Currency Hedging Essay Example | Topics and Well Written Essays - 5500 words

Currency Hedging - Essay Example For example investors bank their hopes on relative net returns such as Net Dividend Yield (NDY) generated by stock related investments. Thus potential investors look at how the growth trajectory of Net Asset Value (NAV) would increase in keeping with net returns in relatively less risky spheres of investment. Secondly the risk factor associated with currency market related investments is proportionately higher when foreign exchange related investments take a plunge due to uncertain government policies. For example if the government concerned allows its own currency to depreciate externally in order to correct a deficit in the trade balance of the balance of payment, investors would be caught on the wrong foot if they happen to bank their hopes constantly on the continuity of government policy (Maskey, 1995). Thirdly the government may adopt anti-inflationary measures such as higher corporate taxes and expenditure taxes. The net result would be less investment and less borrowing. Currency markets become dormant during such periods of negative policy initiative. Foreign exchange rates and interest rates ... s are positively related because when interest rates fall the exchange rates also fall because potential foreign investors do not buy the domestic currency concerned for investment when the domestic interest rates fall and as a result the demand for the domestic currency abroad falls thus leading to an unfavorable exchange rate (Larsen, & Resnick, 2000). Hedge funds, mutual funds, pension funds, commercial banks and other money market players have a tendency to hedge risk by minimizing the degree of exposure to adverse consequences arising from unfavorable exchange rates, inflation and investment related uncertainties such as a continuous fall in stock prices (Biger, & Hull, 1983). 2. Analysis 2.1. What is Currency Hedging Currency hedging has become a very controversial issue in modern money market operations (Adler, & Prasad, 1992). Commercial banks and other market players have adopted highly strategic exclusive policy initiatives to deal with the problem. This paper investigates the relative efficacy of such highly complex approaches to currency hedging adopted by different market players, while at the same time focusing attention on the doubt expressed by modern writers about the benefits of currency hedging strategies to all market players at a given time.Currency hedging is a technique that is meant to manage and reduce the risks involved when engaging in some foreign investment strategy. Essentially the very nature of a currency hedging effort would be more beneficial in obviating the negative outcomes from any shifts in the relative value of the currency as utilized in the investment process (Levy, & Lim, 1994). This is intended to shield the investor from negative shifts in the money market so that even if the currency involved takes a plunge

Accidental Death of an Anarchist Essay Example for Free

Accidental Death of an Anarchist Essay Q) Critically analyze the Figure of Madman in Dario Fo’s play The Accidental Death of an anarchist. A) Dario Fo’s play The Accidental Death of an Anarchist (1970) lies in the category of revolutionary theatre that challenges the fascist regime of Italy. The play is a farce based on events involving a real person, Giuseppe Pinelli, who fell or was thrown from the fourth floor window of a Milan police station in 1969. He was accused of bombing a bank. The accusation is widely seen as part of the Italian Far Rights strategy of tension. Just like Fo’s other play, this play is also funny and subversive and shows a strong preference for the culture and traditions of the ordinary people and a commitment to the left wing politics. The play moves quickly through a series of farcical situations and exposes the hypocrisy and anti- people character of the bourgeois society and the so called sacred institutions- the police, the judiciary, the religion and the media. The play was originally written and performed in Italian in 1970 and first English translation was done in 1979. Central to the play is the character of The Madman, who is the prime protagonist of the play. Through the story of the madman in a police station Dario Fo has a created a classic example of exquisitely political theatre with a comedy that begins from being realistic, (the stage setting is of a realistic, ordinary police station) moves towards the frankly implausible (the madman, the inspector, the superintendent and the constable singing the song of anarchists in the police station), reaches to the level of grotesque (the constant punching and kicking of Bertozzo by the police officials, and the falling eye) until it ends with a hilarious and ludicrous climax. He (the madman) invents dialogue based on a paradoxical or on real situation and goes on from there by virtue of some kind of natural, geometric logic, inventing conflicts that find their solutions in one gag after another in correspondence with a parallel political theme, a political theme which is clear and didactic. You are moved and you laugh but above all you are made to think, realize and develop your understanding of everyday events that had escaped your attention. Franca Rame on The Character of Madman in Accidental Death of an anarchist The madman is not just a character in the play, but he acts as a literary device in the play. He provides most of the humor content of the play. The madman is whimsical and he constantly contradicts other characters as well as himself. His series of logical/illogical arguments becomes impossible to tackle and it frustrates the Police Department. Even though being termed as psychologically unfit, the madman appears to be the most intelligent character in the play. He ridicules the police officials for missing out on the basic concepts of English grammar and the use of the most important â€Å"COMMA† that changes the meaning of a sentence. He dictates the terms of law and judiciary to police officials. He is extremely sarcastic. He ridicules the superintendent for assuming the railway man planted the bomb in railway station without any substantiate evidence and sarcastically rebukes the â€Å"kindergarten logic†. The people in power appear to be inhuman and brute in their actions, and the â€Å"sacred† governmental place, the police station appears to be a madhouse or a slaughterhouse. The madman, even though he is mad appears to be the sanest character in the play. In fact, he appears to be directing the play according to his wishes. Suffering from a disease of enacting people, he sees the world as a stage and other people as his fellow characters. He warns Bertozzo that soon he is about to be punched by Pisani and warns him to duck. Bertozzo ignores the directorial warning of the madman. Later he tells the superintendent to stop playing around and â€Å"keep to the script†. The actions of the play move around as the madman says and everyone does what he asks them to. Bertozzo, who defies the madman’s instructions, keeps on getting punched and thrown out. Hence, Fo, in his play, takes the power out from the hands of the police, the judiciary, and the media and gives it to the representative of the lower section of society, the madman. By pretending to be, in turn to be various figures of authority – psychiatrist, professor, magistrate, bishop, forensic expert – the Maniac forces officials to re-create the events with the purpose of showing the inconsistencies in the official reports of Pinelli’s â€Å"leap† and to confess their responsibility in the anarchist’s death. The madman manages to create mayhem within the policeman, representatives of law and order and figures of authority are made to appear ridiculous and a target of laughter. He exposes how people in power are all in collusion to save their own. Now I am about to show some of the theatre/TV productions of the play and give brief comments on how the character of madman operates in them. Firstly, take a look at the 1983 British TV movie that was telecasted on Channel 4. In this production, the original Italian setting is mixed with contemporary references to Thatchers Britain. 1) In the beginning itself, various impersonations of the madman are shown pointing towards the crime committed by him. 2) The madman constantly points towards the audience that is standing upwards, and the crew, and chats with them. And he talks to the director about the censorship laws on television in Britain, when the inspector says The â€Å"F† word. (5 minutes 30 seconds). 3) In the play, not only the madman enacts different roles, but the same constable is used on the 2nd floor and the fifth floor and also as a liftman. The madman here is concerned with anti materialist sentiment as well. The madman remarks about the fact low budget of the show saying, â€Å"Couldn’t they get a different actor to play you? Who’s directing this thing, Ian MacGregor?† (17 minutes) and the Maniac, â€Å"This is commercial television in crisis!† Similarly, in The IIT production of the play, which is performed in India, in Hindi, the references are converted according to Indian settings and sentiments. 1) The University of Padua is converted into University of Patiala. The madman teaches the Hindi vowels to the constable and the policeman. (4:30) (A aa e ee) 2) The police inspector in the 6th minute of the play says to the madman that he’s madder than the madman. As I said above the madman appears to be the sanest of characters in the play. My fair Heathen Productions in their September 2007 production actually used a woman for the role of the madman. Hence the madman is enacting as a madman from the beginning and in fact is a mad woman. This does not bring a significant change to the play, except probably the so called marginalized figure of a madman, becomes a more marginalized figure as in this production it’s a woman, who comes to a male dominated domain and creates havoc in the lives of the men from powerful sections of the society. Hence, different theatre companies have used different types of madman to heighten the message of the play.

Factors Affecting Social Entrepreneurship

Factors Affecting Social Entrepreneurship This purpose of this report is to highlight the different factors such as networking, leadership and innovation that affect Social Entrepreneurship. This study provides an analysis of social entrepreneurship. The paper suggests the factors associated with successful social entrepreneurship, particularly with social entrepreneurship that leads to significant changes in the social, political and economic context for poor groups. In the study, a literature review combining different theories with research on social entrepreneurship is presented. The study shows that networking, leadership and innovation plays a role in enabling the social entrepreneur to take on a different role set. CHAPTER 1:  INTRODUCTION BACKGROUND Social entrepreneurship, over the years have gained a lot of attention and popularity, mostly due to its concept based on the fields of Corporate Social Responsibility (CSR), (Tozzi 2009; Murray 2007) which have turned many entrepreneurs to pursue their business initiatives towards the betterment of the society or the environment in an innovative way, and at the same time running a profitable business (Martin and Osberg, 2007). Since social entrepreneurship covers important topics such as social, political, ethical and environmental it has climbed up the agenda throughout the world, as different regions, countries, and disciplines are able to relate to social entrepreneurship (Vabarova, 2009) Social entrepreneurship has caught the eyes of theorists around the world in recent years (Dees, 2001; Leadbeater 1997; Thompson 2002). Not only the academic researchers have shown their interest in social entrepreneurship, it has also caught the eyes of business researchers (Bloom and Chatterji, 2009; Thompson, 2002). Social entrepreneurship provides an interesting perspective on business research, as it combines various entrepreneurial driving forces, which are driven towards the betterment of the society. (Dees, 2001) Today with increasing concept of the companies to think and act globally, social business initiatives have become quite observable (Bamburg, 2006; Bloom and Chatterji, 2009) The concept of social entrepreneurship was itself a big inspiration to make this report. The role of networking, leadership and innovation make this topic more interesting, in as how social entrepreneurs uses such factors in development and growth of their businesses. Recently, a Nordic research project was conducted by the Nordic Innovation centre which did a study on the topics of social entrepreneurship, the topic was mostly based on the innovative initiatives derived from environmental, social, or ethical issues, through this research it was also derived that networking plays a very important role in social entrepreneurship. The interviews with some of the social entrepreneurs clearly showed as how networking has helped them in positioning themselves and their business missions. In an interview with Diana Svensk, who initiated a business, offering ecologically hats gave an interesting view on her way to run her business as an entrepreneur: I tend to transform every social situation from a wedding to a formal meeting- into a working space. I always grasp the opportunity to discuss and vent my opinions, regardless of the circumstances, and I frequently find myself in debates about entrepreneurship, moral, fashion, and the environment. This is how I connect with people, and it leads to new connections and thoughts, inspiring me to constantly act in new directions when the next day arrives (An interview from the journal of Frigell and Gustavsson) The concept of social entrepreneurship is mostly applied to the context of social problem solving (Dees 1998; Thake Zadek 1997; Emerson Twersky 1986) thus in order to find an effective and sustainable solution to these problems, solutions are generally associated with certain changes or new innovation in business creations. The concept of social entrepreneurship clearly emphasizes the innovative character of the business initiative. The replication or expansion of existing services is a valuable solution to a social problem. When the resources or capacities for the expansion of goods and services are not available then creative initiatives are used to serve wider population (Uphoff 1997, Esman Krishna 1998) such creative initiatives represent social entrepreneurship. Most of the literature on the leadership focuses primarily on individuals and their personal skills or attributes (Gardner 1995; Heifetz 1994) but on the other hand some of the literature believes that leadership groups may be more important than individuals, and focusing primarily on individuals may obscure essential aspects of the initiative (Paul 1982; Thake Zadek 1997) however it is also believed that leadership-whether group or individual is important in the success of social entrepreneurial ventures. STATEMENT OF PURPOSE Social entrepreneurship is rising at a fast speed. Social Entrepreneurship refers to recognizing a social problem and using social entrepreneurial principles to organize, create, and manage a venture to make social changes. (Wikipedia 2009) Social Entrepreneurs are commonly associated with the voluntary and not-for-profit sectors. They promote health, welfare and well-being. Their assets in the form of social capital are- relationships, networks, trusts and co-operation. They should be socially networking in order to create a physical and financial capital. (Leadbeater, 1997) The purpose of the researcher through this report is to find out the different factors that have an impact on Social Entrepreneurship. SPECIFIC AIM: The main specific aim of the research is to find out the impact of different factors on social entrepreneurs, thus in order to fulfill the aim of the research the study conducts case studies of different Indian Social Entrepreneurs. RESEARCH PROBLEM AREA: Since the group of social entrepreneurs has increased in a large number in a relatively short time, the researcher finds it relevant to study them, and analyze how they interact with their surroundings to shape their businesses. This is interesting that the social entrepreneurs Inspite of performing various entrepreneurial corporate, personal and socially driven roles, sometimes do not give much importance to the certain skills required in developing the business, thus this research is set-out to make in-depth case studies of Indian social entrepreneurs and their networking, leadership and innovative behavior. RESEARCH OBJECTIVE: The objective of this research is to find out the impact of networking / Leadership and innovation on social entrepreneurs RESEARCH QUESTIONS: R1: To what extent networking has an impact on social entrepreneurship R2: To what extent leadership has an impact on social entrepreneurship R3: To what extent innovation impact social entrepreneur HYPOTHESIS: H1: Networking has a significant role in the development of social entrepreneurship H2: Leadership has a significant role in the development of social entrepreneurship H2a: Successful social entrepreneurship initiatives are often founded by leaders with the capacity to work with and build bridges among very diverse stakeholders H2b: Successful social entrepreneurship initiatives have leadership that is characterized by: Long-term commitment to the initiative Capacity to catalyze adaptation to emerging contextual challenge H3: Innovation has a significant role in the development of social entrepreneur H3a: Successful social entrepreneurship involves innovations that mobilize existing assets of marginalized groups. LITERATURE REVIEW: SOCIAL ENTREPRENEURSHIP The twentieth century saw the rise of social entrepreneurship, as many of the entrepreneurs who were generating phenomenal ideas, products, and wealth began to turn their focus on the chronic problems of local, national and global communities. The highly successful entrepreneurs started realizing that giving money in donations for the causes they cared is not the only option to help the society, but bring an effective change through proper utilization of funds is more appropriate way to help the community. (Grace, 2005) Leadbeaters (1997) contribution to the research area of social entrepreneurship, The rise of the social entrepreneur, was among the first provisions within the field and provides a fundamental theoretical view of concept of social entrepreneur. Leadbeater (1997) argues that a social entrepreneur works in the intersection sector areas between private, the public, and the voluntary sectors. Source: Leadbeater (1997) NETWORKING An appropriate starting point for understanding network behavior is to consider the basic question: why do companies network? There is generally a wellà ¢Ã¢â€š ¬Ã‚ established answer in theory to this question, which contends that no business is an island (Hà ¥kansson and Snehota, 1989; 2006). The relational view, presented by Dyer and Singh (1998), highlights that the (dis)advantages of an individual firm are often linked to the (dis)advantages of the network of relationships in which the firm is embedded (p.660). This argument is in line with the recognition within business strategy research that the boundaries of the firm are problematic to define (Foss, 2005). Hà ¥kansson and Snehota (2006) explain the substance of this boundary problem by arguing that an organisations continuous interaction with other actors in its context endows the organisation with a meaning and role. Gadde et al (2003) further emphasise this proposition: The basic point of departure for an industrial net work approach is that firms operate in the context of interconnected business relationships, forming networks.(p. 357) With these theoretical references as a staring point, it is evident that relationships make sense, not the least, as they constitute a source of identification of the network actor, the firm, itself. In this aspect, networking as an activity, conducted with an intention to build and manage such relationships, makes sense as well. LEADERSHIP Much of the literature on leadership focuses primarily on individuals and their personal skills or attributes (Gardner 1995; Heifetz 1994) while the other primarily focuses on the groups as focusing primarily on individuals may obscure essential aspects of the initiative (Paul 1982; Thake and Zadek 1997). However leadership whether group or individual is important in the success for social entrepreneurs. According to (Dees et ol 2002) it is interesting to know that in order to make difference around them social entrepreneurs sacrifices the benefits that they could have achieved through working in for-profit sectors. The ability of an entrepreneur to mobilize resources and resources are the keys for successful leadership quality. One of the important factor in the leadership of a social entrepreneur is to motivate people to work for them, only social entrepreneur with good leadership quality is able to motivate others to sacrifice the benefits and help him in changing the world. Leadership does not come with the job title, age, race, religion, gender, color etc. A good leader should have certain qualities like Charismatic Convincing Credible Capable Visionary Focused INNOVATION Innovation is a very important factor for the development of social entrepreneurs. Not all provision of goods and services amounts to social entrepreneurship. In many cases, replication or expansion of existing services is a valuable solution to a social problem but does not necessarily require social entrepreneurship. When the resources or capacities to duplicate existing services for poor or marginalized groups are not available, creative initiatives that reconfigure existing resources or services for more effective or wider delivery are imperative to serve wider populations (Uphoff et ol 1997) Source: The Researcher

Possibilities for a Better World :: Kurt Vonnegut Cats Cradle Essays

Possibilities for a Better World The picture painted of the world and humanity by Kurt Vonnegut in Cats' Cradle is not a positive one. It is not the utopia that so many of the novel's character's are striving for. It is a ridiculous world where truths are based on lies and the balance of good and evil is a manufactured state. If Vonnegut's attempt is to "poison minds with humanity†¦ to encourage them to make a better world," it is only through showing the reader the follies of man, the foolishness we live with daily, that maybe we can change our outlook and make a "better world." Within the 191 pages of Cat's Cradle Vonnegut manages to slam nearly every mode of life, every motivating factor, every convention of modern man. The strongest attacks are on our ways to knowledge: science and religion. Science is shown as a field led by madmen who do not comprehend the consequences of their research and creations. Religion is shown as being all lies developed to keep man happy. The characters of the novel are not unscathed either. Most are shown as greedy, uncompromising, and unsympathetic. They are led by unknown forces to do bad things, foolish things. Vonnegut "poisons" the reader with these examples of mankind. He examines, with wit and comedy, the selfish and foolish nature of humanity. One can look at the actions of the characters and their actions, along with the consequences of those actions, and draw from it a conclusion about the futility of living. Vonnegut can certainly be seen as a cynic for the image that he gives us of humanity. He takes it one step further, though, by showing us all of the absurdity of our modern lives. He wants us to see that we live by lies. Even the words on the page are lies. There is no truth. And in this way we are not bound to live the life that Vonnegut portrays. There may be a better end for us than there is at the end of Cat's Cradle. Maybe then it is possible for us, all of mankind, to make it a "better world." With Vonnegut's poisonous attacks on all our sacred systems he may be trying to show us that there is a better way to live. I will continue to argue that Cat's Cradle goes beyond satire, and gives us a truly cynical look at the world and humanity.

Increasing Animal Adoptions at Shelters Essays -- increase dog adoptio

It was a hard day for me. My dog of almost 7 years had to be put down, and it was the first pet I had ever lost. My dad wasn’t too keen on me getting a new puppy. We started looking at other dogs and my dad found one that he thought we should get. My parents decided to take me on a surprise trip to the animal shelter to get a better look at the dogs that we wanted to adopt. As we entered the dog room, barks started to echo around us and excited dogs jumped up on their kennels to make sure we saw them. As we got to Mack’s cage, I think his puppy face must have melted my dad’s heart because he agreed to adopt him and take him home. Today, years later, I still believe adopting Mack was one of the best decisions I could have made. Through adopting Mack, I was inspired to volunteer at the animal shelter as soon as I was old enough. One day I went up just to look at animals and I realized that there were many dogs that had been in the shelter for a long time. No one was interested in adopting them because they weren’t a popular breed, or they were not the right color. From that day forward, I decided that I was going to find a way for those dogs to be adopted, so they had the chance to be as happy as Mack is, in a home and out of a shelter. By finding a way to positively promote breeds prone to indifference, unwanted color, and through establishing positive behaviors and character, animal shelters will be able to increase canine adoption. One of the most significantly impacting characteristics on adoption success is breed preference. Because some breeds are â€Å"talked up† more than others, for example, beagles compared to pitbulls, people would be more likely to lean towards a beagle if they had to choose between those two breeds for... ...olor and breed are not able to be changed, but by changing the behaviors of a dog, a shelter could increase the dogs appeal no matter the breed and color. Works Cited Woodward, Lucinda, Jennifer Milliken, and Sonya Humy. "Give A Dog A Bad Name And Hang Him: Evaluating Big, Black Dog Syndrome." Society & Animals 20.3 (2012): 236-253. Academic Search Premier. Web. 14 Mar. 2014. Siettou, Christina, Iain Fraser, and Rob Fraser. Kent University. 2012. PowerPoint. secure.fera.defra.gov.ukWeb. 14 Mar 2014. . DeLeeuw, Jamie L. Animal Shelter Dogs: Factors Predicting Adoption Versus Euthanasia. (2010): n. page. Web. 14 Mar. 2014. . . N.p.. Web. 14 Mar 2014. .

Literature and Human Behaviour Essay

Literature has been a major part of human culture throughout human existence. It has always been used as a way of defining how humans interact with each other. Literature is defined as ‘the writings of a period, language, or country’. If ancient times are also to be considered, then myths, legends, and theatre, which passed down literary ideas, and social critiques before the time of the written word, should also be included in this definition. The plays of William Shakespeare are a perfect example of pieces of literature that are not only entertaining, literature for literature’s sake, but also provide great insight into human nature. In one form or another, literature is entrenched as an expression of the ways of humanity, and so by absorbing it, one can gain a greater understanding of human behaviour. The human sciences offer a different angle to the understanding of human behaviour as literature does. Literature gives us insight into what is going on inside people’s minds. How someone from a culture that one might not understand, thinks. Many of Shakespeare’s plays are centered around the downfall of a particular character. This downfall arises from within the character, it is the result of a tragic flaw. The human sciences on the other hand, provide information on how humans interact with each other. They often involve social studies in which experiments involving the interactions of humans are observed and recorded. If for example some human scientists performed a particular experiment with enough people, and got a similar result each time, they can conclude that a human being is likely to act in a certain way, given the situation which was in the experiment. In this way human scientists can draw conclusions as to what is a normal reaction for a person to have in a situation, and can describe traits which are almost universal to humans. These human sciences give us a knowledge of the external aspects of human behaviour, which is extremely valuable to have. If for example, a police force wanted to know whether or not a new method they had developed for deterring graffiti artists worked efficiently or not, they might perform a human science experiment, where they secretly test their  method on a sample of would-be graffitists. The results could tell them if it would be productive for them to put resources into developing and employing this method, or whether it was inefficient and would be a waste of resources. Literature will often delve deep into the human mind, to seek the unknown. Some literature may attempt to describe perceptions of the world from the mind of a serial killer. If written well, and researched thoroughly, this literature would be enthralling, and probably disturbing, because it is teaching us about the human behaviour of someone who is very different from ourselves. (hopefully) It would show to the reader an aspect of human behaviour that is not common among all people, but is infact rare. From this we would learn about an aspect which we did not have an understanding of, and would therefore increase our knowledge of human behaviour. Other literature may reveal something about people that relates to a great many people. People will engage with this literature because they will have some understanding of it, and so the book would increase their knowledge of their own human behaviour, and would also show them that this human behaviour is common to many people. From this we can see that a study of literature can give someone a deeper understanding of what goes on in the human mind, and a study of the human sciences can allow someone to have a greater knowledge of the way that humans interact with each other, and certain situations they may be faced with. There are of course some problems with both of these ways of attaining knowledge of human behaviour. Although experiments can be done in the human sciences, they can never give a result which is 100% accurate. They may provide a conclusion which will probably be correct in most cases, but it’s never certain. This is because of the fact that these experiments deal with people. People are not like objects in the experiments of natural sciences. They are prone to performing differently each time the experiment is carried out. For example, if sodium bi-carbonate is put in vinegar, it will cause an almost violent chemical reaction every time, but if icing sugar is put in,  it will not. However, if a person suffering from a headache is given a painkiller, they might feel an easing of the pain, but if they are given a placebo pill, they might still think they are feeling an easing of the pain, but it would be purely psychological. This shows that what people expect to happen can alter the results of the experiment, and this gives the observer inconclusive answers. Basically, when looking at results achieved through the human sciences, we can not be totally sure that we are learning anything about human behaviour, because we can never be certain that the results are completely accurate. There are also problems that can occur when trying to gain a greater understanding of human behaviour through the study of literature. I don’t feel that all literature is valid for this purpose. If a piece of literature has not been well researched, and not well written, then it’s content may give a misrepresentation of the real world. A book written by an english pioneer on the subject of the lifestyle of the Aboriginal race may provide a bias and incorrect view. This would lead the reader to gain a perception of the human behaviour of that particular culture and people that does not coincide with the truth. If this is the case then it is clear that in order for somewhere to gain a greater understanding of human behaviour in reference to a particular culture, then a wide range of literature need to be considered. However, the pieces of literature that give a bias or incorrect view needn’t be totally disregarded. These pieces of literature, while they may not provide a truthful description of a culture or civilisation, they can often reflect on the culture that the author of the literature belongs too. They can give an idea of what kind of perceptions were held by that culture, on the other culture. This can add to our understanding of human behaviour because when several of these types of articles are read, patterns can emerge as to how a culture that is seemingly more civilised than other, views that less civilised culture. A wide study of literature, and an appreciation of the human sciences can greatly add to our understanding of human behaviour. Though often biases, and discrepancies in results have to be taken into account, they provide insight into what goes on inside the minds of people, and in what ways they  react to other people and situations. When this sort of knowledge has been attained, one can have a greater understanding of the human behaviour related to different cultures, different ages, different sexes, and it can also give them a greater understanding of themselves. Bilbliography: The World Book Dictionary, Doubelay & Company, Inc. 1982

Case16 Alarm Ringing: Nokia in 2010

Strategic Management Case Analysis Firm Analysis Roy L. Simerly Department of Management 3106 Bate East Carolina University Greenville, NC 27858-4353 (252) 328-6632 (Work) (252) 328-4094 (Fax) [email  protected] ecu. edu Strategic Management Case Analysis Firm Analysis Abstract This is the second part of a two part series dealing with the complexities of case analysis in Strategic Management courses. One of the primary function of Strategic Management is to serve as a cap-stone course integrating the material students have accumulated throughout their course of study within a business school.There is a need for instruments that will provide the necessary integration and opportunity for application of acquired knowledge. There is also the reality that students do not remember all that they should from previous courses. Equally important is the necessity to impart the basics of Strategic Management as a discipline in its own right. It is the theoretical foundation of Strategic Manage ment that provides the rational for the integration. The purpose of this article is to provide an outline for analysis of a firm. I use this method at both the undergraduate and graduate levels.The only difference is that graduate students are expected to show more sophistication in their presentations. Strategic Management Case Analysis Firm Analysis This is the second of a two part series dealing with one approach to case analysis in Strategic Management classes. This paper takes the view that Strategic Management is a cap-stone course intended to integrate the material students have accumulated throughout their course of study within a business school. Strategic Management is, in fact, the only course that has as its stated purpose the integration and application of key management concepts.Normally, students are expected to have a working knowledge of the primary business management disciplines of accounting, economics, finance, marketing, and operations, when entering the course . When instructors present case analysis, it is usually as a three-step process progressing from economic, to industry, and finally, to company analysis. In doing so they face the challenge of creating a classroom experience that enables students to conceptualize the framework as an integrated whole. The challenges for the instructor are interesting to say the least.First, there is the need for the instructor to understand the intent of each of the primary business management disciplines, as well as what the student can be expected to accomplish. Second, there is the need for instruments that will provide the necessary integration and opportunity for application of acquired knowledge. Third, there is the reality that students do not always remember all that they should. This leaves a great deal to be accomplished within one semester. An equally important challenge is the necessity to impart the basics of Strategic Management as a discipline in its own right.It is the theoretical fou ndation of Strategic Management that provides the rational for the integration. More importantly, the students needs an understanding of ‘when’ to use ‘what’ techniques in the business world. Given these challenges, I use – among other classroom techniques – case analysis. Students are required to provide analysis and discussion for a number of short cases throughout the semester. All are taken from current publications such as, Business Week, Fortune, Forbes and The Economist. I find that text book cases do not provide the currency necessary.These cases are used to demonstrate the text theory under discussion, and to show the relevance of specific elements of the major written cases. I require two major written cases. The first is an analysis of an industry, and the second is an analysis of a firm within that industry. Both are essential to achieve the learning objectives for the course. The learning objective for the course is: to understand how the top manager (CEO) is responsible for ensuring the long term survival of the firm within its competitive environment.The learning objective for the written case analyses is: to arrive at a point where they can develop a sound business plan to ensure the survival of their chosen firm within its competitive environment. Also, to appreciate the complexities of collecting and understanding the relevance of the vast amount of information available. The learning objective for the industry analysis is: to determine the opportunities and threats that exist for firms within a competitive environment. They should be able to appreciate how the various forces operating in an industry create or limit the chances for survival.The learning objective for the firm analysis is: to determine the strengths and weaknesses of a firm; and, to determine the core competence that can be built on to establish a competitive advantage. The final step is to develop a business plan that will align the cap abilities of the firm with the requirements of the competitive environment. Students are required to work in teams to complete the two major case write-ups. They will later make a presentation of their findings. I require teams because the most difficult part of management is the management of human resources.By setting specific guidelines for students I make their grade contingent on their management abilities as well as their ability to complete the projects. Team size is limited to 3 or 4 members. They are free to choose their firm and its industry. I strongly suggest that they select a firm that has a production function. This makes it easier to see the four organizational functions being integrated. I also encourage them to select an industry that would be suitable for employment based on their particular interests, and primary area of concentration.For example, accounting majors are encouraged to examine an accounting firm. Finance majors are pointed toward the banking industr y. In the end, the students make choices based on group consensus and personal interests. However, a mixture of majors can be an advantage when working on the papers. The possible collaboration and integration of different perspectives is one advantage; another is the opportunity to work on a part of the papers that is relevant to their discipline. How firm’s performance is defined is left to the student. I must approve all choices prior to the student beginning work.In this way, I am sure that the projects are do-able. No two groups are allowed to do the same firm within the same class, but they can do different firms within the same industry. There are no ‘easy’ industries or firms. Each has its own challenges. A significant amount of time is spent covering analysis techniques, and the resources available, prior to the students starting on the projects. They are also encouraged to divide the work up into specific areas. For example, for the firm paper: do the f our functional areas first, then do the introduction and conclusion.This gives a reasonable balance to the work load. One common complaint about this approach to case writing is that a student working on one section of the paper will not learn about the other sections of the paper. Every approach to case writing has a limitation, but I think that this one is manageable. First, the intent is not to teach students about one particular industry. It is to teach them the relevance, and the techniques, of industry and firm analysis. Stressing this point early on is very important. It is important to note that I do not give the students too many specific directions.I want them to do their own research and make discoveries along the way. There is no one right answer. Correctness – if such exists – is a product of the logic used in the analysis. For example, two measures of economies of scale are required. It does not matter which measures are used, what matters is that the stu dent reasons through the problem and finds a means of justifying a position. If I give too much detail it limits the imagination of the student and prevents discoveries that could be significant. To help get the students oriented, I do provide complete ‘sample’ papers from a previous class.I am careful to ensure that the sample papers are on an industry and firm not currently being done. I do not have to worry about copying, or other forms of cheating. The papers must be up-to-date, which means significant recent citations in the bibliography. Additionally, I do provide the students with the opportunity of sending in parts of the project as they write. I then provide feedback to prevent them going off on tangents and wasting valuable time. Most students find this method beneficial as they work. I find the quality of the papers improves dramatically over the course of the semester.It is critical to stress that this is a business report, and not an English paper. Each pap er will take on significant proportions (30 to 50 pages) if just the required work is done. If focus is not maintained, the size becomes unmanageable. Assumptions and common knowledge are not accepted. Everything has to be proven in some manner, if just by an interview with a business person. Quantitative and qualitative analysis are required. I give a number of examples in class of how wrong ‘common knowledge’ can be. The firm paper analysis that follows has been adapted from the work of Wheelen & Hunger (2000)[1].Their model for the evaluation of firms has been evolving for over a decade, and represents one of the more concise approaches to firm analysis. This approach is compatible with a number of Strategic Management text and can easily be adapted to most situations. In addition, my own experiences in the business world have been incorporated. In what follows, I cover in some detail the outline for the firm paper. This outline is given to the students in its entire ty. FIRM PAPER OUTLINE This outline is only a guide. Each firm is unique, and you are responsible for adapting your paper to fit the circumstance.Form is important, but must not replace reason. Learning Objective: to determine the strengths and weaknesses of a firm; and, to determine the core competence that can be built on to establish a competitive advantage. Method: Firm analysis and the development of an abbreviated business plan to ensure long term survival within the competitive environment. Compare your firm to a better performing firm within the same industry, or to the industry trends that you created in the industry paper. Maintain your focus on the questions being asked. Provide conclusions for each section and sub-section.A decision matrix should be provided at the end of each section, and an overall matrix provided in the conclusion section. Where quantitative analysis is required, provide numbers expressed as ratios. Use five years of data to establish trends. Where qu alitative analysis is required, provide citations to support your arguments. Assumptions and common knowledge are not accepted. Continuity: I do read these papers! Be sure that if you make a declarative statement in one section, you do not contradict yourself in another. While it is a team project, I read it as the work of one person. Integrate the paper.Please number pages, and use section headings and sub-headings. Help is just a mouse-click away! I strongly encourage you to show me your work as you progress. I can, and will, save you hours of frustration if you will show me what you are doing. I. Current Situation A. Brief firm history. What industries and industry segments is your firm involved in, and what will be the focus of the paper? You can not do all of the industries or segments in one semester. Make a rational choice that aligns the firm paper with the industry paper. Provide a statement of the current position or situation of your firm within the industry (i. e. how go es it). How diversified is this firm? Related or unrelated (you may discuss this wherever you think most appropriate)? B. Strategic Posture. 1. What is the current mission? Did you have to deduce it, or was it stated. Is there a clear point B (an objective that we can quantify)? You should be concerned with both the quality of the mission statement, and its appropriateness for the competitive environment. You will be able to address this issue after you complete the firm analysis. 2. What is the current (Porter’s generic) strategy? Since you are only doing one segment, you are concerned with business-level strategy only.Is this strategy consistent with the mission, appropriate for the environmental context, being followed by management? Again, this is best answered after the analysis is complete. II. External Environment (Opportunities and Threats. ) This section is a restatement of some of your industry paper work. You restate your findings with respect to this specific firm . A. Socio-cultural. What general environmental factors among the socio-cultural, economic, political-legal, and technological forces are currently affecting both the firm and the industry in which it competes?Which present, current, or future threats or opportunities are important to your firm? B. Task Environment. Which of the five forces (Porter’s) in the immediate environment are currently affecting the level of competitive intensity within the industry? Which present current or future threats or opportunities important to your firm? III. Internal Environment (Strengths and Weaknesses) The only way to know if your firm is doing well is through comparison. Therefore, almost all of the elements that follow require the analysis of your firm and then a comparison to a better performing firm, or to industry standards.A. Management. The objective of the management function is to ensure the long-term survival of the firm within its competitive environment. Begin with your assess ment of how management has addressed this objective. 1. Board of Directors. The objective of the board is to provide oversight of the firm. Based on your observations is this board appropriate for the competitive environment of this organization? a. What is the board size and composition (averages for all firms is 74% external, with 14 members total). b. What are their skills? Do you have the four functional areas covered? c.Do they own a significant percentage of stock? Here you are testing elements of agency theory. d. What is their level of involvement in the oversight of the corporation? That is, what committees are they on? How often do they meet? 2. Top Management (usually only the CEO). The objective of management is to ensure the survival of the organization within its environment. Is management achieving that objective? a. What are top management's chief characteristics in terms of knowledge, skills, background, and management style? Is top management sufficiently skilled t o cope with likely future challenges?Has it established a systematic approach to the formulation, implementation, evaluation and control of strategic management? Is there a vision, clearly articulated, guiding corporate activities (i. e. , does this manager know where the organization is headed)? What is the degree of stock ownership, and is it appropriate? b. Organizational Structure. What is the present structure? Discuss decision making authority, degree of autonomy, team building, empowerment, etc. Is the structure appropriate for the competitive environment and consistent with the current strategy and mission? c. Culture.Is there a well defined or emerging culture composed of shared beliefs, expectations, and values? Is the culture a source of support or hindrance to achieving the mission/strategy of the corporation? B. Marketing The objective of the marketing function is to maximize market share. Are they achieving this objective? You should be able to provide a graph of marke t share change over time compared to another firm or the industry. What is the market share change of the firm in relation to market growth? Remember to use ratios, not raw numbers. How well is the corporation performing in terms of market position and marketing mix?You answer this by comparing the 4 P's to a better performing firm. 1. How well does your firm's product offering (product mix) compare to a better performing firm? 2. Is the firm's pricing appropriate? 3. Compare the place (distribution system) of the product offering. 4. Evaluate the promotional efforts of the firm. What is the payoff for the money spend on advertising? Is there a relationship between advertising and market share change? Provide a conclusion to this section. What trends do you see from analysis of their past performance? I suggest using a decision matrix.From your analysis, what are the strengths and weaknesses of this function? C. Operations/Production. This section will be revised for those teams doi ng a service firm. While the basic arguments are the same, the methods will be different. Consult with your instructor before beginning this section if you are doing a service organization. The objective of the operations function is to increase productivity. Are they achieving this objective? This is also the functional area where you can best evaluate whether your firm is following the logic of re-investing in itself (the logic of the managerial enterprise)? 1.In order to achieve improvements in productivity, the firm must be re-investing in itself. What is the trend in capital spending? What is the trend in productivity improvement? 2. In combination with the marketing section, has this firms emphasized product development, or diversification, for growth (the Chandler argument)? No longer required. 3. Operating leverage. How has the mix of people to capital changed over time – are fixed costs rising? What are the trends in costs per unit of labor, inventory control, etc.? 4. Research & Development. What return is the corporation receiving from its R&D investment?Is the firm technologically competent? How well does the firm's investment compare with similar corporations? What is the bang for the buck! Provide a conclusion to this section. I suggest using a decision matrix. From your analysis, what are the strengths and weaknesses of this function? D. Finance The objective of the finance function is to maximize shareholder wealth. Are they achieving this objective? I would prefer total returns to investors over time as the measure here. The data are available. 1. Remember to use at least five years of data for the most important factors. What trends do you see emerging from this analysis?Suggested ratios are contained in the text. 2. How well is the corporation performing compared to competition? 3. Capital Asset Pricing Model. (Class lecture notes) What is the cost of capital for this firm? What impact does this have on competitiveness? What does your analysis tell you about the probability that management will reinvest in the firm? 4. Debt to Equity policy and susceptibility to external forces, such as debt covenants, take-over attempts, etc. As lecture material points out, the capital structure decision is very important to the survival of the firm. Crunching of numbers is not the objective here.You are looking for significant trends that can impact the survivability of the firm. As you find negative trends that could effect other organizational functions, tell your team mates. What have they discovered? This section can not stand on its own, it has to be integrated into the overall paper. Provide a conclusion to this section. I suggest using a decision matrix. From your analysis, what are the strengths and weaknesses of this function? E. Human Resource Management. If applicable – i. e. , are unions involved? If so, you are concerned with the HRM function of the organization. F. Management Information Systems.If applica ble. Is you firm having problems with its MIS system? Readings from articles should give a clue. If no problem is noted, you do not have to include this section. IV. Critical Success Factors. From your industry paper, discuss how your firm is addressing these factors. Most of these factors (2 of 3) will lend themselves to quantitative analysis and comparison. V. Strategic Problem. From your analysis, what is THE strategic problem of this firm. This is only one paragraph and not a laundry list. Clue – your paragraph will begin: Management has failed to ensure the long-term survival of this firm because†¦.. VI.Strategic Alternatives. Provide appropriate strategic alternatives stated as strategies, not as elements of a strategy. Discuss the pro's and con's of each. The current strategy, if appropriate, could be one of the alternatives if the firm simply needs to improve the implementation of that strategy. VII. Recommendation. From your alternatives, what ONE strategy do yo u recommend, and why? This is only one or two paragraphs. VIII. Implementation. This is the section where most teams lose it. Remember that strategy is a pattern of actions and activities. A. Give SPECIFIC recommendations on how you would implement your strategic choice.Provide details addressing each of the four functional areas. B. Show how you are solving the weaknesses and building on the strengths of each functional area. C. What is the core competence of this organization? Can we build a sustainable competitive advantage within this industry? D. Include a basic pro forma for at least 5 years out to see the impact of your changes. Use your best guess on the numbers, indicating your assumptions. E. Conclude the paper with your prognosis for the firm. This is the grade sheet for the firm paper Case Name_________________________ Bibliography:Appendices, graphs, tables: Firm Business Segments: Strategy: Mission: Corporate ownership: Board of Directors: R: Type and Degree of Diversi fication: Capital investment related to performance: Social/Environmental programs: Growth rate of firm: Cost of Capital (CAPM): Take over target: Asset base compared to competitors: Historical financial data: S. W. O. T. : C. S. F. ‘s: Analysis of the functional areas: Management: Marketing: Operations: Finance: ———————– [1] Wheelen, T. L. & Hunger, J. D. 2000. Strategic Management. Upper Saddle River, N. J. U. S. A: Prentice Hall