The causes and effects of globalization

The circumstances and end results of globalization Presentation Globalization is the reconciliation of world societies and economies. Regardless of whether mindful of it or not individuals wherever are seeing and adding to the globalization procedure all over the place. It impacts social orders, legislative issues and lifestyles around the globe and is driven by human movement, universal exchange and joining of money related markets. Albeit as of late on the ascent because of gigantic mechanical headways there is nothing surprising about globalization. Indeed, even in the Middle Ages wayfarers, for example, Ibn-e-batuta and marc-o-polo began it off with epic excursions and getting back with stories of various societies and spots. Exchange drives globalization today, current transportation and media communications have made it simpler to fare and import from faraway spots. Joined in decent variety this is the maxim of the European Union which started as an understanding between six nations with the objective of making enduring provincial piece. The enormous star of globalization today is without a doubt the web empowering relational correspondence and business exchanges surprisingly fast; it has changed our reality in just a couple of years. Movement assumes a significant job on the planets economy, the World Bank gauges show that transients in created nations sent home in excess of 223 billion dollars to their families in creating nations in 2005. Some conventional depictions of globalization and monetary globalization include: Definitions Globalization: It is the procedure by which local economies, social orders, and societies have gotten coordinated through a worldwide system of political thoughts through correspondence, transportation, and exchange. The term is most firmly connected with the term monetary globalization: the reconciliation of national economies into the worldwide economy through exchange, outside direct speculation, capital streams, movement, the spread of innovation, and military nearness. Nonetheless, globalization is generally perceived as being driven by a mix of monetary, innovative, socio social, political, and organic components. The term can likewise allude to the transnational dissemination of thoughts, dialects, or mainstream society through cultural assimilation. A part of the world which has experienced the procedure can be supposed to be globalized. Monetary Globalization: Monetary globalization alludes to expanding financial reliance of national economies over the world through a fast increment in cross-outskirt development of merchandise, administration, innovation and capital. It is the way toward expanding financial joining between nations, prompting the development of a worldwide commercial center or a solitary world market. Contingent upon the worldview, globalization can be seen as either a positive or a negative marvel. Monetary globalization contains the globalization of creation, markets, rivalry, innovation, and partnerships and businesses. While financial globalization has been happening for the last a few hundred years, it has started to happen at an expanded rate in the course of the last 20-30 years. This ongoing blast has been to a great extent accounted by created economies incorporating with less created economies, by methods for remote direct venture, the decrease of exchange hindrances, and the modernization of these creating societies. Impacts of Globalization: Globalization has different viewpoints which influence the world in a few distinct manners Mechanical rise of overall creation markets and more extensive access to a scope of outside items for purchasers and organizations, especially development of material and merchandise between and inside national limits. Global exchange produced merchandise expanded in excess of multiple times (from $95 billion to $12 trillion) in the a long time since 1955. Budgetary rise of overall monetary markets and better access to outer financing for borrowers. By the early piece of the 21st century more than $1.5 trillion in national monetary forms were exchanged every day to help the extended degrees of exchange and speculation. As these overall structures developed more rapidly than any transnational administrative system the unsteadiness of the worldwide monetary foundation significantly expanded as prove by the budgetary emergency of 2007-2010. Financial acknowledgment of a worldwide normal market, in light of the opportunity of trade of merchandise and capital. The interconnectedness of these business sectors, notwithstanding, implied that a monetary breakdown in one region could affect different regions. With globalization, organizations can deliver products and ventures in the most reduced cost area. This may make occupations be moved to areas that have the most reduced wages, least specialist assurance and most reduced medical advantages. For Industrial exercises this may make creation move to regions with the least contamination guidelines or specialist wellbeing guidelines. Occupation Market-rivalry in a worldwide activity advertise. Previously, the monetary destiny of laborers was attached to the destiny of national economies. With the approach of the data age and enhancements in correspondence, this is not true anymore. Since laborers contend in a worldwide market, compensation are less reliant on the achievement or disappointment of individual economies. This has majorly affected wages and pay dissemination. Rivalry Survival in the new worldwide business showcase calls for improved profitability and expanded rivalry. Because of the market getting around the world, organizations in different enterprises need to redesign their items and use innovation capably so as to confront expanded rivalry. Social development of diverse contacts; appearance of new classifications of cognizance and characters which exemplifies social dispersion, the longing to expand ones way of life and appreciate outside items and thoughts, receive new innovation and rehearses, and take part in a world culture. Moral The making of the global criminal court and universal equity developments. Wrongdoing importation and bringing issues to light of worldwide wrongdoing battling endeavors and participation. The rise of Global authoritative law. End Globalization has been occurring for quite a long time and regardless of its perils it is a gigantic power for development and flourishing. We will finish up this conversation by introducing a fascinating work by Benjamin R. Stylist Jihad versus McWorld How Globalism and Tribalism Are Reshaping the World. Jihad versus McWorld is the title of a 1992 article that was later adjusted into a book by political researcher Benjamin R. Stylist, in which he advances a hypothesis that depicts the battle between McWorld (globalization and the corporate control of the political procedure) and Jihad (convention and customary qualities, as outrageous patriotism or strict universality and religious government). As monetary progressivism is the power behind globalization, this study is significant on an a lot bigger scope. Unregulated market powers experience parochial (ancestral) powers. These inborn powers come in numerous assortments: strict, social, ethnic, local, nearby, and so on. As globalization forces its very own culture on a populace, the inborn powers feel undermined and respond. Something beyond monetary, the emergencies that emerge from these encounters frequently take on a sacrosanct quality to the innate components; accordingly Barbers utilization of the term Jihad. Hair stylists forecast is commonly negative he reasons that neither worldwide enterprises nor conventional societies are steady of majority rules system. He further places that McWorld could eventually win the battle. He additionally proposes a model for little, neighborhood vote based establishments and community commitment as a desire for an option in contrast to these two powers.

Corporate Finance Capital and Funding

Question: Examine about the Corporate Finance Capital and Funding. Answer: Presentation The corporate account is characterized as a specific region of money that manages the financing source and the capital structure of the association and the exercises that the supervisors take for improving the estimation of the business to the investors (Brealey et al. 2012). Likewise, the corporate account is utilized as the instrument that helps in breaking down and apportioning the money related assets (Damodaran 2016). Consequently, the counseling firms for the most part give the money related guidance by utilizing the ideas of corporate fund. In this task, the association named National Australia Bank has been chosen so as to give monetary guidance with respect to the money related condition and budgetary situation of the firm in the current serious market. So as to offer monetary support to the firm, the foundation of the specific firm, its current budgetary standing including the data in regards to its offer worth, showcase worth and obligation to benefit proportion have been broke down. Notwithstanding these, the latest capital raising movement like obligation financing and value financing have likewise been concentrated in detail. In conclusion, contingent upon the monetary methodology of the specific association, the techniques for raising the organization reserves have likewise be broke down and as needs be guidance has been given to National Australia Bank with respect to raising assets and its money related situation in the market. Organization Background The association National Australia Bank is an open organization that is enrolled in the Australian Stock Exchange as NAB. The specific firm has a place with the banking and money related administrations area that was established in the year 1982 as National Commercial Banking Corporation of Australia Limited (Capital.nab.com.au 2016). The predetermined firm is headquartered at Melbourne in Australia and serves across Australia, Asia and New Zealand. Andrew Thorburn is the CEO of the association, while, Kenneth R Henry AC is the Chairman of the firm. The principle items served by the firm National Australia Bank incorporate Business banking, Wholesale banking, Consumer Banking and Wealth the executives protection. According to the yearly report of the firm for the year 2015, the income was A$ 20.176 billion, the total compensation was A$ 6.357 billion and the complete resources were around A$ 945.0 billion (Capital.nab.com.au 2016). Then again, according to the year 2016, the all out quantities of workers are 35,063 (Capital.nab.com.au 2016). It has been discovered that the specific firm is considered as one of the four biggest fiscal establishments of the nation dependent on its market capitalization and purchasers. In the year 2014, National Australia Bank was positioned 21st biggest bank over the world dependent on its market capitalization and was positioned 41st biggest bank over the world dependent on its all out resources (Capital.nab.com.au 2016). The specific firm has a sum of 1590 assistance communities and branches and around 4412 ATMs all through Australia, Asia and New Zealand that offers types of assistance to around 12.7 million customers (Capital.nab.com.au 2016). Current Financial Condition of National Australia Bank The examination of the money related state of a firm encourages an investigator to comprehend the current circumstance of the firm and furthermore assists with evaluating its future (Coles, Lemmon and Meschke 2012). Contingent upon the verifiable execution and the present budgetary state of the firm, the future can be anticipated and examined. In view of this investigation, an organization ought to put resources into long haul or momentary objective as needs be. In addition, this monetary examination will likewise assist the firm with proofing its strength in regards to the two its budgetary and prudent status (Roberts and Whited 2012). Moreover, a positive aftereffect of the investigation will likewise assist the firm with attracting more financial specialists. In this manner, so as to more readily comprehend the present money related state of the association National Australia Bank, its reasonable worth, share worth and obligation to benefit proportion have been investigated. The market esteem is otherwise called showcase capitalization of a traded on an open market association. It is commonly accomplished by the increase of the quantity of remarkable stocks with the current cost of the offer. The market estimation of an association goes about as a decent pointer of the view of the financial specialists with respect to the possibilities of the business. The higher market esteem infers the firm has a more noteworthy valuation. It has been discovered that the market capitalization for the association National Australia Bank is AUD 71.151 billion (Bloomberg.com 2016). This infers the specific firm has a higher valuation in the current market. Then again, from a nitty gritty chronicled study, it tends to be said that the offer cost of the firm National Australia Bank stayed consistent for an entire year that is from September 2015 till today (September 2016). During September 2015, the offer cost was around AUD 26.17 then it began to increment continually till December, 2015 and came to AUD 27.72 (In.finance.yahoo.com 2016). Be that as it may, the stock cost diminished positively to 25.39 in January 2016, however it again began to increment precipitously and according to today, the stock cost of the specific firm is AUD 26.78 (In.finance.yahoo.com 2016). From this, it tends to be said that the money related state of the firm is steady and because of its both practical and budgetary steadiness, more speculators will put their reserve and put resources into this firm National Australia Bank for gaining a more return. At the end of the day, it can likewise be said that because of its continually expanding share value, the val uation of the firm additionally advances with the progression of time. For the most part, the obligation to benefit proportion shows the measure of obligation of a firm in regard to its benefit rate. Consequently, it very well may be said that the lower the proportion will be it is better for the firm. Be that as it may, for the financial segment, the obligation to benefit proportion is similarly more than different ventures. It is about 3.1, however for the firm National Australia Bank, this proportion is proportionate to 2.62 (Markets.ft.com 2016). This suggests the specific firm has a superior budgetary condition than some other banks in the present serious market. Late Capital Raising Activity It is a fundamental factor for each firm to raise or increment its capital, as it is the key component that causes the business to work and manage effectively. There are different exercises that help an association to raise its capital, be that as it may, the most valuable exercises incorporate value financing and obligation financing. Subsequently, it has been discovered that the firm National Australia Bank likewise executes this strategy for raising its capital. It has been discovered that the specific firm has actualized both the strategies. In this manner, the complete liabilities of the association expanded from $ 48197 million in the year 2014 to $ 55217 million in the year 2015 (Nab.com.au 2016). Also, from nitty gritty examination, it tends to be said that organizations stores and different borrowings have surely expanded from $ 374538 million in the year 2014 to $ 391785 million in the year 2015 (Nab.com.au 2016). This demonstrates National Australia Bank has decided on obl igation financing. Furthermore, it has been discovered that the value of the firm has likewise expanded from $ 48197 million out of 2014 to $ 55217 million in the year 2015 (Nab.com.au 2016). Additionally, the contributed value of National Australia Bank has unquestionably expanded from $ 27856 million to $ 34407 million in the year 2015 (Nab.com.au 2016). From this it very well may be said that National Australia Bank likewise actualizes the value financing. Monetary Strategy of National Australia Bank It has been discovered that there are different monetary methodologies that the greater part of the banks use so as to raise the assets of the specific association. These incorporate raising endeavor and development capital, merger and securing, divestitures, buyouts by the money related patrons, side projects, private positions and upset obligation (Flannery and Hankins 2013). The other money related methodologies incorporate mezzanine financings, capital rebuilding, purchase outs, right issues, debentures and organized venture and convertible items. Be that as it may, it has been discovered that the predefined firm National Australia Bank executes the accompanying budgetary methodologies including exchanging subordinates, monetary liabilities at reasonable worth, supporting procedures, demerger, acquisitions, divestments, raising endeavor, money related patrons, debentures and convertible items (Nab.com.au 2016). Subsequently, it very well may be said that by executing all these mo netary procedures inside the firm National Australia Bank, the association can augment the estimation of its investors. This additionally portrays the exhibition of the firm and decides the approaches to raise its working assets by expanding the arrival on speculations (Vernimmen et al. 2014). Then again, the monetary techniques examination causes the business to draw a reasonable picture in regards to the objectives and targets of the association. This additionally assists with distinguishing the objectives of the association and assists with keeping center around the gainfulness of the firm. In any case, the focal point of the financial techniques advisers for comprehend the business edge of the firm that is communicated regarding rates of benefit. The expanded measure of benefit causes the specific firm to procure more investors as the valuation of the organization builds (Waegelein and Finance 2014). All these assistance to build the market capitalization of the firm and in this way, it tends to be said that the execution of the money related systems in the general tasks of the firm assistance to improve its activities. In addition, the expanded valuation likewise enables the predetermined firm National Australia To bank to run better in the serious market as the high estimation of the firm assists with surveying the chance of achievement and genuine results. Moreover, the consolidation of the budgetary systems in the firm he

Seeples Spotlight Sebastian Osorio COLUMBIA UNIVERSITY - SIPA Admissions Blog

Seeples Spotlight Sebastian Osorio COLUMBIA UNIVERSITY - SIPA Admissions Blog The Office of Admissions is introducing our semesters new Program Assistants (PAs) to you in the form of self-interviews. Today meet Sebastian Osorio, who is currently pursuing his MPA with a concentration in Economic and Political Development. With a BA in Economics and a Graduate Certificate in Regional Development, his strong technical background allows him to move comfortably between sectors and organizations.   Originally from Colombia, Sebastian started his career as a research assistant at the Colombian Central Bank where he understood the importance of public institutions to foster development. Wanting to have a more active role on policy decisions, he joined in 2009 the presidential campaign of Sergio Fajardo, an independent candidate who was the runner up in the 2010 presidential election. Since then, he has been working as a consultant, policy advisor and public servant helping to find solutions to inequality, violence and illegality, the main problems of his country. After SIPA, he plans to go back to Colombia to keep bringing about social change through an engagement in politics and public service. What were you doing before you came to SIPA? I did two things: I traveled the six months before coming to SIPA in an incredible experience through Oceania, Asia, America and Europe. And, I worked the previous three years as the Advisor/Assistant to Sergio Fajardo when he was the Governor of Antioquia, my home State (he is now running for President). I was in charge of managing Fajardos agenda, briefing him for all his meetings and visits around the state, and being with him at events. It was an incredible and exciting experience where I had the chance to learn the political, economic and social context of my region. It was a very demanding job, as I had to be everywhere with the Governor, leaving almost no room to actually sit down and work. However, I learned from a great politician about how to manage a public office successfully. What attracted you to SIPA and Columbia University? Three things attracted me to SIPA and Columbia University. First, the example of supervisors, coworkers and friends who had also been through a MPA here or in other Ivy Leagues school. They all thank their institutions for what they have achieved. Second, because I wanted to be in a cosmopolitan big city like New York. I did not see myself in a school in little town in the middle of nowhere. Third, SIPA offered a program where international students are half of the student body allowing me to meet people from everywhere in the world and connect with them. What experiences do you think prepared you at attend SIPA? On one end, having lived abroad in Australia and France before allowed me to open my mind. I do not struggle when I have to meet people from other nationalities or in other languages; I actually enjoy it and I love the diversity. On another front, an extended professional experience (compared to the SIPA average) that allowed me to learn from people with different skills, backgrounds and personalities. I’m able to better understand other peoples needs and concerns, and my experience gave me a better understanding of what classes to take and how to get the most from the MPA program. Have you taken classes at other Columbia Schools? I have taken two classes at Columbia Business School, Managerial Negotiations with Michael Slepian, and Power and Influence with Mabel Abraham. They both have been great. I highly recommend anyone at Columbia taking classes in a different school. You get a fresh and different perspective on many issues, you meet new people, and you explore the campus. I took both at CBS because I was very interested in how to build and manage relationships, and they have great faculty there. What’s your internship experience been like? I did my internship in Liberia in a grassroots organization called Camp for Peace. I got the internship through a class at SIPA called Applied Peacebuilding, where you are assigned a project from the beginning of the semester and work on it until you have your field trip in the summer. I lived there for 10 weeks and it was really challenging to be in one of the poorest countries in the world, working in very basic conditions. Nevertheless, it was incredibly gratifying to be able to help the organization to build their strategy to help war affected youth to become self-sufficient. I traveled around the country and I learned several things that can be applied to the peace process in Colombia. What has been the best part of your SIPA experience? The people I meet is the highlight of the experience. Yes, New York is incredible. Yes, SIPA and Columbia are amazing institutions. Yet, the people I have met at SIPA are the real treasure. I have an incredible and smart group of friends with a lot of diversity of countries, background and interests. Every day they have something interesting to do and to talk about. The academic experiences, the trips we have made, the parties, the discussions, the company we make to each other is what I will remember the most from SIPA. Click here to meet our other new PA, Tedros!

An Overview of Game Theory in Sociology

Game theory is a theory of social interaction, which attempts to explain the interaction people have with one another. As the name of the theory suggests, game theory sees human interaction as just that: a game. John Nash, the mathematician who was featured in the movie A Beautiful Mind is one of the inventors of game theory along with mathematician John von Neumann. How Was Game Theory Developed? Game theory was originally an economic and mathematical theory that predicted that human interaction had the characteristics of a game, including strategies, winners and losers, rewards and punishment, and profits and cost. It was initially developed to understand a large variety of economic behaviors, including behavior of firms, markets, and consumers. The use of the game theory has since expanded in the social sciences and has been applied to political, sociological, and psychological behaviors as well. Game theory was first used to describe and model how human populations behave. Some scholars believe that they can actually predict how actual human populations will behave when confronted with situations analogous to the game being studied. This particular view of game theory has been criticized because the assumptions made by the game theorists are often violated. For example, they assume that players always act in a way to directly maximize their wins, when in reality this is not always true. Altruistic and philanthropic behavior would not fit this model. Example of Game Theory We can use the interaction of asking someone out for a date as a simple example of game theory and how there are game-like aspects involved. If you are asking someone out on a date, you will probably have some kind of strategy to â€Å"win† (having the other person agree to go out with you) and â€Å"get rewarded† (have a good time) at a minimal â€Å"cost† to you (you don’t want to spend a large amount of money on the date or do not want to have an unpleasant interaction on the date). Elements of a Game There are three main elements of a game: The playersThe strategies of each playerThe consequences (payoffs) for each player for every possible profile of strategy choices of all players Types of Games There are several different kinds of games that are studies using game theory: Zero-sum game: The players’ interests are in direct conflict with one another. For example, in football, one team wins and the other team loses. If a win equals 1 and a loss equals -1, the sum is zero.Non-zero sum game: The players’ interests are not always in direct conflict, so that there are opportunities for both to gain. For example, when both players choose â€Å"don’t confess† in Prisoner’s Dilemma (see below).Simultaneous move games: Players choose actions simultaneously. For example, in the Prisoner’s Dilemma (see below), each player must anticipate what their opponent is doing at that moment, recognizing that the opponent is doing the same.Sequential move games: Players choose their actions in a particular sequence. For example, in chess or in bargaining/negotiating situations, the player must look ahead in order to know what action to choose now.One-shot games: The play of the game occurs only once. Here, the players are likely to not know much about each other. For example, tipping a waiter on your vacation.Repeated games: The play of the game is repeated with the same players. Prisoner’s Dilemma The prisoner’s dilemma is one of the most popular games studied in game theory that has been portrayed in countless movies and crime television shows. The prisoner’s dilemma shows why two individuals might not agree, even if it appears that it is best to agree. In this scenario, two partners in crime are separated into separate rooms at the police station and given a similar deal. If one testifies against his partner and the partner stays quiet, the betrayer goes free and the partner receives the full sentence (ex: ten years). If both remain silent, both are sentences for a short time in jail (ex: one year) or for a minor charge. If each testifies against the other, each receives a moderate sentence (ex: three years). Each prisoner must choose to either betray or remain silent, and the decision of each is kept from the other. The prisoner’s dilemma can be applied to many other social situations, too, from political science to law to psychology to advertising. Take, for example, the issue of women wearing make-up. Each day across America, several million woman-hours are devoted to an activity with questionable benefit for society. Foregoing makeup would free up fifteen to thirty minutes for each woman every morning. However, if no one wore makeup, there would be great temptation for any one woman to gain an advantage over others by breaking the norm and using mascara, blush, and concealer to hide imperfections and enhance her natural beauty. Once a critical mass wears makeup, the average facade of female beauty is artificially made greater. Not wearing makeup means foregoing the artificial enhancement to beauty. Your beauty relative to what is perceived as average would decrease. Most women therefore wear makeup and what we end up with is a situation that is not ideal for the whole or for the indivi duals, but is based on rational choices by each individual. Assumptions Game Theorists Make The payoffs are known and fixed.All players behave rationally.The rules of the game are common knowledge. Resources and Further Reading Duffy, J. (2010) Lecture Notes: Elements of a Game. http://www.pitt.edu/~jduffy/econ1200/Lect01_Slides.pdfAndersen, M.L and Taylor, H.F. (2009). Sociology: The Essentials. Belmont, CA: Thomson Wadsworth.

Different Approaches For Human Resource Management Essay

The environment of business is changing continuously and along with this, the human resource team need to find which strategy could be effective for the organization. There could be two different approaches for human resource managers which are best practices as well as best fit model. The proponent of best practice model state a bundle of human resource policies that include reward system whereas the best fit approaches promotes that, reward system should be aligned to the strategy of the organization. The human resource team members need to identify the effective measures to run the organization smoothly. There several characteristics of best practices that could be applied to a firm. They could be employee development, fair promotion to employees based on performance, high commitment management, progression of individual career, a well structured recruitment process as well as friendly working environment. These bundles of activities are characterized as mutually compatible human resource activities that forge elevated levels of workforce competency, persuade motivation as well as commence a work design enhancing employee commitment. Best practice approaches universally support organization to achieve competitive advantages regardless of the setting of industry. Employee training plays a vital role for the development of an organization. It would increase the efficiency of an organization. The outcome or the performance of the staff would be high if they are moreShow MoreRelatedIntegrated Ecosystem Management1445 Words   |  6 Pages1. Introduction Integrated ecosystem management (IEM) is a modern and preferred way to manage ecosystem and natural resources. IEM aims to conserve major ecosystem services and restore natural resources, while meeting the socio-economic, political and cultural needs of current and future generations (Szaro, et al., 1998). Additionally, IEM attempts to involve all stakeholders in defining sustainable alternatives for the interactions of people and their environment. Moreover, IEM is especially anRead MoreSwot Approaches Of Strategic Human Resource Management Essay1603 Words   |  7 PagesEssay: SHRM Approaches Analyzing Case Study Introduction Strategic human resource management (SHRM) is a design and an approach for managing the companies human resources and the needs of their employees along with goals of the company, it requires thinking ahead and making the new ways for the organization to meet requirements of their employees and the employees should fulfil the requirements of the organization as well as achieving the sustainable competitive advantages(BrattonGold,2012)Read MoreHuman Resources, Strategy And Business Ethic1545 Words   |  7 PagesHuman Resources, Strategy and Business Ethic Page Break Introduction The 21st century workplace environment is established on numerous reforms and transformations in different aspects that constitute the management of human resources. 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Methodology Free Essays

The study delves on integrating authentic video into the EFL Curriculum. In that case the researcher specifically aims to exemplify the use of authentic videos to contribute to the proliferation of knowledge. Gagne, says that â€Å"many professional think of instructional technology as a systematic way of designing, carrying out and evaluating the total process of learning and teaching† (p 12). We will write a custom essay sample on Methodology or any similar topic only for you Order Now   Furthermore, the study also converse on how elementary school teachers implement changes in the business of teaching. Carless (2003) said that â€Å"teachers are frequently required to implement pedagogic innovations† (p 2). To provide a picture as regards to planning and implementation of a task-based academic improvement is a very interesting part of the study. Accordingly, this research paper was geared to uplift the interest of the students to further concentrate on their studies with the use of visual presentations. To be able to motivate the students to learn is indeed a serious matter that is why, it is very essential to exhaust a lot of effort for them to be able to go beyond what is expected and be creative. Making available different tools such as videos, it was expected that the elementary students should learn more having this aid. By helping them realize their creativeness, it is important for them to depict what they saw in the videos.   In accordance with this, it is also important for the students to comprehend and interpret at the same time what they actually see. As the students process the films or the television shows effectively, they should practice dealing with the language and through which also help them to gain knowledge. Students are able to go together with their weaker skill with the visual support in text-format, thus, subtitles are also beneficial to go hand in hand with the video being played. With the help of such the students can easily grasp what they are watching and at the same time they can also make use of the words in their everyday life – real life. To be able to carry out this study, it is very beneficial to answer important queries concerning this subject matter and have a clear grasp on what is really trying to imply in this study. Given the fact that it is significant to take note the value of using authentic video in EFL curriculum, we – the writer and the reader should know what an authentic video is and what limitations therein. How can we use authentic video material? Basically, does the use of such, applicable with EFL curriculum? Does it contribute to oral production of the students? Would it be easier for the elementary teachers upon integrating authentic materials, to exemplify their sets of curriculum?   Specifically, at what level it is very much applicable to adopt this system of teaching? Criteria in choosing an authentic material should be taken into consideration. Stempleski (1987) states that â€Å"each type of authentic video has both advantages and disadvantages when used as language learning material and it is helpful to review general features to look for when selecting authentic material† (p 7). It is excellent to take into account the language, the content, the subtitles, the production, etc. of a certain video if it does execute a good impact on the viewers and how will it be able to help students and also the teachers to meet as regards to the proficiency of the medium; on how it will contribute to oral production. How can these materials motivate the students? What probable chances do we have that the elementary students will increase their eagerness in dealing and exploring the medium? How will it also affect the teacher’s lessons? These are the essential issues we have to tackle as we go along with the research paper. As we answer every question, it will make us realize where we situate the integration of authentic materials – especially authentic videos. It is imperative to have a broad understanding as regards to these matters to be able strengthen the stability of the student’s learning process. The paper focuses also on the role of the teachers who will be responsible in delivering different techniques in teaching and on how they will be able to inculcate in the minds of their students the importance of having different avenues to master their subject matter – increase their oral production. On the other hand, the students likewise were expected to take into account the possible chances of upgrading their system as they make use of these so called â€Å"innovations in their system of learning†. In addition to this, the professors and the students was expected to appreciate new ideas that will help to augment the performance of the students. The researcher took effort in getting the attention of the students and the elementary teachers as regards to incorporate authentic video into EFL curriculum. It is necessary to have some insights as to what extent the teachers should integrate authentic materials. This is practically the focal point of the research paper and the concentration are mainly focused on how the students and the teachers will find the middle ground in order to uplift and make use of new technique – and that is integrating authentic video. Classroom observations were considered as a basic tool in making this study possible. After gathering different ideas as regards to the integration of authentic videos in EFL curriculum, some thoughts provide a clearer grasp enough to elaborate the importance of the study. In addition to this, many dissertations were also found and used in collating thoughts on related topic. Furthermore, the gathered information / materials were consolidated and come up with a straightforward analysis on the effects to 5th grade multi-leveled students on oral production as they integrate authentic videos into EFL curriculum. Accordingly, having the resources available at hand, it is expected to have a more articulate output on how were authentic materials contribute mainly to the exceptional growth of the students and the professors as well. It is true that there were lots of resources regarding this matter, but most important of all, it is still in the hands of the receiver on how they will accept modernism – and we’re talking about increase in oral production with the help of authentic materials – authentic video. The proliferation of this paper could help everyone to carry out different changes in their system, and in the case of the four walls of a classroom, additional teaching aid is necessary to truly enhance the capabilities of every students and not just limiting techniques in traditional system. How to cite Methodology, Essay examples

Application of Discounted Cash Flow

Question: Discuss about the Application of Discounted Cash Flow. Answer: Introduction: As per the ratio analysis determined from the financial statements of TNO Limited, it can be said that the net profit ratio of the company declined in the current unaudited period compared to that of the previous year by around 9%. Similarly, return on assets of the company also declined by around 10%, which indicates that the capacity to generate revenue from the assets is not sufficient. Working capital ratio of the company reflected 1.91, which was higher in the previous audited financial year indicating that the value of assets has been declined in the current year to meet the current liabilities. According to the financial statements of the company, it can be said that the net income reflected declining trend in the current financial year. It has been observed that the revenue of the company also reflected 58% decline compared to that of the previous year 2009 indicating reduction in the overall expected rate of return. During the current financial year, it has been noticed that the solvency ratio of the company declined in the current year, which was 0.50 in the previous audited period that may lower the return on investment and increase the cost of capital structure (Knechel Salterio, 2016). On the contrary, liquidity ratio of the company reflected increased value in the current financial year, which reflects the ability of the company to convert resources in cash within short- term period (Lu, Wu Yu, 2017). Significant risks at specific account level Considering the non- current assets of the company, it can be said that the value of investments has been increased in the current year. Increase in value of investments has been measured through properties, which was valued by directors as per the basis of financial year 2010 (Kou, Peng Wang, 2014). Accordingly, it can be said that the investment valuation of the company reflected risk of decline in market value that may affect the true and fair view of the assets value. In addition, the account of intangible asset valuation reflects significant risk of correct valuation, appropriate amortization charges and value as per the current and fair market rates (Uechi et al., 2015). Explanation on indentifying the areas of significant risks While planning and performing analytical procedures, it is essential to measure the significant risk present in the financial statements to assess the materiality and relevance of the financial performance of the company. In the present case, the areas that have been considered for significant risks are investments and intangible assets other than overall income statement and balance sheet. The investment account has been identified for significant risk since it covers a significant area of companys asset and overall financial position. It is essential for a company to measure the appropriate and correct value of investments in accordance with the fair market value (Delen, Kuzey Uyar, 2013). In case of TNO Limited, investment of surplus funds and property market is principal business activities therefore it is essential to conduct appropriate audit test on the value of investments. It is important to conduct detailed valuation of the investment together with the current market value as well as interest rates along with the verification of accounting records of investment. On the other hand, valuation of intangible assets has been considered since it involves a significant area in the companys overall asset resources. Since, TNO limited has been involved in research and development of technologies, it is essential to consider appropriate value of intangible assets as per the current market structure. Reverence List and Bibliography Delen, D., Kuzey, C., Uyar, A. (2013). Measuring firm performance using financial ratios: A decision tree approach.Expert Systems with Applications,40(10), 3970-3983. Dudzi?ska-Bary?a, R., Michalska, E. (2015). Visualisations of the risk investment valuation and the level of inventory control using the GeoGebra software.Studia Ekonomiczne,247, 7-19. Knechel, W. R., Salterio, S. E. (2016).Auditing: assurance and risk. Routledge. Kou, G., Peng, Y., Wang, G. (2014). Evaluation of clustering algorithms for financial risk analysis using MCDM methods.Information Sciences,275, 1-12. Lu, L. Y., Wu, H., Yu, Y. (2017). Investment-related Pressure and Audit Risk.Auditing: A Journal of Practice and Theory. Mohammed, M. I., Omirin, M. M., Singhry, I. M., Auwal, U. (2016). Application of discounted cash-flow (DCF) models in the valuation of investment properties in Nigeria.International Journal of the Built Environment and Asset Management,2(1), 25-36. Uechi, L., Akutsu, T., Stanley, H. E., Marcus, A. J., Kenett, D. Y. (2015). Sector dominance ratio analysis of financial markets.Physica A: Statistical Mechanics and its Applications,421, 488-509.

How the Principals of Art will Create a Better Website free essay sample

An in-depth paper which studies how the creation of a good website should be based on the principals of art. The author of the paper shows that graphic communication has always been important through history as an art, and therefore website designing today should be based on the same principals of art as a painting or a sculpture. The author argues that the best website will be founded on the principles of art and even recognized as art itself. Table of Content The Principles of Art and Design The Technological Factor The People Combination Complete Contrast must not stand alone, however. Pattern is also very important in graphic design, and goes hand in hand with balance and rhythm. For example, elements should be patterned to some degree geometrically. For example, if one were to take a ruler and drawn a straight vertical line from one of the corners of a left quadrant graphic, any graphics or text below it should be placed with some reference to this imaginary line. We will write a custom essay sample on How the Principals of Art will Create a Better Website or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The squaring, or even circling of elements is important to direct the eye, and provide coherency. In addition, pattern may be used to group similar elements spacially. It should dictate the way in which typefaces are applied as well, so that there is a repetition of usage. (e.g. sans serif typeface is always a header, Roman typeface is always used in the text, thus establishing expectations and an ability to interpret the data one is receiving based on this pattern)

Chaos on the island

Chaos on the island In the novel Lord of the Flies, written by William Golding, the reader can see how a society of boys quickly dissolves into a chaotic and erratic group of salvages. The boys, or any society for that matter, cannot safely function without proper leadership, law enforcement, and a structured environment. It is the lack of these three elements that lead to chaos on the island.Due to not having proper leadership, Ralph and Jack, two of the older boys, step up to lead the boys. Ralph and Jack have very different ways of leading the rest; Ralph tries to be nice and treat everyone as equals, yet jack realizes that this is not working and therefore chooses to show he is better by using violence and force. "I'm chief!' Viciously with full intention hurled his spear at Ralph. The point tore skin and flesh over Ralph's ribs then sheared off and fell into the water," (Lord of the Flies pg.181).English: Cottages, The Green, Marlborough William ...Jack was so worried about hunting and showing he i s tough that he forgets about the signal fire, leaving no way to be rescued. Ralph knows that the boys want to be rescued and is furious with Jack for letting the fire go out. "You talk. But you can't even build huts- then you go off hunting and let the fire out," (pg. 71). Golding focuses on leadership by writing about the battle between Jack and Ralph, yet he shows the reader that neither of the boys are mature enough to lead the boys safely.Law enforcement is not exactly present on the island, although to make the boys do what he wants, Jack simply uses violence and threat. Two boys are killed do to his violence and salvage behavior, being chief he is setting an example...

Defining and Protecting Human Rights Essay Example | Topics and Well Written Essays - 3500 words

Defining and Protecting Human Rights - Essay Example .......................................................................3 Liberal Internationalism†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..............3 Liberalism as (IR) Theory†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 Key Human Rights Issues in Egypt’s State of Emergency†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..6 Trends within liberalism†¦Ã¢â‚¬ ¦..............................................................................................8 Political liberalism...............................................................................................................8 Cultural liberalism.......................................................................... .....................................9 Economic liberalism............................................................................................................9 Liberalism – Triumphant...................................................................................................10 Weaknesses and Criticism of liberalism...........................................................................11 Defense of the Theory...................................................................................................................12 Conclusion.....................................................................................................................................14 References............................................... Even criminals have their rights and must be treated humanely hence the evolution of the death penalty from seemingly barbaric ways to the now â€Å"more humane† lethal injection. Learning from Winston Churchill, the degree of how civilized a society is can be gauged on its treatment of its prisoners. Likewise, armed forces that are in conflict are bound to respect the rights of POW’s or prisoners of war. Much has been learned from the atrocities of the past war necessitating the need for a global commitment to uphold and protect human lives and the rights of every individual. However, these very important rights usually become the first casualties during times of conflict. This is more prevalent in countries that have declared a state of emergency wherein martial law ensues. Human Rights in the Arab Republic of Egypt For about thirty years, the Arab Republic of Egypt has been under a state of emergency which was declared by its ruler, Hosni Mubarak. Thus, excessive pow er has befallen on the state wherein much power has been in the hands of the central government while at the same time further empowering the military (Reza 2007). Thus, the government of Hosmi Mubarak was able to rule Egypt with an iron fist. This power has allowed the regime to ignore habeas corpus resulting to numerous arrests despite the lack of charges, public outcry was silenced by the ban on demonstrations, and political opposition has been stamped out with the dispersal of meetings and the media blindfolded by shutdowns. Liberalism Those who go up against the government end up being persecuted and are locked up behind bars (Shatz, 2010). These efforts by the Egyptian government have been scorned by human rights groups in and out of the country. However, the Egyptians have had enough and

The Great Depression Essay Example | Topics and Well Written Essays - 750 words

The Great Depression - Essay Example Furthermore, it also includes the response of American government to this economic event. Causes of Great Depression The most fundamental reason behind the great depression was the massive reduction in spending which ultimately led to rise in inventories and decline in production. There are several factors that resulted in the contraction in spending. Such factors include crash of stock market, monetary and banking failure and ‘Gold Standard’ (Berkley University, â€Å"Great Depression†). By the late 1929, prices of various stocks in US reached levels which were not justified by the rational anticipations regarding future earnings. As a consequence, when news like disappointing results of the organizations came out stock prices started to decline in a gradual manner. This led to reduction in confidence of the investors which in turn caused the burst of the stock market bubble. October 24, 1929 which is famous as ‘Black Thursday’ was the day when †˜panic selling’ actually started. By November, share prices were reduced by almost 33%. Such a stock market crash resulted in significant reduction in aggregate demand. Investment and consumer spending, as a result of these, fell sharply (Berkley University, â€Å"Great Depression†). Another crucial reason that caused great depression was lose of confidence of the depositors in the liquidity of the banks. In the late 1930, several depositors demanded their deposits in the form of cash. Situation created a massive panic in the banking sector. The panic was inexplicable and irrational in nature. However, large number of farmers who were unable to repay their huge loans was a reason behind the decline in the liquidity of the banks. Importantly Federal Reserve did not try its best to stem the panic. Absence of Benjamin Strong who was the governor of Federal Reserve Bank of New York is often considered to be the main reason behind such inaction (Berkley University, â€Å" Great Depression†). There are some experts who believe that the central bank of US allowed the huge reduction the money supply for preserving the gold standard. However, it has been a debatable issue over the years (Berkley University, â€Å"Great Depression†). Impact on Society Great depression had tremendous effect on the American society. By 1932 almost 25% of the country’s total workforce became unemployed. Furthermore, the unemployment rate remained almost 20% throughout that decade. In 1932 almost 25000 families and 200,000 young people roamed through the nation searching for clothes, shelter, food and more importantly a job (Oracle Thinkquest Education Foundation, â€Å"The Great Depression†). People took assistance from private charities and public relief systems although they were not able to meet the demand. Rural, migrant and black families were more accustomed with adverse situations. As a result they could manage circumstances more easily as c ompared to their urban counterparts (Ingui, p 108-109). Families had to change their lifestyles as their professions were changed. Many people engaged themselves with home businesses. Women played important part in the process of survival. Millions of people suffered from disease that was the result of malnutrition. Farmers irrespective of the color of their skin had to leave their home so that they could sell their crops. Families who used to stay in Dust Bowl turned into migrant farm-workers. American writers and artists portrayed the pain of common people. Photographers like Dorothea Lange and Roy Stryker captured the lives of the

Global Transportation and the Logistics Industry

Global Transportation and the Logistics Industry The Transportation Logistics sector spans a wide range of service offerings such as by air, road, rail, sea as well as related services such as warehousing, handling, and stevedoring. The extent of coverage includes value added services such as packaging, assembling, labelling etc. In addition to these, Transport Logistic providers undertake the management role of planning, administering and coordinating. Over the years, the sector has reshaped in manner where most players have a tendency to consolidate; resulting in larger, integrated groups operating in more than one of the Transport Logistics sub-services/sectors. As a result, the limits between the sub-services/sectors become more and more indistinct. The benefits of globalisation and business process outsourcing of logistics services generated double digit revenue growth in the industry in the early part of the 21st century. However the co-existence of other pressures, threats and limitations such as the economic downturn, and fuel price hike contribute to the dramatic changes faced by contenders in the sector. With privatisation and liberalisation, more complexities were introduced to the sector. In addition, trade routes are changing and networks have become increasingly complex as have the agreements between companies sharing resources. There have been several regulatory requirements which have changed substantially in the recent years. Due to more IT enabled interconnectivity in companies, it operates across national. Hence, issues pertaining to customs, tax compliance, accounting and governance have increased. Companies looking to build a sustainable business need to continuously offer value additions to its stakeholders. Therefore with the changing business models in the industry, many companies are evolving from forwarding and warehouse managing businesses to highly industrialised, IT driven supply chain providers; adopting a holistic approach in their service. Impact of the economic downturn Over the past years, the Transport Logistics industry has been profiting considerably from positive economic conditions and the demand for raw materials, capital and consumer products. Since 2008 though, the trade was suddenly faced with some of the most complex market conditions in history. A tightening global credit crisis and economic downturn that began in the U.S. quickly spread throughout the globe, impacting many organizations in nearly every aspect of the business. Changes in consumer buying patterns have led to less significant transport volumes, and shifts to less expensive delivery modes, with a sizeable impact on the express business. The volatile oil price coupled with a stronger focus on emission reduction has increased pressure on transportation companies, especially airlines, leading to a record in airline insolvencies. In addition, the economic recession places more fundamental challenges on the Transportation Logistics industry: consumer patterns and a general cur b of demand thereby causing a lower level of the flow of goods. Opportunities in the emerging markets For a countrys economy, in addition to the tourism sector, even the transportation sector is often viewed as an important indicator of growth. With the rise in commercial trade activities, the location of manufacturing facilities and distribution centres can have a major impact on the growth of a countrys transportation sector and transportation infrastructure. The relative location of these manufacturing facilities and distribution centres can dictate whether the country becomes a centre within a logistics network or a spoke in the wheel, serving in effect as a transit passage. Such matters are of particular importance to emerging economies where the transport and logistics infrastructure is making rapid development. Logistic providers are faced with clients who wish to source out of low-cost countries or access these new markets. They need to ensure that they can help their clients meet their objectives, understand the emerging markets environment, and expand their competencies and resources. These companies are at a crossroads in their development and have several strategic questions to consider. Should they expand or try new a niche? Should they move into an acquisition? Should they look at a stock-exchange float? Should they invest in IT/new technology? Should they look at optimising their cost base to counteract the trend towards smaller margins? How can they differentiate from competition by convincing customers that they add value to the business? About FedEx Corporation Introduction http://www.csustan.edu/manage/harris/case4.html Federal Express is an express transportation company, founded by Frederick W. Smith in 1973. During his college years, his intuition that the U.S. was becoming a service-oriented economy and needed a reliable, overnight delivery service company designed for dedicated transportation of packages and documents was the cornerstone of the companys existence today. He started Federal Express with over $80 million, making it the largest company of its time ever funded by venture capital. He found investors willing to contribute $40 million, used $8 million in family money, and received the rest from bank financing. Background Federal Express became successful due to the fact that they pioneered in advanced IT interventions ahead of its competition. They built a super-hub in Memphis, Tennessee, where all packages from the United States would be loaded and shipped out each night. Today, Federal Express has over 143,000 workers worldwide, and delivers more than 3 million express packages to 211 countries daily. One major change has affected Federal Express. In January of 1998, Federal Express the company re-launched as FDX Corporation. FDX Corporation now includes Federal Express, Roadway Packaging System (RPS), Viking Freight, Roberts Express, and Caliber Logistics. Even though FDX owns all these companies, Federal Express still remains independent. Federal Express CEO is currently Theodore Weise. FDXs strategy is to corroborate on selling and synergies for all FDX companies, but run operations separately and keep each companys strengths and markets separate. Therefore, some information will be about FDX, but most will be for Federal Express as its own company. FDX Corporate Subsidiaries All business units of FDX follow the corporate mission statement of the parent company. This synergy allows for growth. It also puts the entity in a position to acquire more companies whose operations are similar. Currently, these are the names and descriptions of the companies under FDX, other than Federal Express. 1. RPS: North Americas second-largest provider of ground small-package delivery. It also services 28 European countries and Puerto Rico. 2. Viking Freight: The premier brand name in less-than-truckload freight movements throughout the western United States. 3. Roberts Express: Engineer and execute time-specific, door-to-door surface and air-charter delivery solutions that solve special-handling challenges for FDX customers within North America and Europe. 4. Caliber Logistics: Develops and implements customized logistics solutions that help FDX customers manage costs, improve customer service and focus on their core business activities. In the Sales Breakdown for these FDX companies, Federal Express still accounts for 83 percent of total revenues. The next largest is RPS, bringing in 11 percent of FDXs total revenues. Strategic vision http://apps.shareholder.com/sec/viewerContent.aspx?companyid=FDXdocid=784953 FedEx Corporations vision is a world where goods and information move quickly and seamlessly. A world where businesses source raw materials and parts globally, then move high-value goods quickly between continents and across time zones. A world where global information and transportation networks can shrink time and distance, creating competitive advantages for customers. FedEx has experienced consistent growth in terms of net income in just about every year of its operation, which has meant three decades of growth. One of the companys greatest strengths is undoubtedly its business concept. No matter what the economy is doing, there will always be a need for package delivery of some sort by companies and individuals involved in nearly every industry. Even when times are tough and companies are seeking to save money, FedEx has less expensive delivery alternatives from which to choose. Of course, being the originator of the express delivery concept is also a key strength. FedEx became a household name before any of its competitors ever arrived on the scene, and thus has become synonymous with the idea of express package delivery in the minds of many, if not most, consumers. Visionary leadership (introduction to founder CEO) Fred Smith recognized the need for a reliable, overnight delivery service. Smith presented the idea in a Yale term paper in the 1960s, and received a C grade for his efforts. Between 1969 and 1971 Smith, however, secured $90 million ($40 million from investors, $8 million from his family, and $42 million in bank financing) to launch Federal Express as the then largest startup funded by venture capital. Federal Express began offering overnight and second-day delivery to 22 American cities in 1973. Today, The FedEx Express unit is one of the five subsidiary organizations that comprise Federal Express. The FedEx Express unit is the primary focus of this study. FedEx Express is the global market leader in express transportation. The firm moves an average of three million packages daily. FedEx Ground is a subsidiary of FedEx Express. FedEx Ground provides ground delivery of packages in North America. FedEx Freight is a less-than-truckload carrier. FedEx Freight operates throughout the United States. FedEx Freight has two operating subsidiaries à ¹ FedEx Freight East and FedEx Freight West. Access is what makes all forms of interaction and exchange possible between people, businesses and nations. Increases in Access boost opportunities and empower people with the ability and confidence to improve their current conditions and future prospects. Mission Statement The Mission Statement of FDX is to produce superior financial returns for stockholders, by providing high value-added logistics, transportation and related information services through focused operating companies. This mission statement shows that FDX has a clear focus. (1) The main focus is to bring returns to stockholders. (2) They will emphasize adding value above and beyond just their service of transporting an object from one place to another. (3) Their focus of operations will be logistics, transportation, and related information. This mission statement is focused enough to keep FDX from diversifying into for example, food products; yet vague enough to allow growth in all of those areas. Philosophy FDX and Federal Express, in particular hold a People-Service-Profit philosophy. The ‘People goal is the continuous improvement of managements leadership. The ‘Service standard is 100 percent customer satisfaction. The ‘Profit goal is much like any other companys goal, and is essential to long-term viability. This philosophy governs how FDX runs its business, and defines strategies. Customers Markets, Globalization and Services The scope of the Federal Express operation covers business-to-business, business-to-individual and individual-to-individual accounts. Federal Express markets include more than 200 countries where 90 percent of all the worlds revenues originate. Federal Express provides both document and freight deliveries as well as supporting services. Stemming from the visionary leadership of the CEO, the company follows market reach global footprint and a business strategy. Competitors Federal Express list of competitors include: United Parcel Service (UPS), Airborne Express, Emery Worldwide, BAX Global, DHL Worldwide, and United States Postal Service. Federal Express holds 46.5 percent, the largest portion, with UPS and Airborne Express as the largest competitors. As shown from the preceding information, Federal Express is clearly a large, strong, and growing express transportation company. Environment screening analysis This section will show the services Federal Express provides; its strengths and weaknesses as an organization; the opportunities and threats, current problems and issues faced. Services Federal Express provides delivery on documents and packages both domestically and internationally. Further, the company also provides supporting services. In the United States, Internationally Supporting Services Priority Overnight Priority interNet Ship Standard Overnight Economy Collect on Delivery Same Day Next Flight Location Service First Overnight First Dangerous Goods Service Express Freight Priority Freight Worldwide Logistics Weekend Shipping Economy Freight U.S. Government Shippers Alaska and Hawaii Airport to Airport International Government Guide S.W.O.T. Analysis Company Strengths and Resource Capabilities: Globalisation: Federal Express largely operates on a global scale. They operate in 211 countries. They provide services that appeal to most of the world. They have such a large market in which to operate which generates tremendous revenue for the business. Benefits of global economies of scale become available to players that operate in such a large playing field. Innovation: Federal Express took the first-mover advantage by identifying airplanes and trucks as a source and resource to gain business advantage. This helped them to remain the industry leader since 1973. Technology and Communication: Federal Express uses and continues to search for new technology. They allow spending of $1billion a year, 10% of total revenues on IT interventions such as integration. The companys commitment to introducing new customer centric service models through IT keeps customers from switching to other providers. Federal Express also has excellent communication with their customers. They use tracking devices on all shipments and customers can trace their shipment through many different avenues including a user-friendly Web site. Federal Express customers can feel assured that FedEx will always be on top of technology. Strategic Vision: Company CEO Frederick Smith built an industry leader, and sustained the title since 1973. The strategic vision of the company is cascaded through top managers who are in charge of the strategic direction of the business. First-Mover Advantage: The company has had first-mover advantage in several areas: (1) Being a global express transportation logistics company (2) Advanced IT interventions that attributed to the continued success of the company (3) Incorporating smaller business units with similar operations under its belt to synergize and control more of the market. Consolidating its resource capabilities at an optimized level has attributed greatly to its success. Strong Brand Image: In 1990, Federal Express became the first organization awarded the Malcolm Baldrige National Quality Award in the service category. Further, in 1994, the company was the first in global express transportation to obtain simultaneous system-wide ISO 9001 certification in international quality standards. Federal Express has also developed its own quality system that matches their customers standards. Company Weaknesses and Resource Deficiencies: Escalating prices: Federal Express prices are priced above its competitors. This can be a weakness if their customers do not perceive a difference between Federal Express and its competitors services. Labour Disputes with Pilots: Federal Express pilots have formed the FedEx Pilots Association. This organization demanded changes in the pilots salaries, retirement benefits, and suggested outsourcing some foreign flights instead of giving their own pilots the job. The pilots have a Web site where news is posted and any grievances are communicated. During the busy Christmas season in 1998, the pilots threatened to strike. Federal Express and the FedEx Pilots Association have developed a tentative agreement, which is published on the pilots Web site. However, the pilots do not believe this agreement fully meets their expectations. The pilot dispute is definitely an internal weakness for Federal Express, considering they have 3,500 pilots employed with them. The business operations would suffer if there were strikes. When UPS employees went on strike in 1997, Federal Express took the extra 800,000 shipments a day. If Federal Express employees went on strike, their competitors could gain an immediate advantage. The reason for running subsidiaries separately: FDX has deliberately chosen to keep its subsidiaries separate. According to FDXs 1998 Annual Report, CEO Frederick Smith states, Simply layering the unique resource and operating requirements of a time-definite, global, express-delivery network onto a day-definite, ground small-package network would surely result in diminished service quality and increased costs. Under the FDX umbrella, we will leverage our shared strengths while operating each delivery network independently, with each focused on its respective markets. Frederick Smith is confident this will be a strength, instead of a weakness. Company Opportunities: Expansion Globally: Federal Express can continue to expand its global footprint. Expansion Internally: Federal Express can continue to acquire more similar smaller business which could offer Federal Express leverage to expand into new technologies or areas in their industry. Run Subsidiaries Together: If FDX doesnt profit from running the subsidiaries separately, they can change to integrating their operations to achieve better synergies and economies of scale. Contracts with Large Corporations: To stay the industry leader, Federal Express should form contracts with companies who will add cost-saving or value-adding benefits to their services. Joint-Ventures: Federal Express can form joint ventures, such as already with Netscape and American Express, to enjoy the growth of integrating their customer bases. Expansion of e-commerce: Federal Express already has a major presence of shipping online. They should keep finding Internet companies to contract delivery of their products. Since the growth of e-commerce is rapid now, Federal Express could enjoy both profits and brand name recognition from this kind of expansion. Company Threats: Y2K Problem: If Federal Express communication and tracking systems arent actually Year 2000 ready, they will experience lost shipments, lost customers, and lost profits. This is a threat for every business, but a global company will be affected on a larger scale. Community Responsibility in the U.S.: Federal Express might be subject to community disapproval in expansion within the United States. Right now, Federal Express has plans to build a second super-hub in Greensboro, NC. The airport is supportive, but the citizens of the community are not. Federal Express has to decide whether the community support or building the centre is more important. Relations with Foreign Countries: Through Federal Express expansions globally, they are subject to laws and regulations of all foreign countries. There could be major problems in this area, stunting growth and raising costs. Already, Great Britain will not let Federal Express fly their own planes for shipments. Federal Express must either load their cargo on to British planes, or use ground transportation. This is very inefficient for Federal Express; however, it keeps competition out for British Air Transportation companies. Everywhere Federal Express goes, they are at risk for regulations that hinder their operations or efficiency. Economic and Political Conditions: Federal Express is subject to the entire worlds economic and political condition in the areas of fuel prices and supply, customer purchase of their services, and relations with foreign countries. As a global company, they are subject to much more risk than domestic companies. Current Problems and Issues Federal Express has several current issues and problems. Decisions about these issues will affect Federal Express profits and brand name in the future. Federal Express Pilots disputes with the company over their salary and compensation, retirement benefits, and Federal Express outsourcing some foreign flights. Federal Express spends only 13.17 percent of total operating expenses on their labor expense. The industry average is 14.81 percent. However, Federal Express main competitors spend 20 and 24 percent of total operating expenses on labor. This is why the pilots are voicing their disagreements, and demanding change. Fuel Price Fluctuation: Federal Express raised their prices and developed contracts with oil suppliers to cover fluctuating fuel costs and volatility of supply. Creation of super-hub in North Carolina: Federal Express does not have the communitys support. Alliance with Netscape: FDX created an alliance with Netscape in order to simplify the world of electronic commerce. FDX will offer delivery services on Netscapes Internet portal site. This will allow both companies to achieve mutual business targets that could not be achieved otherwise. Alliance with American Express: Federal Express offers a 10 to 20 percent discount on many delivery services to customers using an American Express Small Business Corporate Card. Federal Express offers many different services spanning the globe; this is why Federal Express has many strengths, and opportunities. However, Federal Express must also be concerned with their weaknesses and current problems. Industry Analysis Dominant Economic Characteristics Federal Express is in the Air Freight or Air Cargo Transportation Industry. This industry had sales of $34.2 billion in 1998. This industry is in the early maturity life cycle because entry is difficult, yet current competitors are still growing. Companies can realize economies of scale in this industry in marketing and purchasing. Services in this industry are essentially identical, with the exception being the value-added services. General Economic Conditions The current global economic crisis can affect this industry by stunting foreign expansion and reduced utilization of express shipping services. The current crisis in Kosovo may affect business for these companies if any countries they do business in feel the United States is wrong and want to boycott American-originating products and services. Porters 5-Forces Model Rivalry Among Competing Sellers: This is a strong force in this industry because the competitors use price cuts to compete, there is a low cost and ease to switching brands, and the companies in this industry diversify and acquire other companies for strategic growth and synergy. Competitive Force of Potential Entry: This is a weak force in this industry. Each company currently in the industry has strong brand images, leaving a harder job for new companies. The capital expenditures to start an express transportation company are large, and the companies currently are achieving economies of scale by going global. Any smaller company will not be able to achieve these right away, not allowing them to compete on prices. Another factor threatening potential entrants is trade tariffs and international regulations. Most companies currently in the industry have already established relations with foreign countries. New companies will have to prove themselves to foreign companies, suppliers, and customers. Competitive Pressures of Substitute Products: This is a weak to moderate force in this industry. Businesses and individuals that wish to ship cargo and packages can do it with other modes of transportation such as trucks, trains and boats. However, the customers that use air freight transportation usually desire convenience, speed, and low cost. Traditional transportation modes do not offer all three of these. Businesses and Individuals who want to ship documents can use e-mail, the Internet, and Facsimiles. However, these can take some time to scan and load, and then it is uncertain that your document will get to its destination. Power of Suppliers This is a strong force if the suppliers serve industries other than Air Freight. If a supplier only has accounts, or the majority of their accounts with these companies, they will not be able to control prices and supplies. Suppliers that are involved in this industry are: vehicle manufacturers, airplane manufacturers, fuel suppliers, labor, airports, and shipping materials manufacturers. Power of Buyers This is a moderate force in this industry because competition keeps prices similar among the companies. The only difference is companies, such as Federal Express who have value-added services that allow a higher price. Also, the buyers of the services in this industry are reactionary. They do not know the technology before it happens. They become dependent on the technology, service and speed offered by the companies in this industry and will pay for it. Industry Prospects and Overall Attractiveness A trend among Air Freight shippers is to use the Internet for communication with customers and even obtaining shipping contracts with companies selling on the Internet. This alliance with the fastest-growing industry will bring exponential growth to the Air Freight industry, above and beyond what they would normally have realized without this. This industry should remain attractive, with concentration on competition for market share, service differentiation, and brand image. Current Advertising has been aimed at being better than the competitor for different reasons. Performance Analysis FDX has an impressive performance record for example in 1998 they had revenues of $15.9 billion. We can also look at their Net Income for 1998, as well as for the last five years. This information is shown in 4 on Page 3 of the Appendix. As you can see, sales have been growing steadily for the past five years. Looking at the net income, though, it isnt that impressive. It even declined in 1997, from the rising fuel costs during that year. However, in 1998 it grew from $200,000 to $500,000. That could be from reduction in operating costs, or from the acquisition of the subsidiaries which had lower operating costs compared to Federal Express. The financial ratios for FDX compared to Airborne Express (ABF) are in Table 2 on Page 3 of the Appendix. Most of the ratios show Airborne Express in better financial condition than FDX. However, this can be explained through FDXs size as compared to Airborne Express. Airborne Express does not offer as many services or types of shipments as FDX, and it only has half the market share as FDX. Since UPS does not have air shipments, we could not benchmark FDX to them. Clearly though, FDX and Federal Express is the market leader in this industry, have outstanding sales, a healthy profit, and a safe amount of debt. A 5-Year analysis of Federal Express profitability and activity ratios is in s 5 and 6 on page 4 of the Appendix. These ratios over time show a steady increase, except for year 1997, where fuel costs hurt Federal Express deeply.TNT N.V. is an international express and mail delivery services company with headquarters in Hoofddorp, the Netherlands. In the Netherlands, TNT operates the national postal service under the name TNT Post. The group also offers postal services in eight other European countries, including the UK, Federal Express Five-Point Strategy Federal Express has five strategies that govern business tactics. These are to improve service levels, lower unit costs, establish international leadership and sustain profitability, get closer to the customer, and maintain the People-Service-Profit Philosophy. Major Strategic Issues FDX is focused on three primary growth strategies. A collaborative sales process that leverages their shared customer relationships, aggressive global marketing of the broad FDX portfolio to targeted prospective customers, and a strategic application of information systems to reduce costs and improve customer access and connectivity. Introduction to the business strategy Expanding Access Through Our Networks While the benefits and mechanisms of Access are too vast and complex to attribute to any one creator, FedEx is proud to have been the driving force behind many milestones and advances, beginning with overnight express delivery in 1973 from our hub in Memphis. At first connecting 25 U.S. cities — and today, 220 countries — express delivery was a historic breakthrough in Access, collapsing the time and distance between places and connecting people everywhere. Through our expanding networks, anyone shipping a package can now tap into unprecedented speed and worldwide reach. Shaping the Way the World Connects FedEx delivers systems and solutions, not just packages. In recent years, weve increased Access by moving information in the form of bits as close to its destination as possible before converting it into atoms. For example, when one customer planned to host a leadership seminar in New Delhi, FedEx Kinkos transferred tons of materials digitally to China, printed them in one day, and shipped them to India the next. With FedEx Office Print Online capability, any individual can do the same — printing documents remotely and having them delivered locally. Its one major new way FedEx is contributing to greater Access. Today, thanks in part to the Access provided by the internet and FedEx, its possible for a leading electronics company to synchronize its microchip factories in China to the pulse of global demand, flying the finished chips as needed to manufacturing lines in Shanghai, Seoul or Singapore. The chips are bound for laptops and phones that create personal connections in their own right, while the corresponding transformation of China into the worlds factory is expected to lift half a billion people out of poverty by 2020. New FedEx hubs in Guangzhou and Hangzhou will increase the global Access of homegrown Chinese companies and contribute to greater quality of life, while helping companies outside this market to navigate and grow their business here. Changing Whats Possible For 35 years, FedEx has been dedicated to changing whats possible and improving life for people everywhere by promoting greater Access. Every day around the world, we see first-hand how Access empowers people to improve their lives, their businesses and their communities. Because we see this power, we have a unique perspective on Access. Infrastructure/supply chain value chain FedEx has done several things with its value chain to develop new business. First they have always recognized the need to have technology and IT work to communicate the logistics that they run. They have developed internet technologies that work simply and efficiently to enable customers and sellers to use FedEx as a go between. This has enabled many companies to integrate FedEx technology into their own web sites for customers to use. However, up until January 19, 2000 the organization of Fe

How animals save the planet Essay

Narwhals like these help scientists track global warming in the Arctic. These mythical looking tusked whales, also known as the â€Å"unicorns of the sea,† are measuring changing temperatures in Greenland’s arctic waters to track global warming. Climate scientists at the University of Washington attached thermometers and small satellite transmitters to the narwhals, who can dive far deeper than humans. As a result they found that waters in Greenland’s Baffin Bay are 0.9 degrees C warmer than formerly calculated. Dogs Working Dogs for Conservation in action. Humankind has long looked to its best friend to lend a helping nose – whether it’s a hunter tracking down prey or a police officer searching for drugs. Now groups like Working Dogs For Conservation and UK-based Conservation Dogs use dogs to sniff out endangered animals and plants – like jaguars in the Amazon or black bears in China – so researchers can track and save them. Birds Birds are natural recyclers. While our feathered friends in more urban areas have been known to utilize trash like string and paperclips in the building of their nests, male bowerbirds in Australia and New Guinea repurpose bright plastic containers and bottle caps to build their elaborate â€Å"bowers,† arched walkways carefully decorated and designed to attract female partners. Octopi A resourceful octopus searches for suitable shelter. Another animal recycler, the octopus is renowned for its intelligence and use of tools. Certain species like the veined octopus build shelters from sea shells, coconut shells, or more human debris. As this video shows, octopi enjoy hiding inside of glass jars they find on the ocean’s floor, putting what would otherwise be trash to good use. Rats An African giant pouched rat sniffs out a landmine. Like dogs, rats have a superior sense of smell. African giant pouched rats like the one pictured here sniff out land mines while being too light to  actually set them off. Anti-landmine organization APOPO dubs them â€Å"HeroRATS† for their ability to help the group find these environmentally hazardous, not to mention dangerous, weapons. Bees Bees use their keen sense of smell to detect environmental contaminants. Bees are widely talented and have a sensitivity to smells, tastes, and colors. They’re also highly communicative, using sound and dance to talk amongst themselves. It turns out that they can recognize specific types of chemicals and send off a certain buzzing sound depending on what chemical is released into the air. This is helping humans detect toxic chemicals in the environment and could be useful in detecting chemical warfare attacks. Sea Lions and Seals A sea lion measuring ocean conditions.  Like the narwhals, sea lions and seals can easily dive deep below the water’s surface to track climate change. Researchers at the University of California Santa Cruz rely on them to measure salinity, temperature, and other conditions so we can develop better models of ocean water circulation. Elephant seals in the Arctic measure temperature and have also been used to track the health of U.S. salmon populations. Mules A mule measures radiation levels.  Sarah and Little Kate are two mules that have been recruited to brave the conditions of the Santa Susana Field Laboratory outside of Los Angeles. A 1959 leak at the laboratory left radiation that may still linger in the area. Equipped with gamma radiation scanning equipment, the mules investigate the area and report back to government officials conducting this study. While it may not be ethical to subject animals to hazardous areas, the work they are doing may end up making the area safer for humans and animals alike.

American CEO Compensation is Immoral

Substantial evidence shows that American CEOs are better rewarded than their counterparts in European countries, and that this trend has been on a rapid upward growth starting from the last thirty years and only slowing down during global economic recessions. As expected this trend has drawn considerable arguments, with a lot of questions posed about what structures do American companies usually apply when commissioning such abnormal pay hikes and whether such structures are ethically and professionally justified.For instance, it can be loudly wondered whether the American CEOs deserve these high payments more than other CEOs elsewhere in the world. It can also be wondered whether they have more responsibilities than their counterparts in Europe and other continents alike. Well, the answers to these questions may draw all sorts of answers to the affirmative and/or otherwise.For purposes of this paper it is hypothesized that, the abnormally huge compensation packages given to American CEOs in the form of salaries, bonuses, stocks, options, or even termination packages is not morally justified given that most workers in America are still struggling with the agony caused by unemployment, ineffective social welfare systems, and increased costs of living. In tackling this seemingly sensitive issue, efforts will be made to represent both sides of the argument in equal measures and then finally a final verdict will be made in support of the study hypothesis.Theoretical Framework: Rogerian Argument Himself a psychologist, Carl Rogers advances a â€Å"rational† kind of approach especially when sensitive matters are at stake. He opines that a writer should first of all understand strive to represent his readers perspectives in his writings using the most neutral words there can be. He should also do the same when advancing his standpoint on an issue, particularly if such standpoint is not good news to his readership.His advices are that a writer should not adopt a n adversarial approach in presenting arguments rather he should adopt a seemingly neutral ground that will help to build sympathy and the desire to read more on the part of the audience. In fact, he reasons that a writer should not make a generalization as what his readership should believe of do, rather he should together with his readership struggle to finding and defending a neutral ground that will enable the readership to make their own personal decisions based on the fairly and factually resented issue.Using this practical method of argument this paper will seek to present the sensitive issue of executive compensation by delineating the issue in operational terms; agreeing on morality of increased CEO compensation packages; refuting the morality of the same; offering examples why increased CEO compensation packages is not morally justified, and; proposing a neutral compromise that pits the two positions equally acceptable to the audience. Research Problem Is it morally justifi ed to pay CEOs huge salaries while other employees are poorly rewarded?This paper intends to carry out an intensive study to investigate whether the evidential abnormal American CEO Compensation packages are morally justified. To achieve this, a range of existing literature on marketplace modalities governing employee compensation vis-a-vis ethical structures will be revisited. The literature collected thereof will be analyzed and systematically presented using the five principles of communication as advanced by Carl Rogers with view of advancing an opposition verdict.There is a general consensus that teachers are underpaid and their professions are under respected. Now what if I told you that presidents of colleges make a lot of money? And that they have been making more money since the recession even though campuses at large have lost classes and fees have been increased for students. Do you feel that the presidents for scholastic institutions should still get paid so highly? Well , it all boils down to the general perspective held by an individual. Most European countries believe in a more socialistic approach to president/CEO/executive pay.Their salaries represent a level of contentment and achievement that can be justified as being equal to their counter parts below them. Here in America, since the recession many Americans have been scratching their heads in wonderment as to why CEOs of companies such as CountryWide, BofA, and Goldman have been pulling in such large amounts compared to the rest of the workers. Brian Foley mentioned that many American CEOs make more money in one year than the median salaried worker makes in lifetime. Is this an injustice? Our European corporate counterparts see it as such.However many European companies move their base to America to reap the same rewards that American CEOs get, so what part of making such high pay makes it right? As a student and an intern at a finance company I feel that the corporate pyramid represents mo re of a stairway to heaven. I wonder what part of life, morality, and injustice to my coworkers must I face to reap the future rewards of possibly being a partner or maybe more? Should I work for the money as many Americans do instead of our European counterparts who work for contentment and the ability to provide security to their employees and others?With the on set of the recession American corporate pay structure has not only been heavily scrutinized by those who are not in the top of that structure, but has also been shunned upon by many other CEOs and Presidents all over the world. Greedy for money, unjustly leaning towards the welfare of Top executives, immoral for people who are unemployed because a CEO is unwilling to hire new members to keep his salary as high as possible; these are the ideas that resonate in newspapers.Although after being an intern at KKR Capital for one and half years and getting paid at 25 an hour, my sentiments are starting to be different. Background Information There is no doubt on the authenticity of the generalization that, CEOs in American corporations (profit and not-for-profit alike) are rewarded handsomely compared to what their counterparts in other countries particularly those in Europe earn. Consequently, significant debate on this seemingly sensitive issue has ensued among policy makers and pundits alike within and beyond the US borders.Tellingly, some of these loud voices in acknowledgement as well as those in opposition have got some elements of sanity in them. After all, common sense as well as sound work ethics holds that employee compensation packages should be pegged against performance meters. In their investigation on the patterns of executive compensation among â€Å"S&P 500, Mid-Cap 400 and Small-Cap 600 companies† between the period commencing 1993 to 2003, Bebchuk and Grenstein found out that indeed there has been a tremendous increase in remuneration packages for CEOs and top executives across maj or organizations in the United States (2).Their findings pointed out to a whopping mean compensation increment of 146 percent for CEOs in the S&P 500 category, the mean compensation for â€Å"top-five executives† also grew by a 125 percent margin from $9. 5 to $21. 4 for the same category. An increase from the $3. 7million recorded in 1993 to $9. 1 million recorded in 2003. Similar upward trend was also observed in the Mid-Cap 400 and Small-Cap 600 company categories.A comparison of the mean compensation increase between CEOs and the top-five executives indicated that CEOs were higher in 2003 when compared to 1993, an indicator that indeed CEOs compensation packages has grown over the years (2-3). Faulkender et al argue that CEO compensation in majority of the leading US organizations has soared to reach higher levels courtesy of â€Å"an explosion in stock option grants† and â€Å"flawed governance mechanisms in the pay-setting process† (110). Precisely, their data shows that the mean CEO remuneration package for S&P 500 corporations grew significantly from a low of $850,000 to $14 million between 1970 and 2000.For unexplainable reasons the growth dropped in 2002to $9. 4 million only to gain momentum again to hit the high of $13. 5 million between 2005 and 2007 (110). Again, it dropped in 2008 to $10. 5 due to the biting effects of the global economic crunch. [See appendices 2 for amore details] There is a huge discrepancy between CEO salaries and those of other employees. Trends show that the discrepancy has been on an increase starting from the last thirty years and only slightly dipping on few occasions due to the effects of unfavorable economic developments.As a matter of fact, unusually high salary packages have been ditched even on controversial circumstances to executives embroiled in management squabbles. In mind is the notable $210 million that was given to HomeDepot departing executive, Robert Nardelli and the $187. 5 million gi ven to NYSE departing executive Richard Grasso. In the list of the â€Å"most controversial compensation packages† issued to an executive is the former Tyco CEO, Dennis Kozlowski who was given a dispatch package of $5.1million worth of shares in the company and other shares from a subsidiary company worthy $81 million despite him being not cleared from fraudulent charges brought against his manner of management while serving as the company CEO (Faulkender et al). Morality in American CEO Compensation Kaplan (2009) argues that, the widely held notion that CEO compensation packages are abnormally high is nowhere near the truth, and that CEO compensation packages do not contribute to financial crises.He offers what seems like a set of well researched and analyzed data showing that CEOs are actually underpaid particularly when their compensation packages are juxtaposed against those of â€Å"hedge fund managers, investment bankers, private equity investors, money managers, and l awyers†. In fact, in 2007 S&P 500 CEOs earned relatively low salaries compared with what top hedge fund managers took home. In his well broken down analysis, he offers that the salary scales of other employee groups just as that of the CEOs has grown considerably since 1990s.Analytically, this is an indicator that CEOs are not riding on an abnormal or even unethical reward wave. Contrary to other studies on CEO compensation trends among American corporations, Kaplan concise research findings show that CEO salaries among major US S&P 500 companies only gained momentum in 2000and that since then the mean and median CEO compensation indexes has been on a stagnant as opposed to a growing trend. Even so, in what seems as a concurrence with other studies on the American CEOs compensation matter, Kaplan agrees that since 2008 the trend has been on a decline trend.Moreover, as opposed to the gross income trends entered in the prior decade, CEOs only made a small portion, three percent of the number of Americans making the top 0. 1 percent gross income in the 2004- 2005finacial year. That the S&P 500 CEOs only managed to account for about 0. 60 percent of the total income for Americans making the top 0. 1 percent gross income in 2006 as compared to 1. 2 percent registered in 2001, with indicators showing a likely diminishing trend in the future. According to Bebchuk, Fried and Walker any ‘rational’ human being including CEOs may be tempted to enrich themselves if given an opportunity to do so.They argue that, â€Å"When changing circumstances create an opportunity to extract additional rents–either by changing outrage costs and constraints or by giving rise to a new means of camouflage–managers will seek to take full advantage of it and will push firms toward an equilibrium in which they can do so†(cited in Gabaix and Landier 53). A case atypical to this postulation is the popular use of the stock option packages by CEOs to incre ase their benefits without undergoing the agony of facing shareholders vetting and/or wraths.Moreover, the behavior of the board members also gives CEOs a leeway to sneak in high incentives for their positions. Incomplete or ill-informed board members may fail in their duties to vet any salary increases on the part of the CEOs giving them a wide operating space. Some board members may also be lacking the needed powers to question CEOs compensation decisions; this is a case common in corporations with very powerful CEOs who tend to ‘manage’ the board. There is no direct link between financial crisis and high executive compensation.Though it is obvious that high remuneration packages may play a significant role in financial crisis engulfing companies such as the one witnessed in 2008, other more directly linked and more powerful factors are responsible. In mind is the weird banking regulation that leaves too much space for financial institutions to give out unsecured cred it facilities as well as the great leeway on the part of such banking institutions that accords them an opportunity to double as hedge funds.By fair terms these two factors are the ones to blame and not the hiked executive salaries given that the financial crisis was chiefly caused by high rates loan and mortgage defaulting. As a matter of fact, Faulkender et al (116) argue that executive compensation forms a very small chunk of the many causal factors of the recently ended financial crisis and that it cannot be blamed for all the woes engulfing the American banking industry. According to Grundfest executives of banks experiencing financial crises cannot be held accountable for causing the crises.In fact, he boldly offers the executives incentives cannot be blamed for financial crisis that hit the banking sector in 2008. This he defends by offering that the executives always give their best when it comes to managing their organizations and that they formulate strategies that are bas ed to the best of their knowledge and experience: â€Å"Sure, they were miserably wrong, but they didn’t know they were making a huge mistake that would cost them, their shareholders and taxpayers a huge fortune† (1).He defend this argument by reminding his readership that even the executives lost their investments in the form of stock they held in the banks. That the executives are also shareholders of the organizations they head, it is an indicator that they do not their own interests but that of the shareholders and that any eventuality of a great financial crisis is just normal in that it is not triggered by any commission or omission on the part of the executives (1).The high CEOs compensation packages among American public corporations are ethically justified. The competitive nature of the domestic market economy between privately owned equity firms and public corporations where private organizations offer very competitive pay packages to woe top executive with p roven performance track records. A case atypical to this argument is depicted by the mass exodus of top executives from public corporations to Wall Street based private equity corporations where they offer a range of executive advisory services (Kaplan 1).American CEO Compensation Immoral Is American CEO Compensation moral? I believe that it is immoral because compared to that of European CEOs, American CEOs get paid so highly and with the onset of the recession, this has been highly scrutinized. It is argued that executives who by capitalizing on the seemingly lax regulations on the compensation modalities go ahead and declare abnormal bonuses for themselves are result-oriented as opposed to rule-oriented.Lundberg and Montell proves this postulation by asserting that the growing trend on the part of executives to reward themselves with hefty salaries is occasioned by the market systems, particularly those based on commission basis or the popular â€Å"performance-based† remu neration. Analyzing a number of similar trends they argue that the performance-based salary perks erode the moral content among executives to the extent that they fail to link their actions as unethical but economically justified, given the huge profits they help make for the companies they head (2).Financial incentives are responsible for attracting all manner of personnel some of whom are only driven by the desire to reap from the huge legitimate benefits and if possible to use the seemingly ambiguous employee compensation regulations to achieve this in a quicker manner (Schwab 1). As a matter of fact, it has been argued that incentivized compensation packages are usually complex especially if large production processes are involved so that it becomes difficult in determining the â€Å"what, how much, who, and when† of production units awarded to individual employees.Such complex scenarios may tempt executives to overstep their powers and therefore increase their salaries. Moreover, though the performance-based compensation scheme is buoyed by the notion that highly rewarded employees perform better this is may not be the case in all situations especially if some of section of the employees is rewarded handsomely at the expense of others.Paying executives too much money is tantamount to immorally siphoning a large chunk of the overall profits that an organization makes and spending it on one individual instead of doing so on the large number of the shareholders who are in real sense the owners of such organization. This trend which has been witnessed in many financial institutions in the US has resulted in immense suffering on the part of the shareholders. It can be argued that these sufferings are threefold (Murali 1):First, from the poor decisions taken at the expense of the long-term viability of the company; second, through the payouts of excessive benefits for mediocre or poor performance; and third for the costs and settlements of any ensuing la wsuits, which were paid by the companies involved. Most importantly, these skewed compensation packages do not subscribe to any conventional capitalism rules. This is because it flouts the tenets of performance-based reward system as it does not make sense that American CEOs are the only hardworking executives in the whole world.As Murali summarizes it, â€Å"There is no way that the job of CEOs in the US has become 20 times more difficult than it was in Alfred Sloan’s day or 10 times more difficult than it was in the 1970s, and yet the packages suggest precisely that† (1). There is no doubt that the American government does not give much attention to executive compensation practices employed by major corporations operating the US. This has given much room to large financial institutions to engage in unprecedented reward systems that enrich top executives at the expense of the other cadres of employees and the shareholders.Such, reward system is not only selfish and im moral but it also highlights on the bred of CEOs running large corporations: as persons out to perpetuate their own agendas rather than that f the shareholders. Mitigation Measures It is true that in approaching the American CEOs compensation issue a lot of care and sobriety should be used. This is because there are both light and dark sides on the issue. The most certain solution to the issue seems to be legislation of strict regulations that will put limits to the amount of bonuses executives can award themselves.However, this need not be as plain as it is said; otherwise it will not be accepted by the majority. Americans needs fundamental economic legislations that will address a wide area of the puzzle including making the cost of living more affordable for the common American so as to mitigate the biting effect of economic of future economic crunches. Such legislations will ensure that the executive compensation packages are also fixed in accordance with the prevailing economic trends as opposed to the individual performance of a company.In regard to their â€Å"result-oriented and rule-oriented† analogy, Lundberg and Montell offer that result-oriented executives are most likely to disregard the moral fabric when compared to their rule-oriented counterparts. In this regard they opine that the performance-based incentive programs are a recipe for moral degradation on matters of employee compensation and that they only succeed in creating result-driven executives and not rule-conscious ones (Lundberg and Montell 2).It can therefore, be asserted that even in the presence of rules that fix executive compensation limits, there can never be a convincing assurance that the problem of abnormal compensation can be fully addressed given that, the inherent failure on the part of the result-driven executives to acknowledge the element of morality in following or even breaking the set rules. Again, the bonus pegged market structure where both short and long ter m bonus targets are included as part of competitive reward system to motivate hardworking employees, and to attract and retain talented employees’ only serves as a catalyst for breach of such rules (2-3).This postulation is supported by Schwab (1) when he says: While regulation is important for the future of the global economy, rules alone are not sufficient. The economy is not an independent or self-contained realm; the crisis has shown that the economy has to serve society. We have to be careful that the measures taken to curtail the crisis will not damage the power of innovation in the real economy. In mitigation it is hereby advanced that the realm of management should not be commoditized, rather it should be handled as a profession.This postulation is advised by the conventional wisdom that a profession just like a society is governed by â€Å"ground rules† and not monetary incentives. Such a scenario will accord all cadres of employees an opportunity to reap from the fruits of their labor in proportionate measures irrespective of their status in the organizational ladder. Most importantly, this â€Å"will create an unspoken social contract of trust to other members of society† (Lundberg and Montell 4). This postulation draws its impetus from similar sentiments shared by Schwab (1) when he generously offers that:When I had surgery a few years ago, I knew very well that my future quality of life would be dependent to a large extent on the qualifications of the surgeon. This is why I sought an expert who was the best in his profession. I naturally assumed that I was in the hands of a doctor who could apply his most professional skills without claiming that he would like to have a share of my future income – since, of course, this would be dependent on his knowhow – in addition to his remuneration.In this regard Reynolds offers that organizations should foster efforts toward the improvement of personal qualities such as edu cational qualification, work experience, as well, the propensity to embrace change. He argues that such efforts are capable of instilling the sense of morality among employees (241). Work Cited Bebchuk, Lucian and Yaniv Grinstein. The Growth of Executive Pay. Discussion Paper No. 51004/2005, Harvard Law School Cambridge, MA 02138, (2005). Faulkender, Michael, Dalida Kadyrzhanova, N.Prabhala, and Lemma Senbet. Executive Compensation: An overview of research on corporate practices and proposed reforms. Applied Corporate Finance, 22. 1. (2010). Co Gabaix, Xavier and Augustin Landier. Why Has CEO Pay Increased So Much? The Quarterly Journal of Economics, February 2008. Grundfest, Joseph. ‘What’s Needed is Uncommon Wisdom’, New York Times online, October 6, 2009. Kaplan, Steve. (Good) CEOs Are Underpaid, Harvard Business Review, Harvard Business School Publishing, June 15, 2009.Lundberg, Viktor and Christofer Montell. The effects of incentive compensation on moral awa reness: An explorative study. Master Thesis in Management Accounting, University of Gothenburg, School of Business, Economics and Law, 2010. Merchant, Kenneth, A. , and Wim A. Van der Stede. Management control systems: Performance measurement, evaluation and incentives. Essex: Pearson Education Limited. Murali, D. Pay should reinforce right tone at the top.July 8, 2010, accessed July 22, 2010, from: http://www. thehindu. com/ Reynolds, Scott. Moral awareness and ethical predispositions: investigating the role of individual differences in the recognition of moral values. Journal of Applied Psychology 91. 1 (2006); 233–243. Schwab, Klaus. Financial crisis is a chance for positive change. Times Online, Publ. 081104. Accessed on July 22, 2010, from: http://business. timesonline. co. uk/tol/busines/management/article5076011. ece/