Climate Change man made or a natural occurrence Research Paper

Climate Change man made or a natural occurrence - Research Paper Example Rather, this debate is about the actual causes of the increase of greenhouse gasses in the atmosphere. Some scientists argue that this is a result of natural occurrences while others believe that it results from human activities. This paper aims at discussing whether climate change is a natural occurrence or resulting of human activities. According to Nicola Scafetta, a scientist at Duke university climatic changes as from the year 1950 have been a result of predictable, cyclical, and natural occurrences that takes place on the earth’s with very minimal or no help from human activities. According to Nicola Scafetta, those claiming that climatic change is a result of human activities fail to take into consideration climate modulating effects of solar changes. These effects might include how cosmic rays are influenced by cloud-forming thus reducing sunspot activity. He argues that between 50%-70% of global warming on the 20th century can be associated to increased solar activity (Jarman 101). Other scientists also argue that there are many causes of global warming that cannot be linked to human activities. Such activities include ice age, hurricanes, and earthquakes. However, when you look at these occurrences and their frequency of occurrence you will notice that if in any case they were the sole causes of climate change, then climate change would not have been the big global problem that everybody is currently concerned of. For a single year the earth, usually makes a single orbit around the sun. During the process, the earth is always tilted to the angle 23.5% to the plane that is perpendicular to the orbital path. When the earth tilts there is always a small though significant change in the seasons’ strength. The there is more tilt the result would be warmer summers and colder winters. The small tilt has been leading to small but significant changes in the climate over the years. However, many scientists argue that such

Basic Assessment of a Cuban American with limited English proficiency Assignment

Basic Assessment of a Cuban American with limited English proficiency - Assignment Example Here, the nurse might face linguistic difficulties because they speak different languages. Whereas the nurse speaks English, the patient does not even understand it. For a nurse to deal with such a situation, they need to be patient, understanding and tolerant. Besides, they should sharpen their communication skills. Meaning, they should not shun away the patient, but look for an interpreter to intervene. It would be advisable to incorporate the intervention of an interpreter as it would facilitate the communication process between the nurse and the patient. It is only through effective communication that the nurse would manage to interact with, listen to and understand the patient before offering any required services. Communication is a paramount activity in the nursing profession. When it is effectively done, the nurse would definitely involve the patient in the treatment process as they offer benevolent

Poverty: Individuals And The Wider Community

Poverty: Individuals And The Wider Community This essay will discuss what is meant by the term Poverty, how it affects individuals and the wider community as well explaining why it is important for Social Workers to have a clear understanding of these issues. By looking at the organisations in place in the UK, in areas such as education and health and social care establishments; this essay will demonstrate how the structures of these organisations both help and hinder Social Workers in their role and how it affects the workings of daily practice. The UK has the oldest and biggest National Health Services in the world, so this essay will also go on to compare the provision in this country with that in the USA. As a first world country, the USA has an economy and culture not vastly different from that in the UK, which makes for some interesting comparisons of the care they both provide. Both the UK and the USA spend the same proportion of their annual budget on social services and education and have a similar rate of poverty. Poverty is a common term which many people would define as simply being a lack of financial resources. This is a very constricted view which makes it difficult to determine how many people live in poverty because the definition is vague and subjective. To understand and measure poverty and its impact upon individuals and the community, it is important to define it further. Instead of one main definition for poverty, sociologists have agreed there are two main types; absolute and relative poverty, as described by Giddens (2009). Absolute poverty is used to describe the inability to provide the basic human needs; food, accommodation and clothing, on a budget of around $1 US dollar per day. The idea of absolute poverty is a global one which can be applied regardless of country or culture and applies equally to people of similar ages and abilities. According to a recent study by UNDP (2010), as many as a third of the worlds population live in absolute poverty. Due to the modern welfare state and benefit system in place in the UK today, no one is expected to survive on $1 per day. However, figures provided by The Poverty Site (2010) show that approximately 9% of the population in the UK have an income which equates to only 40% of the national median income. This has risen almost 7% in just over 20 years and suggests that poverty is on the increase in the UK. These statistics would also suggest that people living in the UK are affected by relative poverty as opposed to absolute poverty. Relative poverty compares the income of individuals to the national or local average, and where it falls below 40-60% of that average, the individual is said to be living in relative poverty. There is still some debate about where the percentage rate should fall but many agree it should be 60% of the national median income (Giddens, 2010). This is referred to as the poverty line; those below this line live in relative poverty. Certain groups of people are more likely to find themselves living in poverty, these include; children, women (particularly single mothers), people with disabilities, ethnic minorities and the elderly. Cunningham Cunningham (2009), Giddens, (2010) and Llewellyn, et al (2008) all agree the reason these groups are more likely to suffer from poverty than other groups is a direct result of social exclusion. Social exclusion is a term which grew in popularity in 1997 when New Labour was re-elected into government. Part of the pre-election campaign of New Labour was to tackle the root causes of the issues affecting those who were marginalised by main stream society (The Poverty Site, 2010). People, who for reasons including; age, race, gender and class are often denied access to service and opportunities making it easier to exclude them from society. This was evident when the BBC undertook a survey, and found that when considering job candidates, whose qualifications and experience were almost identical; those with a name traditionally given to people from non-white backgrounds were far less likely to be called to interview, proving that racism is still present in the workplace, (Cunningham Cunningham 2009). To tackle some of the inequalities present in mainstream society, New Labour introduced a number of initiatives and policy changes to improve the standard of life, these included; The introduction of Tax Credits for families and individuals on low incomes, Every Child Matters a 5 point framework to improve the quality of life for all children, Connections an easily accessible advice point on a range of topics for young adults ages 13 19yrs, SureStart aimed at giving babies and young infants the best start in life by providing advice, drop in centres and child care for their parents. People who face social exclusion often live in the same locality; council house estates for example, which tend to have a higher proportion of single parents and high rates of unemployment. These groups of people are frequently given negative labels, which over time can become self-fulfilling. For example, a young child growing up in a single parent family on an council estate as indicated above is more likely to be viewed negatively and given such labels as; trouble, lazy, good for nothing, which over time can have a detrimental effects upon the child who will begin to view themselves as the labels placed upon them (Llewellyn et al, 2008). This negativity can lead to an increase in truancy, which in turn will lead to a poor education and employment prospects, thus setting up a life in poverty (Mail Online, 2007). According to Bebbington and Miles (1989), children from an impoverished background are 700 times more likely to be involved with social services than children from a wealthy background. This statistic alone shows how vital it is for social workers to have a strong understanding of the impact and experiences living in poverty can have. It is argued by Cunningham and Cunningham (2009) that many professionals in the social work field feel overwhelmed by the structural inequalities faced when tackling poverty, this tends to mean that poverty is dealt with on an individual case basis. Changes in policy, both at national and at local level can have an impact on poverty by the way services are implemented and delivered. As social workers are present at both the point of service and within the organisations where policies are made, it puts them in a prime position to affect change. Understanding and recognising the factors that cause and keep poverty part of modern society will allow a social worker to understand how they can interrupt the poverty cycle encouraging positive change. Placing some of the responsibility for poverty on society and within the structural inequalities that exist, can sometimes be viewed as taking responsibility away from the individual and the choices they have made, making them less accountable. A social worker should always maintain a positive and optimistic outlook and believe that despite the inequalities that exist, change is still possible regardless of the situation. It is important to understand how the education system and health and social care organisations are set up in the UK to recognise how this can impact the access to care. Responsibility for education in the UK has become a devolved matter for each individual country and overseen by their own government. The Department of Education and The Department for Business, Innovation and Skills predominately oversee the education system in England, with involvement from Local Authorities. Since 2005/2006, Local Authorities are given a grant which is ring fenced for the purpose of education and with consultation from all schools under the Local Authorities control, the finance is distributed, (Department for Education, 2010). There are approximately 20,000 public schools in the UK; a growing number of these are faith schools, almost 7000 at present. In addition to these state schools, there are a growing number of independent schools, almost 2600; responsible for the education of 7% of the population, (Independent Schools Council, 2010). There schools are funded primarily through tuition fees and in some faith schools, donations from the associated church. A large proportion of these schools are faith schools who do not take children outside the designated faith of the school within their catchment area. Historically, health and social care has been provided by the private and voluntary sector. Until the introduction of the Poor Law Act 1930, the majority of care for those in need was provided by charities and the work houses. People who lived in poverty had to rely on hand-outs, if they were deemed worthy of charity, or would have to pay at the point of service. Often it was those most in need of the service that were unable to pay forcing them to go without. The Poor Law Act 1930 moved the responsibility of care from these sectors to the Local Authorities, who began to take over the work houses and Poor Law hospitals (Spicker, 2010). The National Health Service was established in 1948 with the ideology that everyone should be entitled to the same level of health and social services which were free at the point of service. Todays modern National Health Service is overseen by the Department of Health. The country is split into 10 Strategic Health Authorities who control the care provided by the trusts in its area. Care is split into two main areas, Primary and Secondary care. Primary care services include; GPs, Opticians, Dentists and NHS Direct. Secondary care is acute health care and normally only accessed in emergency or extreme situations and includes; The Ambulance Trust, Emergency and Urgent Care Units, Mental Health, Care and NHS Trusts. (NHS, 2010). The National Assistance Act 1948 called for Local Authorities to set up Health and Welfare comities, providing the first form of residential care. In 1970, The Local Authority and Social Services Act of the same year created the first Social Services departments including; childrens, welfare and mental health. (The National Archives, 2010). The National Health Service remained largely unchanged until 1990 when the first major reforms took place. With the general population living longer, the cost of providing care was increasing and becoming unviable. The organisation of the National Health Service had also become unproductive and unyielding to those it was meant to help. Bureaucracy and red tape became the norm when trying to access any services or treatment. The National Health Service and Community Care Act 1990 was the first step in the reforms to the health and social services departments. The introduction of the Purchaser/Provider split meant for the first time since the establishment of the National Health Service, government departments were no longer responsible for the provision of all services (Kirkpatrick et al, 1999). The reason for this was threefold; firstly, to lessen the financial responsibility of care provision, secondly, removal of public provision would allow the private and voluntary sectors to grow and expand, making the care market more competitive, and thirdly, to increase choice for service users. This act was also the start for a number of large care homes and institutions being closed and the care provided in the community. The principles behind these changes were well intentioned; allowing people to be cared for within the community promoting independence and control over personal care. However, in reality what was offered were standard care packages and limited resources which did not deliver the true freedom of choice that was promised, (Llewellyn et al, 2008). To supplement the care provided for under the new system, many people have turned to charities to help fill the gap left by the lack of financial assistance. Providing people with the finances to pay for their own care, rather than provide the care itself, has meant people are able to choose how and by whom the care is provided. Many people have chosen to pay friends and relatives for the provision of care rather than rely on agencies and strangers. For Social Workers, this gives an opportunity to think outside the box when producing care plans with individuals. In communities, people are now able to form groups and committees to address and tackle problems and difficulties to provide a tailor made solution. This not only gives people control over their own care but also encourages the community to take action and to help itself. Although the UK has the biggest National Health Service in the world (NHS, 2010), the change in direct care provision and growing reliance on the private and voluntary sectors is more in line with the health and social care services in the United States of America (USA). The USA has a minimalist National Health Service which provides the most basic of health care; caring for those on very low incomes and or in emergencies. Many people living in poverty will be eligible for Medicaid which is a healthcare programme paying for the whole cost of care, but poverty alone is not an automatic eligibility criteria. Many older people, 65yrs and over, are reliant on the Medicare system, which only covers 80% of the cost of care, the remaining 20% must be funded by other means. Anyone who is outside the eligibility for these benefits must pay for private health care insurance, unless it is provided for through employment, (US Department of Health Human Services, 2010). Another benefit provided by the USA government is food stamps; however this is being phased out and replaced by Temporary Assistance for Needy Families, which is a short term benefit aimed at getting families back on their feet, (US Department of Health Human Services, 2010). The health and social care system in the USA is structured much the same as the UK, in that the government provides each state (Local Authority) with a budget to spend on care. In addition to this, states in the USA are allowed to set its own tax rates on things such as Income Tax, Sales Tax and House Tax. The proportion of money put back into care differs between states, some providing a higher level of benefits than others. The USA has a much higher dependency than the UK on voluntary organisations, namely the church; who provide care and financial assistance to those in their communities. Comparing the UK and the USA, there seems to be a different attitude towards the provision of care. The UK system is geared up to help prevent poverty and social exclusion, whereas the USA system is designed to help people get out of poverty but placed a bigger reliance on the individual helping themselves. Both systems are becoming more reliant on the community, voluntary organisations and the private sector for the provision of care; lessening the financial burden on the state in the face of an ever aging population. Both countries seem to be unified in the attitude that people should help themselves out of poverty. Although the role of the Social Worker will always be required, there is a strong shift in the role from the provision of direct care to one of care co-ordination. To provide the best possible level of care for both individuals and the community, Social Workers must maintain a high level of knowledge of both statutory and non-statutory providers of care and how best to access them. This essay has demonstrated that poverty is a global problem which is maintained by the way society works by socially excluding people and keeping them impoverished. It has also shown how two similar countries differ in their approach to care; the UK government provides the majority of care with assistance from charities and the private sector, whereas the USA government provides only the most basic forms of assistance which a strong reliance on the church, charities and the public sector. Both countries are in agreement that with an increasing older population, each government needs to do more to lessen their contribution to the provision of care. During this time of change, Social Workers will need to find a way of providing the best possible care for those in their charge.

Beowulf :: Epic of Beowulf Essays

The epic poem, Beowulf, depicts the most heroic man of the Anglo-Saxon times. The hero, Beowulf, was an outstanding warrior with all the extraordinary values required by a hero. He was able to use his super-human physical strength and courage to put his people before himself. He encountered terrifying monsters and the most ferocious of beasts, but he never feared the threat of death. His leadership skills were excellent and he was able to boast about all his achievements. Beowulf was the ultimate epic hero who risked his life countless times for immortal glory and for the good of others. Common traits of an Anglo-Saxon warrior were physical strength, leadership skills and heroic stoicism, which Beowulf demonstrated throughout this poem. Beowulf was a hero in the eyes of his fellow men through his amazing physical strength. He fought in numerous battles and returned victorious from all but his last. One of those victorious battles, was the battle against Grendel, in which Beowulf fought against a monster that had killed many men. â€Å"He twisted in pain, and the bleeding sinews deep in his shoulder snapped, muscle and bone split and broke† (31.389). Beowulf showed his great strength by ripping Grendel’s arm with his bare hands, which would be impossible for a regular human to do. When Beowulf fought Grendel's mother, who sought revenge for her son's death, he was able to defeat her as well. â€Å"From its scabbard, broke the chain on its hilt, and then savage, now, angry and desperate, lifted it high over his head and struck with all the strength he had left" (38.535). He was able to slay Grendel’s mother by slashing the monster's neck with a giant's sword that could only be lifted by a person as strong as Beowulf. After defeating Grendel’s mother, Beowulf decided to finish off Grendel by slashing the monster's neck with the giant sword. â€Å"Then struck off his head with a single swift blow. The body jerked for the last time, then lay still† (38.560). After Beowulf chopped off his head, he carried it from the ocean to Herot mead-hall with ease. The head was so enormously heavy that it would take four men to lift and carry it. Another trait of Beowulf was his ability to put his people’s welfare before his own. â€Å"Heard how Grendel filled night with horror and quickly commanded a boat fitted out, proclaiming that he’d go to that famous king, would sail across the sea to Hrothgar, now when he was needed† (23.

Civics essay

Kennedy once said, â€Å"ask not what your country can do for you, but what you can do for your country'. These are wise words to live by, since every person has a civic duty that they owe to their country. All Americans owe so much to their society including; obeying the law, paying taxes, and making an effort to get a Job. The government puts laws In place to ensure that the society will run smoothly, and everyone owes It to the country to obey these ms. Laws are created only to, again, further better the society.They are there to keep everyone safe, as well as give people the rights that they deserve. It is not a difficult task asked of the people, and after everything the government and other people have done for you, you owe it to them and the country to follow these laws. Taxes are something disliked by everyone. No one in the world likes to pay an excess amount of money for something they feel is useless. Although, taxes are not useless, and every American owes it to their co untry to pay them.When someone pays taxes, the money Is given to the government and Is used for many different hinges to further better our society. These things Include sidewalks, paved roads, and even teachers. Sidewalks keep pedestrians safe, paved roads are better for cars, and teachers are there to educate the minds of the future adults of America. Without taxes, we would not be able to have so many things that better our country, so every American has a civic duty to keep up the goodness and pay their taxes. Many people today have been struck with the poor luck of being let go from their jobs which is understandable.Although, every American owes it too their country to make an effort to get one. Some people that are out of work make no attempt to get a new one, but they should. It is your civic duty to make a living and contribute to the economy. The government should not have to pay for someone to live when they are capable of doing so their self. Also, when people aren't wor king for their own money, that means that taxes are raised for other working Americans so the government can afford to keep people that are out of Jobs in a stable home.So, everyone should be able to and ray to contribute everything they can for the economy. Everyone owes something to their country, they Just need to know what they have to do. Citizens should be aware of the ways they can positively contribute to their society As well as obeying the law, paying taxes, and being employed, there are many more ways a person can better their country These ways include simple things such as volunteering and even voting. Everyone has a civic duty, and it is not a difficult task to perform for your country BY Dripping can do for your country†.These are wise words to live by, since every person has a The government puts laws in place to ensure that the society will run smoothly, and everyone owes it to the country to obey these ms. Laws are created only to, pays taxes, the money is gi ven to the government and is used for many different things to further better our society. These things include sidewalks, paved roads, and today have been struck with the poor luck of being let go from their Jobs which is doing so their self. Also, when people aren't working for their own money, that means

Group Lending and Mitigation of Adverse Selection in Microfinance

Maurya (2011) perfectly summarised the concepts of adverse selection and group lending. In essence, microfinance works on a joint liability model and the traditional theories of credit lending state that rural credit markets are imperfectly competitive and acquiring information about borrower types on who is risky and who is safe is not costless. This market imperfection leads to high interest rates and drives out safe borrowers from the credit market.In economic literature, this problem is considered as adverse selection problem and the joint liability model tries to solve the problem of adverse selection through group lending (Maurya, 2011). Group lending generally denotes a credit advancing model where individuals who do not have collateral form a group based on joint liability to access loans. It is widely regarded as one of the most important institutional innovations in development policy in the last quarter century (Morduch, 1999).The most understanding feature of group lendin g is joint liability. Joint liability to a group obligation that if one member of the group defaults on their loan all the other group members will contribute jointly to cover the defaulted amount. As a result the whole group is jointly liable for the pool of loans granted to each member of the group. Any member in default will spread the default to other group members regardless of them being personally in default or not.Recently many developments institutions have tried to use group lending to give loans to the poor and achieve the following: Avoid the use of collateral as it would be replaced by joint liability. pass off the screening, monitoring and enforcement of loans to the peers Reduce fixed transaction costs associated with issuing out very small loans The adverse selection problem occurs when lenders cannot distinguish inherently risky borrowers from safer borrowers. If lenders could distinguish by risk type, they could charge different interest rates to different types of borrowers.But with poor information, options are limited. The problem to lenders is that they cannot gather sufficient information at reasonable costs to determine the riskiness of the borrowers. As such to insulate themselves against losses of issuing loans at low interest to very risk borrowers they charge a high blanket interest rates for all loans. Adverse selection may lead to credit rationing as it induces lenders to charge everyone high interest rates to compensate for the possibility of having very risky borrowers in the customer population. (Morduch 2010).If the economy is consisting of safe and risky borrowers, only risk borrowers would remain in the market. Since safe borrowers regard themselves relatively safe debtors they will require a loans at low interest rates which is in tandem with their riskiness. Risky borrowers on the other hand know they are risky and would tolerate high interest rate as it perfectly relates their riskiness. As such when MFIs charge a high bl anket interest rate to avoid a mismatch in risk and return safe borrowers withdrawal from the market as they perceive the rate to be too high for their riskiness.Only risk borrowers would then be left in the market and all loan advances would be mad to risk borrowers – a situation that the MFI would be trying to avoid in the first place. So due to lack of information charging high interest rates to avoid risky borrowers would actually eliminate safe borrowers and attract risky borrowers – thus adverse selection. In principle, group lending with joint responsibility can mitigate this inefficiency (Armendariz and Morduch, 2010). Group lending mechanisms provide incentives to the borrowers to monitor each other to assess the creditworthiness of each member.Aghion (1999) showed theoretically how peer monitoring alone, with random formation of groups can help overcome adverse selection problems when monitoring is costly for lending institutions. Strong social networks have lower monitoring cost, which results in more credit being extended. Social networking provides a group of people who are well acquainted with each other and have a mutual trust in the economic viability and creditworthiness of each other. Poor borrowers cannot provide collateral to lending institutions and even when it is available, legal obstacles often prevent repossessing collateral when borrowers default. Ghatak, 1999). Ghatak (1999) have argued that group lending can solve this problem by taking advantage of information villagers have of each other’s type which is unavailable to the lender. Assortive matching can be discussed under two assumption: (1) when borrowers cannot distinguish the type of the other borrower – private information case and (2) when borrowers can distinguish the other borrower’s type. (Aghion and Gollier, 2000) Under the private information case, borrowers cannot distinguish if the other is of their own type – safe or risky.As s uch borrowers will form groups based on randomly selection cemented by their need for a loan. In such instances the group will be formed of both risky and safe borrowers. Due to joint liability safe borrowers can therefore repay defaulted loans on behalf of risky borrowers and in turn joint liability will reduce the interest rates which attract safe borrowers back into the market. Rates under such group lending will be reduced due to a frequent and stable rate of repayment. (Aghion and Gollier, 2000).Sometimes referred as negative assertive matching, this ensures that the proportion of safe borrowers in the group will generate returns high enough to cover for their defaulting partners. In turn safe borrowers will impose tough social sanctions on the risky borrowers so that they do not default deliberately. This implies that the lender can pass risk from risky borrowers to safe borrowers and thus reduce the overall riskiness of the group. Additionally, auditing costs, monitoring cost s and information gathering costs will be avoided.This enables the lender to reduce their lending rate significantly and still break even. As a result safe borrowers will be lured back into the market through negative assertive matching. In instances where peers have information about the type of the other borrower, safe borrowers will only group together and avoid risky borrowers in their group as this disadvantage them through joint liability. Risky borrowers on the other hand are excluded from safe groups so they will join together and form their own risky group – which won’t be so risky considering the benefit of joint liability.Since can positively assort themselves between safe and risky groups, the lending institution can charge differential rates between these groups depending on the overall riskiness of the group. Groups can be requested to provide information about their members if they want credit. This both reduce costs of information gathering and help the lender determine what class the group can be categorised into – safe or risky. Through use of assertive matching a differentiation previously inhibited due to information unavailability can be made and differential rates be charged to different types of borrowers.The level of gravity of social sanctions imposed by each member in the group helps increase the credibility of the group. As a result the higher the extend of social sanctions in a group the lower the groups risk of default and thus lower rates can be charged to retain safe borrowers. However, assertive cannot be able to completely solve the problem of adverse selection. For example in a group the better performer who is always covering for others defaults can deliberately default on his loan to distress the group and the whole group might default.This is amplified in negative assertive matching where a group may be highly dependent on the performance of one member. In conclusion, assertive matching can lower intere st rates and circumvent credit market inefficiencies even in the case where borrowers are imperfectly informed about each other’s type (Aghion and Gollier, 2000). REFERENCES: Armendariz de Aghion and Gollier. C. (2000), ‘Peer Group Formation in an Adverse Selection Model’, the Economic Journal, 110, p. 632-643. Armendariz de Aghion, B. 1999), â€Å"On the Design of a Credit Agreement with Peer Monitoring†, Journal of Development Economics, 60, p. 79-104 Ghatak, M. (1999), ‘Group Lending, Local Information and Peer Selection’, Journal of Development Economics, 60, p. 27-50 Kumar, A (2005), Self-help groups: Use of Modified ROSCA in Microfinance    Maurya, R. (2010) ‘Poverty Reduction through Microfinance: A study of SHG-Bank Linkage Model,’ the microfinance review, Vol. II (1), January-June 2010 Morduch J. (1999) ‘The microfinance promise,’ Journal of Economic Literature 37, 1569-1614 Group Lending and Mitigation of Adverse Selection in Microfinance Maurya (2011) perfectly summarised the concepts of adverse selection and group lending. In essence, microfinance works on a joint liability model and the traditional theories of credit lending state that rural credit markets are imperfectly competitive and acquiring information about borrower types on who is risky and who is safe is not costless. This market imperfection leads to high interest rates and drives out safe borrowers from the credit market.In economic literature, this problem is considered as adverse selection problem and the joint liability model tries to solve the problem of adverse selection through group lending (Maurya, 2011). Group lending generally denotes a credit advancing model where individuals who do not have collateral form a group based on joint liability to access loans. It is widely regarded as one of the most important institutional innovations in development policy in the last quarter century (Morduch, 1999).The most understanding feature of group lendin g is joint liability. Joint liability to a group obligation that if one member of the group defaults on their loan all the other group members will contribute jointly to cover the defaulted amount. As a result the whole group is jointly liable for the pool of loans granted to each member of the group. Any member in default will spread the default to other group members regardless of them being personally in default or not.Recently many developments institutions have tried to use group lending to give loans to the poor and achieve the following: Avoid the use of collateral as it would be replaced by joint liability. pass off the screening, monitoring and enforcement of loans to the peers Reduce fixed transaction costs associated with issuing out very small loans The adverse selection problem occurs when lenders cannot distinguish inherently risky borrowers from safer borrowers. If lenders could distinguish by risk type, they could charge different interest rates to different types of borrowers.But with poor information, options are limited. The problem to lenders is that they cannot gather sufficient information at reasonable costs to determine the riskiness of the borrowers. As such to insulate themselves against losses of issuing loans at low interest to very risk borrowers they charge a high blanket interest rates for all loans. Adverse selection may lead to credit rationing as it induces lenders to charge everyone high interest rates to compensate for the possibility of having very risky borrowers in the customer population. (Morduch 2010).If the economy is consisting of safe and risky borrowers, only risk borrowers would remain in the market. Since safe borrowers regard themselves relatively safe debtors they will require a loans at low interest rates which is in tandem with their riskiness. Risky borrowers on the other hand know they are risky and would tolerate high interest rate as it perfectly relates their riskiness. As such when MFIs charge a high bl anket interest rate to avoid a mismatch in risk and return safe borrowers withdrawal from the market as they perceive the rate to be too high for their riskiness.Only risk borrowers would then be left in the market and all loan advances would be mad to risk borrowers – a situation that the MFI would be trying to avoid in the first place. So due to lack of information charging high interest rates to avoid risky borrowers would actually eliminate safe borrowers and attract risky borrowers – thus adverse selection. In principle, group lending with joint responsibility can mitigate this inefficiency (Armendariz and Morduch, 2010). Group lending mechanisms provide incentives to the borrowers to monitor each other to assess the creditworthiness of each member.Aghion (1999) showed theoretically how peer monitoring alone, with random formation of groups can help overcome adverse selection problems when monitoring is costly for lending institutions. Strong social networks have lower monitoring cost, which results in more credit being extended. Social networking provides a group of people who are well acquainted with each other and have a mutual trust in the economic viability and creditworthiness of each other. Poor borrowers cannot provide collateral to lending institutions and even when it is available, legal obstacles often prevent repossessing collateral when borrowers default. Ghatak, 1999). Ghatak (1999) have argued that group lending can solve this problem by taking advantage of information villagers have of each other’s type which is unavailable to the lender. Assortive matching can be discussed under two assumption: (1) when borrowers cannot distinguish the type of the other borrower – private information case and (2) when borrowers can distinguish the other borrower’s type. (Aghion and Gollier, 2000) Under the private information case, borrowers cannot distinguish if the other is of their own type – safe or risky.As s uch borrowers will form groups based on randomly selection cemented by their need for a loan. In such instances the group will be formed of both risky and safe borrowers. Due to joint liability safe borrowers can therefore repay defaulted loans on behalf of risky borrowers and in turn joint liability will reduce the interest rates which attract safe borrowers back into the market. Rates under such group lending will be reduced due to a frequent and stable rate of repayment. (Aghion and Gollier, 2000).Sometimes referred as negative assertive matching, this ensures that the proportion of safe borrowers in the group will generate returns high enough to cover for their defaulting partners. In turn safe borrowers will impose tough social sanctions on the risky borrowers so that they do not default deliberately. This implies that the lender can pass risk from risky borrowers to safe borrowers and thus reduce the overall riskiness of the group. Additionally, auditing costs, monitoring cost s and information gathering costs will be avoided.This enables the lender to reduce their lending rate significantly and still break even. As a result safe borrowers will be lured back into the market through negative assertive matching. In instances where peers have information about the type of the other borrower, safe borrowers will only group together and avoid risky borrowers in their group as this disadvantage them through joint liability. Risky borrowers on the other hand are excluded from safe groups so they will join together and form their own risky group – which won’t be so risky considering the benefit of joint liability.Since can positively assort themselves between safe and risky groups, the lending institution can charge differential rates between these groups depending on the overall riskiness of the group. Groups can be requested to provide information about their members if they want credit. This both reduce costs of information gathering and help the lender determine what class the group can be categorised into – safe or risky. Through use of assertive matching a differentiation previously inhibited due to information unavailability can be made and differential rates be charged to different types of borrowers.The level of gravity of social sanctions imposed by each member in the group helps increase the credibility of the group. As a result the higher the extend of social sanctions in a group the lower the groups risk of default and thus lower rates can be charged to retain safe borrowers. However, assertive cannot be able to completely solve the problem of adverse selection. For example in a group the better performer who is always covering for others defaults can deliberately default on his loan to distress the group and the whole group might default.This is amplified in negative assertive matching where a group may be highly dependent on the performance of one member. In conclusion, assertive matching can lower intere st rates and circumvent credit market inefficiencies even in the case where borrowers are imperfectly informed about each other’s type (Aghion and Gollier, 2000). REFERENCES: Armendariz de Aghion and Gollier. C. (2000), ‘Peer Group Formation in an Adverse Selection Model’, the Economic Journal, 110, p. 632-643. Armendariz de Aghion, B. 1999), â€Å"On the Design of a Credit Agreement with Peer Monitoring†, Journal of Development Economics, 60, p. 79-104 Ghatak, M. (1999), ‘Group Lending, Local Information and Peer Selection’, Journal of Development Economics, 60, p. 27-50 Kumar, A (2005), Self-help groups: Use of Modified ROSCA in Microfinance    Maurya, R. (2010) ‘Poverty Reduction through Microfinance: A study of SHG-Bank Linkage Model,’ the microfinance review, Vol. II (1), January-June 2010 Morduch J. (1999) ‘The microfinance promise,’ Journal of Economic Literature 37, 1569-1614

Free Essays on Benedict Arnold

Benedict Arnold’s Other Story The story of Benedict Arnold's heroism on behalf of America, especially on Lake Champlain, is largely unknown, and it's the story we want to tell here. We'll leave those dark facts of his later defection and traitorous ways to historians. He gets plenty of bad press there...and deserves it too. As the American Revolution began, Arnold volunteered to lead 1000 men up through the woods of Maine to attack British Canada by surprise, through its back door, at Quebec City (Brody, pg. 126). This journey, which is still talked about in that part of the country, proved to be a disaster for the volunteers who marched off. Half starved, frozen, and making broth by boiling their own shoe leather and cartridge boxes, they stumbled out of the wilds 50 days later...with 40% of them dead (Brody, pg. 126-127). Many believed they would have all perished were it not for Arnold's courage and leadership in those woods. Valiant battles against overwhelming odds lay ahead through the winter in Canada, but the expedition failed. In June of 1776, Arnold, badly wounded he, led his ravaged men away from Montreal toward the North end of Lake Champlain (Randall, â€Å"Lake Champlain†). The British were hot on his trail. He was the last American to leave Canada, having seen to the task of burning anything of value behind. Waiting in the dark, and with one boat left to carry him to safety, he heard the British soldiers march to within musket range. An ardent horse lover, he spurred his steed to the water's edge, then shot it with a single bullet to the head, removed the saddle, and pushed off in his boat. After rowing, almost a hundred miles, his army finally found safety on July 7th near the Southern end of our lake...at Fort Amherst on Crown Point. They literally crawled into the battered fortification. A Council of War with the American officers stationed at the garrison was under way, and without so much as a bath, Arnold imm... Free Essays on Benedict Arnold Free Essays on Benedict Arnold Benedict Arnold’s Other Story The story of Benedict Arnold's heroism on behalf of America, especially on Lake Champlain, is largely unknown, and it's the story we want to tell here. We'll leave those dark facts of his later defection and traitorous ways to historians. He gets plenty of bad press there...and deserves it too. As the American Revolution began, Arnold volunteered to lead 1000 men up through the woods of Maine to attack British Canada by surprise, through its back door, at Quebec City (Brody, pg. 126). This journey, which is still talked about in that part of the country, proved to be a disaster for the volunteers who marched off. Half starved, frozen, and making broth by boiling their own shoe leather and cartridge boxes, they stumbled out of the wilds 50 days later...with 40% of them dead (Brody, pg. 126-127). Many believed they would have all perished were it not for Arnold's courage and leadership in those woods. Valiant battles against overwhelming odds lay ahead through the winter in Canada, but the expedition failed. In June of 1776, Arnold, badly wounded he, led his ravaged men away from Montreal toward the North end of Lake Champlain (Randall, â€Å"Lake Champlain†). The British were hot on his trail. He was the last American to leave Canada, having seen to the task of burning anything of value behind. Waiting in the dark, and with one boat left to carry him to safety, he heard the British soldiers march to within musket range. An ardent horse lover, he spurred his steed to the water's edge, then shot it with a single bullet to the head, removed the saddle, and pushed off in his boat. After rowing, almost a hundred miles, his army finally found safety on July 7th near the Southern end of our lake...at Fort Amherst on Crown Point. They literally crawled into the battered fortification. A Council of War with the American officers stationed at the garrison was under way, and without so much as a bath, Arnold imm...

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Edward Estlin Cummings essays Edward Estlin Cummings was an American poet, who was one of the most radically experimental and inventive writers of the 20th century. Some distinctive feature of Cummings's poetry is the abandonment of uppercase letters and his use of grammar, sentence structure, and punctuation. He had his own unique style of writing unlike any other writer in history. E. E. Cummings was born in Cambridge, Massachusetts on October 14, 1894. Early in his life, Cummings parents, Edward and Rebecca Clarke Cummings, encouraged him to develop his creative writing skills. In 1911, Cummings entered Harvard College, where his father was a teacher, specializing in Greek and other languages. In 1916 Cummings receives MA from Harvard Graduate School of Arts and Sciences. After Harvard, Cummings moved to New York City to work for a mail-order publishing company. In 1917 Cummings volunteered to serve in the Norton-Harjes Ambulance group in France. During Cummings service, he met William Slater Brown, who becomes his life long friend. They are both assigned to ambulance duty on Noyon sector. Later Browns letters home aroused suspicions in the French army censor. On September 21, 1917, Brown was arrested along with Cummings, who refused to separate himself from Brown. They were both imprisoned for three months at a French detention camp. In 1922, Cummings wrote a book about his experience in the detention camp called, The Enormous Room. After the First World War was over, Cummings went to Paris to study art. When he returned home to New York in 1924, Cummings found himself a celebrity for the Enormous Room, Tulips, and Chimneys. In 1931, Cummings published a collection of drawings and paintings titled CIOPW, (an acronym for the materials he used: charcoal, ink, oil, pencil, and watercolors) and had many individual show in New York over the next three decades. Over the next few years Cummings published many other books of poetry. He pub...

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American Education And William A Henry Education Essay In America today we believe that everyone should be educated and seek some form of higher education. We also believe that everyone should be entitled to the same educational opportunities and given every chance to become a productive member of society. Because of these beliefs it has made us the strong democratic country that we are today. In William A. Henry III’s essay â€Å"In Defense of Elitism† he believes that everyone should not be given the same educational opportunities; because he believes that not everyone is competent enough to make it in college. Henry thinks that a college education should only be offered to an elite few. He believes that if America would follow his method then the educational standards would rise and make college more prestigious. Henry believes that too many students in college today are only there to make more money in the future and he believes that this is the wrong reason to seek a college education. Because of this it is creating a tremendous downfall in our education system. Henry is not alone on this belief. Benjamin R. Barber shares this same belief in his essay â€Å"America Skips School.† Barber also agrees with Henry in the belief that there should be a very distinguished line separating vocational and academic education. Even though they share some of the same beliefs, they begin to clash when it comes to their ideas of improving America’s education system. Barber believes that we have failed to educate our youth. We have created a money hungry generation and by not allowing them to go to college will taking away the only opportunity they have to become well educated and a productive member of society. Barbers ideas and beliefs outweigh those of Henry, because he realizes the need and importance to have well educated citizens in order to preserve and strengthen the strong democracy that America has worked so hard to achieve. William A. Henry criticizes America’s views on education. He thinks that having this egalitarian outlook is degrading our educational values and taking away from the hard work and accomplishment of getting a college degree these days. Henry backs up his point by stating that there are too many students enrolled in college and eventually the standards and requirements for college will drop. Henry believes that it’s normal for your average young adult to receive a college degree and the prestige of possessing one is no longer there. Ultimately, he thinks we have allowed too many people who are unqualified to receive a college degree. Henry would like to see elitism brought back to America’s education system. Therefore he proposes that we reduce the number of high school students who go on to college by giving every senior a standardized test and shutdown down schools depending on the students performance. Henry thinks that every student is ultimately responsible for their own future and eventually they have to step up and take responsibility for their own actions. By separating the ones that care about their education from the ones that don’t will restore our education..

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Answer a sustainability memo Essay Example | Topics and Well Written Essays - 250 words

Answer a sustainability memo - Essay Example Starting with nutrition, McDonalds promotes the use of natural fruits and vegetables directly from the firm. Also, it has specially designed milk products with low fat contents for children. By tailoring their efforts to meet specific consumer demands, this company has managed to cut down on wasteful supply of food products. As regards to environmental conservation, McDonalds has partnered with several other agencies to carry out research aimed at developing sustainable and environmentally friendly packaging materials. By reducing effective weight as well as improving the design of materials used for packaging, the firm has significantly reduced the amount of raw material required to make the packages. In addition, the package materials are organic in nature, hence biodegradable. This reduces the environmental impacts of the waste packets. McDonalds has further taken measures to tap the most of the recyclable green energy. In their restaurants, they have installed solar panels and wind turbines so as to utilize the solar and wind energy respectively. These actions reduce the overall dependence on oil energy that is not only non-recyclable, but also the greatest contributor to air pollution

Management Style in Gate Gourmet Research Paper

Management Style in Gate Gourmet - Research Paper Example This number came to 45 and questionnaires were distributed to 45 employees of GG while they were coming out after completing their shifts. This was considered necessary to achieve the objectives of the study outlined above. The first question related to the overall working conditions prevailing in GG since the settlement of the dispute in 2005. Out of the 23 male employees surveyed 8 of them agreed that the working conditions are satisfying. While 10 of them took a neutral stand 5 of the employees mostly disagreed with the statement that the conditions are satisfactory. A graphical representation of the replies is appended below: The same question was answered by 22 female employees. Of he female employees surveyed 2 of them were appeared to be satisfied with the working conditions at GG. 12 of them took a neutral stand whereas 8 of them mostly disagreed with the statement. For the satisfaction about the overall working conditions, out of the total sample of 45 employees, none of them agreed that they were satisfied with the working conditions. Out of the balance, 10 of them mostly agreed and 22 of the employees neither agreed nor disagreed that the working conditions were satisfactory. While 10 of them mostly disagreed 3 of them totally were not satisfied with the prevailing working conditions. The graphical representation is as below: Here the employ... For the satisfaction about the overall working conditions, out of the total sample of 45 employees, none of them agreed that they were satisfied with the working conditions. Out of the balance, 10 of them mostly agreed and 22 of the employees neither agreed nor disagreed that the working conditions were satisfactory. While 10 of them mostly disagreed 3 of them totally were not satisfied with the prevailing working conditions. The graphical representation is as below: Question 2: Organisational Value: Here the employees were asked to comment whether working with GG makes them feel that they are valued and respected. For this question, out of the sample of 45 people, none of them agreed that there is any value; 5 of the employees mostly agreed; 19 of them took a neutral approach; 19 of them mostly disagreed and 2 of them totally disagreed that they had any value or respect. The pictorial representation: Question 3: Prospects for Employee Growth: Under this question the selected employees were asked to present whether in their opinion there was any opportunity for the employees to apply for getting appointed to senior positions in GG. The answer was 'YES' by none, mostly agreed by 5, neither agree nor disagree by 24, mostly disagree by 15 and totally 'NO' by 1 employee. The graph is as shown below: Question 4: Existence of Downward Communication: The employees were asked to answer the question that whether there was any downward communication between managers and the staff in the form of regular meetings. None of the employees replied affirmatively. While 3 of them mostly agreed that there were meetings, 22 of them remained non-committal. 10 of the employees mostly disagreed to the opinion that

The Solution to Terrorism Essay Example for Free

The Solution to Terrorism Essay Incidents of terrorism are among the biggest problem being faced in the international community. Terrorism is the use of coercive force to spread terror, fear and chaos amongst innocent victims. Terrorism is usually perpetrated to impose an ideological goal in which terrorists believe that targets must be deliberately aimed at, disregarding the outcome of their actions, the welfare of their combatants and their impacts upon innocent civilians.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Terrorism is a widespread phenomenon. Most of the countries suffered from its effects since the dawn of history. While there have been modifications and aspects at which it is employed by terrorist groups, the ultimate goal is to instill fear and to weaken the states in order to impose their ideologies towards other societies. Thus, international terrorism has indeed posted a great amount of uncertainties, doubts and fear among the people. The solution to the terrorist incidents is yet unknown, however there are different views that are of great importance in order to solve this dilemma.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   United States of America, with its hegemonic leadership, has also claimed about being victims of terrorism. Attacks launched against United States have put them under fire. And as such, the actions committed against their government and stability fueled counterattacks, and the has rather put the emphasis in battling terrorism intensified than ever. United States Terrorism   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The terrorist attacks committed against the United States of America flared up a number of heated reactions and counter aggressions. The attacks on September 11, 2001 marked the aggressive counter insurgency acts against their perceived opponents. Simultaneously, the United States government made an international statement that involved United States allies in their â€Å"fight against terrorism† (Zunes).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When the attacks occurred in United States, the government was prompted to retaliate and create plans of action in order to restore peace in the country. Counter terrorist actions are also geared towards eradicating terrorists activities around the world. The United States government under George W. Bush administration claimed that the actions that they initiated were aimed at helping other countries that are suffering under the claws of terrorism.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   However, some observers within the international community had different views on the United States intention behind their savage plans of action against the countries which they thought and believed were supporting terrorist groups. Given the history of warfares that United States engaged in, some believed that there were far larger motives behind the attacks they launched, specifically against Iraq. Solution to Terrorism     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The incidences of terrorism have been excessively alarming. And the past counterattacks to subdue terrorism have never been proven to become useful in solving the terrorist dilemma. Instead, the counterattacks that targeted United States aggressors rather intensified the chaos brought by insurgencies.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Religious disputes have been for long, the root cause of ideological differences which often result in religious wars. The United States deliberate refusal to recognize their religious differences with the Muslims, further heightened the animosity between Muslim states and United States and their allies.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Violence is never a solution for violence; as such, war will not be able to put an end to wars. The recent experiences of United States in their engagement in wars will prove that further involvement in such will only increase atrocities rather than solve the conflict. During the three years wherein United States participated in the war in the Middle East is a proof that chaos countered with chaos shall only never succeed in bringing democracy in Iraq, Israel or countries in the Middle East that are being questioned for support to terrorism (Zinn).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These actions from the United States are only proof of them being â€Å"inevitably indiscriminate and morally reprehensible† (Zinn). The truth that the United States resorted to use violent means in dealing with such situations, rather than employ democratic ways of solving conflicts is a proof of their refusal to make amends to ensure international peace. In addition, these attempts to seize the lands and territories of Unites States opponents have only acquired them more enemies rather than allies. It further increased the animosity between races and religions, which definitely will not work to the benefit of the people.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It must be reiterated that increasing the animosity between two sides who believe in different religion, culture and ideologies will never put an end to international chaos. Rather, if two opposing sides will try to meet despite their differences rather than widening the gap, international peace may be attainable.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In this light, it must be put into consideration that indeed religious differences are important factors in solving the terrorism dilemma. People must learn to believe that Islam is not, and was never the source of terrorism in the world. The concept of â€Å"Islamic Terrorism† in the world has widened enough the gap between the Muslims and people who belong to different religious groups. Islam is not cause of terrorism. And as such, acceptance of this fact may lead the international community towards a solution in combating terrorism in a rather peaceful way (Yahya).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   According to Islamic believers and scholars, Muslims do not view war as the sole solution to bring peace in the world, neither to impose their beliefs amongst the people. The values taught to them from their religion states that spreading terror amongst the society is never an option, nor killing innocent lives. Religious wars and retaliations are only allowed and necessary if their beliefs and race are being trampled by other people (Yahya). The Root Cause of Terrorism   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The increasing trend of third world animosity is one of the most important factors that contributes to the occurrences of terrorism. Islam, being a widespread religion and belief among members of the third world countries has become a target for first world countries who have beliefs different from what they are accustomed for.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Members of the first world countries, the United States in particular have always been a fanatic of providing â€Å"enlightenment and camaraderie† amongst less developed countries. Americans and their allies have always assumed the role of â€Å"leaders† and international pacifier. Thus, they have neglected the need to recognize their differences with other people of other descents.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This animosity and eagerness of the Westerners to â€Å"educate and liberalize† their counterparts in the East has increased the gap between the more powerful West and the less developed East, particularly the Muslim nations who have always considered their beliefs as sacred. The Westerners inability to understand these differences caused the Muslim Easterners to feel dislodged from the international community. And the massive attempts done deliberately to lure them into embracing the Western culture only aggravated the gap and the hostility among nations.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Terrorism has occurred as a response to the Westerners, particularly United States attempts to extend their influence over other countries. These retaliations were geared towards preserving their culture, and protecting their beliefs and territories from foreign invasion. However, United States with their distinct influence and control over the majority of less developed countries were able to rationalize their attacks and actions against Muslim countries as noble acts that are only intended to keep the international community peaceful and less chaotic. Conclusions and Recommendations for the West   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Western notion on the use of terror in the Islamic context is often misplaced and deliberately misused to serve the Westerners purpose. The continuous beliefs by the majority of the world that Islamic fundamentalists are terrorists add to the animosity and anxiety of Muslims against people from different race and religion. If this shall perpetuate and continue, the gap between Muslims and Christians, Westerners and Easterners and third world and first world countries shall never be resolved.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In order to put an end to these animosities, the continuing clash of civilization must stop first. The notion of West superiority and their desire to civilize the East will not work at all times. Other states will retaliate and oppose this â€Å"noble† cause. As mentioned, the Muslims are highly trained to believe that their religion is sacred, and attempts to forge another belief into them will cause further violence rather than peaceful amendments. Thus, rather than trying to impose a new culture, religion and set of beliefs to them, the Westerners should learn how to cope with their differences and try to become rather open in dealing with them.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Most importantly, the source of all the conflicts in the international arena is anchored on the ignorance of the people and their deliberate attempts to enforce bigotry rather than acceptance. Thus, instead of insurgencies and counterattacks against those who believe differently from what they have been accustomed at, people from different countries must try to become open at accepting differences.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Gaining a better understanding of the occurrences behind terrorism and recognizing the differences between races, ethnicities and religions, a solution to terrorism may be found in increasing the openness of different societies with each other. Cultural and religious relativism may decrease incidents of terrorism. In addition, recognizing the pursuit towards political, economic and religious autonomy from the dictates of more powerful nations may help in subduing terrorist threats.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Different people who belong in different races are always prone to misunderstandings. However, given enough concern and openness to the varying opinions from people who were raised in different cultures and societies will lessen the hostility between races and ethnicities. Thus, instead of engaging in wars and resorting to violent means of resolving these differences, governments of states must think of better and more proper ways of reaching out to other states. Imposing ones influence through the use of coercive force is not effective, it rather brings forth violence while instilling fear among the citizens. If we want the world to become peaceful and less chaotic, we must start employing peaceful methods to battle terrorism, violence and hostilities between countries.       Works Cited Yahya, Harun. (n.d). â€Å"Islam is Not the Source of Terrorism, But its Solution.† Islam Denounces Terrorism. 24 July 2008 http://www.islamdenouncesterrorism.com/mainarticle.html Zinn, Howard. (2006). â€Å"War is Not a Solution for Terrorism.† Boston News. 24 July 2008 http://www.boston.com/news/globe/editorial_opinion/oped/articles/2006/09/02/war_is_not_a_solution_for_terrorism/ Zunes, Stephen. (2001). â€Å"International Terrorism.† Foreign Policy in Focus. 24 July 2008 http://www.fpif.org/briefs/vol3/v3n38terr.html

Effect of Standard Pricing Changes on Firm Operations

Effect of Standard Pricing Changes on Firm Operations The Rise and Fall of Standard Pricing and Its Effect on Everyday Operations For European and American Firms Table of contents (Jump to) Executive summary General overview Accounting overview Literature review Standard pricing as accounting practice Operations management Operations life cycle Continuous improvement Core value systems Discussion and conclusion References EXECUTIVE SUMMARY The overall purpose of this paper and study is to investigate cost or lean accounting within the operations management realm and how its unpredictable rise and fall allow organisations to continuously learn and utilize knowledge management as a core value. It was also important to use a larger organisation that has history of outstanding operations and customer centered focus upon services. This investigation will require an in-depth study of work processes, communication and leadership with regard to knowledge management as a value within the team construct while looking at how this reflects leaning accounting principles. What tools are available and what kind of evolution is Nestle undergoing in order to remain competitive in a changing economy? How does this change knowledge management and communication company wide? What this study argues is that accounting practices are changing due to the evolving business plan. This is a movement toward modern accounting and it is important to see the relationships between costing accounting, its fluctuations and how they impact the health of the organisation as a whole with regard to productivity and job satisfaction. How an organisation applies methods of costing into its framework for accounting of expenses and its direct rise and fall over the time period of the product life cycle, directly influences the production, operation, distribution and employee retention of the global company. In fact changes in accounting practices have led to many tried and true business models to no longer exist. Costing and its rise and fall can have a direct relationship with success and competitive advantage in the market place. However the purpose of this study is to explore and reflect upon how accounting practices change operations management and the supply chain management model as a tool of managers and team members alike. Really it is how accounting practices have changed business practices because of new legislation focusing on global companies in Europe and the United States. Accounting costs, expenses and losses reflects the health of the organisation and with change comes confusion. This study argues th at with such changes comes a lack of defining the company’s value within the market but also the value it has for its employees, as they become active participants and investors. GENERAL OVERVIEW How corporate accounting is handled is changing worldwide. How each expense is accounted for within an organisation’s financial sheets has been evolving. Such a proposal for change has received much commentary from not only the financial community and corporate America but also key members of Congress, European union leaders and the public. Such a response results from the uncertainty that such change will benefit businesses and economic growth. It is feared that such change will have the opposite effect and cause world leaders to lose its competitive edge in the global market. Still this has not stopped the fuel of the fire as the American Financial Accounting Standards Board (also referred to as FASB) has struggled for an answer to such a dilemma. The urgency for a solution has only been stressed recently in light of such debacles like Enron and Tyco. It is believed that companies do need to account honestly for expenses but at what price to its employees, the public and the economy? Part of the issue with current legislation to change the practice of accounting for employee stock options is that there is no real way to value their worth. This creates an unsettling feeling among investors and employees struggling to understand this benefit. ACCOUNTING OVERVIEW What this truly means for any corporation functioning globally or even locally this that effective cost accounting because a volatile issue for management to consider. One could argue that such rise and fall of how costing/pricing pays a part in the entire operation has a negative effect upon how the company’s valuation is seen on the open market. Costing at every step of the product life cycle plays a huge part in how this valuation is decided from inventory at the shop floor level, to everyday operations management, to an employee’s value with the company and their net worth personally. Changes within the global economy in the recent years the disappearance of tried and true business models leaves many with a poor taste in their mouths because one must understand how efficiency, affordability and effective leadership come into play. Effective pricing or costing of routine operations and corporate behaviours must be tracked and studied in order to carve the fat. This s tudy aims to look at exactly what the rise and fall of pricing or costing means to a global organisation conducting business on many levels. For the purpose of proving the argument that such changes in accounting practice has a negative effect on the organisation, one will look at examples from the shop floor to the employee’s estimated value with the company in the form of job satisfaction. Accounting for such expensing and pricing correctly is what makes the organisation strong but also accurate in valuation. With this in mind, traditional business models like Wal-Mart and Nestle are discussed because these are globally operating corporations. Debates about whether or not the fair value of the employee and the company stock options should be expensed on the income statement continue to rage among industry representatives, politicians, and pundits. Expense recognition of stock options can have significant impacts on net income and earnings per share, so this is a debate worth having. But many of those who analyze companies consider operating cash flow a better performance metric than income. One reason is that operating cash flow is thought to be free from the infection that makes income grossly weakened. In the case of employee worth and stock values, however, there is proof that this assumption is flawed. Option exercise affects operating cash flows in ways that analysts need to understand. Repurchasing shares to fund option exercise also results in financing cash outflows. The net cash flow impacts of options are often negative, but can be quite volatile from year to year. LITERATURE REVIEW STANDARD PRICING AS ACCOUNTING PRACTICE It can be difficult to assess why a product has a certain cost or price to the consumer. How is it that companies arrive at certain amount for a product or service? What are the factors that play into this amount and do they change over time while in the market? Mish defines clearly, price as being â€Å"the value or worth; the quality of one thing that is exchanged or demanded in barter or sale for another† (2004, p. 985). A mistake that happens to many companies is they allow the market to manage the price of the product and avoid strategic management of pricing in general. What is usually done according to Nagle is â€Å"they list the prices based on their own needs and then adjust transaction prices to based on what customers say they are willing to pay. Only a few companies question why someone is willing to pay no more that a particular amount or how that willingness could be changed† (2002, p. 1). In order to be strategic in pricing, a company must confident and understand that â€Å"pricing involves managing customers’ expectations to induce them to pay for the value they receive† (Nagle 2002, p.1). Fortunately, when it comes to financial products, many customers remain in the dark about product and services. Sometimes a service oriented company such as the Bank of England can take advantage of such undulation but as more information becomes available due to the Internet, it is becoming increasingly more difficult for a company to set the pace this way. More than not, more companies especially financial ones that rely on customer relationships, allow for a value-based price structure that is contingent on the customer paying when value is delivered. This type of pricing system relies heavily on segmentation of the demographic when it comes to offering promotions and incentives to buster customer loyalty. Much of this applies to financial type products that are well defined for the consumer either through education or these pr oducts are a must in life like the credit or loan product. Keeping this in mind, many financial products consist of high quality products and add-ons that when offered by one company allows that company to diversify and establish the price. The table here below aids in illustrating this point. Table 1: Pricing Strategies (Anderson Bailey 1998, p. 2) It is also important for a company to keep in mind demand for the product or service. This is why diversification and globalization are quickly becoming elements of strategy as companies look for new ways to target consumers and enter new areas where their original product has a new life cycle. This is a matter of economics but important for understanding marketing strategy with regards to cost switching or price switching. â€Å"The greater the price elasticity, the closer the company can price products to similar competitive products and vice versa† (Allen 2002). In an industry like the mortgage industry where homeownership is more prevalent in Western nations, elasticity is high and therefore, it is fair to remain competitive with other companies. Also a company like Nestle can bet that charging less may lead to more food products created as customers find they get more service for less money. In this respect elasticity can work either way. It really depends on degree of ri sk one company is willing to take. Still it remains to be found if such a tactic even works when it comes to customer loyalty, as this will be explored in greater detail later. However, it remains to be seen if price loyalty does exist. It seems â€Å"the key to effectively competing for loyalty is ensuring the quality of the customer experience, not the quantity of customer rewards or discount prices† (Compton 2005, p.1). However, the price needs to be adjusted for what the customer expects. It can be a cycle that changing continuously depending on the product or service. Carmona, and et al (2004), writes of the origin of activity based costing method of accounting or ABC that came into vogue in Europe during the 1920s. What ABC does specifically as Carmona, and et al (2004) speak of Vollmers’s work as: Deployed significant efforts to account for distribution and marketing costs, which ‘tend to be ignored today.’ This first event is then taken as record of the origin (both in terms of time and space), from which the new practice mainly spread both temporally and spatially. (p. 36) This is the start of a movement toward the double entry system and this saw delay and many weaknesses because it did not present a clear, complete picture of accounting. Its weaknesses were found in inefficiencies with charges and discharges. As a result, early double-entry systems were seen as unreliable and not useful to big business. It would not be until later that advanced book keeping procedures would take into account advanced operating processes in production. Carmona, and et al (2004) found these systems although not perfected were used in England and the Colonies as early as 1760 (p. 37). It seems this was the trend as no real streamlined, conforming system would be adopted until modern business practices came into place in the United States. Move to a global arena and model of production purposes and a more refined system is needed because a lot more is at stake. Global business is all about the details. It became common practice more investment applied, the more generally accepted accounting practices became as a diffusion of new technology. Accounting practices became more generally accepted behaviours as businesses became bigger and more prominent in communities across the world. Practices are implemented as Abu-Raddaha, and et al (2000) surmises the following: The information provided by accounting should facilitate international trade and capital flows, not hamper them. It should inform, not just report. More importantly the information demands of both domestic and international financing and other commercial relationships, have to be satisfied. (p. 19). Everything must remain in balance or presented as a well-oiled machine. How does an organisation get to this point of transformation with its accounting practices? Modern accounting asks for more participation and optimisation from the start to finish by the corporate accountant. The actions of the corporate accountants must change as the movement toward lean functioning continues to take place. It should not be a painful process but one of creativity, flexibility and growth. There is a concern that lean accounting requires one to turn off creativity and be boxed into one function or thought process. This will be explored late as a post-modern viewpoint of business where each person has a function within the total quality management or TQM perspective. Modern business may use this as a framework but the modern business model has evolved beyond this fixed view. The truth of the matter is that modern accounting practices could not be further from this view of being boxed in but rather goes beyond breaking the box and creating a different mindset where thin king is seen differently than before. Accounting is seen differently as not having finite possibilities but infinite reasoning. Traditional methods are flawed as proposed by Van Der Merwe and Thomson (2007), â€Å"the direct costing approach doesn’t absorb any overhead or even fixed costs†¦resource consumption accounting or RCA makes no arbitrary assignments at all† (p. 29). A lean, effective method allows for a more detailed account of capacity costs and a basic approach to data collection. Modern times call modern values and thought processes with regard to business seamless behaviour across the production floor. The lean method maintains a â€Å"one-touch flow system† (Van Der Merwe Thomson 2007, p. 29) for information diffusion across the life cycle. This one-touch flow system can be integrated with a supply chain easily and reflects this value added element as a method for better, honest accounting. OPERATIONS MANAGEMENT A most important factor for facilities management to recognize is the use of Total Quality Management (TQM) or a variation of TQM. TQM according to David Steingard is â€Å"a set of techniques and procedures used to reduce or eliminate variation from the production process or service delivery system in order to improve efficiency† (Steingard 2002, p. 2). TQM fits with the facilities management way of doing things as many of their functions require repetition or constant monitoring of daily, weekly and monthly items. Because this is a modernist concept and the modernist movement believed in certainty and static methods of looking at the world, there is not much room for the uncertainty that change creates in today’s workplace using strictly TQM. Therefore either change in this environment must be controlled change or a variation of TQM must be used for the process to work and involve new technologies. Otherwise, TQM alone invents a work environment reminiscent of Franz L ang’s Metropolis and dehumanizes the employee. A variation TQM can be used in facilities management to aid defining team member responsibilities as it sees the whole team as a â€Å"machine creates a system of interlocking parts each with clearly defined use, centralized authority and high degrees of worker discipline culminating with the goal of routinised, efficient and predictable system performance† (Steingard 2002, p. 2). Each team member plays a role in the functioning of the machine. Still much like today’s business environment where change is constant, this system requires continued adjustment, modification improvement of function. TQM as way of defining a work process cannot operate entirely in today’s global market because it succeeds at the expense of innovation and the growth of the employee. It also does not leave room to incorporate change and new ways of improving functions. Still a memory of pure TQM feeds the â€Å"modernist machine of c onsumer capitalism which encourages over-consumption, planned obsolescence, ecological damage and depletion of natural resources† (Steingard 2002, p. 4). This memory has also burdened management as the obsession for perfection, control, consistency, productivity and efficiency increases over time. In today’s facilities team, there must be a healthy medium to not only use past methods for increased productivity and efficiency but also to include modern tools and equipment to make the job easier. In order to remain competitive, technology cannot be ignored, the systems it provides must be implemented in order for logistics to remain seamless and keep up with demand and customer expectation. For instance failure to embrace logistics and technology results in inventory costing a company more money to store than it is worth. McCullogh writes, â€Å"Right now sitting around the globe is a bunch of inventory (worth an estimated) United States $1 trillion—United States $1 trillion of boxes of stuff is just sitting around a warehouse† (‘Warning: Don’t Snub Logistics’, p. 1). This has the potential to represent about 60 percent of the average company’s working capital. This is capital in limbo that is not maximizing its investment potential. A sign of successful shop floor operations is reliance on very little warehousing. In other words, warehousing is measured as the amount of days per month a product sits in the warehouse and if logistics is implemented effectively, this number will decrease and stabilize. The retail average storage of inventory is 26 days of investment not being utilized, profit being lost and daily expenses being incurred in an endless holding pattern. In order to reduce the amount of days inventory sits means companies must create tighter relationships with suppliers via the web or perfect a system of communication between resources to cut out warehousing all together. Instead of inventory remaining stored because of wireless communication and data collection, the product can go straight from the supply source to the retailer’s shelves via a distribution centre that acts much like mail sorting centre. This can work because technology enables a retailer to send data immediately to the supplie r of products that are moving off the shelves with a click of a button. From this electronic message, the supplier knows what the retailer needs, what products are popular, how much and sends then instantly to the retailer’s distribution centre. In organisations the size of Nestle or Wal-Mart, logistics strategy requires much forethought and planning, as there are many branches and divisions that are involved in the process. The idea is to reduce expenses and increase value to the organisation by making the company more productive and efficient. This needs to be done as seamlessly as possible to continue brand loyalty and customer relations while maintaining market share and competitive advantage. In many ways, implementation of this strategy creates a delicate balance. In order to have better Business to Business or B2B relationships, one must understand the connection. Robert Thierauf and Hoctor (2003) explain, â€Å"B2B is about connecting shared businesses and information processes of the extended trading networks, planning, shipping and logistics, inventory management and customer retention to name a few† (Thierauf Hoctor, p. 181). In other words, an optimized planning process can save millions dollars and allow a multination corporation to carry out its objective and gain market share. This means applying advanced technology such as i2 used by Dell Computers and typical ERP vendors. In today’s act of doing business, B2B exchanges are based on supply chain management or SCM technologies (Thierauf Hoctor, 2003, p. 182). This will mean considerable investment in such technology but the benefit of market share will prove it to be a valued investment over the long-run (Burn Hachney 2002; Scerbo 1999). Running these centres effectively certainly poses a challenge of management. Manufacturers must develop new skills and confront channel conflicts with dealers, distributors and independent operators. Leaders in these positions must have an understanding of managing the conflicts in these channels. But well-managed distribution centres would more than justify the risks, as it would save the organisation a significant amount of overhead. With operating expenses as the main cost, it is possible to make the distribution venture essentially self-funding. Facilities can be rented on short-term leases and surrendered if the location isnt successful within a year or two. The cost of goods and labour can be managed as volume grows. Companies should remember that a manufacturers original warranty work usually accounts for about half of the labour expenses and for as much as 20 percent of the total value of services rendered, but these costs are typically charged back to the business unit rather than borne by the company’s distribution. In markets poorly served by local dealers or other distributors, for instance, a centre should gear itself to its company’s end users or consumers by choosing a high-traffic retail site. Profits at these locations are generated largely through the sale of accessories and optional services to walk-in or mail order customers; outlets thus need appealing product displays or sales pr esentations. Different kinds of retail distribution centres pursue different economic models. Although gross margins on sales to end-users are higher, orders tend to be smaller. Locations that focus on distributors can achieve scale faster and be just as profitable. The largely similar economics of service centres vary only according to which customer segment is best served at each location. Companies run their own centres and tie management bonuses to profit and growth goals at each site. Either way, some support functions, such as marketing, human resources and information and financial systems, are best managed at the corporate level. Warehouses and distributions centres are caught in a squeeze between customer service demands and cost drivers. The challenge for most organisations is create a network that can deliver on customer demands while keeping costs down. This is the number challenge in supply chain management. Supply chain management presents a huge undertaking when it comes to overhead operating costs. Many of the tools have come down in price because usability has gotten easier. As a result, more and more companies are adopting a supply chain management philosophy for distribution and are re-evaluating its effectiveness every two years as opposed to before at every five years. Management members are interested to see if the efficiency of the centre matches its service level provided. Research has found a direct relationship between the number of distribution points, transportation costs and customer service targets. The network and its design are driven by improvements so that the cost of transportation can be offset. This may include reviewing an organisation’s transportation arrangements. Loading patterns should also be examined to find ways to cube out containers and trailers (Trunick, p. 1). What possibilities can be used to have a cost-effective outcome for the distribution centre? Does this mean consolidating shipments or a move to parcel and less than truckload shipments? Can shipments be combined to make greater use of truck cargo space? Can the organisation hire rail or air as better shipping alternatives to using company trucks over longer distances? In addition to examining loading can the routes used by the trucks be adjusted to be add to cost-efficiency? An organisation would benefit using their state’s transportation management system or a department of transportation, DOT to map out distribution volumes and patterns. This would help in providing dynamic routing options that can be flexible to change distribution needs in the network. This can benefit the fleet by reducing fuel supply needs and help control costs and usage. These efficiencies would result because the routes would decrease in mileage and also wear/tear on the vehicles and insurance costs. Efficiency inside the four walls of the distribution centre can also be improved. Relatively speaking the size of the average distribution centre has grown from 300,000 square feet to one million square feet (Trunick, p. 2). This is simply due to operating space needed to move inventory from point a to point b. But the real reason the distribution centre is larger today is mainly because organisations have seen the need to put all operations under one roof. By putting multiple facilities into one larger distribution centre improves the time it takes to transport inventory. Still the larger centre is made possible because of improved transportation systems but also implementation new technologies that not only enhance a brick and mortar store but also a virtual one. Plus, the organisation has the manpower under one roof. The company only rents one building and keeps the inventory in one place rather than moving it from warehouse to warehouse. This allows the company to provide better service to the consumer. Because of these factors, information systems are critical to the success of the larger distribution centre. Data has the need to travel from one area to another and that is why more and more companies are investing in radio frequency terminals both handheld and vehicle mounted. Investment of these RFID systems is not inexpensive and many retailers such Wal-Mart and Target are looking for ways to enrich the present technology and systems without implementing a whole new infrastructure into the walls of the centre. By being able to enhance present systems proves to be cost effective because not only is an upgrade cheaper but also it is easier to train employees to run. It is a company’s ability to effectively handle investment of new technologies that allows the centre to run better. Still as Trunick writes, the concern is not found in hardware but in data. â€Å"Databases have traditionally been structured to feed a number of different systems, but that’s not a long term architectural solution† (p. 2). Part of the problem a distribution centre faces with data storage is being able to provide the data in real time and allowing the data to remain clean and not crowd. As a result many companies are searching for better solutions than using RFID in supply chain management. It has not proven to be productive in the distribution centre setting not like 8 percent in the warehouse setting (Trunick, p. 2). One new technology that was introduced to the Nestle facilities management team in 2006 was the use of a computerized tracking system for client user orders. This system was implemented to better track the status of job orders among the team members. This system acted to alert a team member of potential deadlines and current job load status. It also allowed management to better track individual and team progress. This resulted in a monthly recognition program to signify when quotas had been met or when a team member received a client user compliment. This system also had the capability to record the negative such as being late to a service call or failing to complete monitoring of weekly items for inspection. The system would then e-mail the team member and the direct supervisor if such conduct occurred (Facilities Training Group 2007, p. 11). This system replaced the old process of â€Å"tracking† client user orders that consisted of logging each order into a spiral notebook. With the advent of the company’s intranet site, management hoped to improve communication between the facilities team and the client user by offering an electronic request system. This would reduce the amount of time the facilities team spent fielding phone called requested and allow for multi-tasking of various jobs. What management had hoped the system implementation would result in, did not happen mainly due to team member lack of communication and resistance to change due to a pre-existing TQM elements within the old process of handling client user orders. Management had hoped as the Business Open Learning Archive details, â€Å"automation would exploit available technology to speed up operations, make them more reliable and to reduce unit costs and their risks and costs. This would bring flexibility to the system already in practice† (Operations Technology 2005, p. 1). This type of new technology or just-in-time or JIT technology requires careful handling and extensive training. What facilities management team leaders had not prepared for was the team member response. Many of them despite being competent, responsible employees did not have knowledge of computer systems. Many of the team members had been with the company over twenty years and had been hired to the division. Many of thes e types, fall into the category of being older but also having a specific specialization in which they were in the field most of the time (Facilities Training Group 2007, p. 24) not requiring any other extensive skills. Another factor management had not anticipated was a considerable language barrier as many team members who had worked together for years, continued working in their native tongue of Spanish. A final aspect of the mixed response for the team had more to do with timing than anything. Management provided a three-day training session and then allowed two weeks for the new system to be adopted. The transitional period was too short and was met with much resistance from many members of the team. Many did not accept the change or completely understand the new system. Many did not check their email or use the tracking component. Finally, despite company wide advertisement of the new online request feature, most client users did not use it and continued to phone in requests. This resulted in not a decrease in time spent on the phone but due to the new system’s lack transition and rejection by some of the team, the group received three times as many calls in one week (Facilities Training Group 2007, p. 33). The team had to hire a temporary employee to aid in taking calls while team leaders provided on the job training and supervised walk-through of the new process. The period of six weeks it took the team to get ba