Benjamin Franklin Printer To Scientist To Politician History Essay

IntroductionBenjamin Franklin should be remembered as one of the establishing male parent of the today ‘s universe superpower- the United States of America. Franklin was born on January 17 1706 and lived on until April 17, 1790. Franklin a celebrated polymath was a prima pressman writer, political theoretician, postmaster, scientist, civic militant, solon every bit good as a diplomat. As a scientist, Franklin can be remembered as the major figure involved in the Enlighten of America and the history of natural philosophies for his ageless theories and finds every bit far as electricity is concerned. He is the figure behind the innovation of the â€Å" lightning rod, bifocals, the Franklin range, a passenger car mileometer, and the glass ‘armonica ‘ † Franklin established the pioneering public loaning library every bit good as the first fire section in Pennsylvania1. Franklin received the rubric of â€Å" The First American † for his early on and hardworking presentation for colonial understanding ; as a writer and interpreter in London for legion settlements, and subsequently afterwards as the Prime Minister United States diplomat to France, he epitomized the budding American state. Franklin was non merely foundational but besides introductory in structuring the American ethos as a marriage of the realistic and independent values of â€Å" thrift, difficult work, instruction, community spirit, autonomous establishments, and resistance to authoritarianism both political and spiritual † , with the systematic and broad values of the light. Harmonizing to a celebrated historian Henry Steele Commager, â€Å" Franklin could be merged the virtuousnesss of Puritanism without its defects, the light of the Enlightenment without its heat. † While To Walter Isaacson, Franklin was â€Å" the most complete American of his age and the mos t influential in contriving the type of society America would go. â€Å" 2 Franklin, everlastingly conceited of his working category roots, rose up the ladder to go a successful day-to-day editor every bit good as a pressman in Philadelphia, the so taking metropolis in the settlement. He shortly turned out to be affluent after printing Poor Richard ‘s Almanack and The Pennsylvania Gazette. Franklin achieved planetary reputation as a scientist for his legendary experiments in electrical energy and for his many finds, peculiarly the lightning rod. He participated and besides played a important function in establishing the University of Pennsylvania and was thenceforth elected to head the esteemed American Philosophical Society. Franklin turned into a province hero in America when he led the attempt to hold the Congress get rid of the ostracized Stamp Act. As a gifted diplomat, he was extensively well-liked among the Gallic as American curate to Paris and was a cardinal individual in the growing of affirmatory Franco-American dealingss. For several old a ges, Franklin was a British postmaster for the settlements, a station which subsequently enabled him to set up the initial national communications web. Franklin was so much involved and active in society personal businesss, national and international personal businesss every bit good as colonial and province political relations. From 1785 to 1788, Franklin served as governor and towards the terminal of his life ; he unchained his slaves and hence turned out to be one of the most celebrated abolitionists3. His colorful life and bequest of political and scientific achievement, every bit good as the rank as one of America ‘s most important Establishing Fathers, have saw Franklin honoured on mintage and money ; warships ; the names of many towns, counties, educational establishments, namesakes, and companies † and even after more than two centuries since his decease, countless cultural references4. Franklin was born on Milk Street in Boston. His male parent wanted him to travel to school with the clergy but the money was merely plenty to last Franklin for merely two old ages in school. Franklin studied at Boston Latin but he did non graduate and had to go on his instruction through insatiate reading. At 10 his schooling ended and he started working for his male parent until the age of 12 when he became an learner for his brother who had a pressman and who introduced Franklin to the printing trade. At 15 Franklin established The New-England Courant, and which happened to be the first genuinely independent newspaper during the settlements. After being denied the chance to print a missive to the newspaper for publication, Franklin assumed the fabricated name of â€Å" Mrs. Silence Dogood † , a middle-aged widow. â€Å" Mrs. Dogood † ‘s letters were in print, and even a topic of duologue around town. Neither James nor the Courant ‘s readers were witting of the fast one. Franklin was forced to go forth the apprenticeship without permission shortly after his brother discovered that the popular correspondence belonged to Franklin5. At 17, Franklin took off and became a runaway in Philadelphia, Pennsylvania where he started a new life in a new metropolis. At first he worked in several ; pressman stores available in town but nevertheless he was non satisfied by the immediate chances. It is after a few months while still working in a printing house that the so Pennsylvanian Governor convinced him to travel to London purportedly to obtain equipment required in set uping another daily in Philadelphia6. At age 17, Franklin ran off to Philadelphia, Pennsylvania, seeking a new start in a new metropolis. When he foremost arrived he worked in several pressman stores around town. However, he was non satisfied by the immediate chances. After a few months, while working in a printing house, Franklin was convinced by Pennsylvania Governor Sir William Keith to travel to London, apparently to get the equipment necessary for set uping another newspaper in Philadelphia7.Franklin as a PrinterIt was non until 1727, when Franklin, by so 21 old ages established the Junto, a group of â€Å" like minded aspiring craftsmans and shopkeepers who hoped to better themselves while they improved their community. † The Junto was a argument group for all issues of the twenty-four hours and it accordingly provided rise to many associations in Philadelphia. For Junto reading was a great interest although by so books were really rare and expensive excessively. Therefore the members of the Junto group agre ed to make a library, ab initio meant for their ain books. However, this was non sufficient and that is the clip when Franklin conceived the thought of a subscription library, and which act as a signifier of pooling financess to purchase books for all to read. This signified the birth of the library company of Philadelphia. Until today the library company remains a great scholarly every bit good as a research library harbouring over 500,000 rare books8. In 1733, Franklin started to publish the celebrated Poor Richard ‘s Almanack under the nom de plume Richard Saunders, on which much of his trendy position is based. Franklin on a regular basis wrote under anonym. Even though it was known that Franklin was the writer, his Richard Saunders character often denied it. In 1758, Franklin put in print Father Abraham ‘s Sermon a twelvemonth after he ceased composing for the Almanack9.Franklin as an InventorFranklin was an impressive discoverer. In the thick of his legion creative activities was the Franklin range, bifocal spectacless, lightning rod, glass armonica, every bit good as the flexible urinary catheter. Franklin under no fortunes did he patent his innovations, and in his autobiography he wrote that, â€Å" †¦ as we enjoy great advantages from the innovations of others, we should be sword lily of an chance to function others by any innovation of ours ; and this we should make freely and liberally. To add to his lon g list of innovations are societal inventions, for case paying frontward. Franklin ‘s enthralment with invention could be regarded as philanthropic ; he wrote that his proficient plants were to be used for mounting effectivity and human development. One such development was his effort to rush up intelligence services in the class of his printing presses10. As adjunct postmaster, Franklin developed an involvement refering the North Atlantic Ocean circulation forms. It was while in England in 1768 that he overheard a ailment from the Colonial Board of Customs as to why make it took a British package ships transporting mail several hebdomads longer to make New York than it took an mean merchandiser ship to make Newport, Rhode Island. Franklin laid the job to his cousin Timothy Folger, a Nantucket whaler captain, who informed him that bargainer ships on a regular basis circumvented a strong eastbound mid-ocean current whereas the mail package captains navigated dead into it, therefore battling an unpleasant current of 3A stat mis per hr ( 5 kilometers per hour ) . Franklin so laboured with Folger and other knowing ship captains, larning every bit much as necessary to plot the current and name it the Gulf Stream, by which it is still known today11. It required many old ages for British sea captains to finally commend Franklin ‘s advice on voyaging the current ; on one juncture they did, and they were able to pare two hebdomads from their seafaring clip. But in1853, oceanographer Matthew Fontaine Maury a fame map maker rang a bell that Franklin merely planned and codified the Gulf Stream, but he did non detect it.Franklin as a ScientistIn 1743, Franklin established the American Philosophical Society to help scientific work forces talk about their theories and finds. It at this clip that He began the electrical probes and surveies that, together with other scientific enquiries, would prosecute him for the balance of his life, in amid turns of moneymaking and politics12. In 1747, Franklin officially retired from printing and ventured into other concerns. He entered into a partnership with his chief, David Hall, which offered Franklin with portion of the store ‘s returns for over 18 old ages. This moneymaking concern treaty non merely did it supply leisure and survey clip but besides it is during this period that be made the most finds that accorded him a repute with erudite people in Europe and particularly in France.13 All Franklin ‘s finds resulted from his scrutiny of electricity. Franklin projected that â€Å" vitreous † and â€Å" pitchy † electrical energy were non diverse types of â€Å" electrical fluid † , but instead represented the same electrical fluid under different force per unit areas. Franklin was the first individual to trade name them as positive and negative in that order, every bit good as he was the first individual to detect the rule of saving of charge.14 Electrical experiments done by Franklin paved manner to his find of the lightning rod. He discovered that music directors with a jagged instead than a level point had the ability to liberate mutely, and at a far improved distance. He construed that this information could be of great usage in protecting celebrated edifices from lightning. In grasp of his attempt with electricity, Franklin was awarded with the Royal Society ‘s Copley Medal in 1753 while in 1756 he turn out to be one of the few eighteenth century Americans to be voted as a Fellow of the Society. In add-on and an honor to him the cogs unit of electric charge has been named after him that is one Franklin ( Fr ) is equal to one stat C. Franklin and his modern-day friend Leonard Euler were the lone major scientists who showed support of Christiana Huygens ‘ moving ridge theory of visible radiation, after it was basically ignored by the remainder of the scientific community15. Harmonizing to a good recognized myth, in 1973 a storm traveling from the southwest disadvantaged Franklin of the opportunity of detecting a lunar occultation. Franklin was said to hold noted that the current air currents were in fact from the nor'-east, opposing what he had expected. In communicating with his brother, Franklin subsequently learned that the matching storm had non hit Boston non until after the occultation, in malice of the fact that Boston is to the nor'-east of Philadelphia. He inferred that storms were non needfully affected by the way of the prevailing air current, a utile construct which would hold great influence in meteorology16. In add-on, Franklin noted a theory of infrigidation by recognizing that on a really hot twenty-four hours, he stayed ice chest in his moisture shirt in a zephyr than he did on a dry 1. Harmonizing to Michael Faraday, Franklin ‘s experimentation on the non-conduction of ice is significance even though the jurisprudence of the wide consequence of liquefaction on electrolytes is non attributed to Franklin. All Franklins ‘ oceanographic findings are accumulated in his Maritime Observations and published by the Philosophical Society ‘s minutess. It restricted thoughts for catamaran hulls, sea ground tackles, shipboard buoy uping burden every bit good as H2O tight compartments. In 1736, Franklin formed the Union Fire Company, which happened to be one of the initial voluntary fire contending companies in America. It is besides during the same twelvemonth that he printed a new currency for New Jersey founded on fresh anti-counterfeiting technique which he had developed. All through his calling, Franklin was a protagonist for paper money, publishing A Modest Enquiry into the Nature and Necessity of a Paper Currency in 1729, and his pressman printed money. He was cardinal in the more unnatural and therefore winning pecuniary experiment in the Middle Colonies, which stopped up deflation without taking to inordinate inflation17.Franklin as a PoliticianAs Franklin matured, he began holding more and more concerns sing public personal businesss. For case in 1743, he went a measure in front to setup a 4th strategy for the Academy and College of Philadelphia. Franklin became caught up in Philadelphia political personal businesss and quickly developed. In October 1748, he was chosen to be a councilman, while in June 1749 he was appointed a Justice of the Peace for Philadelphia. In add-on, in 1751 he was voted for the first clip to the Pennsylvania Assembly. On August 10, 1753, Franklin was chosen joint deputy postmaster-general of North America. Well franklins most notable service in his state ‘s political relations was his betterment of the postal system, with correspondence sent out each week18. In 1751, Franklin and Dr. Thomas Bond attain a charter from the Pennsylvania parliament to establish a infirmary. Pennsylvania Hospital was the earliest infirmary in what was to turn out to be the United States of America. In 1754, Franklin led the Pennsylvania deputation to the Albany Congress. This assemblage of legion settlements had been called upon by the Board of Trade in England to develop dealingss with the Indians and defense mechanism non in favor of the Gallic. It was Franklin who really considered a wide Plan of Union for the settlement. Whilst the program was non approved, elements of instituted their manner into being in the Articles of Confederation and the Constitution.19 In 1757, Franklin was sent off to England by the Pennsylvania Assembly as a imperial agent to expostulation against the political authorization of the Penn household, the owners of the settlement. He stayed there for five old ages, determined to stop the owners ‘ privilege to turtle statute law from the voted Assembly, and their unsusceptibility from paying revenue enhancements on their land. His deficient in of of import Alliess in Whitehall made the mission to neglect. Franklin died on April 17, 1790, at the age of 84. Around 20,000 people were in attending during his funeral. He was interred in Christ Church Burial Ground in Philadelphia. The remains of B. Franklin Printer ; Like the wrap of an old Book, Its inside torn out, and stripped of its authorship and ornament, Lies here, grocery for Worms. But his Work shall ne'er be entirely lost: For it will, as he supposed, emerge one time more, in a new and even more ideal Edition, accurate and revised by the Author. In 1773, when Franklin ‘s work had had transformed from publishing to scientific discipline and politics.20 Notes 1. Isaacson, Walter. Benjamin Franklin: An American Life. New York, NY. USA. Prentice Hall Publishers. 2004. 2. Isaacson 2003, p. 491 3. Isaacson 2003, p. 492 4. Lemay, J. A. Leo. â€Å" Franklin, Benjamin ( 1706-1790 ) , † Oxford Dictionary of National Biography. erectile dysfunction. H. C. G. Matthew and Brian Harrison ( Oxford: OUP, 2004 ) . 5. Lemay, 2004, p.1709 6. Wolf, A. , History of Science, Technology, and Philosophy in the Eighteenth Century. New York, 1939. p.232 7. Van Horne, John C. â€Å" The History and Collections of the Library Company of Philadelphia, † The Magazine Antiques, v. 170. No. 2: 58-65 ( 1971 ) . 8. Isaacson 2003, p. 491 9. Isaacson 2003, p. 492 10.Silence Dogood, The Busy-Body, & A ; Early Writings J.A. Leo Lemay, erectile dysfunction. Library of America, 1987 one-volume, 2005 two-volume ISBN 978-1-93108222-8 11. Autobiography, Poor Richard, & A ; Later Writings J.A. Leo Lemay, erectile dysfunction. Library of America, 1987 one-volume, 2005 two-volume ISBN 978-1-88301153-6 12. Green, J. â€Å" English Books and Printing in the Age of Franklin, † in The Colonial Book in the Atlantic World ( 2002 ) , p.257. 13. Isaacson 2003, p. 8 14.Van Horne, 1971, p.58-65 15 Wolf, 1939, p.232 16. Isaacson 2003, p. 12 17. Isaacson 2003, p. 78 18. Isaacson 2003, p. 14 19. Green, 2002, p.257 20. â€Å" History of the Benjamin Franklin Institute of Technology † . Bfit.edu. Archived from the original on July 31, 2008. Retrieved on November 19, 2010 from hypertext transfer protocol: //web.archive.org/web/20080731130624/http: //www.bfit.edu/aboutus/history.php.

Principles of Management

Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management. Henry Fayol, a french industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40 in the U. S. many authors did hard work in developing and testing various principles of management.Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive lot of these management principles. Here, we are giving some important principles of management. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority and Responsibility. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline.Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest).Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect syste m. 8. Centralization and Decentralization. This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place.Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice' is needed. Treating employees well is important to achieve equity. 12. Stability of use of Personnel. Employees work better if job security and career progress are assured to them.An inse cure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity' on the part of many managers. 14. Spirit of Co-operation (spirit de corps). Management must foster the morale of its employees. He further suggests that: â€Å"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations. â€Å" Principles of Management Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management. Henry Fayol, a french industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40 in the U. S. many authors did hard work in developing and testing various principles of management.Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive lot of these management principles. Here, we are giving some important principles of management. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority and Responsibility. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline.Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest).Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect syste m. 8. Centralization and Decentralization. This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place.Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice' is needed. Treating employees well is important to achieve equity. 12. Stability of use of Personnel. Employees work better if job security and career progress are assured to them.An inse cure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity' on the part of many managers. 14. Spirit of Co-operation (spirit de corps). Management must foster the morale of its employees. He further suggests that: â€Å"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations. â€Å" Principles of Management Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management. Henry Fayol, a french industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40 in the U. S. many authors did hard work in developing and testing various principles of management.Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive lot of these management principles. Here, we are giving some important principles of management. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority and Responsibility. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline.Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest).Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect syste m. 8. Centralization and Decentralization. This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place.Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice' is needed. Treating employees well is important to achieve equity. 12. Stability of use of Personnel. Employees work better if job security and career progress are assured to them.An inse cure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity' on the part of many managers. 14. Spirit of Co-operation (spirit de corps). Management must foster the morale of its employees. He further suggests that: â€Å"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations. â€Å" Principles Of Management Most of us have to work for a living†¦. Employee motivation issues. It is easy for any individual to lack motivation. This may result from monotonous working routines, even though we work for a living. Therefore, it is essential to consider employee motivation issues so that the employees work at their best and with full dedication. For some employees, working for living is not an issue and living for working is. Therefore, managers have to ensure that the employees are motivated always and do their best when working for an organization. 7. Can an individual be too motivated?Discuss? I don’t believe that an individual can be too motivated but rather excited or extremely encouraged to do any task. This may result from a variety of factors. Mainly, new job or new project issues are taken into consideration when evaluating an employee’s motivation level. It is necessary for an individual to be motivated always. This can be to such an extent that he or she delivers an excellent quality of work every time and this can result from positive thinking at work. CASE APPLICATION- â€Å"BEST BUY† 1. Explain†¦ expectancy theory?According to Maslow’s hierarchy of needs theory, this theory covers the basic needs of an individual and thus, different employee programs under this theory place a positive effect on the employee thereby increasing their motivation and their will to work. Best Buy offers the scope of self-management and gives complete freedom to its employees in every way. The disadvantage of Best Buy’s program using Maslow’s hierarchy of needs theory is the safety that I believe Best Buy lacks. Using the reinforcement theory, Best Buy has only been initiating changes without any reward benefits to the employees.The tasks completed by the employees are noted but I don’t think they are rewarded for this, which is a disadvantage according to this theory. According to expectancy theory as well, employees should be rewarded sufficiently for their performance that lacks in Best Buy. Having to work based on incentives is fine but the company should always reward the employee sufficiently for performance that motivates the employees further rather than having a mere change in the work environment along with choices. Giving choices to employees may also promote motivation as they choose and opt for what they are comfortable in.2. Log on†¦ job characteristics model. The Business Technology Consultant in Best Buy offers a lucrative position to those who are highly skilled and knowledgeable in the area. According to the job characteristics model, it meets all the criteria and therefore, helps the employee to be continuously motivated and satisfied with the job due to its changing needs throughout. The job offers skill development, task handling technique, highlights on the importance of tasks, liberty and they also receive feedback from their peers regarding this.Another job that is worth lo oking into is the special agent requirement in the Best Buy. He is mainly responsible for the networking aspect of the company and is supposed to aid the Business Technology Consultant in the improvement of company’s IT structure. However, this job lacks a few characteristics, as mentioned in the job characteristics model. I don’t believe there is any liberty as there are specified tasks so it is hard for the employee to be motivated all the time. 3. Design†¦managerial philosophy.While the incentive program of the CEO is rewarding for its employees, another way to acknowledge the employee’s achievement and motivate them is to set a record where there is an â€Å"employee of the week† chosen and they are rewarded based on their weekly performance on various levels rather than monthly performances. I believe this employee recognition program can bring about several changes, including competitiveness in the work environment where the employees will cont inuously be at work to improve their performance levels thereby giving them a chance to succeed on a weekly basis rather than monthly. 4.Suppose that you are the store manager†¦.. What are you going to do? In order to succeed with the customer-centricity, it is important to focus on customers more than the employees but they too should be given importance for their work. Providing immediate customer care and solutions to customers followed by a detailed insight into the products they want to buy can help in the succession of customer-centricity. Furthermore, it can be said that customers should be satisfied in every way and this means doing anything to achieve this motive. Therefore, customers are not only treated as first class citizens but important visitors to the store.The welcoming atmosphere created along with prompt customer service can help in the success of customer-centricity program. CHAPTER 17: Thinking about management issues: answer 5 Trust revolves around individ ual’s personal characteristics as well as the outside specific situations. Inclusion of both is essential to make decisions and therefore, both should be taken into account. It is the individual’s personal characteristics that draw attention towards trust. Outside specific situations strengthens the trust and therefore, play an essential role in the building of trust.Both are equally important to uphold trust in an individual. CASE STUDY DISCUSSION QUESTIONS 1. Describe†¦ might be? Ricardo Semler shows an innovative method for business strategies to succeed. His strategy helps in giving liberty to the employees to do whatever they want and this always motivates the employees, as they are already familiar with the organization’s objectives. I see many drawbacks though. There is no target and no management. This mostly leads to chaos and businesses should be built on the model of bureaucracy and the performance of all should be evaluated.Semler trusts all his employees and it is very rare that his kind of strategies would work for everyone in the business market. This is risky. There have been several successful businesses where bureaucracy has yielded successful results. 2. What challenges†¦addressed? â€Å"Hands-off† leader faces management problems and extreme chaos. There is no discipline or code of conduct. Therefore, such challenges can be addressed by ensuring there are proper codes of conducts, even as a â€Å"hands-off† leader to ensure that discipline is maintained in an organization.Being adults doesn’t imply the meaning that one should be completely independent. Objectives of the companies can be met in several ways but if they are achieved by proper means with proper idea proposal, we know what techniques are employed by the employees in achieving success. Proper monitoring is essential for tracking the success of growth and development for the organization. 3. How could†¦ Discuss? I certainly don’t think Semler’s method of running a business could actually serve as a helpful strategy to fulfill the criteria of proper etiquettes in business management.I can’t see future leaders identifying with Semler’s way of doing business as any method that lacks disciplines and proper codes is not a reliable or a professional way of doing business. It may be able to achieve short-term success but not long-term success. Leadership training is absolutely crucial for any organization and businesses with excellent leadership have been outstanding results of business success throughout, which is why we emphasize on leadership in business. 4.What could†¦. leadership? Ricardo’s leadership gives the employees their own space to out their creativity and innovation into practice without the extensive paperwork of approvals and disapprovals. This feature of Ricardo’s leadership can be very benefiting due to its motivating influence on the employees . Free flow of creativity helps the employees to freely exercise their rights to lead the organization towards success. CHAPTER 18 Thinking about management issues 4. When do†¦rights†?Electronic devices such as computers, videogames, video cameras and telephone monitoring step over the line from â€Å"effective management controls† when the devices used intrude the privacy of others. Therefore, it is absolutely essential not to infringe upon privacy of others as this is considered absolutely unethical. Privacy of one’s personal space is a right that every individual owns and therefore, it should not be infringed in any way. 5. â€Å"Every†¦Explain? I do believe every individual in an organization plays a vital role as they are responsible for contributing their efforts to the organization.Hence, every individual’s role counts. Control is something that the leaders of an organization do based on what kind of output they want to receive. These are not just managers but every supervisor in an organization who looks after certain tasks and groups for the completion of the tasks given to them. Therefore, control is not only restricted to managers but to every employee who has tasks to accomplish and is responsible for a group of people working under him or her. Ethical dilemma exercise I believe I’d opt for option A as I believe that is the most ethical thing to do.Viewing adult graphic content using company’s internet facilities is against the rules of the organization and this matter should be dealt with seriousness. Today, the manager is found to view such things on the internet. Some other day, we will have other employees of the organization doing the same thing. The sooner the issues are highlighted to the authorities concerned, the rest of the staff will be aware of the consequences of doing such acts and thus, this will not be repeated by other employees as well. Awareness is definitely important in this r egard and cannot be taken lightly.CHAPTER 19 1. Using†¦ tour? In order to enhance productivity, it is essential for the manager to learn more about operation management. Somewhere in the sun tour has to have certain input elements in order to process the output. Using exhibit 19-1, we know that the input elements would consist of people, technology, capital, equipment, materials, information that would further be processed and transformed into goods and services. This helps in the effective functioning of an organization followed by proper management of productivity.

How useful are typologies of welfare states?

Given the complexity and depth of questions faced by undergraduate students of Social Policy, let alone academic researchers, the classification of different welfare states into typologies is only natural. As an aid to academic study, the formulation of typologies represents a logical progression in the field of welfare state research. When Titmuss gave his lecture on ‘Social Administration in a changing society' in 1951, he noted that at the start of the study of Social Policy (or administration) in 1913, most issues discussed were entirely contemporary, designed to prepare those who wanted to work in the charitable of voluntary field. After World War Two, Titmuss and other academics such as Marshall, started laying greater theoretical foundations – examining the welfare state that was growing around them and its motivations. The intensive study of ‘typologies' of welfare states, widely recognised as being prompted by Esping-Anderson's ‘The three worlds of Welfare capitalism' (1990), is a natural progression – an attempt, in search of a fundamental theory or law, to bring together earlier theoretical work on the welfare state and its foundations. The use of typologies is useful because it provides a tool that can be used to simplify complex comparative work, thus making it easier to work on a universal theory of welfare state formation and development. Similarly, typologies can also provide ‘an approximate picture of the range of options available to policy-makers for policy reform' (Bonoli, 1995, 352). However, despite these apparent attributes, the concept of using typologies as a methodological tool has not been entirely uncontested. Those such as Baldwin have disputed that typologies have any explanatory power whatsoever, claiming that they most certainly cannot be useful in the formulation of theories about current and future development of welfare states (Arts & Gelissen, 2002). Most criticism along these lines deals with the apparent impossibility that, given the massively varied complexity of welfare states across the world, no typological theory is capable of summarising these differences except in a deeply misleading way. Esping-Anderson (1990, 2) fully accepts that a ‘trade-off' must be made, which this means that it will be impossible to make ‘detailed treatments' of differences between regimes, but asserts that this is the ‘price to be paid for making grand comparisons'. This seems commonsensical to me. We simplify the levels of detail about economic activity by creating an assumption of ‘homo-economicus' and even though we know this model not to be completely accurate, no-one would deny that the results the model produces are not instructive. Similarly, in creating a model of welfare-state typologies, we look to gain insights into the nature of welfare states, which we can then use in further theoretical work. The ideal types used in typologies are, as Klant (1984, cited in Arts and Gelissen, 2002) notes, a ‘representation of a reality, which cannot (yet) be described using laws'. As long as we recognise that the typologies themselves are not ever claimed to be, even by their proponents, complete explanatory theories, then they can usefully be used to gain insights into the past, present and future of welfare states. Therefore, I will move to look quickly at the different varieties of typological survey that have been conducted, before then spending some time comparing the different sorts of ‘welfare state regimes' that emerge. Different typological classifications of welfare states vary in both the amount, and kind, of variables used for analysis. The most basic attempt to categorise welfare states has been to compare the levels of public expenditure between countries. For example, it is posited that the Scandinavian countries, all spending in excess of 30% of GDP on social expenditure in the period 1989-92, constitute a type of welfare state regime significantly different to the kinds experienced in the United Kingdom or in Italy, countries which both experience much lower levels of social spending. However, such crude classification seems to go against any conception of varied mixed economies of welfare – while two countries may appear identical in terms of their % GDP social spend, they may be completely different on the level of overall welfare provided by the other welfare ‘pillars' – the voluntary and family sector. Similarly, other, more recent models have also tried to classify welfare states using a one-dimensional approach. Ferrera (1993) uses the ‘coverage model', which, rather than looking at the quantity of welfare provided, instead looks at the method of provision – specifically whether welfare states provide services on a universal basis, or on an occupational basis. However, as Bonoli (1995) points out, the problem arises in distinguishing between the generosity of benefits offered by welfare states of the same ‘method' typology – for example, the Netherlands and Switzerland are both included in the Ferrera's same set of welfare states regimes, despite massive differences between the extent of welfare provision between those two states. Esping-Anderson's (1990) approach was two-dimensional in the sense that it considered two factors – the degree of decommodification and social stratification. These variables are explicitly outcome, rather than means, based – decommodification, for example, is defined as ‘the degree to which individuals or families can uphold a socially acceptable standard of living independently of market provision'. Thus, independence is deemed identical, whether achieved through state or voluntary provision. This practical approach implies a value-judgement that it does not matter if states actually provide the welfare or not, that it is just outcomes that matter, which may be controversial to some socialists. However, this must be considered justified as a modelling assumption. Despite praise for the two-dimensional nature of Esping-Anderson's approach, some questions have been raised about whether the correct two variables were chosen. Bonoli (1995), raises concern that what he perceives as being the two fundamental distinctions between different kinds of welfare states – ‘how' and ‘how much' – are merged in both of Esping-Anderson's variables, and that as a result, they are both ‘taken into account only so far as they affect the decommodifying [or stratifying] impact of social policy'. He therefore suggests two different variables – level of social spending and the method (measured in terms of the % of benefits that are contribution-based) of welfare delivery. Similarly, most other criticisms of Esping-Anderson have not disputed the methodological use of typologies, but instead have sought to question the variables used to measure the relative congruence of different welfare states in order to form sets of welfare regimes. While requirements for brevity make it impossible for me to outline all here, a useful summary can be found in the tables of Arts & Gelissen's 2002 article. While the indicators/factors used in typology classification vary widely, the extent of similarity in the output of empirical testing is striking. All models find three or four different typologies, which, rather than being completely distinctive, are similar in terms of characteristics and the country assignments. To start, let us examine Esping-Andersen's typology, which distinguishes between three clusters of welfare regimes, each of which represents a different ‘world of welfare capitalism'. The three ‘ideal-typical' regime types are the liberal, the conservative (or corporatist), and the social-democratic regimes. The main characteristic of the liberal welfare regime is the important role assigned to the market and the strong emphasis placed upon individual responsibility. In general, only if the market fails will the state interfere. Benefits are means-tested and targeted for low-income dependents, who accordingly make the intensive use the welfare state. Financed by taxation, this leads to significant income redistribution. In contrast, the state is generally passive with regards to gender issues – the market determines the position of women, who are neither encouraged nor discouraged by the government to work for pay. In the conservative/corporatist welfare regime less stress is placed on the role of the market. The regime's main goal is to preserve existing status/class differentials, a task which is often left to other non-state actors such as the church, classes and the family. They play a crucial role in society, and the state supports them in this role. Social benefits are more elaborate than in liberal welfare regimes and are usually organized along occupational lines, with negligible amounts of redistribution. With regard to the position of women, the breadwinner model (husband as breadwinner, wife as caregiver) is implied and perpetuated through the design of the welfare system, which thereby systematically discourages women from participating in the labor market. Finally, the social-democratic welfare regime distinguishes itself from the other two models in that much more emphasis is laid on the interventionist role of the state. The idea of equal rights for all citizens is guaranteed by the social democratic state, which delivers extensive, universal welfare services not usually subject to means testing. The welfare regime is designed around active-labour policies – both men and women are expected to participate fully in the labor market, and therefore the government makes arrangements to overcome any gender-obstacles to doing this, for example, by providing extensive free childcare. Leibfried (1992) and Ferrera (1996) initially criticized Esping-Anderson's group of typologies for the omission of what they called a ‘Latin-Rim' model of the welfare state, characterized by strong family-centric properties and an immature and selective social security system that offered poor benefits and lacked a guaranteed minimum benefit system. Esping-Anderson (1999) accepted that more emphasis should be put on the family-effects of welfare regimes, and made a distinction between familalistic regimes on the one extreme (e. g. , Italy), and defamilialising regimes on the other extreme (e. g. , Sweden). A familialistic regime was defined to be where â€Å"public policy assumes that households must carry the principal responsibility for their members' welfare†, as opposed to a de-familialising regime â€Å"which seeks to unburden the household and diminish individuals' welfare dependence on kinship† (1999, 51). Given the late inclusion of a ‘Latin-Rim' model in Esping-Anderson's work, we have four examples of welfare-state regimes that we can compare with other models. Bonoli's (1997) classification, based on the expenditure and method factors as described earlier, produced four ideal-types – Continental, British, Nordic and Southern – to which he assigns countries through the empirical work. These clearly correspond respectively with Esping-Anderson's Conservative, Liberal, Social-Democratic and Latin-Rim typologies. The British regime is characterized by a low level of social expenditure which is mainly financed through general taxation rather than contributions – this fits in with Esping-Anderson's description of the Liberal regime as being limited in scope and mildly redistributive in nature. Similarly, Bonoli's Nordic regime, with low levels of contributions but high levels of overall spending, brings to mind Esping-Anderson's social democratic regime, characterised by universal benefits for all on the basis of citizenship and not contribution. There are minimal differences in state-placement between the two writers' typological systems. The Netherlands and Belgium are perhaps the only significant variation, placed in the ‘continental' typology by Bonoli but in the ‘Social Democratic' by Esping-Anderson. Such disagreements about the placement of the Benelux states are repeated in various other schemes of classification – such as in work by Korpi and Palme (1998, cited in Arts & Glissen, 2002) and by Visser and Hemerijck (1997, cited in Arts & Glissen, 2002). Such variability of outcome on ‘border cases' between typologies returns us to the original debate about the methodological justification and accuracy of such explanatory systems, and thus it seems to be a sensible place to conclude this essay. It would not be right, though Esping-Anderson (1999) has tried, to try and plead the ‘unique' nature of these ‘rogue' states – the initial simplification and assumptions made by any typological system are done so on in full knowledge that detailed individual characteristics, the ‘uniqueness' of each regime will be obscured. Rather than attempting to remove previously imposed assumptions, we must accept the limits of typological classification. Ideal-type classifications are exactly that – ideal, and there will undoubtedly be some states that are ‘hybrid'. The continued existence of such apparent ‘anomalies' gives purpose to further theoretical work – to examine the interactions and movements between the different ‘ideal types' of states, and to identify whether there is any trend that will make the occurrence of such a hybrid regimes more common and explainable in the future.

Training and Development Article Example | Topics and Well Written Essays - 3000 words

Training and Development - Article Example While on the job methods rely on training within the organization at the expense of the same, off the job methods refer to external sources where an employee may obtain training. In this regard, this paper will seek to assess the benefits derived from various on the job training strategies that revolve around soft skills and other communication skills. This is owing to the fact that without the relevant interpersonal skills, there will be no development and there will be scope for constant conflict through misunderstanding and wastage of resources. Therefore, this paper will study the benefits of training through the theoretical and empirical frameworks within which training strategies are decided upon, so as to carry out an assessment of the very roots where training and development begins and to propose a contextual point of judging responses and development areas. From here, the paper will examine various areas of operational value on the basis of which training and development ma y be assessed. This paper thus starts on the assumption that human resource development must have strong relevance with corporate strategy, in order to encourage employees to apply skills that have been imbibed in them during the development programs. Thus, when applied in a systematic manner, organizations ensure that they derive maximum benefit from training and development programs, as these adhere to positive mobilization of resources for optimum use and goal achievement within the organization within the framework of motivation of employees for a better future. (Wentling et al, 1999) Through a special focus on training in the area of soft skills and communication skills, this paper traces the recent developments in human resource management and management training. Training and Development Patterns The Manpower Services (1981) Commission, which was set up by the 1973 Employment and Training Act until it was replaced in 1988, defined training as: "A planned process to modify attitude, knowledge or skill behaviour through leaning experience to achieve effective performance in an activity or range .of activities. Its purpose, in the work situation, is to develop the abilities of the individual and to satisfy the current and future needs of the organisation". In this context, it is impetrative to assess the beneficial nature of training strategies in context of the theory applied for determining the need for such training. Therefore, the process of assessing the needs before planning the training strategy involves the following steps: (Marquardt, 1996) ( i ) Identification of needs - an analysis of needs addresses the problems at hand besides anticipating future demands. The benefit of this step lies in the fact that it considers the best and most cost effective way to meet those training needs right at the onset, which make the training strategy planning and implementation process more fluid. ( ii ) Definition of specific knowledge requirements - this stage to examines the skills and knowledge level that is required to be developed in order to meet the new objectives identified by the training needs. This helps the management gain perspective as to which kind of training strategy will be the most effective one when adopted for the

Corporations and the Equal Protections Caluse Research Paper

Corporations and the Equal Protections Caluse - Research Paper Example In this paper, I will argue that the â€Å"equal protections† clause of the Fourteenth Amendment was incorrectly applied to corporations, and doing so has had disastrous implications. It is absolutely clear that the equal protection clause was meant to protect individuals, not corporations, from unequal treatment by states. Corporations and equal protection clause Many people are shocked when they first learn that corporations are considered legal persons, entitled to the same rights as the average citizen. Starting with Santa Clara County v. Southern Pacific Railroad Co., the power of corporations has increased exponentially. Subsequent to Santa Clara County v. Southern Pacific Railroad Co. in 1886, corporations were consistently granted greater power by the Supreme Court through the equal protection clause. â€Å"Equal protection as a legal concept is the idea that individuals should be treated in the same manner as other individuals in similar circumstances†(Equal pr otection, n. d). However, the courts adopted different standards while dealing with equal protection clauses with respect to individuals and corporations, which include strict scrutiny, intermediate scrutiny, and the rational basis test etc. This is purely because of the rise of corporate power. Santa Clara County v. Southern Pacific Railroad Company, 118 U.S. ... The above right was already given to the individuals and Southern Pacific Railroad Company argued that they also have the same right just like the individuals and they refused to pay taxes under the new legislature. Southern Pacific Railroad Company sought protection under the Fourteenth Amendment. One of the points made and discussed at length in the brief of counsel for defendants in error was that "corporations are persons within the meaning of the Fourteenth Amendment to the Constitution of the United States." Before argument, MR. CHIEF JUSTICE WAITE said: "The Court does not wish to hear argument on the question whether the provision in the Fourteenth Amendment to the Constitution which forbids a state to deny to any person within its jurisdiction the equal protection of the laws applies to these corporations. We are all of opinion that it does "(SANTA CLARA COUNTY V. SOUTHERN PACIFIC R. CO., 118 U. S. 394 (1886), 2011). In other words, court upheld the arguments of Southern Pac ific Railroad Company and declared its verdict in favor of the company. Organizations or corporations are entities which might be created for the purpose of doing business making profits. They are doing so at the expense of the interests of the people or the individuals. In other words, corporations are exploiting the community resources for making profits and it is their duty to pay tax to the government for such exploitation of natural resources. Governments have the moral and legal responsibility of working for the interests of the individuals. Individuals have limited capacity to exploit the natural resources compared to the abilities of corporation.

Strategic analysis of IKEA Essay Example | Topics and Well Written Essays - 4500 words

Strategic analysis of IKEA - Essay Example plistic style matches also the no-frills product lines and customer service ethos and chimes with the company’s origins as a small Swedish family business which started in 1958. In reality, however, the company has a sophisticated approach to its business, and this is built on a suite of interlocking strategies. This paper will consider five of these in turn: Alliances/Agreements, Human Resource Factors, Knowledge Management and Competencies, Cultural and Strategic Fitness, and finally Environment/Sensitivity issues and analyse the appropriateness and effectiveness of each. IKEA’s phenomenal success in expanding from Europe to America and Asia could not have happened without a network of well-chosen alliances and long term business relationships with suppliers, manufacturers and logistics operators. Planning of supply and demand across the whole operation is done centrally with the aid of computerized APS (advanced planning systems) and this requires advance agreements on volumes and capacities for both IKEA and the different suppliers. (Jonsson et al, 2008, p. 99). The aim of this approach is to make optimal use of resources throughout the whole chain and to minimize stock levels. Where possible, and when quality control processes are in place at the required level, suppliers are tied into a system of direct delivery to the point of sale. Johnsson et al. identify four main â€Å"enablers† for this planning process â€Å"planning organisation, data quality, software support and project and change management† (Jonsson et al, 2008, p . 100). The last of these entails significant time and resources spent by IKEA managers out in the field: â€Å"IKEA has over time struggled with achieving consistent result from its implementation efforts†¦ A Four-Step model has been defined clearly recognizing the need to create awareness in the first step, create interest in what is coming in the second step, making users try out the solution in the third step and finally adopt

ITM422 - Administering IT Infrastructure - Mod 3 Case Assignment Essay

ITM422 - Administering IT Infrastructure - Mod 3 Case Assignment - Essay Example Companies are said to have overwhelming data if they begin to collect and store from external sources. Many organizations acquire huge data when they purchase information technology solutions and applications from external vendors. Researchers advise companies to have a database which is simple and user friendly (Lucker, 2005). It must also be properly organized and prepared which would allow the employees to access the information. It is necessary that the organization of the data be smooth which would assist the users in obtaining significance out of it. The smooth and simple organization of data from small projects can assist organizations in taking more complex projects. This will not lead to an abundance of data but it allows it to be organized in a simple, practical, and logical way. The data needs to be classified and categorized in a way which allows for the running of numerous applications (Lucker, 2005). It is also essential that database designers implement systems with fe atures that are beneficial for the organization. Many organizations are utilizing the technological innovations to manage data in a simple, organized and consistent way. The logging of data is performed to ensure that IT administrators can use it if there has been a security breach or event. Companies are increasingly using firewalls, UNIX, Windows servers, and other hardware to perform logging of data. Calpine is a company which deals with power and energy products (Higgins, 2005). The company not only logs its data but has also properly designed and evaluated it. Firewall analysis applications are being used as a smart way to find specific events (Higgins, 2005). The conventional method of finding specific events inside logs is very cumbersome and time consuming. Many vendors like Cisco offer technological solutions that are assisting companies in designing smart and simplified organizational data management processes. The increase in customers and automation of

Workers and the Economy Essay Example | Topics and Well Written Essays - 1250 words - 2

Workers and the Economy - Essay Example Therefore, capital is a very critical aspect of socioeconomic resource because it influences the production, transformation of natural resources, consumption and plays a significant role in the creation of the by-products thus an important aspect of pollution. There are two major types of capital variable and constant capital. On the other hand, investment of these capitals creates or reduces the value of production, and this is the basis of the term surplus value. The assignment aims to discuss constant capital, variable capital, and surplus-value with an illustration of how they lead to capital accumulation. Marx defined constant capital as the materials and materials that production of a certain commodity requires (Evans, 2013). In this case, constant capital is the capital proportion that investors channel on the materials as well as the purchased components. On the other hand, the value forms part cost of selling the product thus constant capital remains the same until a product is sold to the market. Constant capital includes the cost of using materials, machinery, and tools since they are all inclusive of the production process. For instance, if the production process involves using a million dollar worth of machinery in producing 10,000 cars then each car will have $100 of the machinery. However, constant capital is measurable when a commodity or a product has now worn out or depreciated. Therefore, constant capital sums up both unit and fixed costs implying that no matter how amount of materials, machines, and components are brought into the production and sold, they do not add a ny new value to the product. The implication is that whether the factors of productions undergo prolonged storage in the warehouse, or used in the production, there is no difference in the amount of capital. Marx concluded that whatever value the materials add when capitalists buy them for production purposes, they assume the same value even

Doing Business in China Research Paper Example | Topics and Well Written Essays - 2000 words

Doing Business in China - Research Paper Example There is more than 1 billion population in China; one sixth of the world’s population lives in China itself (Colson, 2013). More than 56 ethnic groups are recognized in China and 90 percent of the population is Hans Chinese but the group also consists of other ethnic groups like Zhuang, Yi Miao, Uighar Manchu and Dhong (Colson, 2013). Like any other countries culture the cultural values of China has altered slightly due to the impact of globalization (Ward, Entrkin & Pearson, 2002).During the Chinese Cultural Revolution in the People’s Republic of China the orthodox Chinese Confucianism was heavily criticized on several grounds. After the Cultural Revolution there was a slight alteration in the Chinese value system and even culture dominated cities like Singapore, Taiwan and Hong Kong witnessed considerable amount of changes (Yau, 2007). The Chinese culture is largely influenced by the social interactions and interpersonal relationships between the individuals in the so ciety. The Chinese language is spoken by more than 85 percent of the population and is considered as one of the toughest language of the world. The language is also called Putonghua and is also claimed as the country’s national and official language (Kane, 2006). ... China: Individual or Collectivist? It is observed that the Chinese society is a highly collectivist culture where the interest of the team are given more importance than the priority of the individual. It is not necessary that in a family oriented business there would be preferential treatment towards the family members. The workers would prefer working on a holiday or a public holiday to meet the deadlines of the work. The commitment towards the organization is high than the employee interest and goals (Duel, 2012).The relationships of employees within the group are warm and cooperative while the relationship with other groups is hostile and cold. The Chinese employees believe in cooperating with each other for delivery of excellent performance (Pang, Roberts & Sutton, 1998). For example the MG6 was the first automobile designed by Shanghai Automotive Corporation in UK. The success of the car was totally contributed to the effective teamwork between the Chinese employees. If a weste rn organization wishes to collaborate with the Chinese department then they should lay emphasis on communicating the ideas and process to the Chinese employees with patience and clarity for successful performance (Xiaoming, 2011). China: High or Low Power Distance? The power distance lays emphasis on the impact of the influence of the culture within a society or an organization (SagePub, 2006). It is observed that the individuals working in the society and the employees working in the organization are not treated as equal. The Chinese Society maintains a rank system and follows the hierarchy stringently. The Chinese society believes that the inequalities prevalent in the society are

Sociology Assignments ( Just Paraphrase ) Essay

Sociology Assignments ( Just Paraphrase ) - Essay Example Thus, it is unethical to force people to act against their will if they do not want to be part of the study. I will advise him to seek consent from the fraternity members. Failure to do so will compromise the quality of the study since there is no one who should be forced to participate in a study or secretly recorded since this should be voluntary. If you are asked to electrocute a stranger by Hitler, would you do it? Morally, it is not good to do something evil or harmful to another person fully knowing so I will refuse and would rather let him execute his evil intention alone. Scenario – Milgram’s critics are accusing him of exposing both innocent and naiive subjects under unfavorable emotional strain and pressure in his quest to gain knowledge through uncouth means. However, he justifies his actions by highlighting the difference between his naà ¯ve subjects and the man in the electronic chair. He argues that the naà ¯ve subject is free to leave unlike the man in the electric chair who is helpless therefore cannot move. The argument by his critics is more convincing since good research should not expose the research subjects to harm or emotional stress. The naà ¯ve subject is unsophisticated therefore cannot be used as a reliable source of data in a research. He was supposed to inform his subjects about his intended experiment and then reach a consensus. A good researcher does not use unethical means to gather data or to manipulate the data to suit his hypothesis. A good researcher always avoids bias. A good research on the other hand is not biased and it follows proper procedures where no one is harmed. A research can be defined as a carefully designed study that uses scientific methods to collect data in a bid to get answers from a particular area that is being investigated. The findings from the data collected are usually based on theory as well as the hypothesis of the study. There are

Purchasing Power Parity Essay Example | Topics and Well Written Essays - 1000 words

Purchasing Power Parity - Essay Example It states that the country which is having high inflation rate is weak in terms of currency because inflation reduces the real purchasing power of a nation’s currency. It predicts a relationship between the inflation rates of two countries over a specified period and the movement in the exchange rate between their two currencies over the same period which means that the exchange rate of two currencies reflects the effect of inflation rate (Murphy, p.1). Absolute PPP states that the value of 2 currencies changes in contrary proportion to the changes in the ratio of price levels. On the other hand relative, PPP predicts a relationship between the inflation rates of two countries over a specified period and the movement in the exchange rate between their two currencies over the same period. Absolute PPP is based on the law of one price that is tested for a basket of commodities or individual commodities. The relative PPP approximates the change in individual price by change in pr ice indices. Empirical evidence of absolute PPP: An orange costs 3 dollars in country A and the same orange costs 6 dollars in country B. This means 3 dollars in country A equals to 6 dollars in country B. This exchange rate is based on the cost of orange and it is assumed that the cost of orange is same worldwide. Empirical evidence of relative PPP: Japan’s anticipated annual rate of inflation is equal to 6% per year, while the anticipated annual inflation rate for the U.S. is 3%. As an approximation, it is expected that the Japanese yen would devalue at the rate of 4% a year. The whole concept is based on unrealistic assumptions. That’s why forex market does not take into consideration the purchasing power parity. Those assumptions were a basket of goods and services in the CPI is the same in all countries, no transportation cost, and consumptions patterns are the same all over the world.

American Fast Food in Korea Essay Example for Free

American Fast Food in Korea Essay 1. Base on market information for Asia Pacific, we can made conclusion that business future in Asian region has to have bright future. With 33% of the worlds GDP and 50% of its population, Asia has emerged as a rapidly growing force in the global economy. Due to the cultural diversity, regulatory controls, growing base of consumer power and its own set of business rules, the multinational corporations (MNCs) find it challenging to enter the Asian market successfully. Most MNCs are reassessing their existing strategies or formulating new strategies to sustain their growth (4). With regional exports exceeding $1. 3 trillion, the East Asia and Pacific region’s share of trade in GDP is the highest in the world. (Global Development. Finance Report. 2006). The economy of South Korea has grown in the last 35 years. Per capita GNP only $100 in 1963, exceeded $20,000 USD in 2005. South Korea is now one of the worlds largest economies (as of 2006, it is 14th in the world according to GDP). (2). If we will compare Korean market to East Asian countries (Exhibit 1 p. 12). From report I have strong understanding that mane fast-food market in any Asian countries is in big cities. Let’s check urban population level in all Asian countries. Based on Exhibit 1 we can clearly see that Korea has one of the best Urban Population level-total population level 47. 6 million and urban population is 82%. Check GDP and GNI level. We can see that Korean level one of the highest in the Asia. Nominal GDP (2005 est. ): $811. 1 billion. GDP growth rate: 2003, 3. 1%; 2004, 4. 6%; 2005, 4. 0%. Per capita GNI (2004): $14, 162. (5). In 1997 Korea had some serious economic crises and faced sever difficulties. After some structural reforms in Korean government, economy starts to recovery. Already In 2001 Korea was 13th largest economy in the world with GNP of $398 billion. So based on all information from above I can make conclusion that Korea has good future and it is one of the most promising market in Asian region. 2. Porters Five Forces have become a yardstick for assessing industry profitability. They are ?Buyers/customers power ?Suppliers power ?Rivalry among competitors ?Threat of new entrants ?Threat of substitute products I will try to analyze each one, for Korean fast food market. Buyers ‘power. The power of buyers is the impact that customers have on fast food industry. Buyers could be powerful in different circumstances. I believe that in our case we can say that buyers are concentrated. As I could explain earlier, main per cent of population in Korea are in the big cities. Its give us good idea that for fast food industry in this region will be easier to delivery product to the customers. Buyers purchase the significant proportion of output. Suppliers power. A fast food industry require raw material for there business-labor, components. It leads to buyer-supplier relationship between the fast food industry and the firms that provide it the raw materials used to create products. Suppliers are powerful if they are concentrated- it will be really expensive to switch the supplier. From another side suppliers are week if it will be many suppliers with standard product on the market Korean agriculture sector includes forestry and fisheries. National products are rice, vegetables, fruit, root crops, barley; cattle, pigs, chickens, milk, eggs, fish. About 20% of the land used for agricultural busyness (5). From here we can understand that for fast food companies will be easy to find or switch the suppliers without problems for there businesses. Threat of new entrants. The possibility that new firms may enter the industry also affects competition. In theory any firm should be able to enter and exit market. And if free entrance and exit exists, than profit always should be nominal. There are some barriers of entry. Easy to entry if: little brand franchise; access to distribution channels; common technology. On Korean market steal not allot firms with brand franchise. And it is big requirement in new choices for customers. It let us know that it will be easy to enter to the market. Threat of substitute products. Product price elasticity is affected by substitute products-as more substitute become available, the demand becomes more elastic since customers have more alternatives. A close substitute product constrains the ability of firms in an industry to raise prices. In our case we can see example of some firms, Lotteria and McDonalds, who easy change there recipes for Korean customers which needs more healthy national ingredients for there food. Rivalry among competitors. In pursuing an advantage over its rivals, a firm can choose from several competitive moves: changing prices; improving product; creatively using channels of distribution; exploiting relationship with supplier. For firm who will try to enter Korean market, I would say more realistic and more helpful move will be to improve products. Improving quality of materials, quality of services, and probably quality of food preparation technology (healthier environment), will be most important key to success on the Korean fest food market. 3. Urban Koreans eat out frequently. Fast paced lifestyles are driving Koreans to choose western-style fast-food, but healthy eating is a concern. These factors are driving a fast growing market for sandwich store franchising (3). Another important factor is that about 75%-80% fast food customers are young people whose age less than 20 year old. It is mean that â€Å"along with westernization of Korean taste, western chain gained in popularity†. In the past, people seeking a fast meal would have been satisfied by fast-food giants like McDonalds or Burger King, but it is changing. Consumers are seeking different choices. This new requirements has opened doors for a steadily growing market for fresh and healthy sandwich businesses. Lotteria is a local hamburger franchiser and is the fast-food market leader in Korea. From 2002 to 2003 Lotteria experienced a sharp sales drop of 40%. However, a strong contrast was seen in the South Korean sandwich market, as its $41. 20 million1 market value in the second quarter of 2003 doubled to $82. 40 million in the fourth quarter. This dramatic growth is forecast to continue, and the anticipated market value for 2004 is $117. 71 million (3) Besides Lotteria, the local franchisers include Sandday, Sandpresso and Sand Food. In response to the aggressive foreign companies, they are also coming up with strategies to secure their position within the market, and the competition is about to heat up. Based on all this information I would say that fast food business in Korea growing and this will continue until people need more choices. 4Globalization is the key to sustained growth for Yum Company! Brands, the world’s biggest quick-service restaurant company headquartered in the United States and managing five fast food brands KFC, Pizza Hut, Taco Bell, AW and Long John Silver’s. Demand for fast food is rising because lifestyles are changing,’’ said Allan, who leads overseas operations outside of the U. S.and China, in a recent interview with The Korea Times. More Koreans are being time pressured than they were historically. This trend is happening here. The number of people eating ready made food is continuing to increase. ’’(Graham Allan, president of Yum! Restaurants International. 11. 06. 2006) (6). As a socially responsible company, the 51-year-old executive said Yum will provide more optional dishes to health-conscious consumers amid a well-being spree in the nation, but will not abandon its traditional concept of great taste. ’’ Under his leadership, Allan said he will target an annual growth of 10 percent or more in operating profits. There are about 250 Pizza Hut delivery outlets in the nation, which are set to expand to over 400. Korea makes up about 5 percent of Yum’s international division sales, which amount to some $11 billion half of the group’s overall system sales. If I were business consultant, I would recommend starting making money on Korean fast food market. The new trend is propelling growth in the franchising market. It is anticipated that the market will experience intense competition for the next couple years. New fast food companies should be able to take advantage of the situation and enter the market without much difficulty, while it is still at an early stage of development. Reference page: 1. http://www. iff. com/Internet. nsf/0/B7A5C7E9B662B52685256D02006683DA 2. http://www. answers. com/topic/economy-of-south-korea 3. http://ats. agr. ca/asia/3879_e. htm 4. www. berkeleyabc. org/2006/ 5. http://www. state. gov/r/pa/ei/bgn/2800. htm 6. http://times. hankooki. com/lpage/biz/200611/kt2006110617463411890. htm.

Budget and Account Management of Restaurant | Case Study

Budget and Account Management of Restaurant | Case Study Traditions Ltd Question One. Marginal costing, Comparison between Traditions Ltd Marginal costing for all departments and without the restaurant department; Without the restaurant, the store is profitable. The store is capable of making a profit of  £9,000. This indicates that the restaurant department is making losses. Even without putting the fixed cost incurred by the business into consideration, the restaurant had made a contribution of  £-30,500 in that particular period alone. This is a high level of loss to be incurred by only one department. Among the other three departments, furnishing is the least profitable. This is because; the amount of purchase for resale that ends up being sold is very low. This increases the stock in the store such that closing stock for the furnishing department is very high as compared to the other department. By the end of the period, closing stock is more than the opening stock. This indicates that there were fewer sales made in this department during that particular period. Question two. Financial and non-financial consequences of closing down the restaurant department; Following the financial position of traditions Ltd analyzed in the previous sector, the restaurant department was making losses. This has prompted the management of the store to consider closing down the restaurant department. Doing so, traditions restaurant is will be faced with various implications, both financial and non financial. Closing down the restaurant department will lead to reduction in the overall profits realized. This is because; the contribution margin will increase leading to reduction in profits. This is because fixed cost will be shared among three departments. Since fixed costs per period of time do not vary by the amount of units produced, the other three departments will have to incur these costs. This will increase the overall costs leading to reduced profits. As indicated in the calculations of marginal costing statement, when the business is operating four departments, the total contribution margin was  £390,500. On closing down the restaurant, the total contribution increased from  £390,500 to  £421,000. This means that a higher contribution margin is to be shared between remaining departments. Another financial implication of closing down the restaurant is that the store will be required to retrench workers. The business will have to pay employees in the restaurant department such as Claude. This will have a negative financial effect on the business. Socially, when a business retrenches workers, customers do not like to be associated with it. In this context, Claude is a renowned chef especially after winning the potato-sculpting competition. This made him famous as he created customer loyalty. Many customers visit the store because of him. Closing down the restaurant will reduce customers who also shop in other departments. This will lead to a decline of sales in the other three departments. Reduction of sales will lead to reduction of overall profits in the business (Tennent, 2008). Another financial effect of closing down the restaurant will lead to low selling of the restaurant assets. As indicated, the restaurant has been having challenges regarding its’ assets such as the dough mixer. Due to poor maintenance of these equipments, they may be valued very poorly. This will limit the store in recovering some of the costs. Other than financial implications, the store will also face non-financial challenges as a result of closing down the restaurant department. One of the main challenges is bad image of the business which will be brought about by retrenchment of employees. Potential customers dislike businesses which often lay of their employees because terminating employee’s employment suggest that the business is no longer profitable. More so, society does not like business entities that lay off employee because unemployment is viewed as bad. These employees have families and other responsibilities to take care of, without their jobs, they cannot. As such, it is viewed as the fault of the store that these families will suffer. Potential customers will not like to be associated with such businesses (Drury, 2006). Question Three As management accountant, Samantha will be required to prepare, come up and analyze financial information for the store. This will be very difficult since she does not have prior experience in management accounting. More so, the company does not keep well organized information data base. There is no previous history of management information in the company and as such, she has to first of all collect her own management information. This is rather a very tedious. In her role, she will have the responsibility to ensure that the management of the store has to make decisions which are well informed from now going forward so as to guarantee the store’s future profitability, stability as well as its growth. Samantha will have to come up and maintain management information systems as well as financial policies by liaising with the management to provide a better support service on all aspects of finance. As indicated, Samantha and some of the management colleagues such as Albert often argue. More so, the top management colleagues are old and will not for sure understand fully these financial policies so as to make sound management decision regarding the company. Her role also includes looking into the future. She is supposes to analyze the performance of the business in the past years and offer advice to the management on how to prevent challenges that the business encounters. Currently, the restaurant department is making losses and as such, it is her responsibility to advice the management whether to close down the restaurant or to put more capital in it so as to make it more profitable as Claude advices. She will be required to make Traditions Ltd adapt to changing environment. The management of the store prides itself on running the store through maintaining the standards of services and customers relationships which is mainly related with a bygone era. This means that the store cannot be able to attract the young middle class people who provide a very significant market. It is her duty to make sure that the store taps in this market so as to increase sales. She should advice the management on adoption new and upcoming trends so that the y can be able to make decisions which will inline the store to new trends hence attract more customers. It is her duty to identify departments that need reduction in operational and production costs. Most importantly she should be able to establish better and effective strategies so as to control spending. This will involve reducing the spending habits of some department and increasing others. Each department is headed by a family member and in reference to their relationships; some of the managers of departments such as Albert will not be willing to reduce their spending habits to increase other departments. Since is a family owned business, sibling rivalry will be unavoidable bringing about more challenges and disagreements among decision makers. Management Information System (MIS) for Traditions Ltd; Management information system (MIS) is vital in its role as an agent of sharing information within a business. There are various factors to consider while implementing a management information system at Traditions Ltd (Graham, 2005) (Clarke, 2010). These factors include; The level of knowledge of the users. Traditions Ltd is a family owned store. The managers of the store are above fifty years of age and most of them have little or no knowledge of what management information system is. These managers also do not have siblings to act on their behalf. They are required to access the MIS and effectively use it on daily basis. As such, the management information system that can be effective in the store should be easy to use for the management and simple to understand (Khosrowpour, 1997). The security of the system. A secure MIS should be implemented in the store. Since the store is family owned, there may be conflicting interest within the family. A management system should be in such a way that it is transparent and each member with access should be able to view what others are doing (Galletta Zhang, 2006). Stock control systems; Stock taking is a process that requires the making a list of stock with their location and value. A stock control system must be able to show make orders, track stock levels as well as issue stock. The systems should contain information on the value, location, description, reorder levels, quantities, supplies and information on previous stock history (Office, 2009). Inventory turnover is a ratio that describes how many times a business inventory is sold and replaced over a period of time. To calculate the inventory turnover days, the days in the period are divided by the inventory turnover formula. Inventory turnover ratio is a key measure for determining the efficiency of the business in management of company inventory as well as making sales from it (Wanjialin, 2004). It can be calculated as; Inventory turnover =cost of goods sold/ average inventory. Or =sales/inventory Day sales Inventory is simply the inverse of the inventory turnover ratio multiplied by 365. i.e. Days Inventory= (Average Inventory/Cost of good) *365 Question 4 Budgetary planning and control system; Budgetary planning is the process by which a budget is prepared in an organization. A budget is a plan which is expressed quantitatively for a specific period of time. It can include various items such as assets, liabilities, planned sales output and revenues, amount of resources, cash flows and costs and expenses. As a management accountant at Traditions Ltd, budgetary planning is vital in the operations of the store. This is a process that will involve identifying objectives, looking for alternatives and collecting information about them and choosing the best alternative that suits the store. The final step is to implement the chosen alternatives to achieve the set objectives. In planning the budget, one needs to make sure that the plans are properly quantified, financed and be able to control resource allocation and performance (Plumptre, 1988) (Bogsnes, 2009). The main functions of the management accountant involve forecasting. This is where I am supposed to lay down objective to be achieved at the end of a specific period. Come up with a plan on how these forecasted objectives are going to be realized. Communicate this plan to all members of the departments in details so that they can follow the plan comprehensively. Coordinate various departments by keeping an eye on what is happening within the operation of the store. Select a team of managers and supervisors who are going to monitor every day activities in the store and make reports. Come up with authorization protocol where every employee should be able to follow. To boost morale and encourage employees, motivate employees either through giving rewards for best performers or promotions. Evaluate on regular basis the performance of the store to know whether the store is in line in realizing of the set objective (Radev Allen, 2006). Some of the behavioural problems one might encounter as a management accountant are the unwillingness of some management colleagues as well as other employees in the implementation of the plan. Since this is a family business, and each department is headed by a family member, some of them may be unwilling to cooperate especially when it comes to financing. This might result in mistrust, leaving behind some aspects of the plan which will lead to under realization of the objective. Budgets are time consuming and tiresome. As such, a management accountant should be ready to work long hours without pay so as to meet deadlines (Lacey, 2013). The best way to gain budget control in the businesses is through the analysis of variance. There are two types of variance analysis. One is the fixed analysis which does not change with the level of activities within the business. The other one is the flexed analysis which is prepared in such a way that it can be altered to indicate the actual activity involved. A flexed variance analysis will suit Traditions Ltd. This is because; the management accountant should be able to monitor each and every activity that is taking place in the store. Actual profits= budgeted profits+ favourable variances – adverse variances. For budgetary control to be effective, serious attitudes should be emphasized. There should be clear boundaries between managerial duties and other duties undertaken by employees. Budget targets which are challenging should be identified and more emphasis put on them. Routines for data collection, analysis and reporting should be established. Reports should be aimed at respective managers and reporting periods should be fairly short. Time variance reports should be prepared and where they are adverse, action should be taken to get back to favourable (Business : The Ultimate Resource, 2003). References Bogsnes, B. (2009). Implementing Beyond budgeting : Unlocking the Performance Potential. Hoboken: John Wiley Sons. Business : The Ultimate Resource. (2003). Beijing : Citic Publishing House. Clarke, S. (2010). Computational Advancements in end-user Technologies : Emerging Models and Frameworks. Hershey: Information Science Reference. Drury, C. (2006). Cost and Management Accounting : An Introduction. London: Thomson. Galletta, D., Zhang, P. (2006). Human-Computer Interaction and Management Information Systems : Applications. Armonk: M. E. Sharpe. Graham, G. (2005). Exploring Supply Chain Management in the Creative Industries. Bradford, England : Emerald Group Pub. Khosrowpour, M. (1997). Managing Information Technology Resources and Applications in the World Economy : Proceedings of the 1997 Information Resources Management Association International Conference Vancouver, B.C., Canada. London : Idea Group. Lacey, D. (2013). Managing the Human Factor in Information Security : How to Win Over Staff and Influence Business Managers. Hoboken: Wiley. Office, G. B. (2009). The National Offender Management Information System : Report. London: TSO. Plumptre, T. W. (1988). Beyond the Bottom Line : Management in Government. Halifax: Institute for Research on Public Policy. Radev, D., Allen, R. (2006). Managing and Controlling Extrabudgetary Funds. Washington : International Monetary Fund. Tennent, J. (2008). Guide to Financial Management. London: Profile Books. Wanjialin, G. (2004). An International Dictionary of Accounting Taxation : 12000 + Entries on Accounting, Auditing Taxation in the USA, Canada, UK Australia ; Clear one Sentence Definition Right to the Point. New York: ] iUniverse Publ .

Analysis of Rio Tinto Mining Company

Analysis of Rio Tinto Mining Company   Industry: Rio Tinto Rio Tinto is a leading global mining company that focuses on finding, mining, processing and marketing the Earths mineral resources [1]. Its mining operation operates globally ranging from Copper assets in America, coal in South Africa to Iron in Australia. Its current revenue in GBP sits at  £27.22bn operating at a net income of  £3.72bn. Year on year Rio Tinto grew net income at 433%. Since January 2016 share prices have risen from  £1700, to  £3600, as the mining sector has exploded. Its no great surprise, with the costs of iron ores rising, the manufacturing sector exploding, and the demand for commodities having gone through the roof. Its main competitors are also mining companies; Anglo American plc, Glencore PLC and BHP to name a few. They have followed similar trends to Rio Tinto and have seen their share prices soar in the most recent months. Table 1.0 shows the comparison in debt and equity between the four companies. 2015 Debt (mil USD) Equity (mil USD) RIO:LSE 23,300 37,349 AAL:LSE 17,967 16,569 GLEN:LSE 48,980 41,254 BLT:LSE 31,170 64,768 In 2016 Rio Tinto has managed to cut its debt to $18,372mil and grew its equity to $39,290mi. 2) By just looking at figure 2.2 we can determine how volatile the RIO share price has been especially since the winter of 2015. It seems every other month (since Nov 15), has either been strongly positive or strongly negative. Before these months, the share price followed a similar trend to that of the FTALLSH with a few exceptions (early 2013). The overall monthly mean return sits at 0.4%, 0.5% lower than the average mean return of FTALLSH. The standard deviation (risk) is also considerably higher at 8.31% (compared to 3.04% FTALLSH). As an investor, I would want my average return to be higher as the risk became higher. In this instance, this is not the case. FTALLSH has a higher return but a much lower risk, and as an investor, this would be my preferred choice. We must take into account that if as an investor we took a long position with RIO at JAN 16, our share value has doubled. Annual mean return data is calculated by: When looking at annual data (October of each year), we can see the mean return has significantly increased on both the FTALLSH and the RIO. The slope of the line through a portfolio is given by the Sharpe ratio (figure 2.4). The risk free interest rate per annum is 1%. FTALLSH has higher annual returns than the risk free interest rate, but RIO has much lower returns. As an investor, you want better returns for higher risk. If the return is less than that of a risk free investment, the investment in RIO is not worth undertaking. 3) Correlation measures the degree in which two markets move in relation with each other. The correlation value ranges from -1 to +1. If the correlation is 0, the markets do not move in relation at all. Both the annual and monthly data has a mediocre correlation against the FTALLSH. This is probably mainly affected by the last 6 months data shown in figure 2.1, with how volatile the RIO market has been. Covariance is also measured by how changes in one market are associated with changes in the other market. It doesnt really give the strength of the relationship between the two markets as well as correlation does. This is why it isnt used to determine the relationship but it is vital in finding the Beta of the portfolio. Expected return = Volatility = Annual, Monthly, Annually, the Beta of the RIO market vs the FTALLSH, is 0.75, to be expected, as the correlation is mediocre, and the mean return is also high. The Beta of the market should be exactly 1. Therefore, the asset is defensive. The expected excess return is linked to its risk. As the market has a Beta of 1, and the Beta of RIO is .75, the RIO beta is 25% less volatile. Monthly, the beta is above 1 and is 44% more volatile. If the market rises or falls by  £1, the RIO return will rise or fall by  £1.44. The Capital Asset Pricing Model allows the investor to identify the best portfolio of risky assets without knowing the expected return on each of securities [3]. The CAPM equation (annual return) implies a positive result. As the annual return suggested by the CAPM is only 8.5%, and the annual return computed for RIO is 1.24%, the market is under-performing, and investors are being under-compensated for bearing the market risk. Monthly return is slightly positive. As the monthly return for RIO is 0.40%, and the monthly CAPM is 0.09%, Rio is outperforming the return suggested by the CAPM. Therefore, investors are being over-compensated for bearing the market-risk. The CAPM also implies that the annual return has a higher risk but worse return, and the monthly return has a lower risk but higher return [6]. Limitations Monthly risk free rate will not be exactly 1% every single month Return on the market. The market return at any given time can be negative. CAPM is a backwards looking model. Anything can happen (environmentally, politically, etc.) that can change the market FTALLSH is a limitation and is not the true market portfolio. Annually Beta = 0.75. If the market rose by 5%, the return would rise by If the market fell by 10% Monthly Beta = 1.44. If the market rose by 5%, the return would rise by If the market fell by 10% The monthly return has higher chance of greater returns, (the Beta is higher), however it also has a higher chance of bigger losses. If the markets rose by 5%, annually the investor would make a 4% return, vs 6.8% return on monthly data. Annual Return This means short selling RIO Tintos shares, and buying excess shares of market x. If the portfolio returns are uncorrelated, this gives a correlation of 0. As we know à Ã‚  = 0, the equation becomes Working out the portfolios Beta 4) CAPM Return = 8.5% To work out the PV of the project the company is considering, the discount factor is needed to be known. Assuming the companys required rate of return is given by the expected return on its equity, i.e. the CAPM return. As the CAPM equation has computed the expected returns, this is therefore the discount rate. The present value is worth more than the initial value of  £554,509.46> £500,000 so its a good deal for the company. This project could be set up for a multitude of reasons, which may affect its markets price in a positive way, such as new jobs for a local area, which in turn will boost the company politically which may also contribute to the success of the company. It is also important to note that even though the present value of the cost of this project is better than the contract being offered, RIO Tinto wont be positive in net return until the 9th year. The NPV is positive as expected, so the benefits outweigh the costs [3]. If the company wanted to just make cash money on  £500,000 they could just invest (risk-free) receiving,  £569,046 in 13 years time. 5) The method of comparables, values a firms cash flows directly, based on other firms (usually in a similar industry), that have similar cash flows or are expected to generate similar cash flows. The Law of One Price states that, If equivalent investment opportunities trade simultaneously in different competitive markets, then they must trade for the same price in both markets [3]. Using the Law of One Price we can use a company to measure (estimate) the valuation of a very similar company. As everyone knows, identical companies do not exist, but companies such as RIO, can have very similar competitors that prices can be judged by. The price/earnings ratio (share price / earnings per share), is the most commonly used ratio to measure the companys valuation. The more comparables there are, the better the reduced influence of any given company, making the overall result more trustworthy. When choosing the correct comparables to match against RIO, they all should have similar growth rates, similar required rate of returns and similar retention of earnings. I have chosen the three other mining companies, (Anglo American plc, Glencore plc, BHP) to compare against RIO. To value a companys current price using multiples: Using three other similar mining companies, to work out an average forward P/E ratio. According to Thomson Banker [9], the average P/E ratio of the three other companies (19.00) is much higher than the actual 10.98 RIO value (+73.04%). The Last Price Close of RIO on the 20/02/2017 was 36.46. The value we calculated is much higher than the actual value. Therefore, we have overvalued the share price, and should be bought. The P/E multiple is high for companies that have higher growth rates. The current P/E ratios are high across the board, with AAL, the only company estimating to grow its P/E next year. All three others are expecting to stop growing, with BHP (BLT), to step back massively. The companies compared above, are all mining companies, having spectacular performance in the markets, but realistically quite different. From figure 1.1, we know the difference in Equity and Debt values are similar, but RIO has much higher earnings per share (2.84), than any of the other three companies. Other than the Forward P/E ratio, RIO has the best values for all the metrics. We know that when we average the other three companies out, that the multiples based analysis will generally undervalue RIO. The differences are due to differences in expected risk, growth rate, etc. Multiples based valuation should ignore major anomalies, (e.g. GLENs 33.12 forward P/E ratio. Using the two other ratios gives an average of 11.98 which is much closer to the actual value of RIO). The set of comparables that were chosen (bar AAL), were not the best choice to match against RIO, as many of the metrics were so far apart. Q6) Arbitrage opportunities occur when a companys price across two markets is different, and will always have a positive Net Present Value. An investor, (who is known to be greedy and want any possible risk free return), will immediately attempt to buy the lower priced share on one market, and sell the same share on the higher priced market, instantly making him/her a no risk return. Everyone will attempt to trade using this method quickly, therefore, the lower priced market will rise and the higher priced market will fall, both eventually ending up at the same price. All markets aim to have an absence of arbitrage to stop any greedy investors from exploiting risk free returns. If equivalent investment opportunities trade simultaneously in different competitive markets, then they must trade for the same price in both markets [3]. If the Law of One Price is being applied correctly, there will be in absence of arbitrage across all markets. Bond Prices and interest rates also need to follow the Law of One Price. If a bond of a certain market gave a higher return than the risk free rate, they both need to follow the Law of One Price. The risk-free interest rate must equal the return from the investment of the risk-free bond. American Depository Receipts are quick and easy ways for investors in the US, to trade with foreign companies [10]. US banks will buy foreign shares and reissue them on US markets. However, each share does not equal the same amount as the original market. US banks will often group shares together, and reissue them separately on their markets. ADRs exist because foreign companies dont want the expense or hassle of listing their stocks on the foreign to them US market [10]. To invest in an ADR, brokers will need to buy foreign shares of said company, on their respective markets. He/she will then deliver these shares to a Custodian bank. Another bank, the Depositary bank issues receipts, on the basis those shares held by Custodian banks. Those receipts can then be traded freely across US markets, with payments, dividends etc., being paid in US dollars. ADRs save money by reducing foreign taxes and administration costs, and also because they give the company exposure. There are many risks involved with ADRs. Like normal market shares, there are political risks, inflationary risks etc. However, with ADRs, there are exchange rate risks. Using Tesco as the example [8], as the exchange rate of USD: GBP continues to improve for the US market, many investors will be looking to buy into British companies as its cheaper for them to do so. As the British and US markets trade at different hours, the closing prices of the Tesco share will be different, but in the normal market, the price of Tesco will be the same across all of the three different exchanges, (the Law of One Price), relative to that of their respective growth rates. Every Tesco ADR share represents 3 normal shares [8]. The current value of Tescos is 189.77p, and the value of its ADR = $7.19 [7]. If we divide the ADR value by 3. Using the current exchange rate of  £1 = $1.25512 [4]  £1.91 is slightly higher than the actual value of Tesco ( £1.90), but this is not taking into consideration the costs of administration, and exchange fees. The above is showing how the Law of One Price is applied across two different markets. Bibliography [1] FT. (2017) Rio Tinto PLC, RIO: LSE summary FT.com. Available at: https://markets.ft.com/data/equities/tearsheet/summary?s=RIO:LSE (Accessed: 24 February 2017). [2] About us (2017) Available at: http://www.riotinto.com/about-us-108.aspx (Accessed: 24 February 2017). [3] Berk, J. and DeMarzo, P. (2013) Corporate finance. 3rd edn. Harlow: Pearson/Education. [4] GBP British pound (no date) Available at: http://www.xe.com/currencyconverter/convert/?From=GBPTo=USD (Accessed: 24 February 2017). [5] MINING (2011) Market data metal prices and world mining markets. Available at: http://www.mining.com/market-data/ (Accessed: 24 February 2017). [6] Payne, R. (no date) Foundations of Finance. Available at: http://moodle.city.ac.uk/course/view.php?id=22726#section-0 (Accessed: 24 February 2017). [7] Tesco PLC (ADR): OTCMKTS: TSCDY quotes news Google finance (2017) Available at: https://www.google.co.uk/finance?cid=664658 (Accessed: 24 February 2017). [8] Tescoplc (2016) ADR information. Available at: https://www.tescoplc.com/investors/shareholder-centre/adr-information/ (Accessed: 24 February 2017). [9] Thomson ONE banker (no date) Available at: http://banker.thomsonib.com (Accessed: 24 February 2017). [10] Staff, I. (2003) American depositary receipt ADR, in Available at: http://www.investopedia.com/terms/a/adr.asp (Accessed: 24 February 2017).