share in static or declining markets. The growth share matrix permits business units to be examined in relation to (a) market (segment) share and (b) the growth rate of that market and in this respect the life cycle development of that market. It is therefore a way of considering the balance and development of a portfolio. It is argued that market growth rate is important for a business unit seeking to dominate a ma