Investments and Assessments Research Paper Example | Topics and Well Written Essays - 250 words

Investments and Assessments - Research Paper Example responsibility efforts put in by the company yield needed results, the company has its own assessment mechanisms that it uses in measuring the effectiveness of the programs. Commonly, the company would use a qualitative assessment test that compares the corporate social responsibility goals with the larger company business plan to ensure that there is a relation or positive link. Given that the company has set business plans and strategies of becoming a market leader and also expand its profit base, the financial successes and expanded growth experienced by the company in the last five years makes the company conclude that its corporate social responsibility has yielded positive results (Norberg, 2000). From the 2012 sustainability report published by Marriott Company, it can be seen that as many of the company stakeholders that were identified as possible expressed positive sentiments about the impact that the company’s corporate social responsibilities through sustainability is making (Marriott, 2012). This is because the patronizing populace has been identified as people who have become more concerned about the need to trade with sustainability oriented companies and so they have responded to the company’s quest by increasing their patronage of the company’s services and products offered. It can therefore be seen that there exists no differences in the opinions expressed by stakeholders as against the one expressed by the company. Marriott Company. 2011/2012 Sustainability Report. Accessed February 23, 2013 from

Preparing to Write and Drafting the Paper Essay Example for Free

Preparing to Write and Drafting the Paper Essay When it came to writing all these papers I gave myself time to think about the topics and tried to make sure I understood them before I sat down to write the essays. I have never really been a strong writer when it came to essays in high school it was not an easy task for me. I never had a good strategy when it came to actually writing the papers and putting everything in order. I figured out how to stop worrying so much about getting the assignment turned in on time because that would always stop me from thinking more about the paper then it would turn out bad and I would even up getting a bad grade which would make me feel horrible. I figured out that I should worry more about the paper and then I would be able to focus on the paper so I would be getting it done on time as well. My strategy for writing a paper requires me write a rough draft, take sometime to reread it and then type it making sure everything is spelled correctly. Then making sure all my grammar is correct through out my entire paper also, making sure that I have the correct punctuation everywhere its needed. Then after typing up everything I go through the paper one last time to make sure there isn’t anything I need to add or take out which is usually where I see where I need to change my sentence structure and add certain works or move sentences to different paragraphs. With this class it’s actually been a good experience for me when it came to writing papers and trying to get everything done either early or on time. My writing process has improved with taking this class because I have actually taken time to figure out what I’m going to write about when it comes to the subject and I take care of the assignment in a timely manner. These essays all seem to me that they can be directed to the same audience and can be given with the same enthusiasm because they can be directed to some one in their 20s or 30s because it talks about taking an online courses along with other things along those lines. It would be a speech that I would defiantly be interested in because of how the person would talk to us also with the vocabulary they use because it wouldn’t be a speech that I couldn’t understand. When someone is trying to give a speech or write an essay its difficult when your trying to gauge what type of audience when they are giving a speech or when they are writing a essay trying to figure out if they covered all the important points that need to be covered and that is going to give you the best grade you can get with the course your taking either online or in a classroom. When you first start out with a paper you are a little unsure as to what you are trying to tie together in the very first paper you write but they you figure out what you need for the next couple papers and it gets a little easier for constructing the paper. Trying to get people interested in the subject you are writing or speaking about can be one difficult task because people tend to get bored very easy or they want to learn, about something different not the subject that you are talking about. Papers are what you seem to make them because you can either make them hard or you can make them easy on yourself. If you stress yourself out then you make it more difficult but if you make it easy by trying to take what time your given to make it a good paper. Making sure everything is in the right order that you professor will accept it a very big deal because they look for little mistakes and want you to do the best that you can when it come to the well being of your grade and your class. When you put it all together and present it to either your professor or your audience it can go either one of two ways good or bad. You can always hope it goes good but sometimes you can get some criticism when it comes to what was good and what was bad to your paper or speech. Just making sure everything is in order and how you want everything to be good.

Personal Narrative- Time Spent in Waiting Rooms :: Personal Narrative

Personal Narrative- Time Spent in Waiting Rooms As I get older there are a few things I’ve started to notice. One that really stands out is the amount of time I spend in waiting rooms. In my particular situation, I have an 85-year-old father, a wife, a fifteen-year-old son, four house cats, goats, horses, dogs, a few other relatives, and assorted other animals that turn up from time to time. My father, who has been a widower for several years, has a variety of ailments. Primary among these ailments are boredom and loneliness. When a person gets to his age all he can think about is "what hurts, how bad, if it hurts real bad will I wake up on the right side of the grass, and who will notice if I don’t." With each of these pains he thinks, "maybe I should see the doctor, I know he cares what side of the grass I wake up on, and he will alert my uncaring family to the gravity of the situation." Well, being almost blind he needs a driver. You can guess who that might be; it’s me, his uncaring son. So we go to the doctor, he gets my attention, and the doctors. I get stimulating conversation about hemorrhoids, in the waiting room. As I mentioned in the beginning, I also have my own oblivious 15-year-old son. Any of you privileged enough to have your own teenager will know that they think they can leap over a reasonably large building, and not get hurt. He’s bullet proof, just ask him. However, the other day Mr. Bulletproof decided to open a package of hot dogs with a foot long butcher knife. "Slice, and heigh-ho, heigh-ho, off to the waiting room we go." There is also in my life, my wife. Well, as far as that goes, I should leave it there. She just may read this sometime, and in case she is, "you know your never any trouble honey, and I am sure that accident was my fault." In fact, "I’m happy to wait for you in the waiting room." Then there are the animals. Just the sound of that last sentence, brings certain fears to my mind. An example of why occurred this summer. I was mowing hay, and low and behold what should appear out of the corner of my eye, but the dog. This dog had a mission and it started on the other side of the sickle bar mower. Personal Narrative- Time Spent in Waiting Rooms :: Personal Narrative Personal Narrative- Time Spent in Waiting Rooms As I get older there are a few things I’ve started to notice. One that really stands out is the amount of time I spend in waiting rooms. In my particular situation, I have an 85-year-old father, a wife, a fifteen-year-old son, four house cats, goats, horses, dogs, a few other relatives, and assorted other animals that turn up from time to time. My father, who has been a widower for several years, has a variety of ailments. Primary among these ailments are boredom and loneliness. When a person gets to his age all he can think about is "what hurts, how bad, if it hurts real bad will I wake up on the right side of the grass, and who will notice if I don’t." With each of these pains he thinks, "maybe I should see the doctor, I know he cares what side of the grass I wake up on, and he will alert my uncaring family to the gravity of the situation." Well, being almost blind he needs a driver. You can guess who that might be; it’s me, his uncaring son. So we go to the doctor, he gets my attention, and the doctors. I get stimulating conversation about hemorrhoids, in the waiting room. As I mentioned in the beginning, I also have my own oblivious 15-year-old son. Any of you privileged enough to have your own teenager will know that they think they can leap over a reasonably large building, and not get hurt. He’s bullet proof, just ask him. However, the other day Mr. Bulletproof decided to open a package of hot dogs with a foot long butcher knife. "Slice, and heigh-ho, heigh-ho, off to the waiting room we go." There is also in my life, my wife. Well, as far as that goes, I should leave it there. She just may read this sometime, and in case she is, "you know your never any trouble honey, and I am sure that accident was my fault." In fact, "I’m happy to wait for you in the waiting room." Then there are the animals. Just the sound of that last sentence, brings certain fears to my mind. An example of why occurred this summer. I was mowing hay, and low and behold what should appear out of the corner of my eye, but the dog. This dog had a mission and it started on the other side of the sickle bar mower.

External/Internal Factors Paper Essay

The Frito-Lay is a worldwide recognized organization that began from the union of two companies in 1961. Within this organization, management has had to deal with internal and external factors that affect the four fundamental functions of management: planning, organizing, leading and controlling. Globalization, technology, innovation, diversity and ethics have also had their impact on the four functions of management in the Frito-Lay organization. Managers for the Frito-Lay organization have found ways to use delegation to manage the different factors and functions and perform in an effective and efficient way. The planning function of an organization is important because it involves determining the goals for the success of the company. An internal factor that may affect the planning function of management at the Frito Lay organization is attention to competitors. When Frito-Lay plans to incorporate new ideas and demands, they look to the competitors for insight of how to approach th ese new ideas in a positive and well-thought out process. According to Leyla Norman, â€Å"a hurried entrance into a new market can cost the company money in the long run and not make full use of managers’ planning abilities† (Norman, 2004). This means that if the Frito-Lay organization does not take the planning process into full advantage when rushing to compete with other companies, they could end up losing instead of gaining profits and customer preference. An external factor that could affect the planning function of management is the economy. While determining the goals of the organization, the economy plays large role. When the economy is not at a high point, planning within the Frito-Lay company may be â€Å"stopped, adjusted or taken in a new direction† (Norman, 2004). As the economy recovers planning may be resumed as needed. The organizing function of management involves â€Å"assembling and coordinating the human, financial, physical, informational and other resources needed to achieve goals† (Bateman & Snell, 2011). An internal factor that could affect the Frito-Lay company is a financial necessity. If funds are not  available to pursue and achieve the plans of the organization, then it could affect the realization of the goals for the company. An external factor that could affect the organizing function within the Frito-Lay company may be any new technological advance. If the Frito-Lay company is not up-to-date with their technological capabilities, this could affect the implementation of the goals mapped out in the planning function. The leading function is described by Bateman and Snell as â€Å"stimulating people to be high performers† (Bateman & Snell, 2011). A factor that could internally affect Frito-Lay management in the leading function could be lack of employee performance. If employees do not have the motivation to achieve the goals of the organization, the whole company could suffer. An external factor that could potentially affect the organization and management of Frito-Lay is ethical issues. When there are ethical issues outside of an organization, it could affect the company in a negative way. This could be a major reason that Frito-Lay creates opportunities and depends on the â€Å"minority and women-owned entrepreneurs (M/WBEs)† (Frito-Lay, 2014). In the controlling function of management, performance is closely monitored and changes are implemented as necessary. When employees deviate from the established performance standards, an internal factor that could affect the management function is a conflict of interest. When there are conflicts of interests, such as family relationships, it could internally affect the performance monitoring. An external factor that could affect the controlling factor in the Frito-Lay company could be labor laws. Although Frito-Lay has standards of performance and expectations, they must still comply with labor laws as they are established for the safety and security of employees. There are many internal and external factors that impact the leading function of management. One internal factor that impacts it is employee morale. â€Å"Morale is defined as the end result of many factors present in the workplace environment.† (Javitch, 2005). Morale can make or break any business. If your employees have poor morale, it will affect customer service and customer satisfaction which is the key component to businesses. Competition is an external factor that can impact the leading function of management. If there is an outside company that is doing better than yours, it can discourage employees and supervisors as well. This can lead to poor attitudes and morale in the workplace which then turns into  internal issues for that company. An internal factor that impacts the controlling function of management is technology. Having up to date technology can help improve things ranging from order accuracy to financial management which are both essential things for Frito-Lay as they are a very large corporation with consumers around the world. The economy is an external factor that impacts the controlling function of management. The economy affects their profitability and competition as well. The economy’s condition could potentially impact their sales and profitability. â€Å"Globalization is an elimination of barriers to trade, communication, and cultural exchange. The Theory behind globalization is that the worldwide openness will promote the inherent wealth of all nations.† (Jones, 2014). Globalization impacts all four functions of management. Globalization opens the doors for more business opportunities around the world and increases management globally. It allows production to increase and allows employees to transfer to other positions within the company to other locations around the world. Globalization also increases competition due to the increase in an increase in customer base. Larger customer bases increase the profitability of businesses. Not having globalization previously would decrease the values of products due to their limit of customers. It increases a company’s ability to compete worldwide instead of limiting it to its country of origin which also increases profitability. The four functions of management that are impacted in the technological sense would be planning, leading and controlling Utilizing the function of management process within the Frito-Lay’s organization has made it one of the most popular and long standing companies in the snack food industry. How they plan, organize, lead and control is important to the continued success of the organization. Because of the large scale volumes they have to produce and distribute efficiently and continuously to all their customers they have to utilize the planning process in order to stay in the competitive market they are in. They also have to look for new and better ways to process their product. Frito-Lay is in a competitive industry and they always need to know what technology is available to them that when used it saves cost and increases productivity. When implementing new technology you have to ensure that those leading and controlling the  employees have knowledge of the new technology. Frito-Lay also has to ensure that those operating or involved with the new equipment are trained well and capable of continuing to do the job they were previously doing, but better. When they implemented new packing equipment in their Kern County facility, they ensured that everyone was trained. Because the equipment was to eliminate jobs the managers communicated with the employees and assured them they would avoid lay-offs. (Mohsen & Grijalva, 2001). With the management functions used and a good management team in place they were able to implement the new equipment and improve productivity by 30% on the line. (Mohsen & Grijalva, 2001). Innovation is defined by Merriam-Webster as, â€Å"The act or process of introducing new ideas, devices and methods.† (Innovative, 2014) With innovation comes change. Since innovation has an impact on the leading and controlling portion of the functions of management, management has to have an open line of communication in order to hear new ideas that their employees may have. The more involved Frito-Lay allows their employees to be, the more opportunity they have to receive and enact their innovative ideas. It is important that an organization utilizes the knowledge and experience of their resources by encouraging them to change methods that may work better than what has been done in the past. Frito-Lay is a diverse organization with their workforce as well as the products they offer their customers. Diversity also impacts the leading and controlling functions of management. Communication and networking are important aspects of a diverse organization also, because they allow people to interact with others that they may not normally interact with. Diversity has allowed Frito-Lay to be successful in the global pursuit of introducing their products as well. When transitioning into another country they utilize someone that is familiar with the market and culture to ensure a smoother transition into that particular market. As far as the diversity of their products they are currently conducting a contest to find new flavors for their chips in an effort to diversify their product even further. With all the misconduct that occurs in the business world, ethics is an important factor that can impact all the functions of management. In all aspects an organization has to avoid unethical behavior within the business they conduct, how the deal and address their employees and customers. Because of the products that are available through Frito-Lay management has to concern  themselves with the employees behaving in an ethical manner as well. To ensure that the employees know and understand the ethical implications that can occur, they are required to attend an ethics course and sign a certification that they have done so on a yearly basis. Frito-Lay has to take all precautions in avoiding unethical behavior throughout their organization. The top managers over at Frito Lay © over see many parts of their overall organization. They continuously have to adapt to different factors that may arise, excel in efficiency, excel in effectiveness, and monitor daily operations. It would be almost impossible for one person to do all of these functions, while planning strategies for existing goals and new ones. In order for a manager to accomplish all of these objectives they must delegate their work to their subordinates. Using delegation has many advantages that help the mana ger and their subordinates. For top managers, they are able to take on more of the strategic planning of the company than the operational managing. The sixteen executive managers of Frito Lay © that oversee different divisions of the company cannot possibly specialize in each part of the department (Frito Lay 2014) They must delegate the work out to middle managers and line managers in order to complete operational tasks and planning. These levels of management have a more intimate knowledge of their division or department (Bateman 2011). A manager in marketing may have a clearer understanding of globalization and how to reach an international market. Managers in human resources or compliance will have a more precise view of ethical dilemmas could arise. Although upper management might be delegating out their work, they still have a final say on what choice to make. This makes the final responsibility land on the upper management. Managers must be adaptive to all the different factors that come up in business. The world market is a continuously changing and growing environment. In order for a business to survive in this environment the managers that are employed must recognize the issues that could arise and know how to adapt to them. External issues could range from global economic changes to environmental changes that limit resources. Some internal issues that should be considered could involve the growth of the company. Recognizing the company has out grown its current structure will allow managers to implement a new structure that will fit the growing company  better. Management will always need to know how to adapt to these changes as well consider them in their overall planning, organizing, leading, and controlling. Changing environments can shift how a manager views their own organization and how it is standing up against its competition. Sometimes, though, management needs to use their most crucial resource as efficiently as possible. This resource would be time, and a manager needs to use this resource as wisely as possible. In order to free up managers they have to delegate their work amongst their subordinates. Delegating their work frees them up to make all of the important planning that will guide the organization to their next achievement.

Airborne: United States Postal Service and Express Mail

A five force analysis consists of five parts being threat of substitutes, ease of entry and exit, bargaining power of buyers, bargaining power of suppliers, and degree of rivalry. The threat of substitutes for Airborne, in the domestic express mail market, came from two other large firms Federal Express and the United Postal Service. FedEx, UPS, and Airborne together held an 85% market share. Fedex held roughly 45% of the domestic mail market and was considered the industry leader, however disputed. Their name was synonymous with sending something overnight.Almost like when at a restaurant we order a â€Å"coke†, no matter what the exact brand is the waitress will understand what we want. The United Parcel Service, UPS, was the largest package delivery company in the world and held a 25% market share of the domestic expedited mail service. Airborne was under the constant threat of substitutes, which were significant. The ease of entry and exit into the expedited mail delivery market is very difficult. Planes, trucks, personal, facilities, equipment all need to be in place before even one package is successfully delivered.Buyers had much bargaining power in that the three largest domestic expedited mail carriers each offered similar products, next morning delivery for time sensitive items. Price, reliability, access to tracking, customer service, and convince of drop-off locations were all things that the customer many times would consider before choosing their carrier. The bargaining power of suppliers was also strong. The physical delivery of the package was only a part of the services offered to customers.The major companies also made it possible to track packages en route, guarantee on time service, and even provide logistical consulting services. The degree of rivalry was very intense between these companies, in the early 1990’s industry observers called the competition between FedEx and Ups the â€Å"parcel war. † Each company would no t only match each other’s prices but also their technology and services Factor| Airborne| UPS| Fedex| Products Offered| 1| 2| 1| Target Customers| 1| 2| 2| Competitive Positioning| 3| 2| 1| Financial Performance| 1| 1| 1|Culture| 2| 1| 3| Land Ops| 2| 1| 1| Air Ops| 2| 1| 1| Marketing and Sales| 2| 1| 1| Customer Service| 1| 2| 2| IT| 3| 2| 1| Totals| 18| 14| 14| Lowest=Best Airborne is strong in its products offered in always seeming to be on the forefront and targeting customers efficiently. Unlike FedEx and UPS, Airborne owned the airport that served as its major hub in Wilmington, Ohio. As a result Airborne did not have to pay fees to the airport and could fix any obstacles that they came across at their own facility without having to consult with any outside parties.Airborne also differentiated by not having its own retail service centers and owning only a portion of their delivery vans. These were both cost saving differentiators, hiring independent contractors to picku p and delivery was 10% less expensive. Airborne did not market to the mass media instead they targeted the personal within companies who were in charge of logistics in order to obtain larger more profitable accounts. Providing flexible, custom solutions for their customers was also a difference in business plans that Airborne however FedEx and UPS also began to claim this.Ensure that Airborne survives and thrives in the future, the company would need to remain competitive with UPS and Fedex. Airborne’s relationship with RPS was beneficial because RPS had connections to the heart of UPS’s customer base in the form of large volume business customers. The physical distribution of Airborne and RPS were completely separate. To survive, I would suggest that Airborne form a stronger relationship not just sharing of marketing and shipping information. How and why has the express mail industry structure evolved in recent years?How have the changes affected small competitors? Th e US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry. Services: A host of services are provided to suit the needs to different businesses. Overnight shipping and next-morning delivery are most popular amongst other services like next-afternoon delivery and second day service.Same-day and early-next morning services are even costlier. Shipment volumes have risen over the decade however the rise in revenues has not been complimentary, due to falling prices. Customers: it is imperative for businesses to facilitate fast information dissemination. Express mails have provided a medium for establishing this. All businesses and individuals today use this service. Contrary to the traditional belief, items being shipped are high value compared to high weight. These i tems are time-sensitive. Customers have different criteria's to decide which service provider to use.With advancements in technology, this industry has become highly automated, there by providing better customer service with relation to parcel tracking, pick up services etc. The decision matrix generally includes brand name, reliability, price, customer service etc. Customers are generally not loyal as switching costs are negligible. Operations: Most players use the hub-and-spoke model. Major hubs act as collecting grounds for mail from all over America. The mails are then sorted and then sent off to respective destinations.Priority is given to early-next and next-morning mails. Planes land and take off all through the night. Capital expenditure related to a hub is extremely high. Both FedEx and UPS emphasize on improving the sorting capacity†¦ Airborne Express grew very rapidly in the late 1990’s, outperforming both of its main rivals, FedEx and UPS. When evaluating the success of Airborne, it is evident that the organization employed a strategy of low cost leadership, utilizing tactics surrounding efficiencies, cost reductions, market focus, and rigid budgeting.Early in its history, the company targeted a certain market, primarily businesses that shipped large volumes of urgent items to other businesses. This focus allowed Airborne to avoid markets of marginal value. In addition, Airborne retained cost minimization in key functional areas such as technology, marketing, and overhead. Airborne was very selective in their investment in technology and innovation, allowing first adapters to pave the way. The automation they did provide, such as FOCUS and the electronic submission of shipping information, saved money on labor y reducing manual data entry requirements. Also, Airborne did not advertise in mass media, but rather targeted selective logistics managers of major shippers, creating a courting style sales environment (Airborne, p. 12). This all owed for long term partnerships with repeat business. Overhead was kept around 30% less than main rivals. These types of actions, among others performed by Airborne, all point to low cost leadership. When analyzing the role of resources in the firm, Airborne has strong tangible, intangible, and capability resources in their favor.For example, Airborne owned the airport that served as its major hub, including the warehouses that surrounded the airport, which they leased to business customers (Airborne, p. 11). In addition, Airborne owned a fleet of 175 aircraft, although used; they provided Airborne the opportunity to personalize the outfitting of each aircraft to their cargo needs. Airborne also owned a portion of its delivery trucks, using independent contractors to provide balance on labor costs, fuel, and truck maintenance. A lack of unions in the hub also kept labor costs down.A niche market of large corporate clients with solid sales relationships was among the capability resou rces. Along with a large amount of equity and cash, Airborne was situated to be a very strong company. While there are many threats to the sustainability of low cost leadership, one of the biggest threats is imitation, especially in businesses using the internet (DLE, p. 177). Airborne, due to its business model, was both subject to and immune to this threat. Because it waited for others to test new technologies first, Airborne reaped the benefits of rivals work.For example, Airborne created a software system, its Freight On-Line Control and Update System (FOCUS), which imitated Federal Express’ COSMOS, and allowed customers to trace packages themselves rather than rely on company representatives. Because Airborne tailored its innovation practices after already successful programs, they challenged rivals sustainability in the market. On the other hand, Airborne also developed new technologies, like those associated with Xerox scanning and delivery, which gave Airborne the abi lity to deliver Xerox packages before 8AM.This method was easily imitated by FedEx and UPS, which enabled the rivals to provide the same service to their entire customer base, instead of just one client. Airborne was unable to capitalize on the technological advancement after the initial introduction, and therefore, suffered a low cost leadership sustainability threat. ————————————————- Basic Information of  Airborne Express Case Number: 9-798-070 Author: Jan W. Rivkin Publisher: Harvard Business Publishing Year: Feb 5, 1998 Course Category: Strategy ————————————————-Case Summary  of Airborne Express 1997: Airborne Express quarterly revenues up by 29%, and YTD net earnings ad increased by more than 500%. Third largest player in express mail industry. Boost fr om the recent strike at rival UPS. Fastest growing company in the industry, but thin margins. Federal Express had recently raised prices. †¢ Previous year: Fed Ex and UPS launched new services and pricing schemes o UPS moved to distance-based pricing, with prices raised on long-distance shipments, lowered on short-distance shipments. Fed Ex followed suit in 1997. Would Airborne? The Express Mail Industry in the United States: Services provided include: physical shipment of packages, shipment tracking, on-time service guarantees, customs clearance expedition, warehousing services, logistics consulting services †¢ Customers: o Businesses In industries such as financial services and consulting, express mail had become the standard means of delivering docs o Typical shipments: business docs, electronic components, medical samples, and replacement parts. o Customer base broadening. Portion of goods considered perishable or time-sensitive increasing over time. Acceleration in th e pace of business increased express volume shipped by each customer. Main consideration factors when deciding whether to ship an item express mail were urgency of shipment and price Carrier selection based off of relative price, carrier reliability, brand name, tracking capabilities, customer service, drop-off convenience, and/or habit. Discounts based on volume encouraged customers to focus on one carrier. However, customers tend not to be loyal when a contract expires. †¢ Operations: 1. Large fleet of vans and drivers. Drivers leave central depot and collect packages. At point of pick up, hand-held computer used to scan the package’s barcode and enter package data.Data transferred to central computer, which determined routing. Package scanned at each subsequent transfer points so that the company could track its progress. 2. Packages driven to airport, placed in containers, which were, in turn, placed on company-operated cargo planes. Upon landing at airport, usually around 11 pm, crew, using special equipment, unloaded plane in 20 minutes. Second crew simultaneously servicing plane in prep for outbound flight. 3. Cargo containers taken to hangar, where packages are sorted according to final destination. Labor-intensive.Once sorted, packaged placed in containers and loaded onto planes. Planes typically depart from 3 am – 4 am. Planes landed around 6 am at destination airports. 4. Packages unloaded, distributed to vans, and delivered to final destinations. †¢ Lower-priority packages follow slightly different route – more likely to travel by truck rather than air. †¢ Heavy investment in large hub facilities, air and ground fleets. †¢ Devoted to customer service and sophisticated information systems. †¢ Competition: †¢ Domestic Express Mail Market: 3 major players = Fed Ex, UPS, Airborne Express, serving ; 85% of the market. nd tier players: BAX Global, DHL Worldwide Express, Emery Worldwide, Roadway Package S ystem, TNT Express Worldwide, US Postal Service. †¢ US Postal Service served much of the remaining 15% of the market, popular due to the convenience of the post office to residential customers. However, prohibited by law from offering volume discounts to business customers. Also, could not track packages efficiently, and poor delivery record. †¢ DHL, TNT focused on international market. o DHL offered extensive service in hard-to-reach areas of the globe. Required knowledge of customs procedures and officials to clear customs quickly.Not heavily invested in domestic capabilities. †¢ BAX Global, Emery focused on heavy cargo †¢ RPS focused on 2-day delivery via a ground network, targeting price-sensitive business customers. Known for efficient ground transport and sophisticated IT. †¢ Fax, email †¢ Compete on multiple fronts, including prices, products, and customer service Major Competitors †¢ Federal Express o 45% domestic express mail market o Hist ory: Invented the industry. Prior to founding, express deliveries flew as freight in holds of passenger planes. Frederick Smith, proposed an airline dedicated solely to express delivery of mail.Argued airlines designed to carry passengers suboptimal for carrying express mail. Any route acceptable for a package as long as it arrives on time. Hub-and-spoke routing more efficient for express mail. Packages would be collected at a single airport, sorted, and sent to their destinations. 1971, Federal Express incorporated. Target market focused on small packages, which were largely ignored by other air carriers. High barriers to entry: assembling fleet of jets, constructing a hub in Memphis, securing initial customers, and gaining governmental approval in highly regulated airline industry.Service started in April, 1973. 1983, reached $1 billion in revenue, the first company to do so within 10 years of start up, without acquisition. o Technology: COSMOS, central computer system, coordinate d vehicles, people, packages, routes, and weather information. Supertrackers used by couriers to enter in package info Digitally Assisted Dispatch System (DADS) directed couriers to pickup locations and uploaded info from Supertrackers to COSMOS Gave customers Powership computer terminals and shipping software to prepare shipping paperwork, streamline billing, and track shipments. www. fedex. com o Marketing ; SalesAggressive marketing led to widely recognized mottoes High advertising expenditures + sales reps + money-back guarantee o People ; Culture â€Å"People, Service, Profit†¦When people are placed first, they will provide the highest possible service, and profits will follow. † Promoted from within. No layoffs policy. Cross-trained employees and cultivated a large part-time workforce. Extensive employee-training programs Employees given wide latitude to make decisions on their own. Expected to take risks and resolve problems on own. Emphasis on communication. â₠¬ ¢ FXTV broadcast daily company news, weather conditions, competition info, etc.Formal compensation system. Managers’ incentive pay based on performance against negotiated objectives, employee satisfaction playing a significant role. Hourly workers were also eligible for bonuses. o International Ventures 1985, Fred Smith’s vision of global delivery of express mail. However, expensive. 1992, overseas operating losses topped $600 million, so company scaled back. Relied on partner companies to complete deliveries. †¢ United Parcel Service (UPS) o Largest package delivery company in the world, but most volume not express mail, traveled via ground network. History Founded in 1907 as a messenger service. Repositioned itself as the delivery arm of major department stores. 1950s: automobile ownership widespread, retail stores moved to suburbs. Repositioned again around â€Å"common carrier† service to deliver parcels in general, not just department store deliverie s, by truck. Only reached goal of complete national coverage in 1980s, due to legal and regulatory battles to deliver within and between states. 1953, coupled ground network with cargo services of major airlines to offer two-day delivery service. 1981, purchases first aircrafts. 987, took direct control of all air operations. USPS viewed as main rival. Focused on reducing costs since rates were highly regulated. Charged single price to all customers. Saved money by picking up at company’s convenience and not investing in collecting info (could not track packages easily). Late 1980s/early 1990s, refocused around customer service and invested in aircrafts, sorting infrastructure, and technology, in order to compete with Fed Ex. Radically and successfully restructured. o Operations: Hub in Louisville, KY, with 5 regional air hubs around the US.Speculated that UPS’ sorting and routing facilities were highly automated and employed the latest technology. Single fleet of truc ks handled pickup and delivery of all UPS shipments. o Technology: determined to match Fed Ex’s information collection capabilities, invested $3 billion in advanced technology between 1990 and 1995. Resulted in ability to track packages efficiently, deliver electronic proof of delivery, and offer money-back guarantee of on-time delivery. Internet site rivaled Fed Ex’s o Marketing ; Sales: No marketing department before 1980, with little to no advertising 1996, spent 80% more on media than Fed Ex People ; Culture: â€Å"owned by managers and managed by owners;† privately owned, with stock issued to company managers, and, as of 1995, nonmanagement employees as well. Promote from within The Policy Book, emphasized management by consensus and an ethic of humility High wages kept labor-management relationships good. †¢ 1997, drivers among best paid, largely in part to union involvement. 16-day labor strike flooded competitors business. Resolution favored labor, with an increase in full-time positions, as well as full-time and part-time wages over a five-year period.Ramifications of strike included $700 million in lost revenue and poor reputation for absolute reliable delivery. o International Operations: Invested heavily in developing global distribution network, and, even with high operating losses, seemed committed. Airborne Express: †¢ Often overlooked, but growing faster than competitors in mid-1990s, with 16% of domestic express mail market in 1997. †¢ History: o 1968, The Airborne Flower Traffic Association of California (shipped fresh flowers from Hawaii to mainland) and Pacific Air Freight (delivered perishables to/from Alaska) merged to form Airborne Freight Corporation.Prior to Fed Ex, most successful in express mail industry. o Target: business customer that regularly shipped a large volume of urgent items, primarily to other business locations. Example: Xerox †¢ Operations: o Owned airport that served a major hub . Did not pay landing fees and no obstacles to tailoring the facility to its needs. However, did need to maintain airport itself, and did not share expenses with other airlines. o Leased warehouse space on airport property (Fed Ex and UPS offered warehousing options as well, bot not onsite at airport) o Sorting operations less automated, more human labor-intensive.Unions represented app. Half of workforce, including all pilots. o Fleets consisted primarily of used aircraft, built in 1960s and 1970s. Patented cargo containers did not require cargo door. Aircraft run app. 80% full (vs. competitors 65-70%). Costs of flight did not vary by amount of cargo carried. o Shippers and recipients concentrated in metropolitan areas. o Greater portion of volume = afternoon and second-day deliveries, so could use trucks more than competitors (30% volume never on plane, vs Fed Ex’s 15%).. Cost of a truck 1/3 that of aircraft. Unlike competitors, did not maintain retail service centers and o wned/operated only a portion of its delivery vans. Independent contractors 60-65% volume, and 10% less expensive than company-owned pick up and delivery. †¢ Technology: o Invested selectively. Let competitors test innovations and introduced themselves if clear benefit derived. o Freight On-Line Control and Update System (FOCUS) comparable to Fed Ex’s COSMOS o Offered high-volume shippers software which tied directly into FOCUS, allowing customers to track packages and to submit shipping info themselves as opposed to engaging service agents. Website not as comprehensive as competitors †¢ Marketing ; Sales: o Did not advertise in mass media. Targeted logistics managers of major shippers via sales force. o Known for low prices o Mid-1990s, â€Å"the flexible, solution-oriented express carrier† with an ability to tailor its services to needs of large business customers. However, Fed Ex and UPS offered 8 am service to any customer for a surcharge, as well as claim ed to be able to tailor services to customer needs too. †¢ People ; Culture: o Humility †¢ International Operations: o More modest than Fed Ex and UPS. Used commercial airlines and local partners to complete shipments †¢ RPS Relationship o RPS targeted the ground transport needs of large-volume business customers, whittling at UPS customer base. Offered low prices, superior info and tracking capabilities. Tried to intro air operations, but folded after large losses. o Companies’ physical distribution systems remained separate. Cooperation in marketing process and sharing of shipment info. However, hinted at a closer alliance. Airborne’s Future: †¢ Postal Service had performed well during UPS strike and success seemed to reawaken its ambitions.Planned major advertising blitz to promote express services. Petitioning government to grant volume discounts. †¢ UPS was expected to make play to recoup volume. †¢ UPS strike had shaken customers loy alty to a single company for shipping needs. ————————————————- Case Analysis  of Airborne Express 1. How and why has the structure of the express mail industry evolved in recent years? How have the changes affected small competitors? How has the rivalry between FedEx and UPS impacted them and the rest of the industry? Business and individuals spent $16-17 billion on express mail within the US in 1996.Shipment volumes had risen 15-20% per year for a decade. Services had proliferated by delivery time. Service is not limited to physical delivery. It also includes warehouseing services and logistics consulting services. Express Mail Industry: 1. 16-17 billion on expedited shipments in US in 1996. 2. Shipment volumes had risen 15-20% per year for a decade. 3. Services had proliferated by delivery time. 4. Service is not limited to physical delivery. It also includes tracking services, warehouseing services, logistics consulting services and expedited customs clearance for international shipments. . Shipping companies competed on the basis of time-to-market, eg. Increased volume shipped by and to each customer. 6. Customers’ concern when choose a shipping service includes price, reliability, brand name, access to tracking, customer service, convenience of drop-off, and sheer habit. 7. Shipping companies owns vans, drivers, and aircrafts. They have hub airports. They employ the advanced logistic technology. 8. FedEx, UPS and Airborne were the Big Three in the industry, together served more than 85% of the market. 9. Invested in global distribution system. 10.Originally set one price for every customer, evolved into distance pricing (ie. Lower prices for shorter distance deliveries) Different company target different markets. To survive, small company must find their differentiation in the industry (ie. DHL specialized in international shipping; RPS specialized in ground transport 2 day deliveries). FedEx: overnight delivery; cutting-edge information and logistic technology; Hubs; customer self help; aggressive marketing strategy; no layoff policy; great customer services; employee’s wide latitude of decision making; incentive pay; employ both part time and full time; international expansion.UPS: ground services; largest delivery company in the world; followed FedEx to purchase their own aircraft; started to advertising; stock owned by managers and not for public trade; employ both part time and full time; international operation. â€Å"Parcel Wars† – Fedex and UPS copied and tried to beat each other in pricing, products and services. When one lowered prices, the other followed and created some other promotion to outdo the offer. As a result, small companies need to find their specialty in the market. They will also have employ advanced technology and logistic system and provide great/special customer serv ices. . How has Airborne survived, and recently prospered, in this industry? Airborne targeted the business customer that regularly shipped a large volume of urgent items, primarily to other business locations (mainly 50 metroplitans). They were known for their low prices. They cut cost in many ways: having their own airport; leasing warehouse space to customers; hiring part-time employee; purchasing used aircrafts; load more per flight than rivals; no retail service center; using independent contractors; a little bit late delivery time; no advertising; picking the technology after FedEx and UPS tested.They provided flexible, solution oriented service to customers. 3. Quantify Airborne’s sources of advantage. †¢ Part-time salary is 7/hour, compared to FedEx’s 8/hour. †¢ Run aircraft 80% full, compared to typically 65-70%. †¢ 80-85% of the volume was shipped to 50 metropolitan, compared to FedEx’s 60% †¢ 30% of the volume was not shipped by ai rplanes, compared to FedEx’s 15%. †¢ The cost of a running a truck is 1/3 of the cost of owning and operating a similar amount of aircraft capacity. Use of independent contractors accounted for 60-65% of volume – using contractors cost them 10% less than doing work themselves. †¢ No advertising cost. †¢ Drivers picked up more parcels than Fedex resulting in lower labor costs per unit by 20% for pickup and 10% for delivery. †¢ Besides, owning their own airport would a big advantage in control and operating cost. 4. What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position? Provider recommendations that will strengthen Airborne’s position in this industry.Evidently, Airborne needs to employee advanced technology and explore the global business. Robert Brazier needs to make sure that Airborne will still hold their advantages in the global business. 5. In retrospect, we know that Airbor ne’s position was not sustainable and the company was acquired by DHL. What were early clues about the lack of Airborne’s sustainability? Will the DHL/Airborne combination be an effective competitior against FedEx and UPS? One early clue – less efficient that Fedex/UPS in on-time deliveries. Should have invested more in technology. Lack of global vision/awareness.Inability to adapt to market – 80% of volume delivered to major metropolitan areas, not servicing ALL customers. Did not take full advantage of opportunity with RPS deal – kept arms length deal. Should have leveraged relationship to increase technology and cust base to gain market share. The DHL/Airborne combination could be an effective competitor again FedEx and UPS, although they have their own specialty and targeting markets. DHL does well in the international market, but its domestic business is not strong. Airborne and DHL could be a strong plus to each other.

Free Essays on Juvenile Justice System

Title of Article: An Overview of the Juvenile Justice System Juvenile justice is the area of criminal law applicable to persons not old enough to be held responsible for criminal acts. In most states, the age for criminal culpability is set at 18 years. Juvenile law is mainly governed by state law and most states have enacted a juvenile code. The main goal of the juvenile justice system is rehabilitation rather than punishment. Juveniles can be transferred into adult court if the juvenile court waives or relinquishes its jurisdiction. State statutes creating juvenile courts and providing methods for dealing with juvenile delinquency have generally been upheld by courts as an acceptable extension of state police power to ensure the safety and welfare of children. The doctrine of parens patriae authorizes the state to legislate for the protection, care, custody, and maintenance of children within its jurisdiction. The federal role in the field has largely been that of a funder and standard setter. Congress passed the Juvenile Delinquency Prevention and Control Act in 1968. This was later revised in 1972, and renamed the Juvenile Delinquency Prevention Act. The stated purpose of the act is to assist states and local communities in providing community based preventative services to youths in danger of becoming delinquent, to help train individuals in occupations providing such services, and to provide technical assistance in the field. The Federal Juvenile Delinquency Act defines juvenile delinquency (any act that is otherwise a crime, but is committed by someone under 18 years of age) and sets forth rules by which state laws must comply with regard to juvenile court procedures and punishments. In my opinion, Juveniles have an very easy system although it may be for the best that they receive this treatment. Juveniles need treatment so they won’t grow up or grow any longer with the behavior or rage of emotions they feel to... Free Essays on Juvenile Justice System Free Essays on Juvenile Justice System Title of Article: An Overview of the Juvenile Justice System Juvenile justice is the area of criminal law applicable to persons not old enough to be held responsible for criminal acts. In most states, the age for criminal culpability is set at 18 years. Juvenile law is mainly governed by state law and most states have enacted a juvenile code. The main goal of the juvenile justice system is rehabilitation rather than punishment. Juveniles can be transferred into adult court if the juvenile court waives or relinquishes its jurisdiction. State statutes creating juvenile courts and providing methods for dealing with juvenile delinquency have generally been upheld by courts as an acceptable extension of state police power to ensure the safety and welfare of children. The doctrine of parens patriae authorizes the state to legislate for the protection, care, custody, and maintenance of children within its jurisdiction. The federal role in the field has largely been that of a funder and standard setter. Congress passed the Juvenile Delinquency Prevention and Control Act in 1968. This was later revised in 1972, and renamed the Juvenile Delinquency Prevention Act. The stated purpose of the act is to assist states and local communities in providing community based preventative services to youths in danger of becoming delinquent, to help train individuals in occupations providing such services, and to provide technical assistance in the field. The Federal Juvenile Delinquency Act defines juvenile delinquency (any act that is otherwise a crime, but is committed by someone under 18 years of age) and sets forth rules by which state laws must comply with regard to juvenile court procedures and punishments. In my opinion, Juveniles have an very easy system although it may be for the best that they receive this treatment. Juveniles need treatment so they won’t grow up or grow any longer with the behavior or rage of emotions they feel to...

Free Essays on Teaching Philosopy

Teaching Philosophy Through careful consideration and thorough self-assessment I found that I am a pragmatist in philosophy and progressivist in my teaching theory. I believe that experience is how students learn best. I think by taking experiences in life and applying them to a problem you can not only better understand the answer you can also better understand the possible answers therefore have a more thorough and deeper understanding of any material covered. My pragmatist beliefs have a direct correlation on my teaching theory, which is progressivism. My belief in progressivism has to do with the organized freedom that the theory is based on. I think giving the students a topic/problem to freely discuss makes learning more meaningful and develops an open mind to others beliefs. Due to the fact that I want open discussions in my classroom I would set the room design in such a way that everyone can have eye contact with me and with each other. I feel that setting the chairs up in a half circle would be the best set up for this and would even help stimulate and promote my teaching philosophy and teaching theory. Though I feel this would be the best set up I would be open to ideas of the students as to what set up they feel most benefits them and one which they are most comfortable in. Another key factor in my teaching philosophy and theory would be making sure that my classroom was open to discussion but controlled by keeping the topics discussed relevant to whatever is being taught. Overall I feel that understanding my philosophies and adapting them to the student will be the key to ensuring that the maximum potential of everyone is reached.... Free Essays on Teaching Philosopy Free Essays on Teaching Philosopy Teaching Philosophy Through careful consideration and thorough self-assessment I found that I am a pragmatist in philosophy and progressivist in my teaching theory. I believe that experience is how students learn best. I think by taking experiences in life and applying them to a problem you can not only better understand the answer you can also better understand the possible answers therefore have a more thorough and deeper understanding of any material covered. My pragmatist beliefs have a direct correlation on my teaching theory, which is progressivism. My belief in progressivism has to do with the organized freedom that the theory is based on. I think giving the students a topic/problem to freely discuss makes learning more meaningful and develops an open mind to others beliefs. Due to the fact that I want open discussions in my classroom I would set the room design in such a way that everyone can have eye contact with me and with each other. I feel that setting the chairs up in a half circle would be the best set up for this and would even help stimulate and promote my teaching philosophy and teaching theory. Though I feel this would be the best set up I would be open to ideas of the students as to what set up they feel most benefits them and one which they are most comfortable in. Another key factor in my teaching philosophy and theory would be making sure that my classroom was open to discussion but controlled by keeping the topics discussed relevant to whatever is being taught. Overall I feel that understanding my philosophies and adapting them to the student will be the key to ensuring that the maximum potential of everyone is reached....

The History of Pinball and Pinball Machines

The History of Pinball and Pinball Machines Pinball is a coin-operated arcade game  where players score points by shooting metal balls on an inclined playfield, hitting special targets, and avoiding losing their balls.​ Montegue Redgrave Bagatelle In 1871, British inventor, Montegue Redgrave was granted US Patent #115,357 for his Improvements in Bagatelle. Bagatelle was an older game that used a table and balls. Redgraves patented changes to the game of Bagatelle included: adding a coiled spring and a plunger, making the game smaller, replacing the large bagatelle balls with marbles, and adding the inclined playfield. All common features of the later game of pinball. Pinball machines appeared in mass, during the early 1930s as countertop machines (without legs) and they featured the characteristics created by Montegue Redgrave. In 1932, manufacturers began adding legs to their games. First Pinball Games Bingo made by the Bingo Novelty Company was a countertop mechanical game released in 1931. It was also the first machine manufactured by D. Gottlieb Company, who were contracted to produce the game. Baffle Ball made by D. Gottlieb Company was a countertop mechanical game released in 1931. In 1935, Gottlieb released an electro-mechanical standing version of Baffle Ball with a  payout. Bally Hoo was a countertop mechanical game with optional legs released in 1931. Bally Hoo was the first coin-operated pinball game and was invented by the founder of the Bally Corporation, Raymond Maloney. The term pinball itself as a name for the arcade game was not seen until 1936. Tilt The tilt mechanism was invented in 1934 as a direct answer to the problem of players physically lifting and shaking the games. The tilt debuted in a game called Advance made by Harry Williams. Powered Machines The first battery operated machines appeared in 1933, Harry Williams made the first. By 1934, machines were redesigned to be used with electrical outlets allowing for new types of sounds, music, lights, lighted backglass, and other features. Bumpers, Flippers, and Scoreboards The pinball bumper was invented in 1937. The bumper debuted in a game called Bumper made by Bally Hoo. Harry Mabs invented the flipper in 1947. The flipper made its debut in a pinball game called Humpty Dumpty, made by D. Gottlieb Company. Humpty Dumpty used six flippers, three on each side. Pinball machines during the early 50s began to use separate lights behind the glass scoreboard to show scores. The 50s also introduced the first two player games. Steve Kordek Steve Kordek invented the drop target in 1962, debuting in Vagabond, and multiballs in 1963, debuting in Beat the Clock. He is also credited with repositioning the flippers to the bottom of the pinball playing field. The Future of Pinball In 1966, the first digital scoring pinball machine, Rally Girl was released Rally. In 1975, the first solid-state electronic pinball machine, the Spirit of 76, was released by Micro. In 1998, the first pinball machine with a video screen was released by Williams in their new Pinball 2000 series machines. Versions of pinball are now being sold that are completely software based.

Simple rules Assignment Example | Topics and Well Written Essays - 500 words

Simple rules - Assignment Example nds metrics, eliminating differences, establishing formal alliance management systems and structures and managing external relationships with partners. The companies should also put more emphasis on;- developing the right working relationship, creating means metrics, embracing differences, enabling collaborative behavior and managing your own internal stake holders. Solving of differences in the company should be given the highest priority. Because spending a lot of time and retention on reaching agreement sends the message that differences are bad, tends to drive conflict underground. In the solving of the difference Hp exhibited the following strengths; - General expertise related to complex-solution selling to enterprise customers, tends to focus on long term objectives and opportunities, good at minimizing risk in complex situations through careful analysis, in difficult circumstances, it is likely to find the creative solution that others might miss and it is good at understanding and focusing on customer needs and building close durable relationships. On the other hand Microsoft’s strengths were; - technical and support knowledge about exchange, which is essential to successful enterprise solution sales, it has disciplined focus on short term objectives where the objectives could have taken much time to get accomplished, good at capitalizing on opportunities by making decisions quickly, it is unlikely to waste time and effort when the standard answer or solution provides the optimal balance of performance and value and lastly it was good at identifying and responding to competitive threats. From the above scenario we need to look critically at the advice that executives get in relation to their companies. It is the time that the executives realized that alliance management is facing a crisis. In the recent past, companies have been forming alliances and relying on them solely for their growth. What is discouraging is that more than half of them fail.

Relationship Between Accounting, Accountability and Organizational Essay

Relationship Between Accounting, Accountability and Organizational Control - Essay Example The researcher states that accounting is more than bookkeeping, and is concerned about how these records are put, the analysis of the records and also interpretation. An accountant is concerned with the relationship between the financial results and the events that have led to them. They do study various alternatives that are available to the business and use their knowledge acquired in the accounting field to help managers select the best action plan. Shareholders and management need knowledge in this field so that they get to understand what accountants tell them. Investors also need this knowledge so that they can read and understand the financial statement issued by the business. Since it is a business language all the stakeholders of a business will want to know whether the organization is making a profit or not. It will also help show if the business will meet its commitment as they fall due and not run into bankruptcy. These are only answered by use of accounting information o f the company which can be derived by the equation given by, Total Assets= Total Liabilities + Capital Accountability means taking the responsibility or obligation by an individual or an organization. It has to be done in a transparent manner. The responsibility can take the form of money or properties. In relation to accounting, it takes the form of integrity. That is to say that, the accountant has to be able to take responsibility on any issue regarding the transaction of the firm. Organizations do undertake so many activities on a daily basis. Such activities include the purchase of raw materials for the daily operation of the firm, receiving of payments from the customers, banking of the cash received on a daily basis. All these activities involve transactions and hence there is the responsibility for each and every activity. Each is assigned some duty to be undertaken. The three are related to the following perspectives: a) Performances, there is a high degree required while u ndertaking the three issues. This is because in accounting, an individual performance in meeting different objectives of stakeholders of the firm; accountability takes the form of responsibility and obligation of an individual. The responsibility can be in the form of money or properties. Organizational control is important to the general functioning of an enterprise. It entails planning of what is desired; setting good standards, monitoring the performance of the firm; measuring performance - comparing actual output with that which is expected; and taking accurate measures to correct discrepancies. b) Integrity, The three are pegged on integrity. For example, in accounting, the financial information of the company is prepared on the rules and guidelines of accounting worldwide; accountability, on the other hand, gives obligations to an individual. Organizational control gives an illustration of the level of monitoring and feedback, which is achieved by implementing internal control s. It follows a control loop of assessing systems and procedures, establishing appropriate controls, evaluating outputs and adjusting where necessary. The working definition of the concept of accountability and its relationship to accounting Since accountability refers to a capability of being held responsible for something or being held to account, scrutinized and being required to give an account.

Economic Colonization and a North-South Polarization Term Paper

Economic Colonization and a North-South Polarization - Term Paper Example However, the above distinction is found to be absent in the policy statements furnished by global trade and economic bodies like the World Trade Organization and International Monetary Fund. An analysis made on the basis of income suggests that the countries falling in the South Pole of international trade has per capita income at least less by 50 times in comparison to that of the countries pertaining to the North Pole. Further, the north-south polarization debate gained ground from the period of Cold War due to wide differences in the economic, political, and military resource conditions of the developed and developing countries. (Johnston, 2000, p. 558) The modern practice of international trade is contributing to the creation of economic colonies depending on the economic and political disparities of the different nations. This growth of economic colonization reinforces the concept of North-South Polarization. The notion of North-South Polarization earned due importance after the end of the Second World War. It is observed that the countries pertaining to the North Pole were referred to as the ‘First World’ countries. On the other hand, countries belonging to the South Pole were referred to as the ‘Third World’ countries. It is however, observed that the notion of the third world countries existed prior to the fall of the Socialist states like Soviet Union in 1980. In the previous period, the concept of third world was used in regards to geo-political ideologies in the realm of global politics. Moreover, the distinction between the North and South Polarization was also found to have relevance to the levels of industrial practice among the world nations.

What Special Educators Need to Know about Students with Learning Research Paper - 1

What Special Educators Need to Know about Students with Learning Disabilities - Research Paper Example With regards to the special education of the students with learning disabilities, some of these district policies usually find themselves in conflict with the CEC code of ethics. This creates a dilemma for both the teachers and the students under these policies. An example of such a conflict comes in with regards to the code of ethics outlining the disciplinary measures to be taken against students when they break the laws laid down by the institutions. According to the district policies, in the event of a discipline case, all the students are meant to receive the same kind of punishment without any form of biasness (Council for exceptional children, 2012). However, the code of ethics dictates that special consideration should be given to the students with learning disabilities. Their involvement in the disciplinary cases may not have been entirely their fault. This scenario presents a point of conflict between the district policies and the code of ethics. Another example is the evaluation of the students academically. This presents a conflict with the district policies, all the students are supposed to be evaluated on their merit based on the same rubric. However, the code of ethics clearly stated that these students with learning disabilities are supposed to be evaluated individually (Council for exceptional children, 2012). Their condition does not allow them to be evaluated on the same basis as other students. This presents a conflict in this issue. While looking at the characteristics of students with learning disabilities, it is very important that we do not overlook the fact that some of these students actually possess more than one of these characteristics. However, not all of the characteristics are commonly shared by the students.  

Net-centric Computing and Information Systems Essay - 1

Net-centric Computing and Information Systems - Essay Example While describing the structural details of the wireless networking protocol the tutorial also significantly addresses the issue of security vulnerability that is associated with the said protocol. Since the protocol is not guided or guarded by wires or fixed connections it is often said to have substantial susceptibility to noise and other unseen deflections. Similarly, the protocol also does not ensure secure data transfer because since it is prone to interferences, then it can also be prone to unauthorized access to private information being passed over it. Another drawback associated with the Wireless LAN protocol is that despite all the technological advancements, the current data transfer rate over it is comparatively significantly lesser than that over the Local Area Network (LAN). The Wireless networking protocol 802.11has revolutionized the concept of connectivity among individuals. Thus this has had amazing effects on the corporate world as well. The need of the hour for businesses that involved the need to get network connectivity anytime and at any place within a particular set up without the restriction of physically laden networking wires in the premises have been addressed with the emergence of this protocol. Run time connectivity within business environments is not possible via wi-fi enabled computing devices that can be secured by binding the identity of hardware logged on to the system by pre-registering their MAC addresses. It was interesting to realize the concept behind the much prevalent wireless internet connectivity that has become so very common the world over. It was an informative and interest capturing tutorial indeed. The tutorial studied addressed the most integral concepts of today’s world: ‘Computer Security’. Ever since the advent of the concept of connecting computing devices over a network the concept of

What Special Educators Need to Know about Students with Learning Research Paper - 1

What Special Educators Need to Know about Students with Learning Disabilities - Research Paper Example With regards to the special education of the students with learning disabilities, some of these district policies usually find themselves in conflict with the CEC code of ethics. This creates a dilemma for both the teachers and the students under these policies. An example of such a conflict comes in with regards to the code of ethics outlining the disciplinary measures to be taken against students when they break the laws laid down by the institutions. According to the district policies, in the event of a discipline case, all the students are meant to receive the same kind of punishment without any form of biasness (Council for exceptional children, 2012). However, the code of ethics dictates that special consideration should be given to the students with learning disabilities. Their involvement in the disciplinary cases may not have been entirely their fault. This scenario presents a point of conflict between the district policies and the code of ethics. Another example is the evaluation of the students academically. This presents a conflict with the district policies, all the students are supposed to be evaluated on their merit based on the same rubric. However, the code of ethics clearly stated that these students with learning disabilities are supposed to be evaluated individually (Council for exceptional children, 2012). Their condition does not allow them to be evaluated on the same basis as other students. This presents a conflict in this issue. While looking at the characteristics of students with learning disabilities, it is very important that we do not overlook the fact that some of these students actually possess more than one of these characteristics. However, not all of the characteristics are commonly shared by the students.  

Is Cloud Computing Beneficial to Organizations Research Paper

Is Cloud Computing Beneficial to Organizations - Research Paper Example Vast potentials for improving monetary revenues, performances and environmental concerns in these organizations were identified. Businesses, libraries and universities can substantially grow by using strategies to overcome cloud computing challenges identified in this study. 1. Introduction 1.1 History and Development of â€Å"Cloud† Development of â€Å"cloud† can be considered as an inevitable trend which began in 1950s as hardware time-sharing (Earnst and Young, 2012) and â€Å"Utility computing† and â€Å"Grid computing† in late 1980s (Global Technology Industry, 2011). Thus aggregating assets had been beneficial over on-premise computing since the beginning of IT industry. â€Å"Utility computing† allowed consumers to pay for computer software based on the amount they utilized as opposed to the traditional method of purchasing the entire software. â€Å"Grid computing† aggregated the processing power of several idle computers, decreased the time taken for operations of large software and provided multiple accesses to the data bases stored in remote computer labs, libraries and other offices in the universities (Educause, 2006). Moreover, Utility computing and Grid computing decreased the cost of purchasing license for software, increased convenience in monitoring the information systems in universities, aggregated the processors and decreased the time consumption on detailed-software such the 3D graphic designing. But these concepts were restricted to small scale operations in these organizations. Development of cloud enabled large scales businesses reaping benefits from resource aggregation and virtualization. It contains similar characteristics to Utility computing, Grid computing, High Speed Computers and clusters. But cloud computing essentially defers from Utility and Grid computing, due to many attributes. Example: services, deployment, associated issues and scope for development. These are described in detai l in the proceeding chapters. Furthermore, public used remotely hosted servers for connecting to the internet and obtaining web services such as Gmail, chat, e-banking and social-networking in large scale for a considerable time period in the history. But resource virtualization was not recognized as a possible venture involving vast economic benefits until the development of cloud in recent history. Cloud computing involves large scale aggregating and vitalizing of IT assets. It delivers a number of economic and operational benefits to all the consumer segments (Gong, Liu, Zhang, Chen and Gong, 2010). It has a growing potential to decrease the firms’ production costs, create virtual business firms and market business process as a service in modern economies (Earnst and Young, 2012). As opposed to Grid computing which mainly involved academic and government institutions cloud computing service providers involve commercial IT giants such as Google, Microsoft, Apple, Amazon, IB M and Oracle (Gong et. al, 2010). And also private, cooperate and contract software developers and venders also market in clouds. Consumers of cloud computing services vary from small to large scale business firms, universities federal to individuals. Thus cloud computing provides benefits to many layers in the internet based market. Critical drawbacks had been identified related to operations of contemporary cloud computing. Building of cloud involves technologies and human creativity. Latter component also innovate methods for software piracy, hacking, frauds

A Rescue at U.N. Headquarters Essay Example for Free

A Rescue at U.N. Headquarters Essay In their article, A Rescue at U. N. Headquarters, as Other Wait and Hope, Thompson and MacFarquhar illustrated the attempt of the United Nations to save the lives of those still trapped victims of the earthquake in Haiti as well as the condition of the people of Haiti whose homes had been devastated. A week after the earthquake, Ban Ki-moon, the United Nations secretary general, visited Haiti for the first time on Sunday (Thompson MacFarquhar, 2010). Thompson and MacFarquhar (2010) described that day as â€Å"one of trials and triumphs for the agency†. A missing United Nations official was pulled alive after five days of being trapped in the ruins of Christopher Hotel (Thompson MacFarquhar, 2010). A Danish employee, Jens Kristensen, was also rescued that day. Still, the families of those who are still missing urged Mr. Ban to hasten the search, â€Å"Everywhere he went during his six-hour visit here, he was greeted by people who urged the United Nations to do more, act faster and plan more carefully (Thompson MacFarquhar, 2010). Nieves Alvarez, a staff member, not only asked to speed up the operation but also expresses her dismay because of the obvious nationalism showed by the Chinese rescuers who left after finding some of their people’s bodies as well as American rescuers who left after sometime (Thompson MacFarquhar, 2010). Food and shelter is also a great problem. Civilians in the food distribution site are even complaining about the scarcity of the supply. Sally Lazard, 37, said â€Å"We need more than cookies. You see where we live? We have no water, no toilets, no food†¦. If people go too long without food, they will fight for it† (Thompson MacFarquhar, 2010). â€Å"Water supply is so scarce that taking a bottle off someone’s desk can lead to hurtful confrontations† (Thompson MacFarquhar, 2010). Civilians also feared of being attacked by gangs in the street and asked for protection form the United Nation staffs after the first few days of the earthquake. Reference Thompson, G. MacFarquhar, N. (2010, January 18). A Rescue at U. N. Headquarters, as Others Wait and Hope. The New York Times.

Currency Risk Management in Indian Banks

Currency Risk Management in Indian Banks EXECUTIVE SUMMARY The objective of the project is to study the attitude of Indian corporates towards currency risk management and the problems faced by the companies dealing with their currency exposure which occur as a result of exports or imports or both. The study has also included the problems faced by the banks, the authorised dealers of foreign exchange in India, in managing their forex (foreign exchange) market operation as it has large implication on the corporate currency exposure. Indian corporates have an attitude of staying away from the currency market. Companies consider hedging as unwanted cost centres. Periods of exchange rate stability bred complacency. Importers are confident that the Central banks shall intervene to halt any rupee decline where a exporters are of the view that rupee has always been over rated and that there is no way that it shall appreciate from the present value. These reason keep them away from hedging their exposures. Companies which are involved in hedging, go the conservative and orthodox way to hedge their exposure. Not a single company surveyed, take financial derivatives other than forward contracts as tool for hedging their exposure. This is mainly because of lack of awareness and experience. Many of the companies feel that the importance of currency risk management will increase, in coming years but very few of them are making themselves ready to face the situation. Banks that act as facilitators are also suffering from acute problems. Public sector banks, which control 75% of Indian forex market, have always been under staffed and governed by bureaucratic rules. The market for derivatives other than forward contracts is very shallow. Many of the banks reason it out to be as a result of corporate reluctance and lack of information and technology. Most of the banks in public sector do not merge the forex and money operation and they do not treat their forex operation as a separate profit centre. This bred inefficiency in their working which has affected the corporate sector. The corporates have been recommended to look strategically into their exposure and take prudent decision in hedging. This decision should be backed by professional treasurers, an efficient back office and good forecasting techniques. They have been asked to go in for various other derivatives that are flexible and cost effective. The banking sector has been recommended to recruit specialised personnel for the job with latest technology to deal in the market. They should start providing variety of other derivatives to the industry. They should also merge their money market and forex operation and treat is as a separate profit centre. These all measures will definitely make the forex market deep and vibrant, which will make the work easier for corporates in dealing with the currency exposure. 1. INTRODUCTION â€Å"We have to sleep with one eye open† Managing director of an Indian company with investments in Indonesia. This was in reference to the Indonesian rupiah crash which followed the nearly 100 percent, Thai currency plunge after the bahts free float last July with the Indonesian currency in downward spiral and interest rates shooting northwards, Indian companies with investment in South-east Asia are in the midst of the maelstrom and are desperately scrambling to get a grip of this unprecedented situation even as they wonder: what next? If only they could have got the wind of the disaster things would have been bit different for them. The spate of Southeast Asian currency plunge has sent warning signals to the developing economies to set their level in order to face crisis. Companies have to set their house in order and give a micro as well as macro look at the currency exposure which they are facing. With increase in volume of business in external sector, companies should make themselves tuned to the dynamics of foreign exchange (currency) market. 1.1 Currency RISK MANAGEMENT An asset or a liability or an expected future cash flow stream (whether certain or not) is said to be afflicted with currency risk when currency movement changes (for better or for worse) the home currency value. There is always a possibility of the exchange rate changing between the home and foreign currencies, interest rate differentials widening and inflationary effects amounting, to an adverse reaction for the expected cash flows . The concept of currency risk also emanates when an investor is planning to diversity his portfolio internationally to improve the risk- return trade off by taking advantage of the relative correlation among risks on assets of different countries. This involves investing in a variety of currencies whose relative values may fluctuate , it involves taking currency risks. The foreign exchange market is psychological in nature. A large number of transactions are speculative in nature which depends upon expectations of a large number of participants. People tend to hitch their expectations to one fundamental. For example, they might look at the money supply in the USA. The logic is that an increase in money supply will result in : Þ An increase in inflation Þ FED squeezing money Þ Interest rate rising Þ Dollar becoming more attractive for holding. But this event of money supply could also lead to a different series of outcomes an shown by the following logic. According to fisherman equation, Nominal rate = Real rate + Inflation rate. An increase in inflation would mean the interest rates would be higher. Higher interest rates on bond and equity prices would make them less lucrative and thus lead to a bearish effect. There would be a selling pressure on the dollar and hence the exchange rates would tend to move against the dollar. Dealings in foreign exchange market is said to be around $ 1000 billion each day. Out of this sizeable chunk of more than 75% is on speculative basis. And this speculation has been pointed out as major cause of the south Asian turmoil. Since the mid 1970s a potent mix of fast-interlocking market and a revolution in information technology has increased the speed, frequency and magnitude of price changes in the financial markets, which, in turn have multiplied both opportunity and risk for the CFO. Not, surprisingly, in the developed markets, much innovative energy has been devoted to devising instruments and mechanisms that enable CFO to survive this turbulence. While creative financial engineering has opened the floodgates for a deluge of products, two broad classes of risk management have evolved. The first deploys a natural hedge to manage exposure to risk. Typically, this means explicitly factoring in risk perceptions when choosing the components of the financing mix. Or, to neutralise exposures in a particular market, a natural hedge could involve taking a counter position in another market. The second class of tools however creates a synthetic hedge by utilising specific financial instruments. Notably, derivatives. 1.2 Problems in Indian foreign exchange market Our foreign exchange market suffers from several constraints. i) There are a lot of ceilings on open positions and gaps and hence there is a virtual absence of market making and position trading. ii) There is prohibition of initiating transactions in the cross currency in the overseas market. iii) Besides the forward contracts, there is no free access to the other products like futures, swaps, etc. The market lacks the required liquidity and depth for the derivatives to be economically viable. 2. Literature review 2.1 THE NATURE OF EXPOSURE AND RISK The value of a firms assets, liabilities and operating income vary continually in response to changes in economic and financial variables such as exchange rates, interest rates, inflation rates, relative prices and so forth. The impact of every financial decision on the value of the firm is uncertain and various options can be evaluated in terms of their risk return characteristics. The nature of uncertainty can be illustrated by a number of commonly encountered situations. An appreciation of the value of a foreign currency (or equivalently, a depreciation of the domestic currency)., increases the domestic currency value of a firms assets and liabilities denominated in the foreign currency receivable and payables, bank deposits and loans etc. It will also change domestic currency cash flows from exports and imports. An increase in interest rates reduces the market value of a portfolio of fixed rate bonds and may increase the cash outflow on account of interest payments. Acceleration in the rate of inflation may increase the value of unsold stocks, the revenue from future sales as well as the future costs of production. Thus the firm is â€Å"exposed† to uncertain changes in a number of variables in its environment. Let us begin with the definition of foreign exchange exposure. Foreign exchange (Currency) exposure is the sensitivity of the real value of a firms assets, liabilities or operating income, expressed in its functional currency, to unanticipated changes in exchange rates. Note the following important points about this definition. Values of assets, liabilities or operating income are to be denominated in the functional currency of the firm. This is the primary currency of the firm and in which its financial statements are published. For most firms it is the domestic currency of their country. Exposure is defined with respect to the real values i.e. values adjusted for inflation. While theoretically this is the correct way of assessing exposure, in practice due to the difficulty of dealing with an uncertain inflation rate this adjustment is often ignored i.e. exposure is estimated with reference to changes in nominal values. The definition stresses that only unanticipated changes in exchange rates are to be considered. The reason is that markets will have already made an allowance for anticipated changes in exchange rates. For instance, an exporter invoicing a foreign buyer in the buyer currency into the price. A lender will adjust the rate of interest charged on the loan to incorporate an allowance for the expected depreciation. From an operational point of view, the question is how do we separate a given change in exchange rate into its anticipated and unanticipated components since only the actual change is observable? One possible answer is to use the forward exchange rate as the exchange rate expected by the â€Å"market† to rule at the time the forward contract matures. Thus suppose that the price of a pound sterling in terms of rupees for immediate delivery (the called spot rate) is Rs. 60.000 while the one months forward rate is Rs. 60.20. We can say that the anticipated depreciation of th e rupee is 20 paise per pound in one month. If a month later, the spot rate turns out to be Rs. 60.30 there has been an unanticipated depreciation of 10 paise per pound. In contrast to exposure which is a measure of the response of value to exchange rate changes, foreign exchange risk is defined as. The variance of the real domestic currency value of assets, liabilities or operating income attribute to unanticipated changes in exchange rates. In other words, risk is a measure of the extent of variability in the values of assets etc. due to unanticipated changes in exchanges rates. 2.2 Classification of Foreign Exchange Exposure and Risk Three types of foreign exchange exposure and risk can be distinguished depending upon the nature of the exposed item and the purpose of exposure estimation. These are as follows. Transaction Exposure: This is a measure of the sensitivity of the home currency value of assets and liabilities which are denominated in foreign currency, to unanticipated changes in exchange rates, when the assets or liabilities are liquidated. Transaction exposure can arise in three ways: * A currency has to be converted in order to make or received payment for good s and services. * A currency has to be converted to repay a loan or make an interest payment (or, conversely, receive a repayment or an interest payments) or. * A currency has to be converted to make a dividend payment. Suppose a firm receives an export order. It fixes a price, manufactures the product, makes the shipment and gives 90 days credit to the buyer who will pay in his currency. A company has acquired a foreign currency receivable, which will be liquidated before the next balance sheet date. The exposure affects cash flows during the current accounting period. If the foreign currency has appreciated between the day the receivable was booked on the day the payment was received, the company makes exchange gain which may have tax implications. In a similar fashion, interest payments and principal repayments due during the accounting period create transaction exposure. Transaction risk can be defined as a measure of uncertainty y in the value of assets and liabilities when they are liquidated. Translation Exposure: Also called accounting Exposure is the exposure on assets and liabilities appearing in the balance sheet but yet to be liquidated. Translation risk is the related measure of variability. The key difference between transaction and translation exposure is that the former involves actual movement of cash while the latter has no direct effect on cash flows. (This is true only if there are no tax effects arising out of translation gains and losses). Translation exposure arises when a parent multinational company is required to consolidate a foreign subsidiarys statements from its functional currency into the parents home currency. Thus suppose an Indian company has a U.K subsidiary. At the beginning of the parents financial year the subsidiary has real estate, inventories and cash valued at pound 1,000,000, pound 200,000 pound 150,000 respectively. The spot rate is Rs. 60 per pound sterling. By the close of the financial year, these have changed to pound 1,200,000, pound 205000 and pound 160,000 respectively. However during the year, there has been a drastic depreciation of the pound to Rs. 56. If the parent is required to translate the subsidiarys balance sheet from pound sterling into rupees at the current exchange rate, it has â€Å"suffered† a translation loss. Note that no cash movement is involved since the subsidiary is not to be liquidated. Also note that there must have been a translation gain on the subsidiarys liabilities. There is broad agreement among theorists that translation losses and gains are only notional accounting losses and gains. The actual numbers will differ according to the accounting practices followed and depending upon the tax laws, there may or may not be tax implications and therefore real gains or losses. Accountants and corporate treasurers however do not fully accept this view. They argue that even though no cash losses or gains are involved, translation does affect the published financial statements and hence may affect market valuation of the parent companys stock. Whether investors indeed suffer from â€Å"translation illusion† is an empirical question. Some evidence from studies of the valuation of American multinationals seems to indicate that investors are quite aware of the notional character of these losses and gains and discount them in valuing the stock. for Indian multinational, translation exposure is a relatively less important consideration since the law doe s not require translation and consolidation of foreign subsidiaries financial statement s with those of the parent companies. Operating Exposure: Unanticipated exchange rate changes not only affect assets and liabilities but also have significant impact on future cash flows from operations. Operating Exposure is a measure of the sensitivity of future cash flow and profits of a firm to unanticipated exchange rate changes. Consider a firm that is involved in producing goods for export and or import substitutes. It may also import a part of its raw materials, components etc. A change in exchange rate (s) gives rise to a number of concerns for such a firm. 1. What will be the effect on sales volume if prices are maintained? If prices are changed? Should prices be changed? For instance, a firm exporting to a foreign market might benefit from reducing its foreign currency price to the foreign customers following an appreciation of the foreign currency. A firm that produces import substitutes may contemplate an increase in it domestic currency price to its domestic customers without hurting its sales. 2. Since a part of the inputs are imported, material costs will increase following a depreciation of the home currency. 3. Labour costs may also increase if cost of living increases and wages have to be raised. 4. Interest costs on working capital may rise if in response to depreciation the authorities resort to monetary tightening. In general, an exchange rate change will affect both future revenues as well as operating costs and hence the operating income. As we will see later, the net effect depends upon the complex interaction of exchange rate changes, relative inflation rates at home and abroad, price elasticities of export and import demand and supply and so forth. Operating exposure and the related risk are extremely difficult to analyse, estimate and hedge against. 2.3 THE INDIAN FOREX MARKET Indian foreign exchange market as compared with their American and European counterparts is till in its infants. The post liberalisation period has witnessed many exchange controls been lifted and introduction of few â€Å"hedging† tools like cross currency option, Range forwards, currency swaps etc. which provide a degree of flexibility to corporates in using the forex markets effectively. The Rupee has been made fully convertible on current account accepting the article VIII status laid down by IMF. This step has seen increased volume of trade in the Indian forex market. Tarapore committee has put the proposal for capital account convertibility. It proposes to deregulate the foreign exchange by year 2002 in three phases. 2.4 PRESENT STATUS Exchange control in India is administered by the Reserve Bank of India, which is empowered by the Foreign exchange regulation Act. The figure shows the players involved in the foreign exchange market from administrative point of view. Foreign Exchange Regulation Act, 1973 Govt. of India Reserve Bank of India Foreign Exchange Dealers Association of India Authorised Dealers Authorised Money Changers Full Fledged Restricted Administration of Foreign Exchange in India. The foreign exchange market in India functions with a three-tier structure which includes (1) Reserve Bank of India, at the apex level, (ii) authorised dealers/money changers conducting foreign exchange trading activities, and (iii) customers which include exporters/importer, corporates and other foreign exchange earners like NRIs etc. The market is highly influenced by State Bank of India and Reserve Bank of India because of their Sheer Size. The RBI constantly intervenes to keep the rupee from appreciating and is responsible for highly liquid spot market as it is a last resort buyer of dollars. The forward market in India is fairly liquid and quotes are easily available up to six months. The RBI prohibits any international speculative access to rupee. 2.5 SIZE AND DEPTH OF THE MARKET The daily turnover in the Indian Foreign exchange market is over US $400 million that is dominated by dealings in dollars. The foreign exchange reserve of $30 million provides the market with enough liquidity. 2.6 INDIAN EXCHANGE CONTROLS Exchange Controls refer to the regulation, restrictions, guidelines that a country issues with respect to foreign exchange transactions. In the absence of any exchange control one would expect to do anything with the foreign exchange reserves that the company has-convert to any other currency, speculate, buy or sell option, freely export foreign exchange etc. etc. In India, forward contract is the single largest product which the companies employ as a tool to manage their foreign exchange risks, though the cost has changed over the period of time. Before LERMS (liberalised exchange rate management system) importers rushed to book forward contracts expecting a devaluation of Re against US$. The cost was as high as 18% in Feb.92. The cost of the forward premium came down sharply reflecting a more stable foreign exchange markets. The Indian exchange market do not provide frequent quotations for ore than 6 months so for any long term forward cover rollover of the contract after every 6 months is needed. Rollover means cancellation of the old contract and re-booking of 6-month forward contract. Under this, care should be taken to cancel the old contract and re-book the next at the time when the cost of rebooking is least i.e. forward dollar is relatively cheap. Further, in December 1994, RBI has allowed the corporates to bet on the third currency movement even if one does not have an underlying transaction exposure in the â€Å"third currency†. This means that a corporate with an underlying exposure in Dollar-Re can bet on the Dm-Dollar rate and book a forward contract for Dm against Re and on the maturity may change Dm to Dollar at the spot rate. This has been allowed as Indian Re has been pegged with US$ and there has not been many fluctuations on which the companies could speculate. There can be other ways to take advantage of this RBI circular. Consider an importer with $ payable after 6 months. He may buy $ forward against Yen (third currency) and after 6 months may buy Yen against Rupee at the spot rate. This position may be taken if the company expects Yen to depreciate against the Dollar within these 6 months. Nevertheless the speculative attempts to earn profits may also backfire to give losses if the exchange rate moves in the opposite direction. RBI has also made it obligatory upon the banks, which extend the third currency cover, to maintain â€Å"initial† and â€Å"variation† margins before offering such a facility. This has been done to avoid any default risk. Another peculiar feature of ‘The Indian Exchange Control is that the â€Å"hedging† can be put through in case of transaction and translation exposures only. Economic exposures cannot be hedged. Cross Currency option was introduced on 1st Jan. 1994, under which companies could enter option contract for hedging non-dollar exposure against dollar. As for now Rupee option does not exist in India. Essar Gujarat has been one of the innovative corporates who discovered this new concept and has benefited considerably by writing option in Dm- Dollar in Jan 1994. Indian Exchange controls do not allow cancellation of cross currency options in parts and once the option is cancelled it cannot be re-booked, unlike forwards. In the overseas markets minimum lot traded is $ 3m whereas Indian corporate by for lesser amount, this increases the premium paid by them for the option. Recently, ANZ Grindlay has offered to arrange a loan of $ 50m to Ranbaxy by making effective use of call and put options to defend both the parties against unfavourable movements in exchange rates. Cross currency forward cover for importers who have taken $ loan for their imports but receive goods invoiced in say a Dm. They can enter forward cover for the delivery of Dm against the currency of loan i.e. -$. This is the cross currency forward cover. Some of the foreign Exchange controls are that export of foreign currency is not permitted, unless it has special RBI permission. â€Å"Exchange controls also they list the permitted currencyâ€Å" and a method of payment as approved by RBI for translation across the countries. It also contains guidelines relating to â€Å" Foreign currency assets† covering permission as for repatriation of capital profits dividends etc. Exchange controls also allow FC to be retained up 50% (in case of EOU EPZ units) and 25% (in case of ordinary exporters with banks in Indian and also abroad under EEFC a/c and FCA a/c. Exchange controls also state under-invoicing and over-invoicing of exports as a crime attracting penal provisions. Further, all sale proceeds in FC should come into the country within 180 days. RBI permission is required for any extension beyond 180 days. In case of failure to get RBIs nod, the tax and other export incentives are not provided to the exporters. Further, exchange controls give details and guidelines for different accounts for NRI and foreign investors such as Ordinary Non- Resident Rupee a/c, Non-Resident External; Rupee a/c FCNR (B) a/c etc. Introduction of complex hedging tools like futures, options is still a long way to go, Recently, the government lifted the ban on futures, option trading in equity (stocks) after 40 years, This could be regarded as a step ahead to come closer to introduction of more complex tools in the currency markets in India. In the near future Standard Chartered plans to introduce rupee-based derivatives in India subject to the clearance and approval by exchange controls, with many companies now making use of different tools effectively, the Indian foreign exchange markets are moving ahead towards more relaxations and towards making the foreign exchange markets more vibrant and versatile, IDBI is one of the most active user of financial derivatives in Indian market. It made considerable savings over the last two year by using the entire range of products available in Indian forex markets. 2.7 FINANCIAL DERIVATIVES USED IN INDIAN MARKET A derivative instrument is commonly defined as one whose price is derived from an underlying quantity that could be an interest or an exchange rate (in this case exchange rate) we refer to derivatives of money and foreign exchange market prices as â€Å"financial derivatives†. The history of using financial derivatives to hedge foreign exchange exposures by corporates in India is fairly recent. Early 90s witnessed few foreign currency call options written by some Indian corporates. The limited use and general lack of interest in the available instruments can be explained by the fact that dependence on external sources of funding was very limited and the external sector wasnt really developed. But after liberalisation and current account convertibility, the whole scenario has changed. Risk management has under gone a paradigm shift, new financial derivatives have been allowed in the market to provide for exposures arising out of increased business activity in the external sector. We shall discuss the various hedging tools is operative. 2.7.1 FORWARD CONTRACTS The Definition: A forward contract is simply an agreement to buy or sell foreign exchange at a stipulated rate at a specified time in the future. It is a contract calling for settlement beyond the spot date. The time frame can vary from a few days to many years. Instrument: A forward contract locks you to a particular exchange rate, thereby insulating the CFO from exchange rate fluctuations. In India, the forward contract has been the most popular instrument employed by corporates to cover their exposures, and thereby, offset a known future cash outflow. Forward contracts are usually available only for periods up to 12 months. Forward premiums are governed purely by demand and supply, which provide corporates with arbitrage opportunities. The premiums in this market are quoted till the last working day of the month. Internationally, the forward premiums or discounts reflect the prevailing interest rate differentials. Arbitrage opportunities are therefore limited. As a rule, a currency with a higher interest rate trades at a discount to a currency with a lower interest state. Since there is a forward market available for longer periods, the forward cover for foreign exchange exposures can stretch up to five years. The premiums or discounts are quoted on a month-to-month basis. That is, from the spot date to exactly one month, or two months, or even a year. AN EXAMPLE.A corporate has to make a payment of US $I million on March 31, 1998. They can book a forward contract today, and fix the exchange rate at which he will make the payment. Assuming that the dollar-rupee spot rate is Rs 36.40, and the forward premium on the dollar for delivery on March31. 1998, is Rs 0.30 the effective exchange rate for the remittance becomes Rs 36.70 (36,40+30). The Regulations: In March 1992, in order to provide operational freedom to corporates, the unrestricted booking and cancellation of forward contracts, for all genuine exposures, whether trade-related or not, was permitted. In January 1997, the RBI allowed the banks to quote rupee forward premiums for more than six months. This has resulted in the development of a local forward market for up to one year. However, as the link between the local money market and the foreign exchange markets is not strong, and as prices and determined by demand and supply, activity in the long -term forward market has been limited. 2.7.2 FORWARD TO FORWARD CONTRACTS The Definition: A forward -to-forward contract is a swap transaction that involves the simultaneous sale and purchase of one currency for another, where both transactions are forward contracts. It allows the company to take advantage of the forward premium without locking on to the spot rate. The Instrument: A forward-to-forward contract is a perfect tool for corporates that want to take advantage of the opposite movements in the spot and the forward markets. By locking in the forward premium at a high or low level now, CFOs can defer locking on to the spot rate to the future when they consider the spot rate to be moving in their favour. However, a forward-to forward contract can have serious cash-flow implications for a corporate. Before booking a forward-to forward contract a CFO should carefully examine his cash flow position bearing in mind the immediate loss that he would make if the spot rate did not move in his favour. The Example. An exporter believes that forward premiums are high, and will move down before the end of December 1997. Also he expects the spot rate to depreciate in the next few months. Then, the optimal strategy would be to lock in the high forward premium now, and defer the spot rate to a future date. So, he opts for a forward-to forward contract for end December. 1997, to end March of 1998. Paying a premium of say a Rs 0.64 By entering into such a contract the exporter has the opportunity to lock on to the spot rate any time till December 31, 1997. Alternatively, if the three-month premium between end-December and end-March moves below the Rs 0.64 level he can cancel the contract and book his profits. Forward -to-forward contracts The SCenario Company A is due to receive the payment for goods exported three months earlier. Currently, three-month forward premiums are high, but Company A expects the sport rate to depreciate further. The Instrument The forward-to-forward pay-off matrix DS>EF DS>EF Lack in the Current Premium By Purchasing A Forward-To-Forward Contact EF>SF Better Than Simple Forward, But Worse Than Uncovered Strategy Optimal Strategy Choose The Spot Rate Within A Stipulated Time-Period, Thus Determining Effective Forward Rate SF>EF Worst Strategy Better than Uncovered Strategy, At the end of the months, Convert Export Proceeds to Rupee at the Effective Forward Rate SF : Simple Forward Rate EF: Forward-to-Forwar