Accounting Case Study Essay Example | Topics and Well Written Essays - 250 words - 1

Accounting Case Study - Essay Example In order to increase profitability of the business, the company should reduce the cost of salaries and wages (Maher, Stickney, & Weil 139). Also, miscellaneous expenses are too high and thus the manager should establish the cause of such an extreme cost. Furthermore, the CEO can control development cost of producing books by apportioning production cost to the number of books at various stages (Maher, Stickney, & Weil 142). They should differentiate between direct and indirect cost. All the direct costs associated with each unit produced should be added directly at each production stage while the indirect cost incurred at each stage of production in each department should be distributed to respective department (Maher, Stickney, & Weil 158). Apportioning the production cost at different stages will enable the CCP Publishers to establish the actual cost of finished products instead. The estimated profitability of books at the time of signing contract is an estimate of finished goods w hile actual cost may be inclusive of work in progress and unsold stock. The company should determine the factors responsible for high cost and establish measures to reduce the cost. For example, the salaries and wages may have increased due to contracting out of most its activities. The management can decrease the value by offering such services internally instead of contracting out (Maher, Stickney, & Weil

3-1 Essay Example | Topics and Well Written Essays - 250 words

3-1 - Essay Example As listed by Jackson-Cherry and Erford (2014), the common symptoms of Posttraumatic Stress Disorders and Acute Stress Disorder include palpitations, nausea, headaches, muscle tension, fatigue and increased consumption of alcohol and use of other mood altering substances. Other symptoms are reduced concentration, anxiety, impatience, forgetfulness, rumination, preoccupation, irritability, anger, nightmares, intrusive thoughts, flashbacks, detachment, dissociation and depression. The listed symptoms are actually the diagnostic criteria for the conditions. The difference that separates ASD from PTSD attributes to time when either occurs. As elaborated by Jackson-Cherry and Erford (2014), diagnosis of ASD is possible if the related symptoms occur within a month of traumatic experience. Diagnosis of PTSD is possible if traumatic condition or experience occurred one month earlier before manifestation of the symptoms. In addition, PTSD is chronic if the symptoms persist for over three month s. With reference to the above analysis, Maryam’s situation relates to Acute Stress Disorder (ASD). This is due to the fact and understanding that Maryam began displaying traumatic symptoms such as anxiety, sleeplessness, nausea and increased use of alcohol and related substances before the setting in of the actual trauma. The real trauma occurred later and manifested through inability to drive car, concentrate in class and regrets for making a terrible mistake that almost led to loss of life of her passengers. Furthermore, trauma evidenced through occurrence and expression of suicidal thoughts to deal with perceived stupidity and inferiority that led to

Investment analysis: AirAsia Berhad

Investment analysis: AirAsia Berhad 1.0 Market analysis Before we can proceed further in deciding whether investing in AiraAsia is a good choice or not, we have to do a market analysis on the market condition of the airline industry. Our market industry is based on five main elements which are: 1. Legal Like all industries in the market, the airline industry is also tied to certain legal policy of the government so as to ensure the safety and the consumers rights. For the airline industry worldwide, the rules and regulation are set by the International Civil Aviation Organization and is revised from time to time. The rules and regulations are mostly about flights safety measurements and also the management of safety during flight such as making the providence of first-aid kit compulsory on every aircraft in case anything happen during flight. Not only that, the air stewardess and air steward must have basic knowledge of first aid. 2. Politics Politics play a major role in the performance of the airline company as well. Any political policy that is to the airline companys disadvantage will affect the performance and annual profit of the airline. When the very first airline company was established in Germany, which is Deutsche Luftschiffahrts-Aktiengesellschaft(DELAG), on 16 November 1909, it was under Germanys government service. But as the 20th century approaches, airline companies are ‘deregulated. Airline deregulation according to the Wikipedia encyclopedia is the process of removing entry and price restrictions on airlines affecting the carriers permitted to serve specific routes. Airline deregulation began in the United States of America in 1978 and from there exist the Airline Deregulation Act 1978 whereas for Europe, deregulation only began in the 1990s. Before deregulation happened, the airline company has to abide by the instructions of the government concerning the routes and the choice of which airports to land on and depart from. Whereas after deregulation, the airline company has the freedom to choose any routes that they want and whichever airports that they want to stopover at. There are pros and cons to the deregulation of the airline company. The pro is the airline company has the freedom to decide on the operation of the airline whereas the con is that the entry barriers for new airline entrants are lower. Thus, creating a more competitive market for established airlines. This is when the low cost carrier airline starts to appear in the market, such as Tiger Airway (Singapore), Jetstar Airways (Australia) and Pacific Blue Airlines (New Zealand). The appearance of these airways will lower the profit margin of the existing airways as Low Cost Carrier (LCC) airlines tend to price their airfare at the very minimum price as possible. Another political aspect is the existence of bilateral agreements between two or more countries regarding the authority of stopovers at different airports. Bilateral agreement is normally based on the concept of ‘freedom of thee air where it gives the airline the freedom or rights to fly in the air space of another country and also be permitted to stop at the airports of their choice. And sometimes, some country may even allow foreign airline to operate on their domestic routes, but this is very rarely to be found. This move by the government will remove many of the barriers to competition and allowing their own airlines to have foreign partners or code sharing partners. This will further increase the airline access to more international routes and also further exposed the airline to foreign countries. Both the airline deregulation policy and the bilateral agreements play a major role in determining the successfulness of an airline company. A policy set by the government may in hibit or aid in the success of an airline company. 3. Economics When we look at the economic side of the market, we will first look at the overall Gross Domestic Product (GDP) in the world. GDP is the value of all final goods and services from a nation in a given year. GDP is the best tool to use when accessing the performance of a country as it takes all the industries and products into consideration. A few of countrys GDP and the contribution of agriculture, industry and services to the total of GDP are listed in the table below. Country Growth rate (%) Agriculture (%) Industry (%) Services (%) China 8.7 10.9 48.6 40.5 Egypt 4.5 13.1 37.7 49.2 India 4.4 15.8 25.8 58.4 Nigeria 3.8 33.4 34.1 32.5 Thailand -3.5 12.3 44 43.7 Venezuela -1.5 4.0 34.6 61.4 America -2.4 1.2 21.9 76.9 Singapore -2.6 0.0 26.8 73.2 Malaysia -2.8 10.1 42.3 47.6 Source: CIA The World Factbook and Wikipedia Encyclopedia All the countries have different GDP, some countries may have negative growth and some countries have positive growth. This is normal as during 2008 is when the financial crisis happened. But not all countries did not benefit from the global economy downturn as some countries have positive growth rate for their GDP. This may be due to the fact that the countries benefited from industries that bring losses to another country which results in a tradeoff between the benefits between countries. The services industry contributes to most of the total of the GDP of the countries listed above except for china, Nigeria and Thailand. All three of these countries are more focused on industrial industry which may be due to the fact that these countries have more labored intensive industries. Thus, this shows that service industry plays an important role in the performance of a country and service industry includes airline industry. From the GDP of a country; we can look at the purchasing power parity (PPP) of the consumers. If the GDP of the country is low or is a negative value, this means that the PPP of the citizen is low and vice versa. The PPP of consumers can also be linked directly to the inflation rate of a country. As the inflation rate increase, the PPP of consumer will drop. Inflation rate will increase the price of goods in general as the demand exceeded the supply of the goods. Thus, decreasing the amount of extra money allocated for luxurious goods which also include travelling and entertainments. So the changes in the GDP of a country will affect all the industries, including the airline industry. There are times when not only the GDP will affect the performance of an airline; it may be due to natural disasters which include earthquake, tsunami and flash flood which have been happening quite frequently nowadays. All of these can disrupt the operation of the airline companies as facilities and airports maybe destroyed in the process. Thus, causing an airline company to face loss in the event of natural disasters. Another event that might affect the economic performance of an airline company is terrorism such as the event of the ill-fated day of September 11, 2001where American Airlines and United Airlines was hijacked. This had caused both airways to face huge losses due to the decline in value of the airways stocks. This can reflect the confidence of the customers towards both the airlines had declined extremely as an aftermath of the hijacking event. Below is the graph depicting the change in stock price for both companies. 4. Social As the years goes by, consumer demands are evolving gradually. The consumers nowadays want anything that is their convenience, cheap and can be done instantly without going through painstaking procedures. So as to accommodate the change in the demands of the customers, the airline company has to improvise themselves from time to time. Most of the airline companies nowadays have their own websites. This is to make it easier for the consumers to check the availability of tickets, the schedule of the airline and also enabling the consumers to purchase their ticket through e-ticketing. All of these are to the customers convenience. So as to attract more customers, some airlines are now practicing online check-in of luggage where luggage can be checked-in within 24 hours of the scheduled flight. Social and economic factors are closely related to each other as any changes in the market economy will directly affect the consumer behavior. As stated above under the economic factors, the event of financial crisis will affect the PPP of the customers as prices of goods have been increased due to inflation. In order to save more money, consumers will opt for cheaper goods. The same goes to the purchase of airfares. The lower the airfare is, the better it is and this even applies to business travelers travelling on premium class. This can be proven by a study done by the International Air Transport Association (IATA) where it shows that the consumers choice of seats have changed as the number of premium class travelers have decreased. This can be seen clearly from the graph below. The graph shows that the number of premium passengers had started to fall since july 2008 and keeps dropping until sometime in may 2009 before it the number of passengers travelling on premium class starts to increase gradually. Even though there is an increase of passengers travelling on premium class, it still takes time for the airline company to rebound back from the huge amount of losses that they have incurred. 5. Technology With the advancement of the technological changes in the world, the technology used by the airline company also improvised with time. In the past, whenever the customers wanted to buy air tickets, they will have to go to either the airlines office or any travel agency to purchase their tickets. But now, customers can just purchase their ticket with a click of the mouse. They do not even need to step out of the house, as long there is internet available. Advanced check-in can also be done through the internet 24 hours prior to the flight departure. All of these technologies are to the consumers convenience. Advancement in the technology of the airline industry can also be seen on the safety and the comfort of the aircraft. Aircrafts nowadays are more comfortable, safer and in-flight entertainment is also provided for long haul flights. This is very different from the olden aircraft where the main purpose of the aircraft is just to transport passengers from one point to another. Both the Airbus and Boeing Company are improvising their aircraft from time to time in so as to ensure that their aircraft is the best in terms of safety and also the comfort level. Airline companies in the market are also using the advancement in technology to implement risk management by providing good and reliable databases for risk analysis and targeting, providing faster and more effective business processes, more efficient recordkeeping and providing better services to the customers. 2.0 Airline Industry Analysis The airline industry had always been a highly regulated industry from the beginning of its establishment. The deregulation or liberalization movement initially started in the US in 1978. Governments usually treat the airline industry differently compared to some other industries due to the sensitivity of the aviation business, which involve some national security and sovereignty issues. In this report, Porters Five Forces Model is being used to analysis the aviation industry structure to provide an overall view of the industry. This is a well-established model, in which the industry can be simulated as a model influenced by five different factors called ‘forces as shown in Figure 1.1. A suitable dynamic interaction of these five forces shapes the basic structure to determine the profitability and attractiveness of the industry. 2.1 Industry Competitor The degree of rivalry is one of the most important factors that determining profitability of the industry. The market growth and number of competitors are some of the causes that will affect the industry rivalry. For the airline industry where its fixed cost is usually very high and the variable cost is low, competition is fierce as airlines are trying to generate revenue to reach break-even level in order to survive. Competition in the airline industry can be divided into competition between low cost carriers (LCCs) and full service carriers (FSCs) in both regional and domestic markets. There are 6 budget airlines in Malaysia which are Air Asia, Firefly, Tiger Airways, Cebu Pacific, Jetstar, and Lion Air. The competition among low cost carriers is usually fiercer as offering the cheaper airfare is utmost important for them. One of the main reasons that passengers choose to use a LCC is â€Å"cheaper airfares†. Since most of the low cost carriers do not have frequent flyer program to impose switching cost on customers, it is rather difficult for them to build up customer loyalty except constantly offering a cheaper airfare to retain their customers. On the other hand, there are a lots of full service airline in Malaysia such as MAS, Cathay Pacific Airway, China Airlines, Eva Airways Corporation, and so on. Thus, the competition between full service carriers is more complicated. This is because FSCs are competing in many aspects of their services, such as network coverage, flight frequency, and service quality and ticket prices. While the competition between FSCs and LCCs are mainly focused on attracting each others market as they usually have different customer groups. Customer base of LCCs are largely made up of leisure traveler while FSCs appear to be more attractive for business traveler. 2.2 Suppliers Suppliers are those who provide necessary raw material, equipment and labor for an airline to perform their daily operation. Suppliers strength can greatly affect the industrys profitability, if there is a high concentration in the supplier power, they can exert influence on airlines thus increasing their bargaining power. Major inputs for airline to provide their services to passengers are aircraft, labor, fuel and landing slots. The fleet is the most important assets for airlines to generate revenue. However, there are only two major aircraft manufacturers in the West, Boeing and Airbus, which almost monopolizing the wide-body civil transport aircraft market worldwide. Hence, the bargain power of aircraft manufacturers against airlines remains very strong, as the concentration of aircraft supplier market is very high. Some airline employees are considered as highly specialized and professionals, such as pilots and aircraft technicians. Due to their specializations, it is almost impossible for an airline to find replacements for pilots or maintenance workers in short time, which may cause an increase in the bargaining power of their employees over the airlines. In this regard, the labor cost is one of the biggest operating costs of most airlines. However, cutting cost is the main agenda of airline nowadays, and the labor cost is always the first to be the victim. 2.3 The Buyers Power The buyers power is defined as the influence that customers can have on the airlines revenue affecting ticket prices and service charges. If the buyers power is strong enough, customers can set the ticket price, and vice verse. Strong buyer power can bargain away potential airline profit and extract other benefits from airlines such as quality-improved services. Some of the favorable factors to strong buyers power in the airline industry are relatively low customer switching cost, low product differentiation, and freely available information on Internet. Nevertheless, the buyers power may be weaken by low buyer concentration or small purchase volume. Although fierce pricing war dispute among the airlines, it is notably that buyers do not play proactive roles in the pricing war. Current price impacts in the market is aimed to keeping the airlines competitors out of the market rather than providing the low pricing power of the airlines to their customers. Besides, travel agents, who us ually buy air tickets in large volume, yield greater power but they use this concept to strengthen their position in the market rather than transferring the cost benefit to costumers. 2.4 New Entrant â€Å"New entrant† refers to any new player in the aviation market which will compete with the incumbents. A key criterion to analyze the threat of new entrant in the industry is to analyze the level of entry barriers. Entry barriers are obstacles that may discourage others from entering the market hence affect the competition of the industry. New entrants will also lower the potential profits of the industry as a whole. Most common entry barriers in airline industry are regulation restrictions, labor, access to distribution channels and high capital requirement. However, the entry barriers to the airline industry had generally been lowered recently, especially on the regulation restrictions and distribution channels. The example of new entrant to Low Cost Carrier s is Firefly airline, which was growth recently and become a strong competitor to Air Asia airline. 2.5 Substitutes â€Å"Substitution† represents the threat that other industries or transportation may offer a product, which can replace air transport. The threat of substitution depends on the type of flight, namely long haul or short haul, and travel purpose such as business or leisure. For short haul and leisure travel, the main substitution threat in the Asia Pacific comes from surface transport such as road and sea transport. Even though some of the airfares from LCCs are lower than bus fare, but after paying for the airport charges and insurances, customers will find that generally the total cost of air travel is still higher than that of road transport. Although surface transport is cheaper in term of money, it still costs the passenger more in terms of time and efficiency. Furthermore, road transport generally will not compete with long haul travel, especially for cross nation traveling. On the other side, latest technology inventions such as videoconference pose a bigger threat for business travel. In the aftermath of 911, many worries that the airline industry will be substituted by video conferencing companies as they assumed that people will be less willingly to travel since then. However, the speedy traffic recovery proved them wrong. Although the international passenger flow havent returned to the pre-crisis level, but it seems the recovery is on the right path. 2.6 Low Cost and Budget Airline Air Asia Berhad Air Asia is one of the largest low fare and no frills airline. in Low Cost Carriers (LCC) industry which providing guests with the choice of customizing services without compromising on quality and services . It operates scheduled domestic and international flights and it is also the first airline in the region to implement fully ticketless travel and unassigned seats. On 12 November 2008, Air Asia abolished fuel surcharges. In doing so, it claimed to be the first airline in the world to abolish fuel surcharges. From this statement, we can conclude that Air Asia is successful to expand their market as well as they airline had flown 55 million cumulative passengers by 2009. In 2010, it has the worlds lowest costs for an Airline, at $3.21 per seat-kilometer. Air Asia is able to attract more customers in future since they can offer lower price tickets to flight around the world. Last but not least, Air Asia is a corporate that potential to growth among the LCC industry due to its competence strategy holding. This corporate was emphasize on leanest cost structure; transparency in decision making and information sharing; safety; invest and enhance the Air Asia brand to maximize shareholder`s value; human capital development; and passion for guest satisfaction. Hence, investor can be confidence with their performance as well. 3.0 Company Analysis AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of â€Å"Now Everyone Can Fly†, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission. (Resources : http://www.airasia.com/my/en/aboutus/irorganizationalstructure.html?) 3.1 Mission †¢ To be the best company to work for whereby employees are treated as part of a big family †¢ Create a globally recognized ASEAN brand †¢ To attain the lowest cost so that everyone can fly with AirAsia †¢ Maintain the highest quality product, embracing technology to reduce cost and enhance service levels 3.2 Vision To continue to be the lowest cost short-haul airline in every market we serve, delivering strong organic growth through offering the lowest airfares at a profit. Leanest Cost Structure †¢ Efficient and simple point to point operations †¢ Attracting and retaining hardworking and smart people †¢ Passion for continuous cost reduction Maximise Shareholders Value †¢ Resilient profit growth through our lower cost base †¢ Expansion of the AirAsia network in a prudent and disciplined manner †¢ Invest and enhance the AirAsia brand to increase investors returns Safety †¢ Comply with the highest International Aviation Safety Standards and practices †¢ Keep operations simple and transparent †¢ Ensure the security of our People and Guests Passion for Guests Satisfaction †¢ Maintain simplicity in every application †¢ Practice the unique and friendly AirAsia experience at every opportunity †¢ Recognise the linkage between guests satisfaction and long-term success Transparency †¢ Transparency in decision-making and information sharing †¢ Optimum disclosure higher than industry norms †¢ Timeliness in disclosing information Human Capital Development †¢ Invest in both hard and soft skills †¢ Recognize all our People as contributors to our success †¢ Reward excellence and individual contributions †¢ Maintaining one brand across the Group (Resources : http://www.airasia.com/my/en/aboutus/irstrategy.html?) 3.3 Strategy (Resources : http://www.airasia.com/my/en/aboutus/irstrategy.html?) 3.4 Values 1.Safety Adopting a zero tolerance to unsafe practices and strive for zero accidents through proper training,work practices, risk management and adherence to safety regulations at all times. 2. Valuing Our People Committing to our peoples development and well-being and treating them with respect, dignity and fairness. 3.Customer Focused We care and treat everyone in the same manner that we want to be treated. 4.Integrity Practicing highest standards of ethical behaviour and demonstrate honesty in all our lines of work in order to command trust and mutual respect. 5.Excellence in Performance Setting goals beyond the best and reinforcing high quality performance standards and achieving excellence through implementing best practices. (Resources : Air Asia Annual Report 2008) 3.5 Logo 3.6 Motto â€Å"NOW EVERYONE CAN FLY† 3.7 Directors Biography Dato Abdel Aziz @ Abdul Aziz bin Abu Bakar(Non-Executive Chairman) Dato Sri Anthony Francis Fernandes (commonly known as Dato Sri Tony Fernandes) Dato Kamarudin bin Meranun (Deputy Group Chief Executive Officer) Conor Mc Carthy (Non-Executive Director) 3.8 Independent Directors Dato Leong Sonny @ Leong Khee Seong (Independent Non-Executive Director) Fam Lee Ee (Independent Non-Executive Director) Dato Mohamed Khadar bin Merican (Independent Non-Executive Director) Datuk Alias bin Ali (Independent Non-Executive Director) (Resources : http://www.airasia.com/my/en/aboutus/irdirectorsbiography.html?) Share Registrar Symphony Share Registrars Sdn Bhd Level 26, Menara Multi-Purpose, Capital Square 8 Jalan Munshi Abdullah 50100 Kuala Lumpur, Malaysia Tel: 603-2721 2222 Fax: 603-2721 2530/1 Corporate Broker ECM Libra Berhad Stock Exchange Listing Main Board of Bursa Malaysia Securities Berhad (Listed since 22 November 2004) (Stock code: 5099) Auditors PricewaterhouseCoopers Level 10, 1 Sentral, Jalan Travers, Kuala Lumpur Sentral 50706 Kuala Lumpur Tel: 603-2173 1188 Fax: 603-2173 1288 Audit Committee Dato Leong Sonny @ Leong Khee Seong Fam Lee Ee Datuk Alias bin Ali Dato Mohamed Khadar bin Merican (Resources : Air Asia Annual Report 2008) 3.9 Major Shareholders As of 12 November 2009, about 26% of the total share capital was owned by TuneAir Sdn Bhd. AirAsia is a substantially owner managed company, the cumulative ownership by the board of directors constitutes approximately 28% of the share capital. Shareholder name No. of shares owne What Is Atherosclerosis Disease? What Is Atherosclerosis Disease? Atherosclerosis is an inflammatory condition affecting mainly the medium sized and large muscular arteries in the vasculature. Research suggests that the role of statins as a cholesterol lowering agent is only one of their many pharmacological purposes, and that they can also be used in the treatment of inflammatory conditions such as atherosclerosis. A lot of funding has gone into this area of research as its predicted that in the next 15 years, it is expected that cardiovascular related events are going to be the main cause of death worldwide. Thus there is a greater need to consider novel strategies in management of cardiovascular diseases such as atherosclerosis. In the course of this essay I will attempt to describe how and why atherosclerosis is an inflammatory condition and how statins can be exploited as anti inflammatory agents in reducing the overall cardiovascular risk associated with the disease. There is a lot of laminar blood flow through the medium sized and large arteries in the vasculature which are the prime positions for atherosclerotic plaques to grow, making the blood flow more turbulent. This leads to the build up of ischemic tissue in organs where blood flow becomes limited leading to major vascular events as a consequence. The composition of this atheroma is the first indication that the disease is of an inflammatory origin as it matches that expected at the intermediate phase of injury. Also, as seen in other inflammatory states, monocytes are attracted to the site of inflamed tissue and differentiate into macrophages. This leads to an increase in production of inflammatory cytokines and an upregulation in toll like receptors. The plaque is largely made up of macrophages, mast cells, T cells, fibrin, collagen and platelets aggregates which indicate that the immune system has been activated to produce an inflammatory response to the insult. It is now also evident that the actual stenosis is less of a contributing factor to ischemia and that it is more of a result of the activation of plaque content, eg, macrophage and mast cells, which elicits the prothrombotic and procoagulant factors involved in thrombus formation. The role of cholesterol in plaque formation is considerable as macrophages found in the plaque composition are heavily saturated with cholesterol ester giving them their name, foam cells. Additionally, there is a lot more LDL in the circulation which has been proven to be pro inflammatory and is raised in atherosclerosis. Raised LDL in it self is a big contributing factor to the formation of foam cells as the LDL becomes oxidised and reduces de-novo synthesis of LDL receptors on endothelial cells and macrophages. Running parallel to this, CD34 scavenger receptors on these cells become unregulated so macrophages and endothelial cells engulf cholesterol and cholesterol esters in an uncontrolled manner leading to the formation of foam cells. These then set off a series of events leading to more foam cell production and plaque formation. This illustrates the important role cholesterol has in worsening the inflammatory processes involved in atherosclerosis thus foregrounding the need of s tatins to utilise their lipid and non lipid pharmacological mechanisms involved in cholesterol lowering as well as controlling the inflammation. There is a lot of evidence from experiments which link the involvement of cholesterol and inflammation in atherosclerosis. There is evidence which suggests that the presence of cholesterol results in an over expression of cell adhesion molecules, eg VCAM-1, ICAM-1 and E-selectin. Also, increased release of cytokines such as MCP-1 within the plaque as well as macrophages TNF-alpha, IFN-gamma and IL-1 which is all consistent with the inflammatory process. Additionally, mast cells are attracted and degranulated at the site of plaque formation. Other experimental evidence also shows that when cholesterol fed rats are treated with immunosuppressants; there is a reduction in the atherosclerosis. There is research into the possibility of there being some angiogenesis in the area which is consistent with the proliferative phase of repair involving the immune system. All of the above illustrates, with evidence, the inflammatory origins of atherosclerosis. Infectious agents are also associated with activating the immune system to produce a pro inflammatory response to a foreign organism. There is further evidence which illustrates that this is also true for atherosclerosis. There have been suggestions which say that infectious agents such as Chlamydia pneumoniae damage the endothelial cells in the same way as cholesterol. Infection with this organism can cause increased cell activation and expression of adhesion molecules as well as programmed cell death at site of damage. Also, there is increased cytokine expression in smooth muscle cells and the increased size of cells correlates to the neointimal thickening (plaque) associated with the disease. Overall, this leads to the recruitment and activation of immune cells such as leucocytes which are a major contributor to the inflammatory process. It was also shown through experimental models, that this infection causing the plaque formation can be treated by azithromycin which is a well es tablished immunosuppressant. All this evidence again foregrounds the strong correlation of inflammation in atherosclerosis. Now that we have established that atherosclerosis is indeed an inflammatory condition which can be exacerbated by high cholesterol and infection, the treatment strategy should therefore involve the use of statins for their cholesterol lowering and non lipid properties allowing them to be effective in resolving the inflammation. The conventional role of statins is the inhibition of HMG-CoA reductase enzyme which intern stops all the enzymatic steps occurring downstream of this enzyme to ultimately reducing hepatic cholesterol production. This leads to the inhibitory effect cholesterol has on LDL receptor synthesis being lifted so more receptors are synthesised leading to a greater uptake of cholesterol from the circulation thus lowering overall blood cholesterol levels. There is a lot of novel evidence suggesting the benefits of statins occurring before blood cholesterol reduction which illustrates that some other process must be involved. Apart from the conventional HMG-CoA reduction, statins also have non lipid related activity. They inhibit the production of mevalonic acid and isoprenoid metabolites which accounts for the apparent immunosuppressant activity of statins in atherosclerosis. In the case of inflammatory diseases, statins can also reduce smooth muscle proliferation, reduce over expression of ce ll adhesion molecules, reduce infiltration of macrophage and T cells to site of damage, inhibit antigen dependant T cell activation and reduce other inflammatory mediators such as IL-6, TNF alpha, C reactive protein and INF-gamma. Some studies have also shown the action of statins in vivo when an small experimental amount of 2ng/kg of LPS from E coli was injected into volunteers taking simvastatin or a placebo. The results of this study illustrated the non lipid effects of statins in response to insult as there was no change in blood TNFalpha in the group taking the statin which shows that statins have a role in affecting the bodys immune response to external insult. This clearly foregrounds the roles of lipid and non lipid mechanisms of action of statins in reducing serious outcomes related to the occurrences of cardiovascular events. In conclusion, it is clear from experimental evidence that atherosclerosis has been identified as an inflammatory disease. There is significant information to support the notion of using statins in a clinical setting for their lipid and non lipid effects to aid the over all reduction in the atherosclerosis and the role it has in activating an immune response. Therefore, statins can be used for their pleiotropic effects in inflammatory disease such as atherosclerosis to help alleviate the body of the inflammatory response related to the condition.

The Economic Underpinnings of the First Industrial Revolution in England :: essays research papers

The Economic Underpinnings of the First Industrial Revolution in England The manufacture of military munitions and the development of a home market were critical underpinnings of the first industrial revolution in Britain. Military manufacturing supported by the British Government contributed directly to technological innovation and spurred industrialization. This is because the companies that choose to fulfill the government contracts to make military munitions found money could be made if new processes and technology was developed to fulfill the huge contracts. Military manufacturing was one of the few industries where innovation was rewarded. In most other industries conservative investors were reluctant to invest in new manufacturing technology. But in military manufacturing the government was the investor and was unconcerned with the manufacturing technology as long as the product was delivered on time. Many technological advances were made through military manufacturing some of these were new ways to manufacture iron, conveyer belts, and the use machine tools . The technology developed for military manufacturing then spilled over into the civilian sector of the economy. And because it was now a tested technology investors who were normally cautious were willing to put their capital into these ventures which instead of pouring iron to make guns now made iron ore into stoves and pots. The second critical underpinning of the first industrial revolution was the development of a home market in Britain. The first British industrialists manufactured textiles; specifically cotton for the home market. The growth of the home market in Britain promoted industrialization in several ways. First, it was a steady market which able to cushion the export market which was very dynamic and had sudden fluctuations. This allowed a steady rate of growth even when exports fell. Second, the home market started the process of urbanization by causing people to leave the agricultural sector of the economy and move to the cities to work in the cotton and textile factories. This urbanization had a snowballing effect throughout the economy because it caused other business and factories to open in the cities to support this new urban class. Third, the home market caused investments to be made in improving infrastructure including roads,

Master of Business Administration Essay

International business is a term used to collectively describe topics relating to the operations of firms with interests in several countries. Such firms are sometimes called multinational corporations (MNC’s)1. Points of discussion with this topic may include cultural considerations, which itself may include differences in law and legal system, language barriers, living standards, climate and more. These have to be overcome for a MNC to be successful in an overseas venture. A form of company in international business is an IBC. An IBC (international business corporation) is a form of offshore company. IBCs include banks, insurance companies, and trading firms. Well known examples of MNCs include fastfood companies McDonald’s and Yum Brands, vehicle manufacturers like General Motors and Toyota, consumer electronics companies like LG, Sony, Siemens A.G. and General Electric. MNCs generally have a subsidiary or an interest over a company in the country of venture. One of the results on the increasing success of International Business ventures is Globalization. The international environment is very important today. Globalisation, the process whereby businesses develop worldwide brands and products which they supply across the world, and in which they employ labour in many different countries, has transformed business relations. The international environment2 is the interaction between (1) the domestic environmental forces and the foreign environmental forces and (2) the foreign environmental forces of one country and those of another country. According to Porter, the international environment is characterized by the following trends: * Reduction in the differences among countries. The economic differences among developed and newly developed countries sees to be narrowing in areas like income, factor costs, energy costs, marketing practices, and distribution channels. * More aggressive industrial policies. Governments like Japan, South Korea, and West Germany are taking aggressive postures to stimulate industry in carefully selected sectors. This policy is giving firms in such countries the support to make bold moves into new markets. * National recognition and protecting distinctive assets. The proactive exploitation of such distinctive assets as natural resources (e.g., oil, copper, tin, rubber) by governments is a reflection of changing philosophy toward industrial policy. This trend has potentially fundamental implications for world competition. * Freer flow of technology. The increased flow of technology from country to country tends to promote more global competition. * Gradual emergence of new large-scale markets. China, Russia, and possibly India may ultimately emerge as huge markets in the future. Thus, gaining access to these markets may well become a crucial strategic variable in the future. * Competition from newly developing countries. Developing countries are increasingly well prepared to make major capital investments in large-scale facilities, aggressively to seek to buy or licence the latest technology, aggressively to take enormous risk. The net result of these changing currents has been to make the international arena a fiercely competitive marketplace in which the standards of competitive success have risen dramatically in the last few decades. There have been some cross-currents that have made the pattern of international competition very complex and different from earlier competitive strategies of the 1950s. These cross-currents are3: Slowing rates of economic growth. Eroding types of comparative advantage. New forms of protectionism. New types of government inducement Proliferating coalitions among firms from different countries. Rowing ability to tailor to local conditions Because of the currents and cross-currents, many more firms have become international in their strategies and operations. The recent strategies revolve around several themes described by Porter: There is no one pattern of international competition nor one type of global strategy. The globalization of competition has become the rule rather than the exception by 1986. The nature of international competition has changed markedly in the last two decades. Implementing a global approach to strategy requires a difficult organizational reorientation for many firms. The international environment consists of4: competitors the economic system the social system the monetary system the political/legal system the environmental system. Competitors’ actions affect the ability of the business to make profits, because competitors will continually seek to gain an advantage over each other, by differentiating their product and service, and by seeking to provide better value for money. The economic system is the organisation of the economy to allocate scarce resources. The economy tends to go through periods of faster and slower growth. Businesses prosper when the economy is booming and living standards are rising. The social system is the fabric of ideas, attitudes and behaviour patterns that are involved in human relationships. In particular businesses are influenced by consumer attitudes and behaviours which depend on such factors as the age structure of the population, and the nature of work and leisure. The monetary system facilitates business exchange. Monetary activity is based around earning, spending, saving and borrowing. Money has been likened to the oil that lubricates the wheels of commerce. Monetary activity involves businesses in a web of relationships involving financial institutions (e.g. banks and building societies), creditors, debtors, customers and suppliers. A key monetary influence for business is the interest rate. Higher interest rates increase business costs and act as a break on spending in the economy. The political/legal system creates the rules and frameworks within which business operates. Government policy supports and encourages some business activities e.g. enterprise, while discouraging others e.g the creation of pollution. The environmental system is the natural system in which life takes place. Increasingly businesses have become aware of the relationship between their economic activity i.e. making goods and services for profits and the effects that this has on the environmental system. International business differs from its domestic counterpart5 in that it involves three environments – domestic, foreign and international environments instead of one. While environmental forces can be similar in domestic and foreign environments their impact and values often differ creating ambiguity and making the impact of decisions difficult to assess. These environments create an additional layer of complexity requiring business leaders to have a solid understanding of business concepts and techniques used both in home and host countries in which they operate. Better understanding of the environmental forces in the host country in which a business operates will allow business leaders to decide if a concept or technique (1) can be transferred to another country as is, (2) must be adapted to local conditions, or (3) cannot be used altogether. Differences between international environment and domestic environment6 Today, business is acknowledged to be international and there is a general expectation that this will continue for the foreseeable future. International business may be defined simply as business transactions that take place across national borders. This broad definition includes the very small firm that exports (or imports) a small quantity to only one country, as well as the very large global firm with integrated operations and strategic alliances around the world. Within this broad array, distinctions are often made among different types of international firms, and these distinctions are helpful in understanding a firm’s strategy, organization,  and functional decisions (for example, its financial, administrative, marketing, human resource, or operations decisions). One distinction that can be helpful is the distinction between multi-domestic operations, with independent subsidiaries which act essentially as domestic firms, and global operations, with integrated subsidiaries which are closely related and interconnected. These may be thought of as the two ends of a continuum, with many possibilities in between. Firms are unlikely to be at one end of the continuum, though, as they often combining aspects of multi-domestic operations with aspects of global operations. Domestic and international enterprises, in both the public and private sectors, share the business objectives of functioning successfully to continue operations. Private enterprises seek to function profitably as well. Why, then, is international business different from domestic? The answer lies in the differences across borders. Nation-states generally have unique government systems, laws and regulations, currencies, taxes and duties, and so on, as well as different cultures and practices. An individual travelling from his home country to a foreign country needs to have the proper documents, to carry foreign currency, to be able to communicate in the foreign country, to be dressed appropriately, and so on. Doing business in a foreign country involves similar issues and is thus more complex than doing business at home. LITERATURE REVIEW A business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main Factors The main factor that affects most business is the degree of competition – how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: Social – how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political – how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. Technological – how the rapid pace of change in production processes and product innovation affect a business. Ethical – what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights. Changing External Environment Markets are changing all the time. It does depend on the type of product the business produces, however a business needs to react or lose customers. Some of the main reasons why markets change rapidly: Customers develop new needs and wants. New competitors enter a market. New technologies mean that new products can be made. A world or countrywide event happens e.g. Gulf War or foot and mouth disease. Government introduces new legislation e.g. increases minimum wage. Business and Competition Though a business does not want competition from other businesses, inevitably most will face a degree of competition. The amount and type of competition depends on the market the business operates in: Many small rival businesses – e.g. a shopping mall or city centre arcade – close rivalry. A few large rival firms – e.g. washing powder or Coke and Pepsi. A rapidly changing market – e.g. where the technology is being developed very quickly – the mobile phone market. A business could react to an increase in competition (e.g. a launch of rival product) in the following ways: Cut prices (but can reduce profits) Improve quality (but increases costs) Spend more on promotion (e.g. do more advertising, increase brand loyalty; but costs money) Cut costs, e.g. use cheaper materials, make some workers redundant Political Environment Each country varies regarding international trade and relocation of foreign plants on its native soil. Some countries openly court foreign companies and encourage them to invest in their country by offering reduced taxes or some other investment incentives. Other countries impose strict regulations that can cause large companies to leave and open a plant in a country that provides more favorable operating conditions. When a company decides to conduct business in another country, it should also consider the political stability of the host country’s government. Unstable leadership can create significant problems in recouping profits if the government falls of the host country and/or changes its policy towards foreign trade and investment. Political instability is often caused by severe economic conditions that result in civil unrest. Another key aspect of international trade is paying for a product in a foreign currency. This practice can create potential problems for a company, since any currency is subject to price fluctuation. A company could lose money if the value of the foreign currency is reduced before it can be exchanged into the desired currency. Another issue regarding currency is that some nations do not have the necessary cash. Instead, they engage in counter trade, which involves the direct or indirect exchange of goods for other goods instead of for cash. Counter trade follows the same principles as bartering, a practice that stretches back into prehistory. A car company might trade new cars to a foreign government in exchange for high-quality steel that would be more costly to buy on the open market. The company can then use the steel to produce new cars for sale. In a more extreme case, some countries do not want to engage in free trade with other nations, a choice known as self-sufficiency. There are many reasons for this choice, but the most important is the existence of strong political beliefs. For example, the former Soviet Union and its communist allies traded only with each other because the Soviet Union feared that Western countries would attempt to control their governments through trade. Self-sufficiency allowed the Soviet Union and its allies to avoid that possibility. However, these self-imposed trade restrictions created a shortage of products that could not be produced among the group, making the  overall quality of life within the Soviet bloc substantially lower than in the West since consumer demand could not be met. When the Berlin Wall came down, trade with the West was resumed, and the shortage of products was reduced or eliminated. Social Environment and Responsibility Social change is when the people in the community adjust their attitudes to way they live. Businesses will need to adjust their products to meet these changes, e.g. taking sugar out of children’s drinks, because parents feel their children are having too much sugar in their diets. The business also needs to be aware of their social responsibilities. These are the way they act towards the different parts of society that they come into contact with. Legislation covers a number of the areas of responsibility that a business has with its customers, employees and other businesses. It is also important to consider the effects a business can have on the local community. These are known as the social benefits and social costs. A social benefit is where a business action leads to benefits above and beyond the direct benefits to the business and/or customer. For example, the building of an attractive new factory provides employment opportunities to the local community. A social cost is where the action has the reverse effect – there are costs imposed on the rest of society, for instance pollution. These extra benefits and costs are distinguished from the private benefits and costs directly attributable to the business. These extra cost and benefits are known as externalities – external costs and benefits. Governments encourage social benefits through the use of subsidies and grants (e.g. regional assistance for undeveloped areas). They also discourage social costs with fines, taxes and legislation. Political Environment Each country varies regarding international trade and relocation of foreign plants on its native soil. Some countries openly court foreign companies and encourage them to invest in their country by offering reduced taxes or some other investment incentives. Other countries impose strict regulations that can cause large companies to leave and open a plant in a country that provides more favorable operating conditions. When a company decides to conduct business in another country, it should also consider the political stability of the host country’s government. Unstable leadership can create  significant problems in recouping profits if the government falls of the host country and/or changes its policy towards foreign trade and investment. Political instability is often caused by severe economic conditions that result in civil unrest. Another key aspect of international trade is paying for a product in a foreign currency. This practice can create potential problems for a company, since any currency is subject to price fluctuation. A company could lose money if the value of the foreign currency is reduced before it can be exchanged into the desired currency. Another issue regarding currency is that some nations do not have the necessary cash. Instead, they engage in counter trade, which involves the direct or indirect exchange of goods for other goods instead of for cash. Counter trade follows the same principles as bartering, a practice that stretches back into prehistory. A car company might trade new cars to a foreign government in exchange for high-quality steel that would be more costly to buy on the open market. The company can then use the steel to produce new cars for sale. In a more extreme case, some countries do not want to engage in free trade with other nations, a choice known as self-sufficiency. There are many reasons for this choice, but the most important is the existence of strong political beliefs. For example, the former Soviet Union and its communist allies traded only with each other because the Soviet Union feared that Western countries would attempt to control their governments through trade. Self-sufficiency allowed the Soviet Union and its allies to avoid that possibility. However, these self-imposed trade restrictions created a shortage of products that could not be produced among the group, making the overall quality of life within the Soviet bloc substantially lower than in the West since consumer demand could not be met. When the Berlin Wall came down, trade with the West was resumed, and the shortage of products was reduced or eliminated. Economic Environment An important factor influencing international trade is taxes. Of the different taxes that can be applied to imported goods, the most common is a tariff, which is generally defined as an excise tax imposed on imported goods. A country can have several reasons for imposing a tariff. For example, a revenue tariff may be applied to an imported product that is also produced domestically. The primary reason for this type of tariff is to  generate revenue that can be used later by the government for a variety of purposes. This tariff is normally set at a low level and is usually not considered a threat to international trade. When domestic manufacturers in a particular industry are at a disadvantage, vis-à  -vis imports, the government can impose what is called a protective tariff. This type of tariff is designed to make foreign products more expensive than domestic products and, as a result, protect domestic companies. A protective tariff is normally very popular with the affected domestic companies and their workers because they benefit most directly from it. In retaliation, a country that is affected by a protective tariff will frequently enact a tariff of its own on a product from the original tariff enacting country. In 1930, for example, the U.S. Congress passed the Smoot-Hawley Tariff Act, which provided the means for placing protective tariffs on imports. The United States imposed this protective tariff on a wide variety of products in an attempt to help protect domestic producers from foreign competition. This legislation was very popular in the United States, because the Great Depression had just begun, and the tariff was seen as helping U.S. workers. However, the tariff caused immediate retaliation by other countries, which immediately imposed protective tariffs of their own on U.S. products. As a result of these protective tariffs, world trade was severely reduced for nearly all countrie s, causing the wealth of each affected nation to drop, and increasing unemployment in most countries. Realizing that the 1930 tariffs were a mistake, Congress took corrective action by passing the Reciprocal Trade Agreements Act of 1934, which empowered the president to reduce tariffs by 50 percent on goods from any other country that would agree to similar tariff reductions. The goal was to promote more international trade and help establish more cooperation among exporting countries. Another form of a trade barrier that a country can employ to protect domestic companies is an import quota, which strictly limits the amount of a particular product that a foreign country can export to the quota-enacting country. A government can also use a nontariff barrier to help protect domestic companies. A nontariff barrier usually refers to government requirements for licenses, permits, or significant amounts of paperwork in order to allow imports into its country. Cultural Environment Before a corporation begins exporting products to other countries, it must first examine the norms, taboos, and values of those countries. This information can be critical to the successful introduction of a product into a particular country and will influence how it is sold and/or marketed. Such information can prevent cultural blunders, such as the one General Motors committed when trying to sell its Chevy Nova in Spanish-speaking countries. Nova, in Spanish, means â€Å"doesn’t go†Ã¢â‚¬â€and few people would purchase a car named â€Å"doesn’t go.† This marketing error—resulting simply from ignorance of the Spanish language—cost General Motors millions in initial sales—as well as considerable embarrassment. Business professionals also need to be aware of foreign customs regarding standard business practices. For example, people from some countries like to sit or stand very close when conducting business. In contrast, people from other countries want to maintain a spatial distance between them and the people with whom they are conducting business. Thus, before business-people travel overseas, they must be given training on how to conduct business in the country to which they are traveling. Business professionals also run into another practice that occurs in some countries—bribery. The practice of bribery is common in several countries and is considered a normal business practice. If the bribe is not paid to a businessperson from a country where bribery is expected, a transaction is unlikely to occur. Laws in some countries prohibit businesspeople from paying or accepting bribes. As a result, navigating this legal and cultural thicket must be done very carefully in order to maintain full compliance with the law. Physical Environment Other factors that influence international trading activities are related to the physical environment. Natural physical features, such as mountains and rivers, and human-made structures, such as bridges and roads, can have an impact on international trading activities. For example, a large number of potential customers may live in a country where natural physical barriers, such as mountains and rivers, make getting the product to market nearly impossible. EXAMPLES Marks & Spencer9 As an organisation develops, it creates working practices within the business that reflect its way of doing things. These practices become embedded in decisions and operations. The way of doing things guides and influences employees as they carry out their work. However, when organisations develop a new business strategy this creates a process of change. This leads to different ways of working. Company background10 With more than 120 years of heritage, Marks & Spencer is one of the best-known British retailers. The company has more than 450 stores within the UK and employs more than 65,000 people. It also operates outside the UK where it has a developing business in places as far afield as Hong Kong. In recent years, the UK’s retailing industry has been characterised by intense competition. Customers are more aware of where and how they want to shop. They also know what sort of shopping experience they require. This has made it much more difficult for retailers to survive. Facing the challenges The result was that Marks & Spencer had to develop a new business strategy. This created a period of change for the whole organisation. The period of change involved refocusing the business upon the basics. This included the three business values of Quality, Value, and Service. Marks & Spencer developed a promotional campaign that emphasised ‘Your M&S’. This helped the company to connect customers with the heritage in the business. It also linked the business in the minds of customers with its two other values of Innovation and Trust. The process involved three key features: developing products that customers wanted  investing in the environment within stores  providing good customer service to look after customers.  These changes have created a business environment with more challenges for employees. Managers had to prepare employees for whatever role they would be asked to undertake in this new environment. The answer was to develop career paths for the employees. This case study looks at the processes of training and development at Marks & Spencer. It shows how this helped employees to cope with the challenges they faced and created a career path for them. Mc Donald’s11 McDonald’s is one of only a handful of brands that command instant recognition in virtually every country in the world. It has more than 30,000 restaurants in over 119 countries, serving around 50 million people every day. All businesses face challenges every day. One of the major challenges facing McDonald’s is managing stock. Stock management involves creating a balance between meeting customers’ needs whilst at the same time minimising waste. Waste is reduced by: 1. Accurate forecasting of demand so that products do not have to be thrown away as often. 2. Accurate stock control of the raw materials. Stock management involves creating a balance between meeting customers’ needs whilst at the same time minimising waste. This is an increasingly tough balancing act. As customer tastes change, McDonald’s needs to increase the range of new products it offers, so the challenge of reducing waste becomes even greater. Why change was needed12 In the past, stock ordering was the responsibility of individual restaurant managers. They ordered stock using their local knowledge, as well as data on what the store sold the previous day, week and month. For example, if last week’s sales figures showed they sold 100 units of coffee and net sales were rising at 10%, they would expect to sell 110 units this week. However, this was a simple method and involved no calculations to take account of factors such as national promotions or school holidays. It took up a lot of the Restaurant Manager’s time, leaving them less time to concentrate on delivering quality food, service and cleanliness in the restaurants. The new system In 2004, McDonald’s introduced a specialist central stock management function known as the Restaurant Supply Planning Department. This team communicates with restaurant managers on a regular basis to find out local events. The  team builds these factors into the new planning and forecasting system (called Manugistics) to forecast likely demand of finished menu items (e.g.Big Macs). This case study looks at how McDonald’s manages its stock through its management systems and what benefits this brings. Conclusion The world has a long history of international trade. In fact, trading among nations can be traced back to the earliest civilizations. Trading activities are directly related to an improved quality of life for the citizens of nations involved in international trade. It is safe to say that nearly every person on earth has benefited from international trading activities. International business grew substantially in the second half of the twentieth century, and this growth is likely to continue. The international environment is complex and it is very important for firms to understand this environment and make effective choices in this complex environment. In this assignment we examined the characteristics of an international environment, the differences between international environment and domestic environment and then the: constrains, difficulties, benefits and opportunities having in mind social cultural factors, political factors, and legal, environment. Finally we outlined the cases of famous firms. The topic of international business is itself complex, and this discussion serves only to introduce a few ideas on international business issues. BIBLIOGRAPHY Books: Buckley, P.J., ed. What is International Business? Basingstoke, Hampshire; New York, NY: Palgrave Macmillan, 2005. Churchill, G., and Peter, P. (1995). Marketing: Creating Value for Customers. Austen Press Daniels, J.D., and L.H. Radebaugh International Business:. Environments and Operations. Reading, MA: Addison-Wesley, 1997. Hofstede, G. Culture’s Consequences: Individual Differnces in Work Related Values. Beverly Hills, CA: Sage Publications, 1980. Internet Sites: Wikipedia. http://www.thetimes100.co.uk/company_list.php www.mcdonalds.com www.marksandspencer.com http://applications-of-strategic-management.24xls.com/en128 http://www.tamu-commerce.edu/genbus/walker www.referenceforbusiness.com/management/Gr-Int/International-Business

Academic Freedom Essay

Freedom is a basic to education in modern democracies. Freedom in education can be categorized in the various aspects such as; Freedom of the child, academic freedom and freedom to read. Mc’Garry and Ward, (1966) puts it: A free society and a free world imply a free educational system and a freedom within the framework of maximum control. In such a closed society they maintained, freedom in education may consist of ability to say or do in consequential things. The legal idea of academic freedom originated in Germany in 1850. The Prussian Constitution declared that â€Å"science and its teaching shall be free. † In Germany, academic freedom is known as the right of faculty to teach on any subject, that was freedom of scientific research, and the right of students to attend any lectures, and the absence of class roll calls writes standler (2000). Academic freedom spread to America in the early 20th Century (Post, 2000). Most American universities at that time were proprietary; professors were understood to be the employees of whoever owned the university, whether that was a private or state. See more: Analysis of Starbucks coffee company employees essay Then the professors began to conceive of themselves not as mere employees, but as professional scholars who were answerable to the professional judgment of their peers, they began to create the idea of academic freedom. Still, academic freedom has limits. In the United States, for example, according to the widely recognized â€Å"1940 Statement on Academic Freedom and Tenure†, teachers should be careful to avoid controversial matter that is unrelated to the subject. When they speak or write in public, they are free to express their opinions without fear from institutional censorship or discipline, but they should show restraint and clearly indicate that they are not speaking for their institution. Academic tenure protects academic freedom by ensuring that teachers can be fired only for causes such as gross professional incompetence or behavior that evokes condemnation from the academic community itself. Proponents of academic freedom believe that the freedom of inquiry by students and faculty members is essential to the mission of the academy. They argue that academic communities are repeatedly targeted for repression due to their ability to shape and control the flow of information. When scholars attempt to teach or communicate ideas or facts that are inconvenient to external political groups or to authorities, they may find themselves targeted for public vilification, job loss, imprisonment, or even death. For example, in North Africa, a professor of public health discovered that his country’s infant mortality rate was higher than government figures indicated. He lost his job and was imprisoned. Academic freedom refers to the amount of independent judgment allowed teachers and students as both seek knowledge about the world. Maclever as sited by Harris and Liba (1960) holds that academic freedom refers to the freedom of the scholar with the university to pursue knowledge. Dewey and Lovejoy cited by Haris and Liba (1960) also related academic freedom to university teaching. In the modern society and modern aspects of teaching and learning, academic freedom can no longer be considered a university concern but it cuts across all aspects of the academia. Right is what a person is entitled to. Or what is legally due to a citizen account of being a member of a state, (International Declaration or Human Rights) established in 1948, as a common standard of achievement for all people and all nations. This document recognizes the basic human rights and freedom, justice and peace in the world having experienced the two world wars. The commission for Higher Education (CHE) University Act was established in 1985, July and inaugurated on 16th October 1985. It plans programs and finances public universities. It also coordinates admission process, accreditation of university coordination or post secondary training institution and standardization. Recognition and equation of qualifications are also its function according to the requirements of the law. It also guides students in applying or various courses that will lead them to different career choices. This was adopted by the United Nations (U. N) assembly is resolution 44/25 on the 20th November 1989. Talks of Freedom of Expression of opinion and views in Art 12 states that; every child who is capable of forming views and opinion has a right to express them freely; in all matters that affects them. In article number 13 on Freedom of Expression says that the child shall have a right to freedom of expression in terms of: Freedom to seek, Freedom to receive and Freedom to impart information and ideas of all kinds either orally or in writing in art and music. But the exercise of these rights must respect the rights and limitations of others and must respect the country’s laws and morals. Academic freedom consists in protecting the intellectual independence of professors, researchers and students in the pursuit of knowledge and the expression of ideas from interference by legislators or authorities within the institution itself. This implies that no political, ideological or religious orthodoxy will be imposed on professors and researchers through the hiring or tenure or termination process, or though any other administrative means by the academic institution. Nor shall legislatures impose any such orthodoxy through their control or the university budget. This protection includes students. Gwin, Swanson, and Goetz, (1986) also defined academic freedom as the freedom of teachers students to teach, study, and pursue knowledge and research without unreasonable interference or restriction from law, institutional regulations, or public pressure and added that the basic elements of academic freedom include the freedom of teachers to inquire into any subject that evokes their intellectual concern; to present their findings to their students, colleagues, and others, to publish their private data and conclusions without control or censorship; to teach in manner they consider professionally appropriate; and to act in their private lives with all the rights and liberties enjoyed by other citizens This directs towards speaking your mind and challenge conventional wisdom. In today’s political climate it is harder than ever for academics to defend open debate. In away restrictive legislation, and the bureaucratic rules and regulations of government and Universities themselves, have undermined academic freedom. Many academics are fearful of upsetting managers and politicians by expressing controversial opinions. Afraid to challenge mainstream thought, many pursue self-censorship. Academic freedom in Kenya was one of the casualties of repression. Mutunga and Kiai, (1996) stated that since proponents of academic freedom cherished free thought, open expression and good organization, they have been victimized, jailed and tortured. The harassment led to both external and internal exile. Academics like Ngugi wa Thiong’o, ali Mazrui, are victims. There are others who are internally exiles some of these scholars were forced to seek alternatives to the public universities to continue their scholarship and their contribution to the society. The Control of responsibility of public Universities by the state led to abdication of responsibility by university authorities. They instead prefer to call upon state machinery like the police to deal with any crisis in whichever way. University students or staff member wishing to travel outside Kenya must have official government clearance. In the case of university staff, the application from clearance is initially approved by the head of department followed by the dean of faculty, the principal of college, and ultimately the vice-chancellor. Subsequently, the ministry of Education and the Office of the President have to give the final approval, (Mutunga and Kiai, 1996). As at the time the above views about Kenya were documented, one could conclude that academic freedom hangs perilously close to non-existence in Kenya. It was not only the students and lecturers who suffered then, but all the people of Kenya who were denied the benefits that accrued from the existence of academic freedom. There was a moment in Kenya when they President threw a ban on Kenya National Union of Teachers (KNUT) and allowed KUPPET to come into existence to suppress the powers of KNUT. This was due to the stand that KNUT took as concerns the rights of the teachers in the country. Academic freedom is experienced unequally in the contemporary world. It is securely established in some countries, and scarcely exists in others, and in between the extremes it exists in varying degree of amplitude and security. Where academic freedom is well defined and respected, the teaching profession understands that the principle protects the professor against the devastating consequences of arbitrary dismissal. It is recognized that the eacher can be dismissed only for adequate cause, as established in a proceeding, which measures up to the requirements of due process, including a hearing before a tribunal consisting of his academic peers. It is well understood that the security of the professor depends not so much upon the substantive definition of what constitutes adequate cause, as upon the procedures which are followed. That proper procedure is an indispensable element of justice in the life of the state is a commonplace observation. Proper procedure is equally essential if academic freedom is to remain a viable concept. This will promote literacy in the African continent.