Simon in the Lord of the Flies

Simon is a member of the choir, but is the only one who seems weak. Simon is introduced in the novel when he faints; this is a show of his weakness. He is a lot like piggy, but not as bullied. Ralph thinks he is ‘queer' and ‘funny' because he is realistic. Simon is the first boy to notice the candle bud flowers when they are out walking. Simon always sees the spiritual side of the island. The only place you see candles nowadays is in churches. Jack slashes at the candle buds with his knife keeping up his reputation as the anarchist. The creepers on the island are long vines. The small children see these creepers as â€Å"beasties†. When the little child comes forward during a meeting, he describes a ‘snake-thing', then changes his mind to a ‘beastie'. The boy makes out the ‘beastie to be evil'. The beastie the boy has seen is not a physical monster it is a monster inside the boy's head. The most terrifying thing is darkness and the unknown. The unknown makes the human imagination go wild and ask all the questions it can, â€Å"What's out there?† â€Å"Is it a huge big snake† â€Å"Is it coming to get me in the night?† The snake-like thing the ‘little-un' describes is symbolic of the serpent in the story of Adam and Eve. In Genesis, in the Bible, the serpent is portrayed as the devil and acts against god's wishes; it offers Eve the fruit from the tree of knowledge, unknowing of the consequences, Eve accepts the fruit. She offers the fruit to her husband, Adam. They both eat the fruit and become aware of their state of undress. When God came walking in the garden he found that Adam and Eve had hidden their genitalia under fig leaves. God banished Adam and Eve from Eden. The serpent, the devil, had won. Simon is the one who is helping to construct the huts on the beach. He believes the shelters will guard from the ‘beastie'. This is for the benefit of the rest of the group, not selfish like Jack and his crazed hunt for pigs. Simon is a bit of a loner; he has his own cove in the jungle, which he keeps secret from everyone else. This place has ‘more sunlight' than the rest of the jungle and is decorated with floral bouquets. The jungle suddenly turns into a picturesque haven from the outside anger of the island. But Simon is not escaping the outside force he is merely running from himself, the Simon that exists with the other boys. When he is inside his special sanctuary he fells protected. There is the appearance of the candle bud flowers again, and coupled with the safety and sanctuary of the cove it almost turns into a church. When the tight canopy of creepers envelops Simon, the light in the cove increases. The passage describes of how the evil in this part of the jungle disappears, ‘Darkness poured out'. Simon is the light in the darkness of the island; he is the only voice of religion amongst the chaos of evil. Golding is showing Simon to be a spiritual guide in the book. When he is walking through the jungle towards his cavern, he comes across some small children, â€Å"little-uns†. They are trying to reach some fruit located just beyond their grasp in a tree. Simon obligingly picks the ‘choicest' fruit from the foliage and passes it back down to the ‘endless outstretched hands'. This scene can be likened to an event in the bible, which is where Jesus Christ feeds five thousand people with a few loaves of bread and some fish. Simon is the saviour for these children; they had been trying for hours to reach the juiciest fruit from the tree and Simon has got it for them with very little ease. Simon's description by Golding shows he has a mop of hair, which is black in colour. This is like that of Jesus Christ, again rekindling the association with a spiritual nature. Like Piggy Simon is clear-sighted, he knows what is best, but unlike Piggy he advises on the religious meanings of the island. He is the first boy in the party to notice the transformation that has occurred on the island. He sees that, the island they once took for an Eden, has under gone a metamorphosis into a place of evil. When Jack talks of how the ‘little-uns' scream in their sleep, terrified of the ‘beastie' Simon is the first to acknowledge â€Å"As if the beastie was real† and â€Å"As if it wasn't a good island.† Simon is still blaming the evil experience on an outside force, he, like the entire group still fail to see the evil is within or â€Å"The darkness within†. Jack also senses the evil on the island, he likens it to a physical presence when he goes hunting, â€Å"†¦you can feel as if you're not hunting, but-being hunted: as if something's behind you†¦Ã¢â‚¬  The boys on the island have difficulty finishing their sentences; this is because they are scared and embarrassed of their situation. The boys themselves find it difficult to understand the emotions they are feeling and whether these emotions should be listened to. The situation is like that of the Jews in Egypt from the Old Testament in the Bible. When the evil Egyptian slave masters ruled them, they were not enjoying themselves but they had some kind of law and order. When Moses freed them, they were happy at the wonders of freedom, but soon were reduced to a rabble of immoral ‘wrong-doers'. The boys have been ruled by grown-ups all their lives and when they find themselves on the Island, they are ecstatic, but when things get difficult and new feelings arise, bad things happen. Luckily for the Jews Moses was there to save them, he went to God and received the Ten Commandments that brought law and order back to his people. Maybe something similar will happen in this novel. Simon may save the boys, or he may be symbolising Moses and some other, yet unknown force, is God.

Pirates of Silicon Valley Essay

1.) What does this story tells us? What happens in the story? How does it relates us? The Pirates of Silicon Valley is a film about Steve Jobs, the co-founder of Apple Computers and Bill Gates, the co-founder of Microsoft. This film historically traces the development of these two computer companies from the time these two gentlemen are college (the early to mid 1970’s) to approximately 3 months before Steve Jobs was fired by John Sculley, then CEO of Apple Computer in 1985. This story shows not only the development of these two computer companies, but also the rivalry between Steve Jobs and Bill Gates. It highlights the computer giants of that time, who were Hewlett Packard, Xerox and IBM. However, the idea of the personal computer was just gaining speed and this is where both Steve Jobs and Bill Gates found their niche. What many people don’t know about these revolutionaries is that they worked together until Steve Jobs realized that Bill Gates developed Windows from software Apple had designed for their computers. Why is it called â€Å"Pirates of Silicon Valley?† The irony of this situation is that Apple stole the â€Å"windows concept† from Xerox; hence the title, â€Å"The pirates  of Silicon Valley†. Silicon Valley is an area of northern California where the computer development of the 1980’s and 1990’s surged. The button line of the story it relates the sad facts that Steve Jobs had disaffected so many of his former best friends that none of them wanted to toast him for his 30th birthday, in fact, three months later Steve Jobs was fired from the company he helped found. He was later re-hired in 1997 and became the architect of the second Apple Microsoft co-endeavor bringing the companies and the movie full circle. Even though Steve Jobs was fired from the company, it was then not a waste because he was happily living with his family. This film is a wonderful illustration of modern day entrepreneurs and gives us an inside look at the management style of both Steve Jobs and Bill Gates.I would recommend this film to anyone, student or not. It is an enlightening depiction of the evolution of a true phenomenon, the age of personal computers. Even more so, this film shows the men behind the machines, a story that shouldn’t be missed. 2.) This tech-world biopic traces the fortunes of personal-computer companies Apple and Microsoft from their obscure dorm-room and backyard origins to their very public battle for corporate supremacy. Writer/director Martyn Burke follows the parallel lives of Microsoft founder Bill Gates (Anthony Michael Hall) and Apple co-founders Steve Jobs (Noah Wyle) and Steve Wozniak (Joey Slotnick) — the former a crafty Harvard dropout, the latter a pair of hippies with jobs at Hewlett-Packard and a yen to sell miniature versions of corporate mainframes to small businesses and at-home enthusiasts. Much like the personal-computer industry itself, the action starts with Apple then gradually shifts to Microsoft. The former plot thread recounts how Jobs and Wozniak â€Å"borrowed† key concepts from a Xerox computer lab, eked out their success as countercultural businessmen, and finally fell out with one another over the pressure of success. The latter thread focuses on the way Gates learned from, then surpassed, the brains behind Apple and turned his company into the global powerhouse that it is today. Based on Paul Freiberger andMichael Swaine’s Fire in the Valley: The Making of the Personal Computer, the film actually focuses only on that book’s final chapters. Produced for cable channel TNT, Pirates of Silicon Valley debuted June 18, 1999. ~ Brian J. Dillard, Rovi 3.) The film opens with the creation of the 1984 commercial for Apple Computer, which introduced the first Macintosh. Steve Jobs (Noah Wyle) is speaking with director Ridley Scott (J. G. Hertzler), trying to convey his idea that â€Å"We’re creating a completely new consciousness.† Scott, however, is more concerned at the moment with the technical aspects of the commercial. The film then flashes forward to 1997 as Jobs, who has returned to Apple, is announcinga new deal with Microsoft at the 1997 Macworld Expo. His partner, Steve Wozniak (Joey Slotnick), is introduced as one of the two central narrators of the story. Wozniak notes to the audience the resemblance between â€Å"Big Brother† and the image of Bill Gates(Anthony Hall) on the screen behind Jobs during this announcement. Asking how they â€Å"got from there to here,† the film turns to flashbacks of his youth with Jobs, prior to the forming of Apple. The first flashback of the film takes place on the U.C. Berkeley campus during the period of the early 1970s student movements. Jobs and Wozniak are shown caught on the campus during a riot between students and police. They flee and after finding safety, Jobs states to Wozniak, â€Å"Those guys think they’re revolutionaries. They’re not revolutionaries, we are.† Wozniak then comments that â€Å"Steve was never like you or me. He always saw things differently. Even when I was in Berkeley, I would see something and just see kilobytesor circuit boards while he’d see karma or the meaning of the universe.† Using a similar structure, the film next turns to a young Bill Gates at Harvard University, in the early 1970s, with classmate Steve Ballmer (John DiMaggio), and Gates’ high school friend Paul Allen (Josh Hopkins). As with Wozniak in the earlier segment, Ballmer narrates Gates’ story, particularly the moment when Gates discovers the existence of Ed Roberts’ (Gailard Sartain) MITS Altair (causing him to drop out of Harvard). Gates’ and Allen’s early work with MITS is juxtaposed against the involvement of Jobs and Wozniak with theHomebrew Computer Club, eventually leading to the development of the Apple I in 1976 with the help of angel investor Mike Markkula(Jeffrey Nordling). The story follows the protagonists as they develop their technology and their businesses. At a San Francisco computer fair where the Apple II computer is introduced, Gates (the then-unknown Microsoft CEO), attempts to introduce himself to Jobs, who snubs him. This is followed by the development of the IBM-PC with the help of Gates and Microsoft in 1981. It also follows Jobs’ relationship with his high school girlfriend (Gema Zamprogna) and the difficulties he had acknowledging the birth and existence of their daughter, Lisa. Around the time his daughter was born, Jobs unveiled his next computer, which he named, The Lisa. The Lisa was then followed in 1984 by the Macintosh, a computer inspired by the Xerox Alto. The main body of the film finally concludes with a birthday toast in 1985 to Steve Jobs shortly before he was fired by CEO John Sculley (Allan Royal) from Apple Computer. It also includes a brief epilogue, noting what happened afterward in the lives of Steve Jobs and Steve Wozniak. The movie ends with Steve Jobs returning to Apple after its acquisition of NeXT Computer, and Bill Gates appearing live via satellite at a MacWorld Expo in 1997, during Jobs’ first Stevenote keynote address, to announce an alliance between Apple and Microsoft. 4.) Summary: This movie showed the progression of the computer since the 1970’s. It also shows the competition between IBM. Bill Gates, and Steve Jobs. The movie gives a real life perspective of the struggles they faced in their personal lives and the struggles they went through within their companies. Jobs started constructing computers with his partner, Wozniak, in a small garage, while Gates began building computer software in a motel warehouse. Jobs became more successful than Gates in the beginning when he created the Apple Company and was making new computers almost every year. Although Steve Jobs had great marketing skills, he treated his employees horrible. They worked extremely long hours and when he got mad, he would take it out on them. Gates was a lot more laid back with his employees. Throughout the movie Gates and Jobs tried their hardest to make their companies better than the others. Apple was more focused on creating the computers themselves and Microsoft was eager to design the actual software and hard drives that were being put into the computers. At one point in the movie Bill Gates saw what Jobs’ was doing and wanted to make his prototype his own. He convinced Steve Jobs to let him work for Apple only later to find out that Gates stole the computer information and redesigned it to create his own computer and sell it to other marketers. After stealing Job’s ideas, Bill Gates became one of the richest men in the world. At one point in the career of Apple, Steve Jobs was fired only to return a few years later with an attitude adjustment. In the end, both companies became very successful but neither were able to gain each others full trust and merge into one large company. Thoughts: I liked this movie a lot because it was very informative but also very interesting. It was inspirational to see two different companies that started out as nothing becomes something so big. Both Steve Jobs and Bill Gates were incredibly intelligent people who had their own strengths and weaknesses. Though they were great marketers, I don’t think I would be able to work for either of them. Steve Jobs treated his employees so cruelly while Bill Gates was so brilliant he might be hard to keep up with. Steve Jobs took more risks and developed things more quickly while Bill Gates took his time and in the long run came out ahead. I think they should make a sequel to this movie and show how much farther computers have come today.

Ontela Picdeck Harvard Case Essay

Ontela designed a revolutionary product which allows wireless subscribers to seamlessly transfer data from the consumer’s wireless phone and send it to an email inbox, PC, or website. This allows consumers to use their wireless device more frequently, which generates more revenue for the industry in mobile phone services. Joe Levy, Ontela’s director of carrier marketing, assisted with PicDeck’s segmentation in determining the appropriate target audience. Below you will find an analysis on PicDeck’s choices regarding customer segmentation and evaluation on their data; supporting that research proves their target audience are primarily middle-aged married women and men. SWOT Analysis Issues Short-term †¢Best way to determine the right target audience †¢Making PicDeck more conceptually-friendly so consumers can better understand it user-friendly functions Long-term †¢How could Ontela balance the needs of the subscribers with the carrier’s goals of decreasing churn and increasing ARPU? †¢What is the next big idea to keep company ahead of the game (please help rephrase) Problem Statement: For future growth, the industry will need to continue being creative and innovative in seeking out added services such as data and wireless Internet use to increase yearly revenue; how can Ontela and their counterparts target the right consumers which will utilize both without compromising ARPU? Case Response: Section A 1. Based on the three customer personas, which customer segment should Ontela target? a.Ontela’s objective was to increase the use of wireless carrier service and increase average revenue per user (ARPU). In order to do this the organization conducted a segmentation research to select the right Personas, which will determine how to allocate their resources and time for consumers who use their cell phones and cameras the most. Based on this criteria Sarah, the parent should be considered as the primary target. It is important to consider that women control or influence the purchase of 80% of all consumer goods, including such items as stock for investments, personal computers, and others (2011, Boone). This will automatically include Regina, the teen into the equation, which will automatically boost both revenue and data usage. According with some cell phones statistics from the Defakto Company: †¢55% of mobile social networks usage that is female. †¢42% more likely working moms are than average cellular users to download content to their cell phones †¢42% of women post photos on Facebook (2010, Vermon) Therefore, for this specific scenario, the target should be a female from age 15 to 45 years old, which are the ages for the generations that have lived through the technological changes. In order to narrow more of the target audience, a psychographic segmentation will be necessary. The organization would need to know the typical values and lifestyle of the women who use cell phones cameras, for this purpose we can use tools as VAL which classify consumer by psychological characteristics. 2. Create a positioning statement for your chosen persona and identify the key themes that should be emphasized in the messaging for the PicDeck service to this segment. a.Positioning statement for PicDeck: For the wireless subscribers who want to transfer picture to their computers, email inbox, and mobile devices, the PicDeck provides the most effective way to download and manage pictures. Unlike the currently complex and limited methods we have today, the PicDeck allows the transfer of pictures to any pre-designated destination without the need to press any extra buttons. 3. What are the risks of using qualitative personas to select target customer segments? a.The customer personas and the goal of the organization should be aligned with one another to ensure the company’s cohesiveness and allow them to determine their target customer. The use of personas is useful in marketing to understand the customer behavior, so the personas should represent attributes of the target audience that we want to reach. In using qualitative personas we are assuming that the people represented have similar expectations and goals, and we are not considering important issues as culture and race; and that’s when it becomes risky for the business. This can cause the company to lose revenue because a product of this caliber is universal and therefore the company has no need lock themselves to a certain type of customer when all types of customers can utilize the product. Section B 4. Which segment(s) would you recommend as a target for PicDeck? Explain the logic behind your choice. a.Using demographic segmentation has been a useful tool in determining which customers to target in promoting their product. According to exhibit 4 in section B the strongest response in the surveys came from middle aged married consumers and/or male wireless subscribers. There is additional statistical research supporting this data from the customer personas; which a middle-age married woman with a teenager has the need for this produce and the purchasing power to attain it. In addition, Exhibit 2 consistently illustrates that the middle age consumer wants a device that is easier to transfer photos to their PCs, email, or social website. By continuing using demographic segmentation they can place more focus on income, education, and occupations within middle aged married consumers and males; which this may address Mr. Levy’s concerns regarding the increasing and/or maintaining ARPUs. 5. Develop a positioning statement for your selected target customer(s) the key benefits of the PicDeck service and how the service is differentiated from alternative that customers might consider. a.For the up-to-date Mom and professional savvy male who is looking for timeless convenience the PicDeck Mobile provides fast and clear pictures of your loved ones or Power Point to your boss. Unlike archaic digital cameras the PicDeck can seamlessly send that memory or great idea before you can say cheese. In conclusion Ontela’s Picdeck was definitely on the right path. Looking at today’s society people are using this product every day. Whether it’s a person taking pictures with their smartphone, and instantly sending it to their Facebook page or a fellow student snapping a shot of the groups contact sheet and sending the document via email to the group members; everyone values the product for its convenience and accessibility. It has now become the â€Å"norm† function of a phone. Therefore, Levy’s positioning strategy to ensure the solvency of his company; in addition, addressing carriers’ goals seems as a success with the continuing growth of this industry.

Assignment #3 Research Paper Example | Topics and Well Written Essays - 1250 words

Assignment #3 - Research Paper Example For men of the medieval age, there were only two types of women, the blessed ideal and the woman of the world. While the Wife of Bath is worldly in the true sense of the word whichever way it is interpreted, the Knight’s Tale illustrates peripherally the ideal of womanhood as it is represented in the figure of the Amazonian princess Emily, sister to Hippolyta and sister-in-law to Theseus. The differences between the ways in which these women are portrayed are vast, not just in the types of women they represent, but also in the method through which their stories are related. An example of the change in voices can be seen in a comparison of the Knight’s Tale and the tale of the Wife of Bath. The knight, a man of great wealth, reputation and honor, fills his speech with the courtly manners and chivalric actions that are a central part of his world. His story is full of the importance of honor and oath-taking among men of the nobility. Theseus swears to hold the two nobles Arcite and Palamon prisoner forever, but changes his mind upon the pleading of a friend for the one and the noble escape of the other. Arcite and Palamon swear brotherhood forever, but quickly forget this oath when they each fall in love with Emily. In this sense, Chaucer exposes the hypocrisy of such oaths in the face of the chivalric conception of love, regardless of the knight’s conception of these actions as of the highest nobility. In the Knight’s Tale, Chaucer defends the ideal of womanhood in a courtly story of love endured, fought for and finally won. Throughout the story, the object of affections is the innocent Emily, sister to Hippolyta who is wife to Prince Theseus. Emily is described as a perfectly chaste maiden, going about the typical activities of a well-bred girl, collecting flowers, walking or simply moving about the house.

Assignment about two readings Example | Topics and Well Written Essays - 500 words

About two readings - Assignment Example The east and the west communicated smoothly via the trade activities. The inland areas were rather aloof from this bonding. The sea kept the states united and the same water body washed different geographical regions with varying characteristics. 2) The Roman Empire began to weaken a sit was invaded from the north by the barbarians. Spain, Italy and Suevi were invaded by the Vandals, the Quadi and the Franks respectively. Their idea was not to destroy the civilization but to enjoy the mild climate and rich oil. The Germanic invasions did not take away the traditions of the ancient civilization of Europe though the balance of power was disrupted and the provinces began to be occupied by the Germans. The change actually occurred when the Moslems invaded the empire. The Prophet replaced the Christian Faith, Moslem law and the Arab tongue also came in practice. The Mediterranean Sea or the Roman Lake now turned into the Moslem Lake. The rest of the Europe was cut out from the Mediterranean region. (Pirenne, 25) 3) Einhard was a barbarian writer who resided at the court of the King Charles I or Chalemagne, the King of the Franks. He wrote many compositions on the King’s life and works. He praises the King in his works and shared a close bonding with him and his children. Einhard writes loosely about the King including his ways of living, his treatment of his children and family and his appearance, which marked a strong presence. He was moderate in eating and drinking. He planned he education of his children well and made good judgments. It is through the documents of Einhard that we come to get a properly detailed account of King Charles’ life. He uses whatever scanty knowledge he possesses about language and narrates the achievements of the Great King Charlemagne. (Pirenne, 38-42) 4) Einhard considered King Charles or Charlemagne a great man mainly because of the immense

Cost-Benefit Analysis for Foxy Originals Essay Example | Topics and Well Written Essays - 2750 words

Cost-Benefit Analysis for Foxy Originals - Essay Example Foxy Originals is renowned jewelry company which is headquartered in Toronto, Canada. The company was established by Jen Kluger and Suzie Orol in the year 1998 (Foxy Originals, 2013). The company has established its presence in 250 boutiques in Canada. The product portfolio of the company is comprised of high end and stylish necklaces, earrings, bracelets, rings, belts and other jewelry items. A business must have a competitive advantage in order to sustain in the marketplace (Porter, 1980, 1985 and 1991). Hence sustainability of Foxy Original is dependent its competitive advantage of selling stylish but low-cost jewelry to price-sensitive women in the age group of eighteen years to thirty years. Although the company is growing at an acceptable pace there is a risk for the Canadian jewelry market to get saturated due to the entry of new players in the future course of time. Over saturation and presence of many sellers in comparatively small Canadian jewelry market might decrease the profit margin for Foxy Originals in the near future. Hence, the company is thinking about entering USA jewelry market which is 10 times bigger than Canadian jewelry market by the month of January 2005. To enter USA jewelry market, Foxy Original must formulate a profitable distribution strategy which can give them a sustainable competitive advantage. Â  A brief discussion about the about target customers of Foxy Original will help the essay to develop a thematic background for the case.

Sustainability Essay Example | Topics and Well Written Essays - 1250 words

Sustainability - Essay Example Far beyond the maintenance of systems on earth and humans, sustainability entails also the prevalence of situations and conditions that govern the existence of systems. Generally, sustainability is a measurable entity in terms of biodiversity change due to human globalization and population in addition to the concept of carrying capacity. Social, economic, and environmental dimensions are also studied in the sustainability context due to the role that they play in human life, as well as the existing natural systems. A lot of empirical research has been conducted by researchers and scholars, but no research has exhausted sustainability realms (Liebert 11). 2.0 An overview of sustainability The recent decades have seen rampant entities desire to partake from sustainability, owing to the transformation of natural and artificial systems into volatile entities. 2.1 Definition The period ranging from the 1980 is marked by the relationship of sustainability to the Earth and its sustenance o f humans; however, recent proofs have brought about its relationship with all other natural and artificial systems. This has led to the interlude with the sustainable development in the recent developments, which entails the fulfillment of present requirements alongside eradication of future generation compromise. The history of sustainability dates back to the period when human civilizations started to dominate the ecology, believing that transitions must have a way in the same. Thus, the developing societies have perceived the aspect as that which entails progress in a particular society, mainly marked by the occurrence of conflicts, which some were solved and acted as a rationale for sustainability and others remain unsolved, thus declining sustainability (Ott Konrad 59). 2.2 Enhancement of sustainability Effective Planning is a long-term strategy that would enhance the sustainability of all systems. Vibrant mixed-utilization of high-density national centers and societies develop ment should be duly enabled. Additionally, the mobility realms improvement would act as a rationale to the enhancement of sustainability. Investments directed towards a quality establishment of infrastructure of public transit, which is easily accessible should be emphasized on. In addition, excellent quality bicycle and pedestrian passage should be considerably improved. Phone cell notifications from signage should be utilized in the improvement of mutual connectivity and enhancing rich sources of information. Moreover, the overall economy should be intervened in every state in the world, as a prerequisite to the development of sustainability in addition to unlimited support of businesses both local and international as artificial sustainability systems should be a key step (Ott Konrad 67). 2.3 Rationale for sustainability in distinct realms Sustainability is a major step towards ensuring the efficiency of resources in regard to its integration with options of mobility. Sustainabil ity planning processes impact by creating room for ample choices of transportation, sense of belonging and places and foster public automobiles in place of private entities. Protection of regional

Learning and Development is a Luxury that Organisations Can Afford Essay

Learning and Development is a Luxury that Organisations Can Afford only in Financially Prosperous Times - Essay Example Employers and employees both gain benefit from learning and development. From the viewpoint of employer, learning and development are significant to preserve or develop the knowledge, the abilities and the performances so that they can fulfil the business objectives. From the viewpoint of employees, learning and development help to accomplish performance goals in a successful way. They also deliver an outline to recognise new abilities and knowledge and apply them in the practical work environment. As a result, learning and development can also motivate the employees (ACCA, 2010). One of the most significant assets for every organisation is its employee force. In the modern business environment, knowledge, originality, and passion are crucial differentiators for any organisation or industry. Besides, when it comes to achievement and winning competition, advanced talents and proficiencies in the areas of mechanical, managerial or operational domain become necessary for organisations. Though abilities and knowledge are replaceable in the long-run, the cost of switching employees and providing required training to develop them is huge and it can impact on organisational performance (Mitchell, 2008). Investment in learning and development on a regular basis is significant to retain or ensure lesser employee turnover and inspire them to be involved more in the work and achieve the goals for the organisation. Organisations always require skilled employees who can perform efficiently their allocated tasks. In this rapidly changing business environment, it is extremely necessary to provide effective performance continuously. But the key conflict or constraint with respect to learning and development is the budget. Organisations that are smaller have less money to invest on learning and development. Yet, in present day’s even small organisations have more learning and developmental requirements. Contemporary business environment is different and it comprises of m any innovative technologies which were considered to be science fiction (sci-fi) few years ago. The globalisation is impacting the businesses structures and organisational cultures. New regulations are impacting the working practices, and employees have greater prospects from their companies and working lives. In the workplace, it is necessary for employees to adjust and to react with the fluctuations rapidly and without loss of efficiency. In other words, employees need to understand quickly new tasks, adjust with the new procedures, take additional responsibilities, grasp new technologies and obey the new legal necessities viz. health and security guidelines and data security among others (Clifford & Thorpe, 2007). Learning should be constant with the aim to maintain pace with the business fluctuations. Learning and development cannot be conveyed except when there is growth requirement. Growth requirements arise when employees’ actual performances differ from the desired pe rformances. The central idea of learning is that every person possesses the ability to learn if they are provided with adequate time and support (Clifford & Thorpe, 2007). Learning and development activities can be influenced by several aspects. Certain significant issues that impact on the learning and development are inadequate resources, traditional culture, embedded approach towards training, stress of

Genetics and Crisis Intervention Research Paper

Genetics and Crisis Intervention - Research Paper Example The nurse spoke to Kim kindly and provided information pertaining to various types of aneuploidies, their clinical presentation and complications. The nuchal test was suspicious of aneuploidy and maternal serum markers hinted at the presence of some aneuploidy. Kim was 14 weeks pregnant now and the obstetrician advised amniocentesis to confirm the diagnosis. Kim underwent the procedure and the nurse told her that she had to wait for a week for the report to come. One week later, the obstetrician confirmed that the amniocentesis report was suggestive of Huntington's disease. Kim felt disastrous. She was referred to a genetic counselor. The genetic nurse took a detailed history and went through the medical reports and noted them down. Kim enquired the nurse about implications of Huntington's disease and whether she should opt for abortion. Discussion The profession of nursing has labored continuously to document a wide and yet full range of nursing diagnoses, various nursing interventi ons and patient outcomes. This has been possible because of a steady knowledge base of the profession and continuous assimilation of new knowledge by means of nursing research. One such new area in which the profession of nursing has begun to get involved deeply is genetics (Carroll-Johnson, 2000). When nurses work in genetic diseases detection and management units, they are likely to come across patients and parents who will ask them about genetic disorders related questions especially in relation to a particular disease like Aneuploidy and Hungtinton's disease. In case of fetal diagnosis one question that plaques the nurses is "Is the diagnosis right? How sure are you that the diagnosis is correct?" This is more so because there is no particular symptomatology in this case and the diagnosis is often made after getting clues from routine screening. Also, in several genetic related conditions, the advice is to terminate the much awaited pregnancy, shattering the dreams of the young couple. It thus becomes difficult on the part of the nurse to convince the parents that such a decision must be taken in the best interests of both the parents and the child. Nurses, because of their proximity of the patients and easy approachability are likely to be hovered with more questions and doubts from the patients and it is obliging on the nurses to answer the question in the most understanding manner. Thus, even nurses must have appropriate knowledge about various genetic disorders that may be encountered in their clinical practice (Kirk, 2006). According to the Genetics White Paper (DOH, 2003) advances in the knowledge and also the understanding of various genetic problems, disabilities and diseases have contributed towards more accurate diagnosis with better personalized prediction of risk, better preventive strategies, improved treatment modalities and newer drugs and therapies. Such an enhanced improvement in diagnosis and prediction has already made a great impact in the clinical practice of genetics. Advances in genetics have made it possible to provide more insight into the genetic component of the disease and also various environmental triggers of the condition (Kirk, 2006). With reference to nursing in the field of genetics, seven-point competence standards have been outlined. The nurses must be able to identify patients who might benefit from various genetic

An audit on the appropriate completion of the venous thromboembolism Dissertation

An audit on the appropriate completion of the venous thromboembolism (VTE) risk assessment and adequate thromboprophylaxis durin - Dissertation Example Certain patient subsets display VTE pathologies of idiopathic causes, with no apparent identifiable risk factors. Therapeutic anticoagulation is the cornerstone of management in all patients with VTE, in many cases, standard anticoagulants such as heparin are included as therapeutic options in normal practice. (Schulman et al 2009) Adjunctive treatments, such as thrombolysis and the use of vena cava filters, are prescribed in certain cases. Pregnancy is among several risk factors for deep venous thrombosis, in addition to minor injuries and surgery. (Van Stralen et al. 2008) But those with a familial history of thrombophilia-related blood conditions are at an increased risk. (American College of Obstetricians 2000) Most physicians do not recommend general screening for the patient population at large, and several studies attest to the need for a regimen of targeted testing for VTE conditions only when a battery of predisposing factors is extant. ( Robertson et al. 2006) (Osinbowale e t al. 2010) Of particular instance in this case is the degree to which proper screening is conducted for pregnant women, both upon admittance to Maternity, and postpartum. SCREENING Diagnostic testing for inherited or acquired thrombophilic conditions is advisable in the presence of personal or family history indicating heightened risk factors. The Factor V Leiden and prothrombin G20210A mutations are the most common genetic thrombophilic disorders, and antiphospholipid antibody syndrome is the most clinically significant acquired defect. Venous thromboembolism often results from the interplay between a series of risk factors. 50% of pregnant women with also exhibit thrombophilia. (Nelson-Piercey 2004) (Zotz et al. 2003) Understanding these VTE risks increases the probability of timely prevention and diagnosis. Virchow’s triad refers to 3 abnormalities that promote thrombogenesis: hypercoagulability, stasis, and endothelial dysfunction or injury. (Van Stralen et al. 2008) (Os inbowale et al. 2010) Several predisposing factors alter ? 1 components of Virchow’s triad. In a systematic analysis of 1231 consecutive patients treated for VTE, 96% exhibited > 1 recognized risk factor. Venous thromboembolism risk factors as may be hereditary or acquired. (Osinbowale et al. 2010) (Dresang et al. 2008) Osinbowale et al. 2010 Provides a ranking of predisposing risks from to lowest to highest in terms of probability: 1.) Obesity LOW 2.) Elderly 3.) Varicose veins (Varicosity) 4.) Laparoscopy 5.) Stasis (Immobility, due to long-term bed rest) 6.) CV catheterization 7.) Any other medical condition requiring hospitalization 8.) Previous VTE states 9.) Paralytic stroke 10.) Hormone Replacement Therapy 11.) Oral contraceptives, and pregnancy itself 12.) Arthroscopic knee surgery 13.) Malignancy and chemotherapy 14.) Spinal Cord injury 15.) Multiple traumas 16.) Major general surgery 17.) Major orthopedic surgery 18.) Long bone fractures, or fractures of hips and pe lvis. HIGH Clinical examinations may prove unreliable, therefore decisions in terms of treatment and/or screening tests must be based upon signs, symptoms, and preexisting risk factors. In this manner, patients are grouped into low, moderate, or high clinical probability of risk. (Sandler et al. 1984) Clinical symptoms of VTE disorders may be subtle and difficult to distinguish from gestational edema, though pain, warmth,

Compare and contrast the financial systems of two different countries. Use an institutional approach to describe the system. Comment on the impact on, and response to the GFC in each country Essay Example for Free

Compare and contrast the financial systems of two different countries. Use an institutional approach to describe the system. Comment on the impact on, and response to the GFC in each country Essay 1.0 Introduction A financial system inquires for efficient allocation of resources among the surplus and deficit units (Viney 2009) as such it encourages more savings where funds are provided for investor to invest and also ease the transactions for goods and services (Viney 2009). There are three main components in the financial systems which are the financial institutions, financial instruments and financial markets. All three types of financial system each carry different function, roles and regulations. However, financial institutions will be mainly focus in this research essay. Global Financial Crisis (GFC), also known as the ‘great recession’ occurs in the year of approximately 2007-08. GFC has caused a several impact on the economy which leads to a several collapse of the financial institutions. For instance, the collapse of Lehman Brothers, one of the major investment banks in US (Australia Bureau of Statistics 2010). Thus, the objective of this essay is to examine both financial system of the chosen countries which are United States and Australia, also the impacts and responses on the GFC in both of the chosen countries. 2.0 Compare and Contrast both Financial Systems 2.1 Central Bank The central bank of the United States (U.S.) is known as Federal Reserve System (FED) whereas the central bank of Australia is known as the Reserve Bank of Australia (RBA). The Federal Reserve System’s structure consist of the Board of Governors which are duly appointed by the president, the Federal Open Market Committee (FOMC), and 12 regional Federal Reserve Banks located throughout the major states in the country (The Federal Reserve Board 2003). Banking in U.S. is regulated at both federal and state level. Unlike U.S., Australia has only one central bank which is the Reserve Bank of Australia. However, both central banks are independent within their government (Reserve Bank of Australia 2001) whereby for FED, the monetary policies decisions do not have to go through the President’s authorization, and for RBA, they have statutory authority established by an act of parliament which grants them  specific powers and obligations to carry out necessary policies (Reserve Bank of Australia 2001). On the other hand, RBA has two board, which are the reserve bank board and payment systems board (Reserve Bank of Australia 2001). The reserve bank board is responsible for monetary and banking policy whereas the payment systems board is responsible for controlling risk in the financial system, promoting the efficiency of the payments system, and promoting competition in the market for payment services, consistent with the overall stability of the financial system (Reserve Bank of Australia 2001). The role of FED is to conduct the country’s monetary policy, which includes full employment, stable prices and moderate long term interest rates as stated in the Federal Reserve Act (Board of Governors of the Federal Reserve System 2008). Furthermore, they maintain the stability of the financial system, supervise and regulate banking institutions, provide financial services to depository institutions, and foreign official institutions. FOMC will determine the cost and availability of money and credit in the country’s economy by affecting the discount rate, reserve requirements and controlling the open market operations (Board of Governors of the Federal Reserve System 2012). Likewise, the role of RBA is to conduct monetary policy as well, which includes the maintenance of price stability, full employment and the economic prosperity and welfare of the Australian citizens (Reserve Bank of Australia 2001). Besides that, they also set the cash rate to meet a medium term inflation target (Reserve Bank of Australia 2001). Moreover, RBA must maintain a strong financial system and efficient payments system and the issuing of the nation’s bank notes. Selected banking services are provided to the Australian government, agencies, official institutions, and a number of overseas central banks (Reserve Bank of Australia 2001). 2.2 Commercial Bank Commercial banks in the U.S. are quite similar to those of Australia whereby their main role is to act as a financial intermediary by channeling funds from agents who deposit money and lenders who needs fund and wants to borrow. These agents and lenders include households, businesses, governments and foreigners. Australia offer products and services which include balance sheet transactions and off-balance-sheet transactions (Viney 2009). For balance sheet transaction, the first purpose is to loan activity to match the available amount of deposits that they received from customers. This activity is known as assets management (Viney 2009). The second purpose is to manage their sources of funds in order to ensure that they have sufficient amount of funds available to meet the loan demand or any other form of commitments. This activity is known as liabilities management (Viney 2009). For off-balance-sheet transactions, it includes a substantial volume of business that is not recorded either an asset or liability on their balance sheet. In comparison, U.S. obtains their funds (liabilities) by issuing deposits, checking deposits, time deposits, saving deposits (Samolyk 2004). For their use of funds (assets), it includes making commercial, consumer, and mortgage loans, and by buying U.S. government and municipal bonds (Samolyk 2004). Therefore, commercial banks play an important role in funding business borrowers. The percentage of non-financial business borrowing that commercial banks fund on their balance sheets has not declined remarkably in the past five decades or so. The commercial banks in U.S. provide trade financing, foreign exchange, corporate finances and miscellaneous banking services which include currency specified credit cards, corporate checking accounts and lock boxes (Ireland n.d.). Moreover, the existence of commercial banks made reliable transfer of funds between different countries all over the world possible. Furthermore, the distribution of valuable economic and business information among clients around the world is made possible as well (Samolyk 2004). Similarly, there are basically two functions of a commercial bank in Australia. The primary functions are obviously to accept deposits from individuals, and grant loans and advances for personal or corporate purposes. The secondary functions consists of collecting and supplying business information, providing reports on the credit worthiness of customers, standing guarantee on behalf of its customers for making payments for the purchase of goods, vehicles, machinery, and so on. Besides that, they also provide customers with foreign exchange facilities; and they also provide safe deposits vaults or lockers for valuables, important documents and securities. In a nutshell, for both countries, there are several similarities in the roles of commercial banks. Commercial banks promote capital formation whereby they accept deposits from individuals and businesses, whereby these deposits are then made available to the businesses which will make use of them for industrious purposes in the country (Ireland n.d.). Moreover, they also provide short and medium term loans for entrepreneurs to invest in new enterprises or businesses. Furthermore, they also promote trade and industry since they offer the use of bank draft, bill of exchange, check, credit cards and letters of credit. In one way or another, they also influence the level of economic activity by influencing the rate of interest and the availability of credit in the market. Most importantly, they implement the monetary policy proposed by FED or RBA to bring about price stability, full employment and promote economic growth within the country. There are several sources of funds for these commercial banks. The main source would of course be from the current account deposits. However, they do have other sources as well such as demand deposits, term deposits, negotiable certificates of deposits, bills acceptance liabilities, foreign currency liabilities, loan capital and shareholders’ equity. 2.3 Non-bank Financial Institutions 2.3.1 Depository Financial Institution Depository institutions (DPI) act as a financial intermediary similar to a commercial bank, whereby its main task is to accept deposits from surplus units and then issue loans to the deficit units in the financial system (Viney 2009). The main regulator for Australia is Australia Prudential Regulation Authority (APRA) whereas for U.S. is the Federal Deposit Insurance Corporation (FDIC). As for U.S., there are about 9, 000 functional depository financial institutions in the U.S. They operate through 92, 000 branch offices located in different states (Finance Maps of World 2011). Their role is to set a benchmark for DPI in the ground of  commercial banking. The funds that are collected is used to meet the credit need of others (Finance Maps of World 2011). On the other hand, Australia’s DPI consists of three main institutions which are banks, building societies and credit unions (Reserve Bank of Australia 2001). There are a total of 171 institutions of which 55 are banks, 11 are building societies and 105 are credit unions (Reserve Bank of Australia 2001). 2.3.2 Investment banks and Merchant banks Investment banks and merchant banks primary objective is to collect funds and invest them in the market to achieve specific goals set for different types of investments (Viney 2009). There are generally two types of investment companies which are open-end or closed-end mutual funds. Open-end funds will accept new investment and trade in old ones, whereas for closed-end funds they only accept funds once and then do not take in any additional new funds. Investment companies have recently become more popular among U.S. and Australia, and have managed trillions of dollars. As for U.S. investment banks specialize in facilitating financial transactions rather than just providing finance. They have a good reputation as a financial innovator since their responsibilities includes the improvement of new financial products and services which must meet the ever changing needs of clients (Kumar, Chuppe Perttunen 1997). In contrast, investment banks and merchant banks in Australia are not considered an authorized bank but often referred to as money market corporations (Viney 2009). They do not have a depositor base to include in their assets. Therefore, they raise funds through the issues of securities from the international money and capital markets (Viney 2009). 2.3.3 Contractual savings institutions Contractual saving institutions offer contract that specify, in return for periodic payments to the institutions, and the institutions will make payments to the contract holders if any specified event occurs (Viney 2009). They include general insurance companies and superannuation funds. As for U.S., their insurance companies raise money mainly from the issuance of insurance policies and collecting annual premiums. Some might also borrow from the dept capital markets as an alternative source of funds. For superannuation funds, or more popularly known as pension funds in the U.S., they are funded by the deductions from employees’ monthly salary in addition with certain contribution by the employers (Cohen Schubert 2010). On the contrary, Australia have make it compulsory for their employees to contribute to the superannuation system (Cohen Schubert 2010) whereby for U.S., an estimated 78 million working Americans which include the sole traders, employees who work for small employers or even part timers, do not have access to a retirement fund (Cohen Schubert 2010). For U.S., it has firstly introduced as a beneficial payment of employment whereas for Australia, it was created as a comprehensive system from the start (McLennan 2000). 2.3.4 Finance companies Finance companies and general financiers are basically institutions who provide loans and charter finance to clients by borrowing funds directly from the financial market (Viney 2009). As for U.S., these institutions raise funds in the debt market by issuing securities. Therefore, they raise funds solely by issuing debt or borrowing from other institutions but not taking deposits directly (Samolyk 2004). Similarly for Australia, they raise funds by issuing commercial paper, bonds and medium-term notes (Reserve Bank of Australia 2001). 2.3.5 Unit trusts Unit trusts is formed under a trust deed, and is controlled and managed by trustee by selling units to the public as a means to raise funds whereby investors purchase units in the trust (Viney 2009). As for U.S., there are generally two types of unit trusts, one that falls under private management and another that falls under direct state authority. Their role mainly involves traditional banking activities that are related to issuance of loans and deposits. The major difference between private and state authority trust is state authority institutions obtain funds from deposits and through the sale of shares, whereas private institutions operate as an intermediaries by generating finance through providing investment opportunities to clients (Samolyk 2004). Likewise, Australia too has two different types which are public unit trusts and cash management trusts  (Viney 2009). Public unit trusts focus more on gathering investors’ funds and investing it into specific types of assets (Viney 2009). However, for cash management trusts, they focus more on trust deed which are open to the public by confining their investment to financial securities which are accessible through the short-term money market (Viney 2009). 3.0 The impact of GFC 3.1 United States The birth of the global financial crisis begin somewhere in 2008. It all started in early 2006 when the subprime mortgage market in the United States (U.S.) began to reveal an increasing rate of mortgage defaults due to the bursting of the housing bubble (Mishkin 2011). Subsequently, in late 2006, these defaults caused a decline in the U.S. housing prices after about a decade of extremely high growth statistics. Later on, the prime mortgage markets were affected as well and were showing a higher default rates by the end of 2007. Therefore, when the mortgages backing the securities began to fall in value, the value of the securities fell as well (Nielsen 2010). Looking at the fall in price of their assets, investors quickly attempt to liquidate their assets in around late 2007. Consequently, in 2008, a major financial crisis hit U.S. which led to the most severe recession since World War II. The financial crisis in the U.S. economy eventually spread to many foreign nations, affecting the global financial system, resulting in a global financial crisis (Shah 2010). The degree of the global financial crisis was so severe that some of the world’s largest financial institutions have collapsed. U.S. was no exception. History was made when one of the largest investment banks in the world, Lehman Brothers, collapsed in September 2008. Some other institutions have been vehemently bought out by their competitors at a low price, and in some cases, the governments of the richest countries in the world had no choice but to sought an expensive bail out and rescue plan to save some of the remaining large banks and financial institutions (Shah 2010). These were all done at the expense of the US taxpayers. Approximately $9.7 trillion of US taxpayers’ money alone have been spent for bailout packages and plans (Dhameja 2010). According to Bloomberg, $14.5 trillion, or about 33%, of the  value of the world’s companies have been wiped out by the crisis. Therefore, as credit became scarce and seeing an increase in the lack of confidence in the U.S. financial institutions, international banks started to increase the interest rate for inter-bank borrowing, known as the LIBOR (Mishkin 2011). Subsequently, a crash in the US stock market was observed, liquidity drying up, and employees were being laid off which cause an increase in the unemployment line (Dhameja 2010). U.S. was in a state of limbo even after eleven months since the fall of Lehman Brothers. Banks virtually stopped lending to each other. Although several proposals for stimulus packages and some bailout plans have provided some relief, it seems that there was nothing more that could be done to ease the situation (Mishkin 2011). At the same time, smaller businesses hardly had any chances for a bail out or rescue plan and more people went into bankruptcy. Additionally, there was a decline in the US imports from its major trading partners such as the European Union, Mexico and China, due to the slowdown in economic activity (Nanto 2009). Private sectors practically stopped borrowing, trade credit was also hard to obtain, and with continuous falling demand, especially investment goods and manufacturing durables like cars, export volume decreases, foreign GDP fell as well, trade volumes eventually collapsed (Dhameja 2010). Moreover, the risk premium on inter-bank borrowing which used to be close to zero, rose steeply to five per cent. Besides, the risk premium on corporate bonds rose to over six per cent. Although the US government tried to inject liquidity into the financial markets, the damage was already done (Chambers 2010). 3.2 Australia GFC has less effect on Australia as compared to other countries such as US, UK and etc. Most developed countries had suffered recessions where Australia experienced a down turn in the economy (Stevens 2009). However, there is no government’s support required by the financial institutions in such situations like capital injections or the acquisition of distressed loan portfolios (Australia Bureau of Statistics 2010). The major impact of the GFC has resulted on the loss of confidence in the household sector (Stevens 2009). This is due of the decline in the equity price causes a reduced of the household wealth (The Parliament of the Commonwealth of Australia 2009). Thus, this leads to an effect of low consumption and investment which resulted to a decline growth of household as they felt insecure about the capacity to spend and borrow (Australian Government n.d.). GFC has also impacted on the unemployment rate which result shown an increase of number that lead to a decrease in the economic growth (Australian Workers’ Union 2009). The part-time employment has increased which balance to a loss of full time jobs where this also effect on the working hours such as the decrease hours in work (Chesters n.d.). Certain demographic groups have been affected by the job loss. For instance, the generation Y (18-24 years) has been affected (Tanton et al. 2010). However, they remain optimistic and relied heavily on the government benefit (Tanton et al. 2010). Moreover, competition in the banking system has also been affected by the GFC (Australian Super Investment Conference 2010) which resulted on harm towards the smaller banks and non-bank intermediaries as compared to the large banks where it leads to an increase in the cost of funds (The Senate 2011). Thus, this has impact on a greater gap between the major banks and other financial institutions (Australian Super Investment Conference 2010). The collapse of the Lehman Brothers, has led to a loss of confidence towards the banks which caused a decrease on the demand for credit (Australian Super Investment Conference 2010). 4.0 The response of GFC 4.1 United States GFC had seriously impacted the United States (U.S.) as compared to other countries such as Australia where it leads to the collapse of one of the major investment banks, Lehman Brothers. Thus, plans had been made by the U.S. government in response to the impact to prevent the situations to worsen. In comparison to Australia, the financial institutions do not need government intervention to assist them such as injection of capital. Unlike U.S., the government intervene where the central banks has purchased the government debt and the troubled asset which cost US$2.5 trillion in order to raise funds in the financial institutions (Halmarick 2009). This has resulted in the largest liquidity injection done by the government. They tried to inject liquidity into banks by buying share of banks, and purchase of convertible bonds of banks, whereby the government will be paid certain amount interest and the government will be given an option to convert these bonds into equity (Nanto 2009). Furthermore, FED tried to reduce the interest rates by cutting the Fed Funds target from 5.0% in September 2007 to an extremely low 0-0.25% as at December 2008. Later on, in March 2009, Fed started a â€Å"Quantitative Easing† policy by agreeing to buy a $300 billion in Treasury bonds (Halmarick 2009). The main purpose is to lower the interest rates across the yield curve and to provide additional funds to the banks. Moreover, US tried to overcome slowdown by stimulus packages of about $10 trillion for banks and guarantees to depositors, and also enhanced public spending (Dhameja 2010). According to Bloomberg, by February 2009, the total US bailout amounted to $9.7 trillion, sufficient to pay off more than 90 per cent of America’s home mortgage and was about 70 per cent of US GDP (Halmarick 2009). In addition, President Obama signed two packages which are the American Recovery and Reinvestment Act worth $787 billion and 5.5% of GDP. The main features include an estimated $285 billion in tax reduction for individuals and businesses, unemployment benefits, extra spending for food stamps, and also health care subsidies for workers that have been laid off (Halmarick 2009). These packages positively aim to generate at least three to four million job opportunities by the end of 2010. Additionally, US tried their best to prevent more banks from failing. The first case was Fed approves financing loans arrangement for J.P. Morgan  Chase to buy over Bear Sterns in March 2008. The second case was government controlled mortgage giant Freddie Mac received $146 million to ease their situation. Next, AIG borrowed $85 billion from Fed to prevent them from failing (Halmarick 2009). However, Fed couldn’t do much to save Lehman Brothers from failing and thus they went into bankruptcy in 2008. Therefore, US government aim to strengthen the global financial institution mainly to prevent losses of capital flows due to the impact of GFC to the developing and emerging economy by agreed on the increase of funds (Australian Government n.d.). Besides, government also actively plans to purchase equity from the financial institutions to ensure there is a sufficient liquidity which enable them to conduct activities such as investment, issue loan and deposit and much more. GFC has caused a fall of confidence in the financial institutions. Thus, government had decided to guarantee all senior unsecured debt and also the non-interest bearing transaction deposit account mainly to increase the confidence losses in the financial institutions (Australian Government n.d.). 4.2 Australia Australia had prepared by implementing an effective monetary and fiscal policy in response to the economy when one of the biggest investment bank in United States (US), Lehman Brothers collapsed in September 2008. This helps to avoid the economy from slowing down and lessen the impact of Global Financial Crisis (GFC) in Australia as compared to other countries such as US, where government responded on the measurement. In order to strengthen the operation of the financial system, government has increase up to $25 billion of the issue of Commonwealth Government Securities(Britton 2008), more choices of assets provided for Australian Office of Financial Management (AOFM) to invest in, together with a better lending facility of AOFM (Australian Government n.d.). In response to the recommendations of Financial Stability Forum, legislation has been introduced to establish Financial Claims Scheme (Britton 2008)  where the availability of funds is given to the depositors and general insurance policyholders when the financial institutions failed to perform (Australian Government n.d.). Besides, the bank deposits and wholesale funding is guaranteed by the government for a period of 3 years (D’Aloisio 2010). Additionally, the $10.4 billion Economic Security Strategy has been carry on as this helps to strengthen and stabilize the economy (Australian Government n.d.). This aim to provide protection to households and other financial institutions to gain back confidence lost due to GFC (Australia Bureau of Statistics 2010). Besides, First Home Owners Boost has been introduced mainly to assist the housing sector to stimulate activity which benefits the economy (Australian Government n.d.). The competition in the market of housing finance has been supported by the government through the purchase of the Residential Mortgage Backed Securities (RMBS) (Australian Government n.d.). However, a total of $840 million has been taken out by RBA from RBMS under a repurchase agreement mainly to ensure there is sufficient liquidity in the market (Britton 2008). The naked and covered of the short sale securities has been ban for a period of 30 days by the Australian Securities and Investments Commission (ASIC) (Helmes et al. 2009). However, a clarification of the allowable covered shares has been issued by the ASIC in concern of the set requirement (Britton 2008). A draft legislation for the covered of short sales has been released by the government and it is open for the public to comment on till 21 October 2008 (Britton 2008). Government initiated the plan of Nation Building and Jobs Plan which cost around $42 billion which was mainly to support the jobs in the country where it supported an estimated of 90,000 jobs (Sherry 2009). This help to decrease the unemployment rate and then boost the economic growth where it encourages more activities and also to increase consumption in the economy (Sherry 2009). 5.0 Conclusion In conclusion, the global financial crisis (GFC) had brought so much damage not only to U.S. and Australia, but to the entire nations’ financial system globally. Even some of the wealthiest nations saw the collapsed of its financial institutions while some had to undertake an extremely expensive bail-out package. As for U.S. they suffered more severely compared to Australia. This is because the Reserve Bank of Australia has taken measures in advance of the global financial crisis. Thus, they were not as heavily affected as compared to other countries. Therefore, U.S. should learn from Australia by implementing policies ahead of any unexpected crisis to minimize the impact and damage done to their financial system. Evidently, it is better for them to prevent and be prepared rather than solving an issue when the damage has already been done. The policies implemented should include healthy control of the discount rate, reserve requirement and also minimal inflation targeting such as two to three per cent. The right policy implementation will lead to full employment in the country, a healthy level of economic activity and international trades, which will eventually increase the country’s GDP to an optimal and desirable level. 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Tanton, R, Keegan, M, Vidyattama, Y Thurecht, L 2010, The economic vitality report: the impact of the GFC on Australians, Viewed 10 May 2012, . The Federal Reserve Board 2003, The Structure of the Federal Reserve System, viewed 2 May 2012, . The Parliament of the Commonwealth of Australia 2009, The Global Financial Crisis and regional Australia, Viewed 11 May 2012, . The Senate 2011, Competition within the Australian banking sector, Viewed 9 May 2012, . Viney, C 2009, Financial Institutions, Instruments Markets, 6th edn, McGraw- Hill Education, Australi

Generally Accepted Accounting Principles Essay Example for Free

Generally Accepted Accounting Principles Essay 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (7,875) (7,125) (5,325) (4,575) After-tax cash flow 44,625 40,375 30,175 525,925 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $41,724 $35,247 $24,623 $401,281 NPV $2,875 Investor W should make the investment because NPV is positive. b. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (10,500) (9,500) (7,100) (6,100) After-tax cash flow 42,000 38,000 28,400 524,400 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $39,270 $33,174 $23,174 $400,117 NPV $(4,265) Investor W should not make the investment because NPV is negative. c. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (5,250) (4,750) (8,875) (7,625) After-tax cash flow 47,250 42,750 26,625 522,875 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $44,179 $37,321 $21,726 $398,954 NPV $2,180 Investor W should make the investment because NPV is positive. 16. a. Opportunity 1: Year 0 Year 1 Year 2 Taxable income (loss) $(8,000) $5,000 $20,000 Marginal tax rate .40 .40 .40 Tax $(3,200) $2,000 $8,000 Before-tax cash flow $(8,000) $5,000 $20,000 Tax (cost) or savings 3,200(2,000) (8,000) Net cash flow $(4,800) $3,000 $12,000 Discount factor (12%) .893 .797 Present value $(4,800) $2,679 $9,564 NPV $7,443 Opportunity 2: Year 0 Year 1 Year 2 Taxable income $5,000 $5,000 $5,000 Marginal tax rate .40 .40 .40 Tax $2,000 $2,000 $2,000 Before-tax cash flow $5,000 $5,000 $5,000 Tax (cost) or savings (2,000) (2,000) (2,000) Net cash flow $3,000 $3,000 $3,000 Discount factor (12%) .893 .797 Present value $3,050 $2,679 $2,391 NPV $8,120 Firm E should choose opportunity 2. b. Opportunity 1: Year 0 Year 1 Year 2 Taxable income (loss) $(8,000) $5,000 $20,000 Marginal tax rate .15 .15 .15 Tax $(1,200) $750 $3,000 Before-tax cash flow $(8,000) $5,000 $20,000 Tax (cost) or savings 1,200 (750) (3,000) Net cash flow $(6,800) $4,250 $17,000 Discount factor (12%) .893 .797 Present value $(6,800) $3,795 $13,549 NPV $10,544 Opportunity 2: Year 0 Year 1 Year 2 Taxable income $5,000 $5,000 $5,000 Marginal tax rate .15 .15 .15 Tax $750 $750 $750 Before-tax cash flow $5,000 $5,000 $5,000 Tax (cost) or savings (750) (750) (750) Net cash flow $4,250 $4,250 $4,250 Discount factor (12%) .893 .797 Present value $4,250 $3,795 $3,387 NPV $11,432 Firm E should choose opportunity 2. c. Opportunity 1: Year 0 Year 1 Year 2 Taxable income (loss) $(8,000) $5,000 $20,000 Marginal tax rate .40 .15 .15 Tax $(3,200) $750 $3,000 Before-tax cash flow $(8,000) $5,000 $20,000 Tax (cost) or savings 3,200 (750) (3,000) Net cash flow $(4,800) $4,250 $17,000 Discount factor (12%) .893 .797 Present value $(4,800) $3,795 $13,549 NPV $12,544 Opportunity 2: Year 0 Year 1 Year 2 Taxable income $5,000 $5,000 $5,000 Marginal tax rate .40 .15 .15 Tax $2,000 $750 $750 Before-tax cash flow $5,000 $5,000 $5,000 Tax (cost) or savings (2,000) (750) (750) Net cash flow $3,000 $4,250 $4,250 Discount factor (12%) .893 .797 Present value $3,000 $3,795 $3,387 NPV $10,182 Firm E should choose opportunity 1. 1. a. (1) Year 0 Year 1 Year 2 Before-tax salary/income $80,000 $80,000 $80,000 Marginal tax rate .25 .40 .40 Tax on income $20,000 $32,000 $32,000 After-tax cash flow $60,000 $48,000 $48,000 Discount factor (8%) .926 .857 Present value $60,000 $44,448 $41,136 NPV of salary received by Mrs. X $145,584 (2) Before-tax payment /deduction $80,000 $80,000 $80,000 Marginal tax rate .34 .34 .34 Tax savings from deduction $27,200 $27,200 $27,200 After-tax cost $(52,800) $(52,800) $(52,800) Discount factor (8%) .926 .857 Present value $(52,800) $(48,893) $(45,250) NPV of salary cost to Firm B $(146,943) b. (1) Year 0 Year 1 Year 2 Before-tax salary/income $140,000 $50,000 $50,000 Marginal tax rate .25 .40 .40 Tax on income $35,000 $20,000 $20,000 After-tax cash flow $105,000 $30,000 $30,000 Discount factor (8%) .926 .857 Present value $105,000 $27,780 $25,710 NPV of salary received by Mrs. X $158,490 (2) Before-tax payment /deduction $140,000 $50,000 $50,000 Marginal tax rate .34 .34 .34 Tax savings from deduction $47,600 $17,000 $17,000 After-tax cost $(92,400) $(33,000) $(33,000) Discount factor (8%) .926 .857 Present value $(92,400) $(30,558) $(28,281) NPV of salary cost to Firm B $(151,239) c. Year 0 Year 1 Year 2 Before-tax payment /deduction $140,000 $45,000 $45,000 Marginal tax rate .34 .34 .34 Tax savings from deduction $47,600 $15,300 $15,300 After-tax cost $(92,400) $(29,700) $(29,700) Discount factor (8%) .926 .857 Present value $(92,400) $(27,502) $(25,423) NPV of salary cost to Firm B $(145,325) This proposal is superior (has less cost) to Firm B than its original offer. d. Year 0 Year 1 Year 2 Before-tax salary/income $140,000 $45,000 $45,000 Marginal tax rate .25 .40 .40 Tax on income $35,000 $18,000 $18,000 After-tax cash flow $105,000 $27,000 $27,000 Discount factor (8%) .926 .857 Present value $105,000 $25,002 $23,139 NPV of salary received by Mrs. X $153,141 Mrs. X should accept this counterproposal because it has a greater NPV than Firm B’s original offer.

In depth study on IKEA

In depth study on IKEA The scope of this paper is to conduct in-depth study on IKEA, the global home furnishing retailer from different perspectives. The report consists of IKEA corporate and business strategies in global markets, the firm previous experience in US and business model IKEA applied in Asian countries. 1.2 Objectives The objective of this paper is to produce a comprehensive report to CEO with the aim of determine IKEA strategic position in the future. The report critically assesses IKEA current market positioning and challenges IKEA have to overcome in order to sustain the competitive advantages. SWOT analysis is used to provide clearer picture regarding the firm internal performances in term of strengths and weaknesses, as well as the external opportunities and threats. Meanwhile, macro environment issues will be evaluate by using PESTEL analysis to capture IKEA potential growth and firm competitiveness. Recommendation to promote IKEA future growth will be provide base on strategies review. 2.0 Company Background 2.1 Industry and Company Background In 1943, a Swedish entrepreneur Ingvar Kamprad established IKEA. The name of IKEA came from its founder name Ingvar Kamprad, the farm Elmtaryd and home country Agunnardy where Ingvar Kamprad grew up. IKEA has developed rapidly as a global home products retailer. The corporate structure mainly divided into two divisions which are operation and franchising. Operation covered the management of majority stores, design, purchasing, supply functions and manufacture of furniture, which manage by a private profit Dutch company, INGKA Holding. In 1982, Kamprad established Stichting Ingka Foundation, a non-profit foundation that control over INGKA Holding. Ingka Foundation chaired by Kamprad and five executive committees which included her wife. The IKEA trademark and concept is owned by separate Dutch firm, the Inter IKEA Systems based in Luxembourg. Every IKEA stores pay 3% of sales to Inter IKEA as a franchise fees. IKEA consumers are mainly distributed into four different geographic region s, Europe, America, Middle East and Asia. The vision of IKEA is to provide a better living solution which is affordable and its mission statement is to offer functional and stylish low price furniture which everyone could afford. 2.2 Company Product and Services IKEA seized retailer chain that sells flat pack furniture, kitchen and bathroom accessories across the world. The furniture designed to be self assembled in order to reduce transportation cost. Besides, the company include traditional Swedish food restaurant in their stores, which serving Swedish meatballs, smoked salmon, lingo berry tarts and cream source. Additionally, thoughtful part of IKEA is many stores have play area for children named Smaland, where parents able to drop their children to playground while shopping and pick them up at another entrance. 2.3 Corporate and Business Strategies The impressive growth of IKEA lies on the distinctive corporate and business strategies. IKEA employ marketing mix strategy to position its brand identity in the market. Armstrong et al. (2006) explains that marketing mix strategy is a business model tools that focus on product, price, place and promotion. IKEA provide wide range of product selection. Although the product functional category is same, IKEA designed it in different features. For example, IKEA laptop stand act user friendly like a small table allow customers to use their laptop while lying on sofa. In term of pricing, IKEA flat pack furniture able to reduce transportation cost which resulted in price saving. Moreover, IKEA tend to locate in suburban area. This factor helps cut operational cost and able to provide more parking spaces for customers. Besides, Armstrong et al. (2006) also mentions that promotion is a marketing communication that consists of advertising, personal selling, sales promotion and public relations . IKEA promote their products by mail order service and free distribution of catalogue which enables IKEA cut cost in furniture storage. To improve competitiveness, IKEA modified the value chain strategy. Bartol et al. (1993, p.211) explains that Porter argues a business able to improving and value adding by focus on the key internal activities in the value chain. However, the independent (1994, p.9) states that IKEA integrate the value chain by create a two directional value adding system between customers and suppliers. On the other hand, IKEA used to expand by franchising method in their globalization strategy. Currently, IKEA has further explored their globalization strategy by joint venture. Evans et al. (2000) states IKEA joint venture strategy enable the firm minimizes the financial risk, expand the expertise network and get to know local market better. 2.4 IKEA Performances According to IKEA group fiscal year 2010 report, the independent (2010) states that IKEA currently opened 280 stores in 26 countries. The total sales archived 23.1 billion euro by 2010, raise 7.7% compare to its 21.4 billion sales in 2009. The net profit increased 6.1% at 2.7 billion euro. The IKEA market share mainly distributed in Europe which is 79%, North America 15%, Asia and Australia 6%. The distribution of purchasing per region is Europe 62%, Asia 34% and North America 4%. In term of growth perspective, IKEA demonstrated sustainable sales improvement which was average 21.9 billion euro in the past three years, 21.2 billion euro in 2008, 21.4 billion euro in 2009 and 23.1 billion euro sales by year 2010. 2.5 SWOT Analysis of IKEA 2.5.1 Strengths IKEAs distinct strategies have successfully shaped it strengths in competitive furnishing environment. The strengths comprise of strong global brand recognition that able to retain group of customers. Another strength is distinctive business strategies allow IKEA control over the products design, low pricing and global sourcing materials. Backward integration is one of the strength as well that permit IKEA enjoys economies of scale. 2.5.2. Weaknesses The weaknesses of IKEA derive into few elements. IKEA niche markets concept did not work in every country. Another potential barrier is IKEA over emphasis low price products may lead to their customers doubtful in products safety. Furthermore, IKEA has limited manufacturing capabilities by its own due to global sourcing strategy. 2.5.3 Opportunities An outstanding corporate realized that encounter weakness is the key of opportunity. The firm has foreseen the great opportunities in developing countries where IKEA may put more concentration on outsource his business in some developing Asia countries which is potential because of low cost manufacturing for example Cambodia. Meanwhile, India high population rates also one of the huge markets for IKEA expansion. IKEA may improve the existing its customers network by promote more online shopping. 2.5.4 Threats IKEA facing extreme environmental threats among competitors, some of the new entry companies adapted IKEA low cost strategy and imitated its flat pack furniture concept in the markets. On the other hand, global economy recession may reduce consumers buying power in emergent markets. Likewise, political instability may influence IKEA business performance. Chapter 3: Main Body 3.1 Assessment on IKEA Current Strategic and Distinctive Competitiveness In order to archive competitive advantages among competitors, IKEA adopted Porters generic strategy which comprise of differentiation strategy, differentiation focus, cost leader and cost focus which enable IKEA differentiate their brand identity among competitors. IKEA uphold its differentiation concept by offering high quality and low cost products to archive competitive advantages. Porter (1985) states that differentiation aims at deliver products and services that are different from the product mix of their competitors at a premium cost. The company provides functional style of self assembly furniture which material used is source globally to reduce the cost. Guardian (2005) describes that IKEA able to cut their prices at an average of 2% to 3% each year to compete in some markets segment. To sustain the differentiation strategy, IKEA may focus in adding more additional features into different products and keep the products user friendly. Adoption of differentiation focus allows IKEA to focus on particular segmentation market. Porter (1985) illustrates that differentiation focus means of differentiating its product within smaller number of target market segment. Recent years, IKEA concentrate its segmentation markets by opening trading office globally to serve customers better. Venorika (2006) states that IKEA opened 46 trading offices in 32 countries by 2006 where the suppliers need to fulfill IWAY code of conduct in supplying materials. To fulfill variety of local demands, IKEA should ensure the suppliers and designers constantly customize some of their products to provide range of choices. The advantage of being cost leader in market is able to draw attention and attract customers in long run business. Guardian (2005) illustrates that IKEA attain cost leaders by working together with its suppliers, provide technology and consultation. Likewise, cost focus can be mutual benefits for manufacturer and consumers where manufacturer save its cost of production and consumers enjoy the cost saving harvest. For example, the benefits of global sourcing where Captell (2005, newspaper) states that one of the IKEA best selling products Klippan sofas price was $354, by 2006 the price has drop to 202. To sustain cost focus, IKEA should critically examine some suppliers and further diversify its major suppliers for their materials. For example, Map of The World (2006) states that Canada, Russia and United States are top timber producing countries. 3.2 Organizational Gaps to Date Increasingly globalization is an enormous challenge for IKEA. To sustain, IKEA should further integrate their management by letting its independent business group has greater managerial decisions to effectively implement business process and boost quicker respond during crisis occur. Carrillat et al (2004) illustrates management that market driving is described to be outstanding in implementing unique business process, figuring market structure and value adding to their organization. Secondly, a company that provides professional service able to retain customer loyalty. Rowley (2005, pg 574-578) states customers loyally are company business core assets in the competitive market environment which add value to a business future. IKEA may review their service policy while dealing with customers flow during weekends. It can be archived by retraining their staffs to handle more customers efficiently. Alternately, the company can increase their manpower by hiring part time workers which is lower cost. Development of information technology has increase convenience in searching broad information. Brent (2005, pg 2) explain that a comprehensive information system allows company strategic core to be flexible, scalable and effectively operating in a high stress and limited resource environment. Hence, IKEA should utilize the information technology resource by promotes online shopping to resolve weekend customers flow issue. 3.3 Performances of Current IKEA Strategy 3.3.1 Analysis on IKEA challenges in US market. IKEA in United States In the mid of 1980s, IKEA entered United States to challenge an entirely different culture. IKEA success in United States doesnt come easily. Although the low price products always preferences of consumers but IKEA still faced difficulties at the beginning stage. Measurement standard and size of furniture were the major issues to IKEA. Nordin study (2002) illustrates one of the customer feedbacks emphasized they were drinking out of vases to refer the size obstacle. In order to delight American markets, IKEA realized the importance of modify its products design to suit local needs. By the mid 1990s, the independent (2003) states that IKEA has successfully increased the revenue from USD 600 million to USD 1.3 billion and became IKEA third largest markets after Britain and Germany by 2002. PESTEL analysis for United States I. Political Factors The research by Wayne et al. (2006, p.101) states that United States exercise constitutional republic in their political system for decision making process. The government promotes equality of laws which is fair to all everyone, therefore the policy has resulted equal opportunity to enhance trade freedom. However, governments tax policies play important role that impact business competitiveness during economy recession. For example, the independent (2009) states tax reform act enacted on 1986, the incentive has benefits individual but loaded burden to corporate. II. Economic Factors The United States gained steady growth of GDP in the past decade. Wright et al. (2007, P.185) illustrates that the capitalist mixed economy result in well developed infrastructure and high productivity that lead United States become the world largest economy. Nevertheless, the saving and loan crisis during 1980s and 1990s has great impact to United States business and financial system. Timothy et al. (2000) states from 1985 to 1995 United States insured thrift institutional deficit from 3,234 to 1,645 has resulted raise in interest rates. III. Social Factors United States is one of the largest countries with highest populations in the world. Adam et al. (2001) illustrates that United States society consists of multicultural immigrants and vary in ethnical diversification. Understand different levels of American culture are a challenge as well as opportunity to overcome barrier in order to compete with local markets. For example, IKEA strategy of niche markets has failed due to American cultural preference in bigger size products. IV. Technological Factors The science and technology advancement have shaped American success in various aspects including economic, education system, infrastructure and legal institutions. Rapid growth of technology provides job opportunities and promotes growth in business markets. In addition, the facilities and expertise available has encouraged foreign investments. Linda et al. (1991) describes that technological advancement is essential for economic growth. Porters Five Forces Model Analysis for IKEA I. Rivalry The competitors try to adapt IKEA strategy by offer low price and functional furniture products. In low end market, Wal-Mart tends to cut price and do promotion on their furniture products. Conversely, Ethan Allen aims for high end market by offer functional quality products with comfort shopping atmosphere. Tewary (2002) states the furniture markets in United States are highly fragmented, the top ten furniture retailers were just stand 14.2% of total markets share. However, IKEAs strength to deliver brand identity in both ends allows the company to develop in coming future. II. Substitutes Currently, IKEA effective global sourcing strategy and unique supply chain management has allows the firm leading without threats of substitute. Moreover, IKEA innovation designs at all time able to satisfy trend of consumers demand. John Leland (2002) states typical Americans shopper like new things, travel abroad, take challenges and functional technology. Thus, IKEA consistently revise the fashion design style of furniture able to tag along consumers trend. Power of Buyers Consumers have limited choice on selection by specific retailer, due to particular retailer focus in certain perspective for example, design, quality, service and pricing. IKEA stands advantage on all. Therefore, the bargaining power is little for consumers. Nordin study (2002) illustrates that customer visit to IKEA able to find good design and low pricing products. Therefore, in IKEA internal perspective, the consumers bargaining power is little. New Entrants Most of the IKEA stores are located outside the cities to avoid massive traffic and provide bigger parking space. IKEA did not expand the markets in metropolitan areas, so there is potential for another furniture retailer to offer low price products to compete IKEA markets share. Tewary study (2003) shows that United Stated furniture reported USD 67 million sales by 2002 and keep on growing. Hence, some of the retailers may seize opportunity in sharing the furniture markets. Power of Suppliers IKEA has high demand in timber for their products. The supplier needs to bids contracts for supply raw material to IKEA. Meanwhile, IKEA will provide consultation in term of technology and training to ensure the consistency of material quality. Hence, the supplier bargaining power is low. Due to green environmental issues, it can impact the timber supply. Knight study (1998) shows that more than 200 million hectares of forests vanished due to development became the barriers of supply raw materials, Green Agreement of Tariffs has signed allows corporation to seek more profitable forest. Factors to Consider in Assessing Industry Attractiveness. Factors High Impact Low Impact Description Ref 3.3.2 Growth Potential and Competitive Advantage IKEA Secure in China IKEA in China In 1998, IKEA opened its first furniture store in Beijing, China. The company core target customers are the middle class young people which are around 30 years old. IKEA realized that different strategy need to be use while entry a new market. Lee et al (1998) states that China has numerous differences in culture, political, economic and business models compare to Sweden. Among the challenges, Trompenaars et al. (2004) illustrates that as a new business entry, language is one of the main barriers for IKEA enter China market. To win Chinese customers heart, IKEA has the Chinese translation named of Yi Jia which means comfortable and family. PESTEL analysis for china PESTEL analysis critically evaluates IKEA potential growth and present arguments on its competitive advantage to secure in China. I. Political Factors China exercise communism in their political system. In China, the government controls all the resource activities. Capdevielle study (2007) states that China enacted reform and opening up policy that opened its market to attract foreign investment in 1978. The policy provided opportunity for many multinational companies to expand their business in China. However, government tax polices influence markets growth. A study of Li et al. (2007, p.26-27) illustrates that 70% of foreign investment enterprise reported loss due to the transfer pricing measure enacted by China in 1990s to control the wealth out of their nation but China has slowly loosen the trade policy to promote business growth. Presently, IKEA adapted joint venture strategy to share risk of losses as well as dealing with government policy to archive competitive advantage. II. Economic Factors The joined of China into World Trade Organization (WTO) has result the country economy growth rapidly. Phang et al. (2010) describes that China is the second largest world economy after United States by 2010 with the GDP of $1.337 trillion. The strong economy growth has raised China people purchasing power toward the housing demand which can be a huge potential for furniture industry. Wang (2003, p.121-143) states that housing investment annual rates has increased by 20% which is currently urban Chinese most important property. Nevertheless, IKEA facing competitive challenges in China local markets due to government weak control on intellectual property. Imitation of brand pattern which offer in very low price often found in China markets. Therefore, IKEA global sourcing strategy and supply chain management effectiveness which constantly offer low price products determine the company growth. III. Social Factors China has the world largest population. A study by Judith et al. (2010, p.4) illustrates that population of china has risen approximately to 1.35 billion by 2010, the world largest population and estimate to be peak during 2030 which is 1.5 billion. From the social point of view, that is a great opportunity for foreign investor to fight against the business markets share. However, the population aging issue and the one child government policy in China should be taking into consideration due to IKEA targeting young middle class people. Bloom et al. (2008, p.40) states that China population aging and low fertility rates could result impact on future economic growth. IV. Technological Factors Over the past decade, China has archive significant improvement in their science and technology development. The rapid improvement in research and development drive manufacturing industry expansion and create more jobs opportunity. Wang (2007) illustrates that china government implement policy to raise the ratio of RD to GDP, resulted sustainable growth which reported 1.4% by 1996 compare to 0.7% of GDP in RD during 1987. Nonetheless, lack of local core technology may increase foreign company cost in buying the technology license and import to China. For example, the independent (2006) states due to the lack of core technology, local company paying 20% to 40% of price for each computerized numerical control machine. Yet, IKEA stand advantage with the unique value chain management in providing technology consultation for their suppliers to maintain long term business relationships. 3.3.3 IKEA Current Strategy on Market Diversification (China) IKEA Diversification in China Globalization is the current trend for most of the companies nowadays. However, Brooks et al. (2004, P.233) illustrates that there is certain level of risk to invest in foreign country. To gain market share in new entry countries especially Asia, IKEA corporate and business strategies determine its sustainability and competitive advantage among competitors in future. For example, IKEA globalization strategy in Asia country, China, comprise of joint venture, localization and pricing strategies. Joint Venture First of all, IKEA decided to joint venture with local companies in China due to one of the macro-environmental element which was China government policy. Capdevielle et al (2007) elucidates that China practice joint venture policy to gain mutual benefits and principal of equality for their nation. Dealing with entirely different culture, IKEA adapted passed experience in globalization to analyze China market. Joint venture strategies add value to IKEA by sharing risk of losses. Bragssington et al. (2003, p.106) points out that full analysis should be conduct in order to informed the expansion decision to contribute the success in investment. Localization To continually growth IKEA business after joint venture, the firm adapted localization strategy to suit local Chinese culture. For example, the independent (2005) illustrates that IKEA localization strategy consists of offer wide range of Chinese market products that tailor customers preference as well as the design of showroom is constructed accordance to Chinese style. Despite of it, IKEA also focus on Chinese sub-culture to lure the local customers. Copeland et al. (1986) states that Chinese preference on decoration in red color during Chinese New Year which means good luck and fortune. Recent years, one of the most exclusively IKEA localization effort was during Chinese New Year. In 2006 Chinese New Year, many IKEA products designed with red rooster to welcome the Chinese year of rooster. Pricing Strategies IKEA based on its low price strategy in offering wide range of quality products to consumers. Usunier (2000) elucidates that product price is always a vital communication element between buyers and sellers. To compete with local furniture retailers, IKEA has dramatically slashed their products price and outsourced locally to reduce cost. Song (2005) points out that currently 70% of IKEA selling products are made in china and certain products has slunk 70% of its original price. For example, the tray BAGN for eating on bed purposes cost RMB 29 in 2007 compare to its price RMB 89 during 2000. Chapter 4: Recommendation To survive in the changing environment, IKEA have to constantly adapt changes and aware on customers preference trend. Several elements IKEA may focus to improve its value proposition as well as to maintain competitive advantages. 4.1 Justification on IKEA diversify strategy in China Joint venture strategy in China has improved IKEA operational network and culture understanding. Jonsson (2008) states that IKEA react more responsive to the local Chinese demands due to the sharing knowledge of Chinese culture with joint venture partners. Recent years, Capdevielle (2007) points out that IKEA has currently offer typical Chinese furniture such as Chinese kitchen wares. IKEA pricing strategies in China have significant progress throughout the years. Wei (2007) illustrates that by 2002 IKEA overall products price drop 12% and sales increase by 35% in 2003 compare to year 2002. Despite of it, IKEA move further to improve their customers service. Wei (2007) also mentions that IKEA started to provide delivery service with a little charge and even free of charge for deliver their products for those area are near. 4.2 IKEA Diversification on New Asia Country As the global business operational costs increase for example labor cost. IKEA may look for alternative opportunity to source its business from developing country. Cambodia can be IKEA potential business expansion due to the broad agriculture activity and strong GDP growth in recent years. Mohan (2005, p.10) points out that there is potential growth in future for Cambodia as an agriculture dependent country due to the labor cost advantage. Furthermore, Purcell et al. (2010, p.9) states the opened policy of Cambodia government in joining the ASEAN and WTO has increased the GDP 9.6% by 2007. The political and economic factors are vital elements IKEA should consider while entering into a new market. 4.3 Continue Focus on Innovation Innovation is a key in adding value to development of organization. Drucker (2002, p.95-103) states that capability to be innovative in an organization is the key to endure business grow. IKEA has a very different innovation perspective compare to others organization. Victoria et al. (2007, p.46) illustrate that IKEA posses unique forms of innovation in introducing new technology, widening the low cost products design range to maintain long term suppliers and consumers relationship. Victoria et al. (2007, p.46) also mentions IKEA focused on technological innovation by online products provision and supply chain management which contributed to the growth of its business. The critical factors to continue IKEA success in innovations are all level of consumer centric innovation, further analyzes the segmentation markets by research and innovative marketing campaign to match local preference. 4.4 Reviews on Strategy Competitiveness For IKEA to lead furniture industry as a market driver, the firm should periodically review and enhance the existing strategies. Adaption of blue ocean strategy enables IKEA to seek the value of innovation by cost reduction and differentiate it products to meet customer needs. Kim (2005, p.4) explains that blue ocean strategy enable corporate to create new customer value and provide lasting core competitiveness. Moreover, blue ocean strategy challenges the traditional business concept in breaking market competition and growing organization brand identity. Continually review the business strategy provides bigger picture and direction for an organization to attain growth in future.