Indian Textile Industry

Indian Textile IndustryStructure, Problems and Solutions Subject: Term Paper of Organization Management Under Guidance of Dr. Vinayshil Gautam Written By Jaimeen Rana Entry# 2012SMF6890 1 INDEX a) Introduction 3 b) History 3 c) Structure of Indian Textile Industry 3 d) Communication and Effectiveness 4 e) Problems faced by Textile Industry in India 5 f) Steps taken by government till now 7 g) Strategies for growth 8 h) Conclusion 9 i) References 10 2 a) Introduction Indian Textile and Apparel Industry is second largest manufacturer in the world with an estimated export value of US$ 34 billion and domestic consumption of US$ 57 billion.It stands at number two position in generating huge employment for both educated and uneducated labor in India. Over 350 lakh people are employed in this industry in India. 14% of total industrial production is done by this sector. 4% of India’s GDP is obtained by this sector. It contributes 17% to the India’s total export earnings. Top co mpanies in Textile industry in India: Bombay Dyeing Fabindia JCT Limited Welspun India ltd Lakshmi Mills Mysore Silk Factory Arvind Mills Raymonds Reliance Textiles Grasim Industries ) History India’s textile industry evolved and developed at a very early stage and its manufacturing technology was one of the best ones. India’s manually operated textile machines were among the best in the world, and served as a model for production of the first textile machines in newly industrialized countries like England. Marco Polo’s records show that Indian textiles used to be exported to many Asian countries. Textiles have also comprised a significant portion of the Portuguese trade with India.These included embroidered bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute ground. A big success of Indian textile industry led to the foundation of the London East India Company in 1600, followed by Dutch and French companies. By 1670, there was serio us demand for their governments to ban the import of these cottons from India. The legacy of the Indian textile industry stemmed from its wealth in natural resources cotton, jute and silk. The technology used was superior and the skills of the weavers gave the finished product a most beautiful and ethnic look. ) Structure of Indian Textile Industry The structure of this industry is very complex with the modern, automated and highly mechanized mill sector on one side and hand spinning and hand weaving (handloom sector) on the other side. The small scale power loom sector, which is decentralized, lies in between of the two. 3 Indian Textile Industry is divided into major 3 segments: 1) Cotton Textiles 2) Synthetic Textiles 3) Others (wool, jute, silk etc) Till today cotton textiles are on top with 73% share in total Indian textiles.Coexistence of old technologies of hand working (spinning, weaving, and knitting) with the advanced automatic spindles and loom makes the structure of cott on textile industry very complex. Indian textile industry consists of small scale, non integrated spinning, weaving, knitting, fabric finishing and clothing enterprises, which is not the case in other countries. This unique structure is because of government policies that have promoted labor intensive small scale operations and discriminated against big scale organizations. d) Communication and effectiveness:The study regarding this was conducted within city of Coimbatore, which is considered â€Å"Manchester of South India†. Six textile organizations (3 small and 3 large) were selected within the city. The objective of the study was to examine the difference between small and large organizations in terms of structure, communication and effectiveness. The difference based on structure, communication and effectiveness between large and small organizations show that the two organizations differ significantly with respect to all dimensions except participation in decision making .Large organizations are more centralized, formalized and employees experience highly routine tasks. With regard to communication pattern, small organizations have more open communication while in large organizations communication is more accurate. With regard to effectiveness, large organizations are more effective with regard to all dimensions except job involvement and job performance which are better in small organizations. The effect of structure and communication variables on organizational commitment, job satisfaction, organizational performance and adaptability are more pronounced in large organizations while moderate in small ones.Participation in decision making process has a strong positive effect on job satisfaction, commitment, organization performance and moderate positive effect on job performance. Task routineness and formalization have low positive effect on job involvement and performance in large firms. In small organizations, centralization has a moderate negativ e effect on job satisfaction. Centralization has a low negative, task routineness has a low positive and formalization has a moderate negative effect on group processes.The effect of communication openness is pronounced on job satisfaction and performance. The negative effect of communication accuracy is high on job involvement and group processes and moderate on organizational performance. 4 e) Problems faced by Textile Industry in India (1) Shortage of raw materials: Raw material determines 35 per cent of the total production cost. The country is short of cotton, particularly long- staple cotton which is imported from Pakistan, Kenya, Uganda, Sudan, Egypt, Tanzania, U. S. A. and Peru.It is pity that despite largest area under cotton (26 per cent of the world acreage) the country accounts for only 9 percent of the world output of cotton. Fluctuating prices and uncertainties in the availability of raw material cause low production. (2) Obsolete machinery: In India most of the cotton textile mills are working with old and obsolete machinery. According to one estimate in India over 60 per cent of the spindles are more than 25 years old. The automatic looms account for only 18 per cent of the total number of looms in the country against the world average of 62 per cent and 100 per cent in the United States.Obsolete machinery leads to low output and poor quality of goods as a result of which Indian textile goods are not able to face competition in the international market. (3) Power shortage-Textile mills are facing acute shortage of power. Supplies of coal are difficult to obtain and frequent cuts in electricity and load shedding affect the industry badly. This leads to loss of man hours, low production and loss in the mills. (4) Low productivity of labour: Low productivity is another major problem of cotton textile industry. On an verage an Indian factory worker only handles 380 spindles and 2 looms as compared to 1,500-2,000 spindles and 30 looms in Japan. If t he productivity of an American worker is taken as 100, the corresponding figure for U. K. is 51 and for India only 13. Also industrial relations are not very good in the country. Strikes, layoffs, retrenchments are the common features of many cotton mills in the country. (5) Competition in foreign market: The Indian cotton textile goods are facing stiff competition in foreign markets from Taiwan, South Korea and Japan whose goods are cheaper and better in quality.It is really paradoxical that in a country where wages are low and cotton is internally available, production costs should be so high. While certain traditional buyers of Indian textile goods like Myanmar, Indonesia, Sri Lanka, Ethiopia, Aden etc. are facing severe balance of trade problem some European countries like France, Germany, U. K. and Austria etc. have imposed quota limitations over the Indian textile imports. Acute world recession has badly affected the export prospects. (6) Competition from the decentralized sec tor: An important factor for the rowing sickness of the mill sector is the growth of the decentralized sector. Being a small-scale sector, the Government allowed excise concessions and other privileges. These accompanied with low wages have led to low cost of production in the decentralized sector. 5 As a result of which the share of mill sector is decreasing, while the share of decentralized sector is increasing. So much so that the share of mill sector in the production of cotton fabrics has gone down from 7. 9 per cent in 1994-95 (cf. power looms 69% and handlooms 21. 6%) to 4. 4per cent in 1999-2000 (cf. ower looms 76. 3% and handlooms 19. 3%). (7) Government controls and heavy excise duties: the cotton textile industry has greatly suffered due to wrong and faulty policies of the Government. In the past the Government has sought control of price, distribution of yarn, pattern of production, etc. At one time the price of the cloth was fixed by the Government below the cost of pro duction. Similarly under the yarn distribution scheme of 1972, the Government made it obligatory on all mills to supply 50 per cent of the production of yarn to the decentralized sector at reduced rates.The high import duty on imported cotton, upward revision of the price of the indigenous cotton and heavy excise duty on cotton cloths are other detrimental factors. Another problem of the mill sector is related to the production of controlled cloths wherein mills are incurring huge loss. (8) Sick mills-In India about 130 cotton mills are sick and incurring constant losses. The Government has set up the National Textile Corporation (NTC) to run these sick mills. Although the government has invested huge money to rehabilitate and modernize these mills, but these mills are yet to become profitable.The NTC is facing dual problems of the obsolete machine, y and excess labour in these mills. According to a working group of the Planning Commission the industry needs Rs. 180. 55 crores for r ehabilitation and Rs. 630 crores for the modernization of sick mills. The cotton textile industry of the country is thus facing both short-term and longterm problems. Former includes problems of high prices, shortage of raw materials, liquidity problems due to poor sales and accumulation of huge stocks due to poor demand in the market.The long term problems of the industry include the slow pace of modernization, outdated technology resulting into low productivity, high cost of production, low profitability and increasing sickness of mills. Other small problems are inadequate training facilities in textile sector, fragmented garment industry, structural weaknesses in weaving and processing, rigid labor laws, infrastructural bottlenecks in terms of power, utility, road transport etc 6 f) Steps taken by government till nowThe Government has undertaken a series of progressive measures like introduction of Technology Mission on Cotton (TMC), Technology Up gradation (sp) fund Scheme (TUFS ), Scheme for Integrated Textile Park (SITP), reduction in customs duty on import of state-of-the-art machinery, Debt Restructuring Scheme, setting up of Apparel Training and Design Centers (ATDCs), 100% Foreign Direct Investment in the textile sector under automatic route, setting up of National Institute of Fashion Technology (NIFT) etc, for upgrading and strengthening the textile sector in India.From time to time, in consultation with all stakeholders, Government modifies these schemes so as to achieve better results through improved delivery of programs/schemes. These progressive measures have helped the textile sector to achieve improved growth in production; enhanced productivity and a larger share of textile export market in the world. (1) Technology Upgrading Fund Scheme To facilitate technological upgrading in the sector, the Government launched TUFS with effect from 1 April 1999 for five years initially, and which is extended up to 2011/12.The scheme provides for reimburse ment of 5 per cent interest paid on term loans for technological upgrading of textile machinery. In this way, the Government has assisted the Indian textile companies by ensuring that they are not over-burdened by the high interest rate prevailing in the country. (2) Integrated textile parks scheme In order to a world-class infrastructure for textile units as well as facilitate the need for them to meet international social and environmental standards, this scheme envisages the creation of textile parks in the public-private partnership mode.Currently, 30 parks are in various stages of implementation, and 50 more are planned for the next five years. (3) Fiscal rationalization In the 2006 budget, the excise duty on all manmade fibers and yarns was reduced from 16 per cent to 8 per cent. The 2007 budget carried it forward by reducing the customs duty on polyester fibers and yarns from 10 per cent to 7. 5 per cent. The customs duty on polyester raw materials such as DMT, PTA and MEG we re also reduced from 10 per cent to 7. 5 per cent. These measures are expected to make manmade fibers and yarn cheaper and thus increase the competitiveness of fabric and apparel manufacturers. 4) Technology Mission on Cotton In February 2000, the Government launched the Technology Mission on Cotton with the objective of addressing the issues of raising productivity, improving quality and reduction of contamination in cotton. Indeed, cotton 7 production in the past three years has increased substantially and contamination has been reduced, as assessed by independent agencies. (5) Other steps taken to increase competitiveness Earlier, only small-scale manufacturers were allowed to make woven RMG, knitted and hosiery products.While the initial aim was to boost employment opportunities and promote entrepreneurship at the smaller enterprise levels, in practice it rendered the small manufacturers uncompetitive globally. By 2003/04, the sector had been totally freed. In addition, FDI up t o 100 per cent through the automatic route has now been allowed. So that textile industry will have higher amount of foreign investment. And new technology machinery can be used in India by foreign players which can cause local players also to use the new technology. g) Strategies for growth 1) Improving labour laws: One of the main requirements for growth in the apparel subsector is the relaxation/amendment of the labour laws, to ensure an equal chance of success for the country’s exporters and manufacturers in the present global environment. Outdated labour laws have induced inflexibility in the clothing industry, leading both to fragmented operations in order to circumvent these laws and to lost export orders due to industry’s hesitation over expanding when there is an upsurge. Most of the countries competing with India have labour laws that are more flexible.For example, the Chinese apparel industry has highly flexible labour laws that allow for lay-offs during the non-peak season, hiring of contract labour, and a flexible hiring and firing system in SEZ-based units. The Mexican apparel industry allows layoffs during the slack business season. The industry in India is proposing the provision of flexibility to textile exporting units in hiring labour, subject to ensuring 100 days employment to cater to variations in demand. An increase in daily working hours from 9 hours a day to 12 hours a day, and in weekly working hours from 48 hours a week to 60 hours a week, is also being proposed. 2) Decreasing transaction costs: Various studies have established that the transaction costs faced by the Indian industry are very high, which adversely affects its competitiveness. A study undertaken by the EXIM Bank of India clearly showed that although transaction costs in India had declined because of declining procedural complexities, they were still substantially higher if compared with competitors. Transaction costs vary from sector to sector, and are ve ry high in the textiles and garment subsector, ranging from 3 per cent to 10 per cent of export revenue in 2002. These costs, inter alia, are shown in table 2. 3) Improving the general infrastructural conditions: This improvement includes roads, transportation etc. , so that the costs of reaching the nearest port as well as turnaround time at the port are globally comparable, to ensure that Indian exporters are not placed at a disadvantage vis-a-vis global competitors. 8 h) Conclusion Indian textile industry is a huge source of employment for both skilled and unskilled labor of India so it is very important industry as per economic perspective. This industry faces many problems some of which have been overcome thanks to government policies. But, still some problems are yet to be solved.Different strategies have to be implemented for that purpose. Large sections of the textile value-chain still need to be fully modernized, while the export sector has yet to take full advantage of its existing production strength. There are many areas around the world and many product lines where India is very weakly represented. Thus, while the private sector will need to continue its heavy investment in this industry during the next several years, building on the recent positive trends, India also needs to integrate more fully into the global textile and apparel value chain in order to reap the full benefits from its strengths.Only a coordinated effort by all – the Government, industry and individual units – can enable India to achieve its apparently high and stretched targets of the 12th FiveYear Plan. 9 i) References 1) Sharma Milan, â€Å"Textile Industry of India and Pakistan†, A. P. H. Publishing Corporation, New Delhi, 2006 2) Research paper: Organizational structure, communication and effectiveness in Textile industry (January, 2000) Authors: T Chandramohan Reddy and S Gayathri Journal: Indian Journal of Industrial Relations http://www. jstor. org/s table/27767666 ) Article: Indian Textile Industry by Dr. P Chellasamy and N Sumathi http://www. fibre2fashion. com/industry-article/market-research-industry-reports/indian-textileindustry/indian-textile-industry1. asp 4) Article: Indian textile and clothing sector poised for a leap by J. N. Singh http://www. unescap. org/tid/publication/tipub2500_pt1chap6. pdf 5) Article: Indian Textile and apparel sector : An analysis of aspects related to domestic supply and Demand by Badri Narayan G http://www. unescap. org/tid/publication/tipub2500_pt1chap5. pdf 10

Econometrics Chapter Summaries Essay

2) Basic Ideas of Linear Regression: The Two-Variable Model In this chapter we introduced some fundamental ideas of regression analysis. Starting with the key concept of the population regression function (PRF), we developed the concept of linear PRF. This book is primarily concerned with linear PRFs, that is, regressions that are linear in the parameters regardless of whether or not they are linear in the variables. We then introduced the idea of the stochastic PRF and discussed in detail the nature and role of the stochastic error term u. PRF is, of course, a theoretical or idealized construct because, in practice, all we have is a sample(s) from some population. This necessitated the discussion of the sample regression function (SRF). We then considered the question of how we actually go about obtaining the SRF. Here we discussed the popular method of ordinary least squares (OLS) and presented the appropriate formulas to estimate the parameters of the PRF. We illustrated the OLS method with a fully worked-out numerical example as well as with several practical examples. Our next task is to find out how good the SRF obtained by OLS is as an estimator of the true PRF. We undertake this important task in Chapter 3. 3) The Two-Variable Model: Hypothesis Testing In Chapter 2 we showed how to estimate the parameters of the two-variable linear regression model. In this chapter we showed how the estimated model can be used for the purpose of drawing inferences about the true population regression model. Although the two-variable model is the simplest possible linear regression model, the ideas introduced in these two chapters are the foundation of the more involved multiple regression models that we will discuss in ensuing chapters. As we will see, in many ways the multiple regression model is a straightforward extension of the two-variable model. 4) Multiple Regression: Estimation and Hypothesis Testing In this chapter we considered the simplest of the multiple regression models, namely, the three-variable linear regression model—one dependent variable and two explanatory variables. Although in many ways a straightforward extension of the two-variable linear regression model, the three-variable model introduced several new concepts, such as partial regression coefficients, adjusted and unadjusted multiple coefficient of determination,  and multicollinearity. Insofar as estimation of the parameters of the multiple regression coefficients is concerned, we still worked within the framework of the classical linear regression model and used the method of ordinary least squares (OLS). The OLS estimators of multiple regression, like the two-variable model, possess several desirable statistical properties summed up in the Gauss-Markov property of best linear unbiased estimators (BLUE). With the assumption that the disturbance term follows the normal distribution with zero mean and constant variance ÏÆ'2, we saw that, as in the two-variable case, each estimated coefficient in the multiple regression follows the normal distribution with a mean equal to the true population value and the variances given by the formulas developed in the text. Unfortunately, in practice, ÏÆ'2 is not known and has to be estimated. The OLS estimator of this unknown variance is . But if we replace ÏÆ'2 by , then, as in the two-variable case, each estimated coefficient of the multiple regression follows the t distribution, not the normal distribution. The knowledge that each multiple regression coefficient follows the t distribution with d.f. equal to (n – k), where k is the number of parameters estimated (including the intercept), means we can use the t distribution to test statistical hypotheses about each multiple regression coefficient individually. This can be done on the basis of either the t test of significance or the confidence interval based on the t distribution. In this respect, the multiple regression model does not differ much from the two-variable model, except that proper allowance must be made for the d.f., which now depend on the number of parameters estimated. However, when testing the hypothesis that all partial slope coefficients are simultaneously equal to zero, the individual t testing referred to earlier is of no help. Here we should use the analysis of variance (ANOVA) technique and the attendant F test. Incidentally, testing that all partial slope coefficients are simultaneously equal to zero is the same as testing that the multiple coefficient of determination R2 is equal to zero. Therefore, the F test can also be used to test this latter but equivalent hypothesis. We also discussed the question of when to add a variable or a group of variables to a model, using either the t test or the F test. In this context we also discussed the method of restricted least squares. 5) Functional Forms of Regression Models In this chapter we considered models that are linear in parameters, or that can be rendered as such with suitable transformation, but that are not necessarily linear in variables. There are a variety of such models, each having special applications. We considered five major types of nonlinear-in-variable but linear-in-parameter models, namely: 1.The log-linear model, in which both the dependent variable and the explanatory variable are in logarithmic form. 2.The log-lin or growth model, in which the dependent variable is logarithmic but the independent variable is linear. 3.The lin-log model, in which the dependent variable is linear but the independent variable is logarithmic. 4.The reciprocal model, in which the dependent variable is linear but the independent variable is not. 5.The polynominal model, in which the independent variable enters with various powers. Of course, there is nothing that prevents us from combining the features of one or more of these models. Thus, we can have a multiple regression model in which the dependent variable is in log form and some of the X variables are also in log form, but some are in linear form. We studied the properties of these various models in terms of their relevance in applied research, their slope coefficients, and their elasticity coefficients. We also showed with several examples the situations in which the various models could be used. Needless to say, we will come across several more examples in the remainder of the text. In this chapter we also considered the regression-through-the-origin model and discussed some of its features. It cannot be overemphasized that in choosing among the competing models, the overriding objective should be the economic relevance of the various models and not merely the summary statistics, such as R2. Model building requires a proper balance of theory, availability of the appropriate data, a good understanding of the statistical properties of the various models, and the elusive quality that is called practical judgment. Since the theory underlying a topic of interest is never perfect, there is no such thing as a perfect model. What we hope for is a reasonably good model that will balance all these criteria. Whatever model is chosen in practice, we have to pay careful attention to the units in which the dependent and independent variables are expressed, for the interpretation of regression coefficients may hinge upon units of  measurement. 6) Dummy Variable Regression Models In this chapter we showed how qualitative, or dummy, variables taking values of 1 and 0 can be introduced into regression models alongside quantitative variables. As the various examples in the chapter showed, the dummy variables are essentially a data-classifying device in that they divide a sample into various subgroups based on qualities or attributes (sex, marital status, race, religion, etc.) and implicitly run individual regressions for each subgroup. Now if there are differences in the responses of the dependent variable to the variation in the quantitative variables in the various subgroups, they will be reflected in the differences in the intercepts or slope coefficients of the various subgroups, or both. Although it is a versatile tool, the dummy variable technique has to be handled carefully. First, if the regression model contains a constant term (as most models usually do), the number of dummy variables must be one less than the number of classifications of each qualitat ive variable. Second, the coefficient attached to the dummy variables must always be interpreted in relation to the control, or benchmark, group—the group that gets the value of zero. Finally, if a model has several qualitative variables with several classes, introduction of dummy variables can consume a large number of degrees of freedom (d.f.). Therefore, we should weigh the number of dummy variables to be introduced into the model against the total number of observations in the sample. In this chapter we also discussed the possibility of committing a specification error, that is, of fitting the wrong model to the data. If intercepts as well as slopes are expected to differ among groups, we should build a model that incorporates both the differential intercept and slope dummies. In this case a model that introduces only the differential intercepts is likely to lead to a specification error. Of course, it is not always easy a priori to find out which is the true model. Thus, some amount of experimentation is required in a concrete study, especially in situations where theory does not provide much guidance. The topic of specification error is discussed further in Chapter 7. In this chapter we also briefly discussed the linear probability model (LPM) in which the dependent variable is itself binary. Although LPM  can be estimated by ordinary least square (OLS), there are several problems with a routine application of OLS. Some of the problems can be resolved easily and some cannot. Therefore, alternative estimating procedures are needed. We mentioned two such alternatives, the logit and probit models, but we did not discuss them in view of the somewhat advanced nature of these models (but see Chapter 12). 7) Model Selection: Criteria and Tests The major points discussed in this chapter can be summarized as follows: 1.The classical linear regression model assumes that the model used in empirical analysis is â€Å"correctly specified.† 2.The term correct specification of a model can mean several things, including: a.No theoretically relevant variable has been excluded from the model. b.No unnecessary or irrelevant variables are included in the model. c.The functional form of the model is correct. d.There are no errors of measurement. 3.If a theoretically relevant variable(s) has been excluded from the model, the coefficients of the variables retained in the model are generally biased as well as inconsistent, and the error variance and the standard errors of the OLS estimators are biased. As a result, the conventional t and F tests remain of questionable value. 4.Similar consequences ensue if we use the wrong functional form. 5.The consequences of including irrelevant variables(s) in the model are less serious in that estimated coefficients still remain unbiased and consistent, the error variance and standard errors of the estimators are correctly estimated, and the conventional hypothesis-testing procedure is still valid. The major penalty we pay is that estimated standard errors tend to be relatively large, which means parameters of the model are estimated rather imprecisely. As a result, confidence intervals tend to be somewhat wider. 6.In view of the potential seriousness of specification errors, in this chapter we considered several diagnostic tools to help us find out if we have the specification error problem in any concrete situation. These tools include a graphical examination of the residuals and more formal tests, such as MWD and RESET. Since the search for a theoretically correct model can be exasperating, in  this chapter we considered several practical criteria that we should keep in mind in this search, such as (1) parsimony, (2) identifiability, (3) goodness of fit, (4) theoretical consistency, and (5) predictive power. As Granger notes, â€Å"In the ultimate analysis, model building is probably both an art and a science. A sound knowledge of theoretical econometrics and the availability of an efficient computer program are not enough to ensure success.† 8) Multicollinearity: What Happens If Explanatory Variables are Correlated? An important assumption of the classical linear regression model is that there is no exact linear relationship(s), or multicollinearity, among explanatory variables. Although cases of exact multicollinearity are rare in practice, situations of near exact or high multicollinearity occur frequently. In practice, therefore, the term multicollinearity refers to situations where two or more variables can be highly linearly related. The consequences of multicollinearity are as follows. In cases of perfect multicollinearity we cannot estimate the individual regression coefficients or their standard errors. In cases of high multicollinearity individual regression coefficients can be estimated and the OLS estimators retain their BLUE property. But the standard errors of one or more coefficients tend to be large in relation to their coefficient values, thereby reducing t values. As a result, based on estimated t values, we can say that the coefficient with the low t value is not statistically different from zero. In other words, we cannot assess the marginal or individual contribution of the variable whose t value is low. Recall that in a multiple regression the slope coefficient of an X variable is the partial regression coefficient, which measures the (marginal or individual) effect of that variable on the dependent variable, holding all other Xvariables constant. However, if the objective of study is to estimate a group of coefficients fairly accurately, this can be done so long as collinearity is not perfect. In this chapter we considered several methods of detecting multicollinearity, pointing out their pros and cons. We also discussed the various remedies that have been proposed to solve the problem of multicollinearity and noted their strengths and weaknesses. Since multicollinearity is a feature of a given sample, we cannot foretell which method of detecting multicollinearity or which  remedial measure will work in any given concrete situation. 9) Heteroscedasticity: What Happens If the Error Variance Is Nonconstant? A critical assumption of the classical linear regression model is that the disturbances ui all have the same (i.e., homoscedastic) variance. If this assumption is not satisfied, we have heteroscedasticity. Heteroscedasticity does not destroy the unbiasedness property of OLS estimators, but these estimators are no longer efficient. In other words, OLS estimators are no longer BLUE. If heteroscedastic variances ÏÆ'i2 are known, then the method of weighted least squares (WLS) provides BLUE estimators. Despite heteroscedasticity, if we continue to use the usual OLS method not only to estimate the parameters (which remain unbiased) but also to establish confidence intervals and test hypotheses, we are likely to draw misleading conclusions, as in the NYSE Example 9.8. This is because estimated standard errors are likely to be biased and therefore the resulting t ratios are likely to be biased, too. Thus, it is important to find out whether we are faced with the heteroscedasticity problem in a specific application. There are several diagnostic tests of heteroscedasticity, such as plotting the estimated residuals against one or more of the explanatory variables, the Park test, the Glejser test, or the rank correlation test (See Problem 9.13). If one or more diagnostic tests reveal that we have the heteroscedasticity problem, remedial measures are called for. If the true error variance ÏÆ'i2 is known, we can use the method of WLS to obtain BLUE estimators. Unfortunately, knowledge about the true error variance is rarely available in practice. As a result, we are forced to make some plausible assumptions about the nature of heteroscedasticity and to transform our data so that in the transformed model the error term is homoscedastic. We then apply OLS to the transformed data, which amounts to using WLS. Of course, some skill and experience are required to obtain the appropriate transformations. But without such a transformation, the problem of heteroscedasticity is insoluble in practice. However, if the sample size is reasonably large, we can use White’s procedure to obtain heteroscedasticity-corrected standard errors. 10) Autocorrelation: What Happens If Error Terms Are Correlated? The major  points of this chapter are as follows: 1.In the presence of autocorrelation OLS estimators, although unbiased, are not efficient. In short, they are not BLUE. 2.Assuming the Markov first-order autoregressive, the AR(1), scheme, we pointed out that the conventionally computed variances and standard errors of OLS estimators can be seriously biased. 3.As a result, standard t and F tests of significance can be seriously misleading. 4.Therefore, it is important to know whether there is autocorrelation in any given case. We considered three methods of detecting autocorrelation: a.graphical plotting of the residuals b.the runs test c.the Durbin-Watson d test 5.If autocorrelation is found, we suggest that it be corrected by appropriately transforming the model so that in the transformed model there is no autocorrelation. We illustrated the actual mechanics with several examples. 11) Simultaneous Equation Models In contrast to the single equation models discussed in the preceding chapters, in simultaneous equation regression models what is a dependent (endogenous) variable in one equation appears as an explanatory variable in another equation. Thus, there is a feedback relationship between the variables. This feedback creates the simultaneity problem,rendering OLS inappropriate to estimate the parameters of each equation individually. This is because the endogenous variable that appears as an explanatory variable in another equation may be correlated with the stochastic error term of that equation. This violates one of the critical assumptions of OLS that the explanatory variable be either fixed, or nonrandom, or if random, that it be uncorrelated with the error term. Because of this, if we use OLS, the estimates we obtain will be biased as well as inconsistent. Besides the simultaneity problem, a simultaneous equation model may have an identification problem. An identification problem means we cannot uniquely estimate the values of the parameters of an equation. Therefore, before we estimate a simultaneous equation model, we must find out if an equation in  such a model is identified. One cumbersome method of finding out whether an equation is identified is to obtain the reduced form equations of the model. A reduced form equation expresses a dependent (or endogenous) variable solely as a function of exogenous, or predetermined, variables, that is, variables whose values are determined outside the model. If there is a one-to-one correspondence between the reduced form coefficients and the coefficients of the original equation, then the original equation is identified. A shortcut to determining identification is via the order condition of identification. The order condition counts the number of equations in the model and the number of variables in the model (both endogenous and exogenous). Then, based on whether some variables are excluded from an equation but included in other equations of the model, the order condition decides whether an equation in the model is underidentified, exactly identified, or overidentified. An equation in a model is underidentified if we cannot estimate the values of the parameters of that equation. If we can obtain unique values of parameters of an equation, that equation is said to be exactly identified. If, on the other hand, the estimates of one or more parameters of an equation are not unique in the sense that there is more than one value of some parameters, that equation is said to be overidentified. If an equation is underidentified, it is a dead-end case. There is not much we can do, short of changing the specification of the model (i.e., developing another model). If an equation is exactly identified, we can estimate it by the method of indirect least squares (ILS). ILS is a two-step procedure. In step 1, we apply OLS to the reduced form equations of the model, and then we retrieve the original structural coefficients from the reduced form coefficients. ILS estimators are consistent; that is, as the sample size increases indefinitely, the estimators converge to their true values. The parameters of the overidentified equation can be estimated by the method of two-stage least squares (2SLS). The basic idea behind 2SLS is to replace the explanatory variable that is correlated with the error term of the equation in which that variable appears by a variable that is not so correlated. Such a variable is called a proxy, or instrumental, variable.2SLS estimators, like the ILS estimators, are consistent estimators. 12) Selected Topics in Single Equation Regression Models In this chapter we discussed several topics of considerable practical importance. The first topic we discussed was dynamic modeling, in which time or lag explicitly enters into the analysis. In such models the current value of the dependent variable depends upon one or more lagged values of the explanatory variable(s). This dependence can be due to psychological, technological, or institutional reasons. These models are generally known as distributed lag models. Although the inclusion of one or more lagged terms of an explanatory variable does not violate any of the standard CLRM assumptions, the estimation of such models by the usual OLS method is generally not recommended because of the problem of multicollinearity and the fact that every additional coefficient estimated means a loss of degrees of freedom. Therefore, such models are usually estimated by imposing some restrictions on the parameters of the models (e.g., the values of the various lagged coefficients decline from the f irst coefficient onward). This is the approach adopted by the Koyck, the adaptive expectations, and the partial, or stock, adjustment models. A unique feature of all these models is that they replace all lagged values of the explanatory variable by a single lagged value of the dependent variable. Because of the presence of the lagged value of the dependent variable among explanatory variables, the resulting model is called an autoregressive model. Although autoregressive models achieve economy in the estimation of distributed lag coefficients, they are not free from statistical problems. In particular, we have to guard against the possibility of autocorrelation in the error term because in the presence of autocorrelation and the lagged dependent variable as an explanatory variable, the OLS estimators are biased as well as inconsistent. In discussing the dynamic models, we pointed out how they help us to assess the short- and long-run impact of an explanatory variable on the dependent variable. The next topic we discussed related to the phenomenon of spurious, or nonsense, regression. Spurious regression arises when we regress a nonstationary random variable on one or more nonstationary random variables. A time series is said to be (weakly) stationary, if its mean, variance, and covariances at various lags are not time dependent. To find out whether a time series is stationary, we can use the unit root test. If the unit root test (or other tests) shows that the time series of interest is stationary,  then the regression based on such time series may not be spurious. We also introduced the concept of cointegration. Two or more time series are said to be cointegrated if there is a stable, long-term relationship between the two even though individually each may be nonstationary. If this is the case, regression involving such time series may not be spurious. Next we introduced the random walk model, with or without drift. Several financial time series are found to follow a random walk; that is, they are nonstationary either in their mean value or their variance or both. Variables with these characteristics are said to follow stochastic trends. Stock prices are a prime example of a random walk. It is hard to tell what the price of a stock will be tomorrow just by knowing its price today. The best guess about tomorrow’s price is today’s price plus or minus a random error term (or shock, as it is called). If we could predict tomorrow’s price fairly accurately, we would all be millionaires! The next topic we discussed in this chapter was the dummy dependent variable, where the dependent variable can take values of either 1 or 0. Although such models can be estimated by OLS, in which case they are called linear probability models (LPM), this is not the recommended procedure since probabilities estimated from such models can sometimes be negative or greater than 1. Therefore, such models are usually estimated by the logit or probit procedures. In this chapter we illustrated the logit model with concrete examples. Thanks to excellent computer packages, estimation of logit and probit models is no longer a mysterious or forbidding task.

A Permanent Death †Capital Punishment

There are five basic reasons that society uses when imposing punishment that Ive been able to conclude from my readings. I will discuss these societal concepts and show that the death penalty does not serve to further them. As a result William Smith should not be subject to the death penalty and in fact the same should be abolished from our system of punishment. Plagiarism Detection >Deterrence Deterrence is basically defined as the punishment should fit the crime. Under this concept, the individual committing the crime and society are prevented from committing this action again. In the case of the death penalty, an individual kills another human and he is punished for it by death. Punishment is supposed to be a temporary penalization for a wrongful action. Death is far from temporary. One is to learn from ones mistakes. How can the person learn if they are paying for their mistake with their life? In Ernest van den Haags article, The Ultimate Punishment: A Defense he states, The dea th penalty is our harshest punishment. It is irrevocable: it ends the existence of those punished, instead of temporarily imprisoning them. (Haag, 251). By imposing the death penalty the individual does not learn from their mistakes and neither does society.Economy Under this concept, punishment should be economical. As Haag points out, the monetary cost of appealing a capital sentence is excessive. (Haag, 253). Further, actual monetary costs are trumped by the importance of doing justice. (Haag, 253). Additionally there are specific costs associated with keeping an inmate on death row, (i.e. the cost of the specially built prison blocks, the need for maximum security, etc.) and more. These costs clearly out weigh the regular costs incurred to house a regular inmate. Deterrence is clearly not served by imposing the death penalty and society aims for justice are thwarted.Restitution Society demands that the punishment should fix the harm it has done. By sentencing a person to death n o harm has been fixed. You can not bring the murdered person back by taking the prisoners life. Punishment-regardless of the motivation is not intended to revenge, offset, or compensate for the victims suffering or to be measured by it. (Haag, 253).Retribution The community demands that justice be served. Would justice not equally be served and in fact may be better served by life imprisonment? I believe it would be a worse punishment to endure a life sentence in prison. The individual is deprived of his liberty. He will then suffer and live the rest of his or her life within three lonely walls and a set of bars. It gives the individual time to think and wallow in his own guilt.Someone kills another. The State then proceeds to kill him for doing so. This is not punishment but revenge. Revenge is inconsistent with societys demands that justice be served because the punishment has to fit the crime. Justice Brennan has insisted that the death penalty is uncivilized, inhuman, inconsist ent with human dignity and with the dignity of life. (Haag, 254). Brennan speaks of moral imperatives. It is morally wrong for someone to kill someone. If so, then the state is committing a morally wrongful act. As they say, two wrongs dont make a right.Rehabilitation Society desires for its members to reintegrate themselves into society. Punishment includes preparing the person to reenter society and lead a productive life. Without doubt, if you impose the death penalty there is no opportunity for rehabilitation.Overview of the William Alvin Smith case William Alvin Smith robbed and killed the owner of a grocery store in Georgia when he was 20 years old. He turned himself to the police and signed a confession. The local jury condemned Smith to the electric chair but a federal judge ordered a new sentencing hearing for Smith on the grounds that he lacked the ability to understand the significance of waiving his rights to remain silent and to have an attorney present. Smith has the m ental capacity of a ten-year-old.Analysis of the William Alvin Smith Case in Relation to Societys Expectations of Punishment William Smith stands before you guilty but guilty of what? That is the question. I propose to you that the only thing we can condemn William Smith for is being guilty of being a child and acting the way a child would. Let us examine his actions. William Smith in whatever state of mind he was at the time he committed this act fully acknowledged that he did in fact do something wrong. I propose that he did that in exactly the manner that a child would go to a parent and admit their wrongdoing in order to obtain the parents forgiveness or perhaps their help.The State now stands in the role of parent in this case. Let us examine the position the State has taken when dealing with children that have committed violent crimes. I have but one question to ask: Do we kill our children? Let me give you a recent example the teenage girl in New Jersey who knowingly and pre meditatedly murdered her newborn baby at the prom and then went back to the prom dance. Another case comes to mind of the teenagers who conspired and did murder the girlfriends competition. An even better example would be the rash of murders committed in the nation by children in schools. In all these cases these children knowingly committed the heinous crime of murder.Once again I ask you: Do we kill our children? Has the State, exercising its discretion decided to impose the death penalty on any child? In every single case that I have just cited, these children have not been condemned to murder but their ability to comprehend the seriousness of their actions and other factors related to their youth have been taken into account. All have been sentenced to prison terms to be served in a youth facility.Another legal fact comes to mind in that some teenagers that have committed murders have petitioned the Court to treat the minor as an adult. The law allows a juvenile to be treated as an adult if it is determined that the juvenile in fact is a juvenile in age only yet has the mental capacity of an adult and should be treated like one. It stands to reason that there is room in the law for the inverse to apply. Plagiarism Detection >Why should this man die? He can not think, act or feel like a normal 20 year-old man. In this case, we have a situation of a person who has been adjudicated to have the mental capacity of a ten-year-old. How can we then shut our eyes to this basic fact of William Smiths mental capacity and just look at age as the overriding factor to consider when punishing him for his crime?Society demands that the punishment fit the crime. I have outlined above what society expects from punishment and the punishment that the State decides to give out to children in these matters. On both accounts it is clear that society is not served. Can you examine your conscience and decide to give a child, maybe your child, the death penalty? If so, go ahead and sentence William Smith to death and in doing so, thats exactly what you will be doing. You will be deciding lets kill our children.

Financial Management in Nonprofit Organizations Research Paper

Financial Management in Nonprofit Organizations - Research Paper Example As for example, social service organizations are required to be more specific with their financial reporting practices so as to comply with the existing rules and regulations. Next, religious nonprofit organizations have vital issues related to the complex requirements of its memberships. Management of finances in nonprofit organizations is quite a challenging task. The sources of revenues of nonprofit organizations are very much vulnerable to changes in political environment or economic issues. Nonprofit organizations being accountable to public require more accurate and reliable presentation of information by the financial management team. The fiscal health of nonprofit organizations can be inferred from its financial statements prepared by the financial mangers. This essay gives a descriptive view about the application of financial management in nonprofit organizations by taking into account various aspects like their fund sources, utilization of its debts, performance evaluation techniques used by them and the governance mechanisms used. It ends with a conclusion and a few recommendations that can be suggested. Table of Contents Table of Contents 3 Introduction 5 Sources of Funds 5 Use of Debt 7 Performance Evaluation 8 Efficient use of contributions 9 Fulfilling organizational objectives 10 Government Mechanisms 11 Conclusion 11 References 13 Introduction A nonprofit organization can be defined as a group which operates for purpose like public services and are not driven by profit motive aspect. The incomes that are generated from nonprofit organizations are usually not shared with the members of the organization. Nonprofit organizations can be in the fields of education, health, human services, environment, etc. Individual grants and donations are the primary sources of funds for nonprofit organizations. Both equity and debt can form the capital structure of the nonprofit organizations but equity is preferred more. This is because loans are not easily ava ilable for them due to the unavailability of sufficient collateral and cash flow requirements sought by the banks. Several plans can be employed by the nonprofit organizations for their sustainability and achieving their objectives. Many performance evaluation techniques are also available to help boosting their performance and maintain it for a long term. Government funding can also form a key component and most nonprofit organizations are engaged in several contractual agreements with the government. Hence, managing finance is a vital issue for the continued growth and sustainability of the nonprofit organizations. Sources of Funds Any organization’s plan is the basis of formulation of a successful fund raising strategy. Understanding of the proper funding requirements of an organization and its sources constitutes a good organizational plan. The formulated plan should be balanced too. For any nonprofit organization, the primary sources of funds are as follows: a. Grants: F unding through grants is available from either the charitable trusts or from the public sector. These funds are not meant to be repaid and are usually tax exempted. In most of the cases grants are associated with some conditions like, attainment of particular results, achievement of certain milestones that have been agreed upon, excess unutilized money are to be returned back, providing regular progress report of the utilization of the money, etc. Hence, before

Apply to University Personal Statement Example | Topics and Well Written Essays - 500 words

Apply to University - Personal Statement Example I have the zeal to know how computers operate and how I can use them to positively influence the world in my own way. English is my second language and I have had some difficulties learning it since I did not have enough learning materials in my native place. I figured out that if I become a computer expert I can make these materials available to kids who crave for knowledge and, consequently, help in dissemination of knowledge. I have studied Information Technology in my bachelors. The IT course equipped me with basic knowledge and skills in computer programming, web designing in form of HTML, information searching and retrieval and subject indexing and thesaurus construction. These skills and knowledge should give me a head start in computer science. I do not have any previous work experience as I have just completed my bachelor’s degree in IT. However, during my bachelors I undertook a work placement programme at a nearby high school for two months. My duties were akin to those of a system administrator where I helped the school’s system administrator configure computers and check for security breaches. I also helped students who did not know how to use computers to use them effectively. As a result, I grew my computing and management skills which should prove helpful for this course in the long run. I have a host of interests and hobbies. However, the ones I love most are to play and watch football, to play chess and to participate in enlightening debates. I believe football is a competitive and passionate sport. This should make me a competitive and passionate person in all my undertakings. Debating helps me grow my English language and vocabulary and equips me with the skills of thinking at my feet and adequately relaying information. Lastly, chess equips one with planning, thinking and overall strategizing skills. All these skills will be

Major league baseball Essay Example | Topics and Well Written Essays - 1000 words

Major league baseball - Essay Example The pitcher throws a fastball, a curveball, or a knuckleball (and other popular terms for how the ball is thrown) towards the offensive team’s batter at the home plate from the raised pitchers mound, at a distance of 60.5 ft (18.4 m). The batter then tries to hit the ball as far as he could, that is, within the foul lines, in order to run to as many bases as possible, scoring upon hitting the home plate. A home run is when a batter hits over the outfield and the ball goes generally into the area of the audience and the batter and all other offensive players on base are able to run to the home plate and score. Of course, the team with the most scores after the ninth inning wins. But, if there is a tie after the ninth inning, â€Å"play continues into extra innings until one team has scored more runs than the other in an equal number of turns at bat.† As the popularity of baseball heightened, there came a need for a governing body to impose standardized rules and facilitate scheduling (The Columbia Encyclopedia 4428). Thus, the National Association was formed 1871 and is considered to be the first major league (Rubinstein 20). The two major leagues that are recognized today as Major League Baseball (MBL), the National League and the American League, were founded in 1876 and 1901, respectively (Rubinstein 20). The MBL, a collaboration that was agreed upon in 1920, governs the American League of Professional Baseball Clubs, the National League of Professional Baseball Clubs, and the leagues which are members of the National Association of Professional Baseball Leagues (SportsKnowHow.com and â€Å"Foreword† 2). At present, MBL is composed of â€Å"2 leagues, 30 teams, and over 750 active players† (SportsKnowHow.com). This paper and presentation will discuss only some of the basic and most noteworthy rules and regulatio ns of the MBL as the Major League Agreement, Major League Rules and other league constitutions, which compose the official documents of

Art and Architectural History Essay Example | Topics and Well Written Essays - 1250 words

Art and Architectural History - Essay Example His life transformed in the year 1537, at the age of 30 when Andrea Palladio started to work under the famous designer Gian Giorgio Trissini Trissini shaped the life of Palladio, became his mentor, introduced him to the principles of classical architecture and other disciplines of renaissance. Trissini also introduced his protg to a wide circle of patrons and more importantly, gave him his name 'Palladio; suggesting 'Pallas Athene', the Greek goddess of wisdom', by which he was to later become famous1. Palladio's earlier commissions were to build palaces and villas for aristocracy. Later, he began design of religious buildings. Palladio learnt the principles of Vitruvius, the famous architect of olden days, (whose treatise was rediscovered in the prior century) through his books and the renaissance commentator Alberti. He became acquainted with the ideas and pioneering works of his contemporaries like Romano, Falconetto, Serlio and Sanmicheli. His mentor took him to visit cities like Padua, Venice and Rome and further introduced him to classical Roman and early Renaissance works. The socio-political situation at that time was instrumental in triggering a fundamentally different thought process in his design. Venice had by then become the center of a vast empire with not only military but also commercial enclaves around the area, because it controlled the Mediterranean region and it's trade routes. Noble families thus prospered economically and were turning towards large-scale agricultural activities. This prompted these Neo-rich families to shift their residences to rural areas, so that they could work clo se to home, as well as enjoy the peace and calm of country life. They needed homes, which had the magnificence of the royal Venetian palaces, but at much lower costs. Additionally these homes had to have the functional efficiency, which would allow supervision and storage of agricultural production, as well as serve as a place for repose and contemplation for it's owners. It is in this context, that his 20 odd villas were constructed. Design ideas developed by Palladio: As stated earlier, the central problem for design for Palladio was to synthesize a solution, which took care of the contemporary needs like functionality and comfort for the residents, while retaining the magnificence and keeping the cost low. He found a 3-point solution to the problem: 1. Dramatic external motifs: The external faade had a clear classical influence including column orders but with understated grace and symmetry rather than elaboration. 2. Economic materials: His earlier working experience with brick-laying and masonry prompted him to use bricks clad in stucco instead of marble and stone which had to be procured from far off places, thus reducing costs substantially. 3. Inner harmony and balance of interior spaces: This is where much of his innovative design work was done. His rationality concluded that a sense of space is closely connected with its purpose2, and that the successful synthesis of forms, materials and purpose becomes 'space' (Palladian design, Reading Architectural History - Dana Arnold, pp135). So, his fundamental premise was that the interior parts of the house should correspond to the whole as well as to one another. We will have a sense

Brand Management Term Paper Example | Topics and Well Written Essays - 2750 words

Brand Management - Term Paper Example ..9 Brand Positioning†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 Brand Value†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.11 Current Scenario†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..12 Conclusion & Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.14 Introduction A Brand is the identity of a particular product or service, which distinguishes it from other products. The concept of branding has gained a lot of importance with the passage of time and nowadays branding has become an essential part of marketing for many companies. Nowadays, everything from a product to a person is a brand (Parameswaran, 2006). In this report, I will discuss the effectiveness of Nokia as a brand and evaluate it on various criteria that form the basis of brand management. Brand Management: Brand management understands what a ‘brand’ actually is and an approach to managing it in a way that it creates value for a company (Miller & Muir, 2004). A brand is the differentiating factor between two products which makes it special and gives it a competitive edge. A brand put forwards a promise which defines what the product has to offer to its customers. Marketers cr eate a proper image of the brand through visual images, logos, etc so that a customer can identify with it. Hence, brand management is a comprehensive process starting from understanding the brand to maintaining its image. Brand management can be simplified into 3 steps: First step is to create a promise i.e. understanding the brand and what it has to offer and defining it to the customer. Next is to make that promise which is how the image of the brand is created to register in the minds of the customers. Last is to keep the promise i.e. no brand can only survive on its name. A brand survives on what it offers to its customers and more. So brand management is also about living the promise of the brand till it exists. There are various ways to evaluate the effectiveness of a brand. The most important criteria are: Brand Image: A brand has a personality and a promise and the impression or image of that personality in the mind of a consumers’ mind of a brand’s character is known as brand image. Brand image is the overall impression of a brand that a consumer acquires from various sources. For example while purchasing a car Nissan would be associated with style, while Toyota is associated with reliability. Brand image is based on the fact that customer’s buying decision is associated with the image of the product and the customer is purchasing that set of beliefs (the image) that he has about the product. So a brand image should be positive and distinctive. Various promotional tools can be used to strengthen bran image like advertising, packaging etc. Brand Positioning: Positioning refers to how a product appears in the eyes of the target market as compared to other products

Ethics and the digital divide and what should I as a security Research Paper

Ethics and the digital divide and what should I as a security professional be concerned with - Research Paper Example 5). Due to this, information can be easily misused and important ethics breached with little restriction. Thus, there is the need for controls and ethics to reduce challenges to information security. Most businesses attain information security through the institution of controls. Corporate governance rules require that the people running organizations, viz. the board of directors and top managers, institute controls and ensure they are working (Nnolim, 2007, p. 69). Information security is one of the core controls that managers need to employ. As a requirement by law, public companies need to appoint external auditors to undertake a thorough audit of the systems, operations and financial transactions of business and pass an opinion on the truth and fairness of the accounts and systems (Millichamp, 2011, p. 2). Most private companies are required to conduct external audits by important stakeholders such as banks. Information security falls under the core areas of statutory or external audits. This is governed by the Generally Accepted Accountancy Practice (GAAP) rules of the American Institute of Certified Public Accountants. Apparently, there is a strong connection among information security, increment in information security risks which comes with the bridging of the digital divide, corporate governance and statutory audit. This paper will examine the role of information security professionals in controlling risks in a period of fast IT growth and the role of corporate governance and statutory audit in ensuring that those systems are working. In attaining this end, the following objectives will be met: This section will define the core concepts that are being reviewed in this study. This will set the framework for further analysis of the interconnectedness of the different concepts and how they work together to support organizations to keep running. According to Nnolim (2007, p. 4), ISO defines Information

Critically evaluate Karl Barth's theology of religion and work Essay

Critically evaluate Karl Barth's theology of religion and work - Essay Example Barth work resulted to great effect on how the society interprets and apply Christian teachings. The unpopular and radical approach of Barthian theological thinking about work and Sabbath earned him great criticisms from the mainstream society but his work remains an important component of the current theological scholars and knowledge about Christianity faith. Barth claims that work or human labor is solely utilitarian intended to keep us alive. In this regard, he emphasizes on the importance of observing Sabbath, in order for man to resist the temptation of worshipping work at the expense of serving God (Hughes, 2007). In Barth ideology of Sabbath, the command to rest does not validate man to work for the remaining days of the week. He argues that Sabbath should take precedence of all other activities that man does for the service of God, so that He can reveal His purpose for him. Therefore, Sabbath day according to Barth (2009) gives the meaning and direction of man’s activ ities for the rest of his working days in the week. During Sabbath, man should not consider it as leisure or passive time but rather a day to join God in celebrating His Creation (Barth, 2009). Work or active life is not entirely, what God requires from man, but an activity that man does for survival (Barth, 2009). In this case, Barth argues that Jesus Christ called his disciples to abandon their work and follow him in his ministry but not join work. From his arguments, it is not necessary for man to work because it is worldly and cannot lead to salvation. I disagree with Barth’s opinion on work and Sabbath. When God was creating the universe, all Creations were made in six days and on the seventh day, He rested (Alister, 1999). In this case, God did not rest and then proceed to the work of creation. Though man’s activities do not add up to God’s creations, his actions have a profound effect on the entire universe and its inhabitants. God created man to be the m aster of the universe and its creations, and to fulfill the purpose, man must work not only for his own survival, but for the sake of other creations (Alister, 1999). In poor and underprivileged societies, rest days are liability to such people who struggle hard to afford even a single meal in a day. To such people, taking a break from work in Sabbath amounts to starvation, psychological suffering including anxiety, self-humiliation and depression. Thus, considering economic and social status of people, Barth idea of work and Sabbath is a luxury only the rich can afford. A true Sabbath should result after six days of working earnestly, without deceit or oppression, so that all people regardless of their economic status can fellowship with God and celebrate His Creation. 2. Critically evaluate an issue affecting employers or employees in relation to religious faith and practice Different religions have distinct practices that they instill on their followers and believers. These pract ices normally dictate their daily activities such as mode of dressing, nutrition, duties and responsibilities, health, ways of praying among other behaviors. Alister ( 1999) noted that strict observation of these practices determine the commitment of the believers and more importantly, their desire to attain the highest form of spiritual purity dictated by the teachings of the respective religious denomination. Many religious teachings from diverse backgrounds contain punitive measures meted on followers who fail to comply with the said practices. The punishments are normally carried out by the leaders and/or, adherents of the particular religious grouping on the errant followers (Alister, 1999).

Critical Incident Analysis Essay Example for Free

Critical Incident Analysis Essay Throughout this assessment I will analyse a critical incident of an interaction between a worker and a service user or carer during my statutory observation experience. I will conclude my own assessment of the situation and demonstrate my understanding of the use of self, context in which social work takes place and the knowledge and methods of practice. I will not use any of the service users, carers or agencies names in this essay due to the data protection act 1998. I will also adhere to the GSCC codes of conduct that respect and relate to the service users confidentiality and safety. This include respecting confidential information and clearly explaining agency policies about confidentiality to service users and carers, being reliable and dependable, declaring issues that might create conflicts of interest and making sure that they do not influence your judgement or practice; and adhering to policies and procedures about accepting gifts and money from service users and carers. (GSCC, codes of practice for social care workers. ) My statutory observation placement is at a clinic for substance misuse, mainly being heroin, crack cocaine and alcohol. During one of my days there I was given the opportunity to shadow one of the clinics general practitioners for the day. The general practitioners main role is to work alongside the service user in order to help the break the cycle of drug or alcohol dependency and also to live a healthier lifestyle and offer them a better standard of living. The general practitioner meets with the service users on a monthly basis in which gives him the opportunity to gain as much information about the service user as he can in order for him to work with them as effectively and efficiently as possible. The general practitioner greeted the service user in the service room, and he also asked the service user’s permission for me to be present in the room, which then he further explained me being a student social worker. The service user agreed to this. Before actually meeting the service user I had the chance to read through their notes with the doctor so I could get a better understanding of what the meeting would entail, Furthermore to gain a better understanding of the service user’s background and their main reasons for being there. I introduced myself to the service user as a student social worker. We all sat down and the GP went through the notes with the service user and asked them about any other incidents that may have occurred since the last meeting. Prior to the meeting with the service user the GP had revived the service users latest drug test results which were indicating that the service user still had very high traces of heroin in his system even though he was on a methadone script. Furthermore the drug test did not correspond with the amount of methadone that should have been visible in the service users system. Therefore the GP explained what the test results indicated and queried the service user of why the test results have come back with these conclusions. The service user then went on to explain that these indications are showing on the results because the service user has been selling his methadone prescriptions to feed his heroin addiction as he is unemployed and was not receiving the same feeling off the methadone that he would get when he would take heroin. The GP then called one of the clinics social workers as he could only advise the service user on the effects that it will have on their health, but could not help them with the mental and social strain that comes with drug addiction which a social worker could. A social worker then come in and spoke to the service user, to find out about his social background and other emotional issues that are present in the service user’s life that may influence the taking of heroin. ‘A critical incident analysis is a solution, either positive or negative that made a particular impression on a student (Clamp 1984 cited in Reed and Procter 1993) (p. 69). Richard and Parker (1995) argue that reflecting and analysing the incident the practitioner is able to consider how the incident may have been managed differently by applying other knowledge and consequently enable the practitioner to move forward and consider a future situation differently. For the purposes of this piece of work I will be analysing an observation of a meeting between a male and a GP. When I learnt that I was going to be shadowing at a clinic for service users with drug and alcohol problems I was quite worried and intrigued as to what would take place. Then I realised I had to be holistic and also realistic, and although I am not close to anyone that has a heroin, crack cocaine or even an alcohol addiction I have been surrounded by people that have used certain drugs such as cannabis or cocaine. I also feel that I will not always know that this is the case as not everyone demonstrates through their behaviour that this is an issue for them, also some individuals feel ashamed as drug and alcohol use is frowned upon and individuals will deny using drugs. Some individuals explain that they use drugs as a way of numbing their problems or to gain confidence and self esteem. Beliefs about oneself and about the role of drugs or alcohol in ones life are sometimes called existential models (Greaves, 1980). Khantzian (1985) has proposed that addicts use drugs to offset or address specific problems they believe they have, such as a lack of confidence in social-sexual dealings, a view sometimes referred to as the adaptive model of addiction. According to Peele (1985), the individual becomes addicted to a substance because it fulfils essential intrapsychic, interpersonal, and environmental needs. I have always been swayed, and my views have always been clouded by what is written in the media. Substance misuse is always given a negative image and the people that use drugs or alcohol are looked upon in a very negative way, and seen as less important and problematic in society. When looking in on various conversations at this placement I have noticed the band wagon effect- Brown and Rutter (2009) come into play, as it seems to me that family members were scared to be disowned or frowned upon if they were to help the drug user, or even offer advice and support. Throughout my upbringing I have always been warned about the effects of drugs and alcohol misuse, however I feel that my parents didn’t really carry a lot of knowledge about the subject. The misuse of drugs act 1971 intends to prevent the use of non medical use of certain drugs for this reason it controls not just medicinal drugs (which will also be in the Medicines Act) but also drugs with no current medical uses. Offences under this Act overwhelmingly involve the general public, and even when the same drug and a similar offence are involved, penalties are far tougher. Drugs subject to this Act are known as controlled drugs. The law defines a series of offences, including unlawful supply, intent to supply, import or export (all these are collectively known as trafficking offences), and unlawful production. I was able to relate the misuse of drugs act 1971 to the conversation in which I shadowed as the service user was selling drugs that were only supposed to be taken as a controlled medicine that is prescribed. Therefore the service user is committing an offence. The medicines act 1968 clearly states that Prescription only medicines are the most restricted. They can only be sold or supplied by a pharmacist if supplied by a doctor. Pharmacy medicines can be sold without a prescription but only by a pharmacist. General Sales List medicines can be sold by any shop, not just a pharmacy. However, even here advertising, labelling and production restrictions apply. drugscope. org. uk Interviews were carried out with 68 people who were involved in selling in the four markets. Three-quarters of them were men. Their average age at the time of interview was 31, and just under a third had lived in the areas all their lives. Many had experienced unsettled early lives: over half had lived with a foster family, in a childrens home or in secure accommodation. Interviewees had typically used alcohol and illicit drugs from an early age. Many had had a disrupted education, over half being excluded from school or leaving with no educational qualifications. Nearly all had been in contact with the criminal justice system, and over two-thirds had served a prison sentence. Throughout the interaction between the GP the social worker and the service user, and also having conjured up these images of substance miss use I was worried I was going to find it extremely hard to relate to the service user, and also find it difficult to hold in my emotions. I felt as though the individual did not value his own life and other around him, this then made me reconsider my own values and belief systems. I believe that my â€Å"use of self came into context as I strived for genuineness with the service user and I truly wanted to believe that they were on the road to recovery. However I still honoured the values and ethics I strongly value in social work. I could not imagine myself, what it must be like to be addicted to a drug or alcohol, and I have had this stereotypical image of what it would be like and how a person would live their life. I imagined them to be without a lot of money, and living in very poor housing conditions. But also imagined them to hang around with the wrong crowd which may be a big influence on how they go about things. Some of these perceived ideas were backed up by research or what I have seen in the media. It is also very much a stereotypical image. Rogers (cited in Thompson 1988) says that making a judgement about people can be a barrier to effectiveness and is something I need to be aware of if I am to become a reflective and reflexive practitioner. When I first met the service user, I was surprised as to how well he looked considering the circumstances, He seemed very outgoing, friendly and generally happy. I order to gain the facts around the service user’s current situation this meeting had been arranged between the GP and the service user. The conversation began with open questions from the GP to the service user in an effort to gather information about his behaviour and addiction to heroin. He asked the service user about any events that had happened since the last meeting, he explained that he had used heroin since even though he has been assigned to a methadone script, and the way he has been fuelling his heroin addiction is by selling his methadone to other users that can not get any substances top feed their addiction. According to Lawson (cited in Davies 2008) even if their is a key worker system in place the whole team still need to be aware of the intervention and support that the service user is getting. I felt that this was not happening as their should of been a closer supervision in place for the service user to take his methadone script which would therefore prevent the service user being able to sell the drug for money and other purposes. This to me proved that there was a lack in communication; therefore I would be worried that this could potentially be dangerous and cause problems if the service user was able to get away and carry out these sorts of actions. As Seden (2005:2) states â€Å"whether a communication is good depends on how it is received in the situation and what is conveyed to the other person. GP prescribed the service user with a higher methadone dosage that he was on before. This was never noted to his key worker or discussed before hand which therefore allowed the service user to sell his extra methadone and be unnoticed for so long. As Seden (2005:2) states â€Å"whether a communication is good depends on how it is received in the situation and what is conveyed to the other person. Throughout the meeting I made sure I paid particular attention to the way in which I was positioned using the Egan (2007) theory of Soler. I also made sure that I put the focus on the ther person and on what they were offering as they spoke, rather than keep asking them for additional information or going on to talk about other things, this is called paraphrasing and summarising. Eye contact or looking at the user of services is important in this kind of situation and context as it conveys that we are attending to the other, it is a way of saying â€Å"I am interested in what you say and f eel†. The Soler theory is an effective theory to undertake whilst being in this position when listening to a service user one on one. As you need to make the service user feel that you are genuinely interested in what they have to say, then only will the service user actually open up and truly tell you what his problems are as then they are confident that I am here to honestly try to help them. Egan (2007) (p. 99) argues that attentive listening to these experiences and feelings of users of services is critical for further work: these experiences help us to understand where they are starting from and their frame of reference. Attentive listening is very effective in these sorts of situations with service users, as every service user is different and has different problems. Therefore listening intricately is very important as this will then help you navigate in which is the most effective and efficient route to take in trying to help rehabilitate each individual. As the meeting went on social worker began to question the service user’s motives for selling his methadone script and continuing to take heroin. The service user then went on to explain that it is because he does not have a strong support network as his family have disowned him and the only companions he has are the other heroin users. This is why he is struggling to break the chain of causation as the only people he is surrounded by are the other users and dealers. After hearing this I was impressed with his capacity to cope with the situation that he was in. This meeting reinforced Schulman’s (2006) resilience theory. Here was a man who had been disowned by his own family for being a heroin user for many years and is currently undergoing a methadone script and does not have much support around him at all and is experiencing a lot of disruption in his life. In reference to the Ecological model I can see that the service user is struggling to stop continuing taking heroin. This is because the environment that he is present in is surrounded my other drug takers and drug dealers which therefore triggers his new drug fuelled instinct to relapse and take heroin again. Whereas if the service user had a different environment that he could go to where it was drug exempt, this could encourage the service user to stay off heroin and act as a barrier in which would break the chain of causation for relapsing and taking drugs again. (Social service review 1998) Being able to read the case notes enabled me to be better informed. Schulman (2006) talks about how ‘tuning in’ and how it involves the workers effort to get in touch with the potential feelings and concerns that the client may bring to the encounter. The purpose is to help the worker become a more sensitive receiver of the client’s indirect communication in the first sessions. I tried to put myself in a similar where I had questioned someone that had authority over me, the only example I could think of was when I had been in detention at school as a child and I was questioned as to why I was there, and why I did the incident. I felt powerless and frightened as they had more authority over me, and seemed so much more important. I could not seem to get my point across and I did not feel that he was listening to my point of view and taking it into consideration. This has made me realise how important it is to make the service user feel at ease as you are asking them to open up and asking them to let you in and explore their troubles. They will only allow this if they feel comfortable and not undermined. However at the same time establishing clear boundaries with the service user is very important. Throughout the meeting I realised just how hard it would be discussing your problems and the use of drug addiction to two complete strangers, furthermore having to open up about your life and all the problems you have encountered on the way to lead you to this state of life. As a result I tried to keep a low profile during the meeting, by not making eye contact with the service user and trying to make myself inconspicuous. By avoiding eye contact I was merely reinforcing the awkwardness I felt. Schulman (2006) believes that it is better to tackle difficult subjects head on. Then I was worried that the service user may think that my lack of ability to maintain sufficient eye contact could lead him to think that I was merely not interested in what he had to say or that I disapproved with some of the explanations that he was presenting. When it was just to do with me being uncomfortable. Lloyd (cited in Davies 2008) talks about the need for social workers to work on there own issues. This should involve self awareness and being comfortable around others. This will help me challenge my views but also help me become more self aware and, in turn, more open to others who are struggling to express their difficulties. While my own life was not trouble free neither was it associated with the emotional turmoil and psychic disturbance which Hall Stanley G (cited in Davies 2008) research showed. I have always had the support of a loving family and friends. I have always been influenced to do well at school, go on to university and make something of my life. I have also been lucky enough to always live in nice areas that have very low crime rates, however this was not the case for the service user. He has always grew up and lived in very run down, deprived areas and has mixed with the wrong social circles. He has also not have had the family and friend support network which I think a person strongly needs in their life. The service user also left school with no GCSE’S and went straight into work, which was bar work which lead him to a wrong crowd. Giddens, A (2001) refers to gender as the psychological, social and cultural differences between makes and females. Essentially sex is determined biologically and gender is culturally learnt. The functionalist sociologist would argue that boys and girls learn sex roles through socialisation while the feminist perspective would be that women do not share the same status as men in society. It can be argued that male socialisation infers that they are the stronger sex and not able to express their emotional feelings as females are able to. The service user’s lack of permanence and consistency with his own parents and friends will, according to Rushton (2000) impact on his emotional development. It is therefore important that the professionals in his life are not seen to perpetuate these feelings. The holistic approach builds on the social model of disability which is the theory of there being blocks such as environment disabling systems and social attitudes that are getting in the way of the service users independence. Therefore in this case going by the holistic approach, the service user that I was able to shadow, his environment acts like a block to his independence as the social attitudes to the people within his environment are drug related which is leading the service user to carry on using drugs. The holistic approach builds on the social model of disability that sees blocks to independence arising from social attitudes, disabling systems and environments. (Campbell and Oliver 1996; Oliver 1993). Further more this pproach stresses the need for attention to the service users ethnicity, culture and history because together they form their identity and influence life options open to them, and the attitudes of some people towards them and their abilities. Throughout this experience I have been able to learn about the importance of drawing on theoretical frameworks to understand a person’s current behaviour and the effects of his life experiences. According to Freud behaviours driven by th e id are largely unconscious and describe impulsive behaviours that can lead to all kind of difficulties. What this critical incident analysis has highlighted to me is that social workers and other professionals have a responsibility to reach decisions about intervention, protection and safeguarding in a series of situations where evidence may be unclear or contested. Baldwin, N. and Walker, L in Adams et al (2005) say that it is important to recognise that risk can be assessed through a process, which is a collaborative and undertaken within a legislative and organisational framework. From my experience at this particular placement I can draw upon a number of different things that have made me question my own learning and development. It had made me wonder weather I see things differently to others, and also whether my views and opinions would be appreciated. From this shadowing experience I have most definitely changed my views on substance misuse and the kind of stereotypes I had around it. I feel that it has made me value my life more however value the people that are in my life even greater. This experience enabled me to see the importance of ‘critical thinking’ to find a workable solution (Brown, K, pg 12). Throughout the conversation the GP and the social Worker ‘reached for feeling’ and put feeling into words. I feel that I was very judgemental before actually meeting the service user, and I realise that this is a very bad habit as a Social Worker, however this helped me in my development and learning. This also made me think about other factors that may affect how people ‘label’ others such as; discrimination and oppression. I was also able to observe how different agencies work together in order to provide better care for the service user. In this case the GP worked alongside the job centre, the pharmacy, the social worker and the key worker. ‘They can offer service users a more flexible approach and share expertise in order to give them a better outcome’. (Tennyson,1998). When the service user had left the GP had a ‘de briefing session’. This was also a time for me to ask any questions, this is something that I have practiced through reflection time and feedback time with my peers and tutors. The importance of ‘tuning in’ was explained to me. ‘Research informs practice’.

Importance of Vitamins Essay Example for Free

Importance of Vitamins Essay Essential fatty acids are vital to promote the growth and fullness of hair. Incorporate seeds and nuts like walnuts, almonds, and pumpkin seeds into your snacks and meals. More common sources of essential fatty acids are flax, canola oil, fish and soy. Vitamins Vitamin E improves circulation to all parts of the body. The scalp needs proper circulation in order for hair follicles to be stimulated. Vitamin E can be found in avocados, nuts, seeds, olive oil, wheat germ, dried beans, soybeans, and dark green leafy vegetables. The B vitamins which include Biotin, Vitamin B6, Vitamin B12, and Pantothenic Acid prevent hair loss. These vitamins can easily be incorporated by adding eggs, meat, poultry, and whole grain cereals to your diet. Sponsored Links http://www. livestrong. com/article/242666-diet-to-thicken-hair/#ixzz2B6HNXT00 Besides being rich in protein and vitamin D (both are key to strong hair) the omega-3 fatty acids found in this tasty cold-water fish are the true superstar. Your body cant make those fatty acids, which your body needs to grow hair. About 3% of the hair shaft is make up of these fatty acids, Drayer says. Omega-3s are also found in cell membranes in the skin of your scalp, and in the natural oils that keep your scalp and hair hydrated. Other options: If salmon doesnt thrill you, you can also get essential fatty acids from fish like herring, sardines, trout, and mackerel, as well as avocado, pumpkin seeds, and walnuts (see below for more wonderful things about walnuts

KFC PESTEL Analysis for International Expansion

KFC PESTEL Analysis for International Expansion BACKGROUND OF COMPANY Kentucky Fried Chicken (KFC) was founded in Corbin, Kentucky by Harland Sanders. He was born on a small farm in Henryville, Indiana, United States in 1890. He likes cooking and inventing a new recipe. He tried to mix eleven herbs and spices with wheat flour, he was success with his work and he had a secret recipe for cooking chicken. During the 1930s he tried to develop and became known. The States governor named Harland Sanders an honorary Kentucky Colonel at the first time. Second he developed a unique, quick method of spicing and pressure because he had opened a 142-seat restaurant, a motel and a gas station. In 1950 he decided to close his restaurant because the customers decreased but he invested the first franchise in 1952 and also 105 USD with the secret recipe. He sold 5 percent per piece chicken for copyright. In 1964 an investor group bought Kentucky Fried Chicken and made a deal that Sander was Kentucky Fried Chicken ambassador for helping and giving suggestion to them. In 1971 Kentucky Fried Chicken join with Connecticut-based especially in food and in 1986 Kentucky Fried Chicken had a big chance that Soft-Drink giant PepsiCo bought Kentucky Fried Chicken for $840 million from RJR Nabisco. They prepared to separate KFC, Pizza Hut and Taco Bell to be a new Corporation under the name Tricon Global Restaurant and they had revenue. From that time Kentucky Fried Chicken became well known until KFC that we went to eat fried chicken nowadays. KFC GOING INTERNATIONAL BUSINESS Nowadays we can find Kentucky Fried Chicken everywhere and the taste of the fried chicken is special. We can taste the KFCs product in our country although they are from overseas. That is meaning that KFC going international. They are doing international business to increase their revenue. They sold their products such as the food and also they hold they service. They are going to international business to expand their market around the world. Even though their domestic market far from the original place in United States, Kentucky Fried Chicken continued their internationality well, especially in Asia. KFC took an aggressive construction plan that called for average of non-United States unit to be built per day. With the expectation by 1995 the number of international units would exceed those in the United States. In 1996 the PepsiCo prepared itself of its restaurant by drawing together Pizza Hut, KFC, and Taco Bell. A single senior manager tried to overseen this operation and also all transaction between them. Kentucky Fried Chicken went to international business well and they joined the group brand. They growth under Tricon/Yum Brands and they had some benefit from the hands-on management style of David Novak the head of Tricon. They called Tricon is the parent of KFC and Tricon came up with one solution that growth at the beginning of 1998. They opened multibrand stores which are combined between two or three of the Tricon chains. In 2002 they changed its name to Yum! Brands and developed 1,375 multibrand stores. Eventually they could sales reached $4.8 billion in 2002 and KFC controlled around 46 percent United States fast food chicken market. Kentucky Fried Chicken was the most recognized foreign in China in 2001 where KFC had 500 restaurants there, about 300 outlets in Thailand and in Indonesia more than 150 restaurants. They can adapt with the local tastes with their secret recipes and they successfully the navigated the political and regulatory climate. They profits increased by close to 50 percent for its combine with China in 2000 and figured by any domestic division. In 2006 they could increased their profit and had 1,700 restaurants in China more than tripling in around five years. Kentucky Fried Chicken was opening a new Chinese outlet in every 22 hours. Their politic is very good in marketing. They hope eventually the number of KFC restaurant in China as in United States. Thus while the United States market had continued to slumber for Kentucky Fried Chicken had been run by Tricon/Yum! Overseas Kentucky Fried Chicken had a powerful force. This is the table of Yum! Brands, Inc. Presence and Competitive. Countries WHY KENTUCKY FRIED CHICKEN DIFFERENT WITH ACROSS COUNTRIES AND HOME COMPANY? They have differences between across countries and home country because they Kentucky Fried Chicken had a good management and also the secret recipe has long been a source of their advertising. Kentucky Fried Chicken was the first chain to enter the fast-food industry and also Kentucky Fried Chicken is the most worlds popular chicken restaurant chain. They had more than 11,000 outlets around the world in 85 countries. Kentucky Fried Chicken could go international with their struggles to pass the global competition. Even in fact they have 8 million customers in each day. KFC has early into the fast-food industry and they develop their strong brand name recognition and strong foothold in the industry. For example is their new logo was the only one which significantly enhance the brands image (the founder of KFCs image). Even though Kentucky Fried Chicken went overseas, they stayed on themselves. The traditional loyalty employees were worked in this company. The management gave comfortableness to their employee. Such as a pension, and could receive help with other non-income needs. So the employee prefers to work in the Kentucky Fried Chicken. They different with other companies that operating efficiencies are achieved through improvements in customer service, cleaner restaurant, faster and friendlier service, and continued high-quality products but KFC is different that they improve the operating efficiencies by reducing overhead and other operating costs can directly affect operating profit. At this time Kentucky Fried Chicken is better than the others. Kentucky Fried Chicken has a multibranding strategy to achieve their goals. KFC is a publicly traded company with responsibilities to all shareholders. There are many investor tried to invest in their company. In their home country United States there are companies which just tried not to pass the globalization. KENTUCKY FRIED CHICKEN COMPETITIVE ADVANTAGE All form of the competition in sport as well in the business, are won by those with the best advantages. The most popular ways to make the differences between themselves by sharing an article, Kentucky Fried Chicken shared their product in many ways. They made in the website and so many others way. They can get the competitive advantage by hold their fried chicken tasted and use the secret recipe to achieve it. They sell food in a fast, friendly environment that appeal to pride conscious health to mind the consumers. Thats their mission and they used the strategy to achieve them. These are the strategy of KFC. They develop the product. For example make the better tasted or stayed on the tastes before. They increased the variety on menu to make the costumer interested and feel better if they choose Kentucky Fried Chicken as the place to have their food. Introduced the desert menu and buffet to restaurant. Even though KFC comes from United States, they also introduce on the neighborhood program. The item targets are the African American like Greens, Macaroni and Cheese, Peach cobbler, and Red beans rice. About the place of the restaurant they choose all the aspect public places like in mall, university, hospital, airport, stadium, amusement park, office building, and mobile units. Kentucky Fried Chicken has evolved through different organizational changes that brought because the changes of the ownership that followed from the beginning of Kentucky Fried Chicken. Their other strategy is working with to make improving the operating efficiencies. I elimination of overhead cost and increased efficiency they were the center. KFC emphasized customer service, and high-quality products. KFC is including the sales company because they sell the products. As of 1995, Kentucky Fried Chicken was the sixth ranked in the United States sales fast-food chains. This is the table of the Fast-Food Chains: In the over past seven years from 1987-1994, Kentucky Fried Chicken worldwide has grown in the around on average rate 8.2 percent. The world has gone to the more healthy living and this is the chance off KFC to meet the changing demands society with make a changes on their menu just like Honey BBQ Chicken, Popcorn Chicken, Rotisserie Chicken and they had begun promoting the lunch and dinner buffets. The buffets are very important in Kentucky Fried Chicken because it can persuade customer to dine-in instead of take out. KENTUCKY FRIED CHICKEN CULTURE Kentucky Fried Chicken has culture. In United States they can not life without work hard because the people there prefer to work to unemployed. They work fast so the order can be served in a second. Not only work fast but also they work accurate it means that they work in really work. Also in the employee had the committee and they have an organization except the KFC management. Their restaurant buildings are built according to their logo picture. Even though the restaurant in the different country the building of their restaurant almost same. KFC is really appreciating the government law. They follow all the rule and growth and be famous just like nowadays. Every one knows what KFC is. Those are their company culture because they come from the United States. Kentucky Fried Chicken also has the corporate culture. They had a small competition or they called it just like a game between the employee just like the faster and or the fastest worker of them. Not only the games they had a special greeting to the customer. The customers feel comfortable and they prefer Kentucky Fried Chicken. They apply the royalty system to take a summary of expected and be received from the sale of the units of franchises. The royalties after the re-franchising is complete will not include in the budget in the proposed program. We sure that their corporate culture gain their business to be success with their own culture the customer feel different with other corporation. Doesnt matter if the restaurant is overseas they use the same culture. But they adapt with the culture of the country where they stayed. By the corporate culture they can make they strategic management. The first is Market Development, that Kentucky Fried Chicken introduces their present and new products and services into the new geographic areas. Product Development, in this step they bring back the rotisserie chicken. And the last part is Concentric Diversification; in this they can add more customer and they service variety to them. KENTUCKY FRIED CHICKEN P. E. S. T. E. L. ANALYSIS Kentucky Fried Chicken had PESTEL (Political, Economical, Social, Technological, Environmental, and Legal) analysis that can change their International Business strategy. POLITICAL Kentucky Fried Chicken provides the fast-food service. To achieve their goals they make a political system that can guide them or they called as a guide service. This political system could change their business strategy and make the progress to their company. For example, they have employee that run the activity in the restaurant. They make a contract with the employee and make a pension fee. They also provide the alternative in buying KFC. KFC Hospice Dinners that delivering a caring out reach to the terminally ill. The Hospice delivers meals to the terminally ill nationwide. These meals are delivered directly to the patient in their own house. We always called that a delivery orders. The customers feel better when they enjoyed this system. KFC Cafeterias which offering dishes competitors. And KFC Grocery Products which The Cornel is always home. ECONOMICAL If we talked about the economy aspect, we talked about the fund or money. Kentucky Fried Chicken provides the lower price. They have a food packet; just like we buy the packet we can get the discount or something that support us to buy there again. In this economic analysis we find the benefit of economical that changes the strategy of international business of Kentucky Fried Chicken. They can grow up with the lower price and the satisfying service. SOCIAL Kentucky Fried Chicken is one of the International Company which has begun their company early and nowadays they are one of the biggest companies in the world. Why the KFC can be the biggest company. Kentucky Fried Chicken built they social connection with others organization or the company around the world. Beside that in their restaurant, they also provide the food that the tasted is related with the tasted in the country they took the place to build the restaurant. In addition abut the employee, they are worked the people from the country which are have a good performance and have a talent in cooking for the chef. KFC also supported the many of events, they help the committee by sponsored the event. Sometimes they give the donation to the poor people. With this social activity they company will be known. TECHNOLOGICAL In this analysis, Kentucky Fried Chicken can go out of their home country. They use the modernization technology to advertise their product. They make a website of KFC so easily we just search in internet what do we want about KFC and so many information about KFC. There are also many transactions that do by internet and the KFC just delivered the order to the customer address. In our country they have the phone number that can contact if we want to order some food. Sometimes the customer lazy to go out to buy some food, this is the reason they make an order delivered. ENVIRONMENTAL Environment is the one of the important analysis that must be had by the company. Without environment they cant run their transaction because the environments are their customer and they get profit from the product that has been bought. Many people like Kentucky Fried Chicken Company because they are not like the industrial company. KFC Company does not disturb the public activity by make a noisy. They just invite the environment to come to the restaurant to enjoy their food. LEGAL Kentucky Fried Chicken is the legal company. They growth under the Yum! Brands. They gather with Pizza Hut and Mc. Donalds that they are the food company. This legal analysis guides them to go overseas because the companies which want to going international business are the legal company. They also can hold their recipe because it has been legality so no one can steal it. In other hands, the employee also protect from the stealing cooking recipes. Kentucky Fried Chicken Company can growth bigger and bigger. They are legal so every activity is done in legal system. THREE MAJOR ELEMENTS PESTEL OF KENTUCKY FRIED CHICKEN POLITICAL Kentucky Fried Chicken has the political analysis. Their politic analysis is their directive to run the restaurant. They use politic to solve the problem. Because of the current devaluation, their profits are greatly reduced. For example in Mexico which has a largely unskilled labor pool that provides little stability. In this case they got so many challenges to be solved. Political analysis is worked here. They made strategic alternatives to solve the problem. The strategic alternatives for KFC are follows: Re-franchise all company owned the Mexican units franchises. Completely divest KFC of Mexican operations. Leave Mexico as is and grow other foreign markets. The strategic that mention below are the political of Kentucky Fried Chicken to solve the problem in Mexico. Even though they try to the best sometimes they measure has the advantages and disadvantages. We can not imagine if Kentucky Fried Chicken Company does not have a political analysis. The company has been closed for a long time. But know we can see that Kentucky Fried Chicken can show their best by use the political system. In the marketing division they prepared all the best that they can. The company doesnt want the customer feel bad. They appreciate all the input from the customer so they know which one is better to be expanded. SOCIAL Kentucky Fried Chicken social analysis is one of the analyses that support the KFC progress. They have social activities in their environment such as help the people, giving the donation, etc. They built the social in their activity in their management system. For example the employee, they have the small competition to build their togetherness in doing their job. That was the social activity in the intern of company. Now we talk about the international business activities they have connection to the company around the world. Not only with the company they also have the connection with the international organization. Therefore they can going to international business through many challenge to achieve it. TECHNOLOGICAL Without technology there are no companies can achieve their mission. They public the update information about the company. Technology that they use in largely is using internet because internet is the most popular to search the information in all aspect that what we need. They made a website so we can browse easily. And also for delivering order they need a technology. The first is to advertise their product; second they use the machine to cook, using the vehicle to go to the customer place. Kentucky Fried Chicken is one of the best companies. They become popular not also from the food but some of them from the technological aspect. Sometimes from the television, banner or everything that the KFCs advertisement was publish by using the technological analysis. In additional, Kentucky Fried Chicken can compute all the probability even in loss or profit. The technological is important to prove this statement. They have their own software system to make their activity can run well. Nowadays every activity is using the technological system. In cashier, kitchen, marketing, service, so many other activities. CONCLUSION If we research all the explanation about Kentucky Fried Chicken Company we can conclude that they are the big company which has been known around the world. They have a good management, secret recipe, international business strategy that supports KFC to be adhered in the customers mind. They gather all the aspect to make them perfect. They have PESTEL analysis. These are the things that guide the company to be better and hope they can make the perfect company or at least can reach the brighter future.