How terrorism affect our economy Essay Example for Free

How terrorism affect our economy Essay Terrorism and terrorist activates are never intended to target an economy directly, instead it is designed to scare people who, overwhelmed by there trepidation destroy there own economy. The pliant economy of United States was misjudged in contrast with the September 11 terrorist attacks. Despite an estimated $120 billion of damage and a great deal of anxiety, one year following the 9/11 attacks considerable recovery was recorded in U. S economy. A disagreement between the Economists world wide has been shaping up over the affects of terrorism on the economy of USA, many feel that because acts of terrorism are usually aimed towards small portions of the stock of capital of a country so effect on economic activity are not very large(Enders and Sandler 2006). On the other hand, consciences of terrorism on the economy under pragmatic estimation suggest large and long term affects (Terrorism and the World Economy 40). If we review the federal budgets between FY 1998 and FY 2001 $ 48. 3 billion where available in surplus. Attacks of September 11 originated a blow to the economy of Manhattan, but not to that of Boston or Chicago. Terrorism creates a pessimistic affect on industries like air travel, hotels and insurance at large, but if we review economys overall performance, investment and demand shifted to other industries-especially when Federal Reserve eased credit in order to calm post-Sept. 11 markets. The immediate and the fore most impact that originate due to terrorism is the development of Paranoia attitude towards the economy through restrictive air travel and raising uncertainty, economy is drifting into a phase of recession. U. S economy has been diminishing even further after U. S invasion in Afghanistan and Iraq. Another way terrorism affected our economy is the lift in oil price which proved to be an economic jolt over the American nation who is now linking this oil situation with the upcoming elections and political agenda of American presidential candidates. The most direct damage that terrorism brought to our financial system is the deficit of U. S. government budget, which was a record of 413 billion dollars in 2004. A slight drop of $198 billion in deficit is being predicted by CBO for FY 2009 which is expected to increase moderately by 2010. If we analyze the reports released by CBO we will realize the shocking increase in the expenditure of war on terrorism over the last few years, federal finances for the department of home land security, and ever mounting cost of government beneficial social sachems such as medical health care and social security has halted economical development. Economists are predicting an inevitable increase in red ink taxation; this is resulting in an increasing cost of housing and other basic amenities which is ultimately decreasing the consumption power of an American. (CBO) Terrorism creates a general sense of insecurity, this brings a huge expanse on U. S federal budget in shape of home land security dept, Congressional Budget Office (CBO) estimates that federal resources devoted to homeland security activities were a total of about $41 billion in 2004, roughly double the amount allocated to those activities before September 11, By 2007 Spending for the Department of Homeland Security increased by about 6 percent, to $42. 7 billion this money was required to further strengthen the borders and aviation security. General Seance of insecurity also slowed the pace of economic growth in 2007; economists strongly feel that it will slacken further in 2008. According to CBO, the consistent problems in the housing and financial markets and the high price of oil has curbed spending on household and businesses this is also ensuing decrease in the growth of GDP. Laws and policies developed to control terrorism has overwrought federal resources to a total of $2. 9 trillion for 2008, while the revenue will total $2.7 trillion, which will result in budget deficit of $219 billion, this situation will be worsening with the additional $30 billion required to sustain military activates in Iraq and Afghanistan. (CBO 10) As a consequence American nation is facing a decline in funds allocation for national health dept, education, and Environment protection, the 2007 financial budget favored spending on defense which brought an overall decline in resources allocated for developing U. S social welfare programs Another worrying line of attack in which terrorism is affecting U. S economy is the current decline of the U. S dollar. By 2007, an 8% decline was recorded in U. S dollars performance in index compared to its six largest trading partners. According to the predictions made by Stephen Malyon, (a currency strategist at Scotia Capital in Toronto) the current weakness in dollar should persist for the first two quarters of the current financial year, while a rise of $1. 55 in Euro against dollar was also anticipated by him. (Ellis 2008) Terrorism creates an anxiety in the midst of American people who quite frequently hear about terrorist threats and the on going war on terrorism, while a general sense of insecurity has detained the business community, and this has created a lack of confidence among the main stream investors. Terrorism has also put the burden of humongous expense that the nation had to face in shape of Dept of home land security, ever since Sept 11, while this dept controls almost all issues related to national security and U. S intelligence, an increase in the federal resources and funds devoted towards this department, and as a consequence every year a considerable decline is recorded in social benefits such as education and national health care. Other affects of terrorism on American economy at large are the red ink taxes, increase in oil cost and the decline in dollar value; all of this is contributing towards decreasing the purchase power of an average American. Economists worldwide agree that the negative aspects and the decline in U. S economy is the cost that USA is paying for the war on terrorism. More over a large number of political economical analyst feel that the issue of terrorism is being propagated by the American presidential candidates in there political agendas which is a major cause of nervousness among the nation. Many argue today about United States aggressive strategy to counter terrorism has been a mistake and think that a defensive strategy would have been a more appropriate choice in terms of the affects of terrorism on U. S economy. Work Cited; †¢ Enders Walter and Todd Sandler. The Political Economy of Terrorism. 1st ed. Cambridge, England: Cambridge University, 2006. †¢ Abadie, Gardeazabal. Terrorism and the World Economy. (2007): 40. †¢ Orszag, Peter R. United States, CBO. The Budget and Economic Outlook:Fiscal Years 2008-2017. Washington, DC: CBO, 2007. †¢ Ellis, David. Dollars slide. Its the economy, stupid (2008 )

Principles of Marketing Essay Example for Free

Principles of Marketing Essay The course content includes a study of the relationship between marketing and society, nature and functions of marketing, marketing management processes, marketing tools, the markets, and the consumers. Course Objectives The main goal of the course is to provide an overview of the basic principles underlying modern marketing theory and practice. It will provide participants with an understanding of the analysis that is necessary for taking marketing decisions, and the wide range of factors (and interactions of those factors) that need to be considered in the design of a marketing program. Students should come away with this course with an understanding of the marketing system and its role within the Malaysian economy and within an individual firm by studying how products and services are planned, priced, promoted, and distributed in order to satisfy consumers wants. Learning Outcomes Upon completion of the course, students should be able to: ? define and apply knowledge of the key marketing concepts. ? explain how marketing decisions are influenced by environment, trends and developments. ? discuss the factors influencing consumer behavior. Please dress decently and appropriately (according to university’s dress codes) when attending classes. ? Group projects ; Assignments There will be group projects and assignments. For group project, work together with your group members and at the end of the project your group members will assess your contribution to the project. You are expected to do a group presentation before submission of written copy during the semester. Assignments will be uploaded in UNIEC. In class assignments must be submitted on the specified date otherwise you may be penalized for late submission. If you encounter any problem to submit assignments on the specific date, you are required to inform the lecturer within 2 days of the specified date. For any type written assignments given, the format of the paper should be as follows: ? A cover page with your details – Name, Student ID and Sections ( as registered in CMS) ? Font: Time New Roman , size 12 with 1. 5 spacing ? Include a reference page for every assignment that you submitted. ? Forums Students are required to participate in ALL 3 forums posted by the Course Leader and marks will be assigned based on the quality of the discussion. ? Accessing/ Checking UNIEC Virtual It is utmost important for students to access and check their UNIEC Virtual for any updates and information pertaining to the course regularly throughout the semester. Ignorance is NO EXCUSE. Examination Format Final examination will be a three hours-examination. The exam will evaluate your level of understanding and knowledge acquired in this course. The question formats may consist of multiple choice, true-false, short essays, and case-based problems. Week Topics Covered Overview 1 2 3 4 Topic 1: Marketing: Managing Profitable Customer Relationship Topic 2: The Marketing Environment and the Marketing Information Topic 3: Consumer Markets and Consumer Buyer Behavior Topics/Activities Remarks/ Deadlines Introduction. Class activities: Getting to know. Overview of course plan. Marketing: Managing Profitable Customer Relationship ? Definitions of marketing ? Basic concepts of marketing ? Evolutions of marketing ? Relationship marketing ? Marketing strategy and the marketing mix ? Marketing Challenges in the future Read. The Marketing Environment and Marketing Information ? Company’s Microenvironments ? Company’s Macroenvironments ? Marketing research process Read: Forum 1 ? Kotler: Chapter 3 ; 4 ? Real Marketing 4. 2 ‘Tracking consumers on the Web: Smart targeting or a little creepy’. p 151 Class activities: ? Discuss reading materials Topic 2 ? Discuss ‘Prius: Leading a Wave of Hybrids’ case Consumer Markets and Business Market ? Consumer Buying Behavior ? Consumer Decision-making Process ? Factors Affecting Consumer Buying Behavior ? The Organizational Market ? The Organizational Buying Process.

Corporate Governance and Value Creation Relationship

Corporate Governance and Value Creation Relationship Department of Economics VALUE CREATION AND THE ROLE OF CORPORATE GOVERNANCE Abstract Corporate Governance is a subject of many professional and academic debates. Since there are many different research and contexts associated with corporate governance problem, then, this topic has continued to be an interesting topic under scrutiny. However, is has been observed that the relationship between corporate governance and value creation of corporation remains as an untapped area with enough consideration. This paper tends to investigate this linkage and using Enron case as critical analysis. TABLE OF CONTENTS (JUMP TO) 1. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Literature Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3. Corporate governance and performance of the company . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3. 1. Definition and explanation of key concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3. 1. 1. The concept of corporate governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3. 2. 2. The concept of value creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. 2. 2. 1. Definition of value creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. 2. 2. 2. The importance of value creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3. 2. 2. 3. Measuring Value-creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3. 2. The impact of corporate governance in the Value Creation. . . . . . . . . . . . . . . . . . . . . . . . . . 17 4. The role of finance in creating value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4. 1. The principles of management by the financial value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4. 1. 1. The principle of double market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4. 1. 2. The principle of identifying financial levers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 4. 1. 3. The principle of internal steering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 4. 2. The mechanisms and the extent of creating value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4. 2. 1. The economic indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4. 2. 2. The indicators such as accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 4. 2. 3. The nature of stock market indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4. 3. The limits of management by the financial value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264. 3. 1. Scope limited and performance standards unrealistic. . . . . . . . . . . . . . . . . . . . 26 4. 3. 2. Transfer of risk to the employee shareholder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4. 3. 3. Focus on short-term and limits the cost of capital. . . . . . . . . . . . . . . . . . . . . . . . 27 5. Critical approach to corporate governance: the case of Enron. . . . . . . . . . . . . . . . . . . . . . . . 29 5. 1. Introduction of the Enron affair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 5. 2. Enrons scandal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 5. 3. The consequences of this scandal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 5. 4. The lesson from Enron Case. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 6. Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 7. Further study recommendation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 List of Abbreviations NGO Non- Governmental Organization US United State CEO Chief Executive Officer BOD Board of Directors COO Chief Operating Officer CFO Chief Financial Officer CRO Chief Risk Officer CFROI Cash Flow Return on Investment EVA Economic Value Added RCF Residual Cash Flow DCF Discounted Cash Flow CVA Cash Value Added RAN The Rainforest Action Network MFV Management by the Financial Value TSR Total Shareholder Return MVA Market Value Added NPV Net Present Value EPS Earnings per Share ROE Return on Equity EROR Economic Rate of Return PBR Price to Book Ratio 1. Introduction The successive industrial revolutions of the late eighteenth and nineteenth century were a major factor for the development of Western capitalism and gave gradually traits that characterize it today. In this movement, the company as a structure that brings together human beings who are organized to act on nature to obtain useful results and thus create value has always been at the heart of the capitalist system. However, in recent decades, many changes have affected the financial-market capitalism and gave new prominence to creating value for shareholders of the company. This has resulted in the emergence of a form of management oriented to advance the financial value and mobilize employees to that goal. This focus on value creation reflects a desire to meet the requirements of the shareholder because it has become in the current financial world a king increasingly adulated and increasingly capricious. Undoubtedly, this logic has largely influenced the conduct of the strategy of com panies that demonstrate ingenuity to cope with competition and remain competitive. However, it has undergone profound questioned at a number of scandals that have marked with an indelible history of finance and have been accompanied by strengthening institutional mechanisms for regulation of businesses and financial markets. In such a context of questioning, suspicion and doubt in respect of managerial practices, questions about the role of governance and firms value creation does it not absolute importance to apprehend the changes that occurring within the company? The aim of this paper is to answer this question. The structure of the paper is organized as follows. Section 1 provides a background of what has been done in the literature in the effort to capture relationship between corporate governance and value creation. Section 2 introduces the key concepts such as corporate governance and value creation. Section 3 illustrates the role of finance in creating value in firms. Empirical approach are presented and discussed in section 4, with special stress on the managerial behaviour in Enrons Company. Section 5 will conclude and propose further areas of research. 2. Literature review On the topic of relationship between corporate governance and value creation, there have been various researches and conclusions. Before examining about the relationship between corporate governance and value creation, many early studies has explored the linkage between Ownership and Value Creation as a beginning. Talking about owners who have been passionate about their ideas and visions to create the best value for their company, study named Ownership and Value creation of Carlsson. R. H (2001) gave a valuable historical review and illustration with case how active ownership has played an important role in company development. Through this book, we can see that ownership makes significant differences in corporate governance, it fulfils an indispensable role in the market and its quality made firm the best value. Later, in his research Corporate Governance and Value Creation, Jean-Paul Page (2005) has referred to the financial approach to corporate governance in his analysis. He has explored the connection between the foundation of power and decision making to create the large value for firms. In order to focus on an in-depth analysis of the links between value creation and governance, his research started with the assumption that regulation and laws exist to constrain corporate activities which could harm society as well as the economy, then corporate agreement is expected. Through a research, he tried to find the answers of who should hold the ultimate power which companies can create maximum value or how this power should be used. To do this, first, he discussed the delegation of shareholder power and a variety of standard to evaluate the performance of managers. Then, he presented a framework by which securities analysts can evaluate corporate governance system. As the result of his study , he strongly believed that directors of companies have the necessary judgment to discharge their value creation responsibility. Jean-Paul Page result is developed further in detail by Monks (2002) when he applied this theory into Volkswagen Company. After that, Huse (2007) successfully combines the behavioural of directors work and the value creation which contributes to both the practitioner and the academic debate. Huses book is based on two key ideas: the main task of a broad of director is to create value for company and looking inside board to understand the value creation process needs. His book provided a good discussion about governance effectiveness and value creation by an exploration of behavioural perspectives on governance and how various types of related factors influence governance as well as value creation. In addition, in his recent research named The Value Broad: Corporate governance and organizational behaviour in 2008, he aimed to go further and explore actual behaviour in creating value from entrepreneurial management perception throughout various European countries such as Netherlands, Italy. Beside, The differentiated Network: Organizing Multinational Corporation for value creation of Nohria. N and Ghoshal. S (1997) was successful to present the globally distributed capabilities of multinational corporations and organize these corporations for value creation. This study is built to develop these ideas of both authors above. Besides theoretical research and studies, many case studies were analysed to examine the implication of all theories in the real economic market. Case study in Finances: Managing for Corporate Value Creation of Bruner. R. F (1990) provided numerous financial analyses of the world famous and successful corporations such as Walt Disney, Atlantic Southeast Airlines, Morgan Stanley Group INC, Merit Marine Corporation. . . However, this analysis was published in 1990, it can not update with changes in the economy as well as financial scandals have been happened through recent years. Based on all these suggestions, an analysis of value creation and the role of corporate governance is an interesting paper. And Enrons scandal in 2001 is an updated illustration. 3. Corporate governance and performance of the company 3. 1. Definition and explanation of key concepts 3. 1. 1. The concept of corporate governance We can consider that the practices of corporate governance have ancient origins insofar as they are inseparable from the very concept of enterprise. Indeed, corporate governance problem was already in the eighteenth century. Adam Smith posed as soon as 1776, in the Wealth of Nations, the problem of separation of interests between managers and owners in companies per share. This question will take a new turn with the emergence in 1807 in France and then England with the Company Act and a little later the United States, the limited liability company. In general, governance refers to the governing relations between the leaders of a company more broadly, an organization and the parties concerned by the fate of the so-called organization, mainly those who hold legitimate rights - namely shareholders. Even if made generally and in order to illuminate our analysis, such a definition requires clarification. First, governance is focused on a category of actors of any organization: the lea ders of this organization, category sometimes reduced to a person, most often represented by a small group strongly hierarchical around the leader, sometimes expressed by semi-hierarchical and ill-defined contours. Whatever the difficulties of defining exactly and narrow, this category of actors always pay attention on a system of governance. Corporate governance can be seen as vast field and its works as regulatory body that includes (OECD, 2004): Chief Executive Officer (CEO) Board of Directors (BOD) Management of Organization Shareholders Stakeholders (Suppliers, Employees, Creditors, Clients and Social Communities) Then, the issue of governance is also the role and control of corporate officers in legal persons. The leaders of an organization finalized commercial, public . . . Speak and act on behalf of this organization: a title that they can buy, sells, hire, dismiss and so on. They have before it the financial, material, human, which can be considerable even excessive. Issues relating to their appointment as corporate officers, the conditions for exercising their mandates are, therefore, legitimate and make corporate governance a key point of management systems of the latter. Finally, the governance system includes various components that can be, simplifying, grouped into three sets of components: structures, procedures and behaviour. The structures involved in the governance system are varied. Some are specific to the organization concerned: general meeting, board of directors, ad hoc committees. Others are external and intervene on the basis of contractual missions (auditors, rating agencies) or as part of missions of general interest (regulatory authorities). The procedures are also very varied and more or less diversified in codes or codes imposed on the actors involved (chart of accounts, commercial code . . . ). They may involve both methods of collection and dissemination of information on the functioning of the entities concerned that ways and means to carry out such an operation such as changing the parameters of the structure or listing on the financial market. The behaviour complements the first two components by providing a dimension without which they would remain for the most formal. Such behaviour are those agents individuals is not the legal fiction made up by legal persons involved in the institutional and responsible to implement it and animate it. Therefore, their best practices, their ethics or, conversely, their lack of scruples and their departures were a major part in the effectiveness of governance systems like any human system. In their brilliant literature review of corporate governance topic, Shleifer and Vishny (1997) offered a definition of corporate governance: Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment (p. 737). This notion of governance seems rather simplistic. Because it is limited to the individual control worked out by shareholders and ignores the rights of all the other stakeholders in the company such as creditors, suppliers, customers, employees, and finally, the State and society in general. Indeed, the shareholder affects some form of power and imposes limits in varying degrees that affect value creation. Besides, this definition of governance fails to take into account the implicit rules and standard such as legislation, regulations and contracts. All these things actually have an important influence on final decision. In his book, Jean- Paul also gave the broad definition of corporate governance as follows: Corporate governance consists of the legal, contractual, and implicit frameworks that define the exercise of power within a company, that influence decision making, that allow the stakeholders to assume their responsibilities, and that ensure that their rights and privileges are respected. (pp. 2) To be successful in this notion, corporations must acquire the best resources such as: finance, material and human at the best if they want to create value or wealth. Good corporate governance is assessed in a book named Corporate Governance: Responsibilities, Risk and Remuneration, Keasey. K and Wright. M (1997) He defined a good corporate governance is as concerned with correctly motivating managerial behaviour towards improving the business, as directly controlling the behaviour of managers. They also analysed executive remuneration is one mean of motivating good behaviour. Illustrating the standard corporate governance frame work, both authors above indicated that the key elements concern the enhancement of corporate governance is via supervisors of management performance and ensuring the accountability of management to shareholder and other stakeholders. Analysis of a frame work of corporate governance was also carried by Hart (1995). He discussed the need for accountability and supervisor of director come up because there is a divorce between ownership and control power in large firms. According Harts study, supervision may take various forms ranging form system where shareholders are outsiders with little direct incentive to monitor management. Moreover, Whittington (1993) argued that is has to be noted that the accountability and supervision aspects take place within a wider regulatory framework which regulates relationship with external third party contractors. 3. 1. 2. The concept of value creation 3. 1. 2. 1. Definition of Value Creation As for value creation, it is an ambiguous concept because of the multiplicity of managerial practices associated with it: exchange value, book value or economic value partnership, value for the customer, and so on. In all case, the most important objective of every firm is to maximize resource allocation, to produce as much economic value as much as possible and to look up social well-being. Offering the best product and services at reasonable price is the way which firms can do to achieve these objective above. Jean-Paul Page (2005) examined economic value as creating wealth. Because the firms wealth is measured by the value of their product on the market, then, creating value for firm mean company will observe its prices and value increase as demand for its services and goods rises. Concisely, creating economic value means increasing in firms value, increasing in share price and creating wealth. As a result, corporate governance have to focus on decision that tend to maximize share price and then on the creation of economic value. This way will translate the wealth creation objective of firms into tangible results. 3. 1. 2. 2. The importance of value creation In his academic journal, Favaro. Khas proved that if firm puts their value creation as a first strategy, it will help a corporation growth in the greatest rate. First of all, by understanding how, why, where the value is created within your company; which is the market where your company perform best; identifying which of your companys activity and asset is distinctive enough to be a profitable growth will tell your company where and how to grow. The best example of this case, we have to mention about Coca -cola. Since the early of 1980s, Coca-colas leader discovered the value creation in their mix businesses and in the entire beverage system; then, this company have taken a major growth opportunity in their core business. Secondly, there are two advantages which putting value creation first can gives firms are: capital and talent. When firm set value creation first, they will never suffer from a capital shortage. Favaro gave explanation that, these companies which put value creation first will find sufficient capital for their investment needs and can attract a large capital from the market, and then they never miss any investment opportunities. In addition, knowing all important targets, these companies also understand how important the high standard and good qualification managers are. Therefore, over time, these firms will build a team of manager with better capabilities and standards. This will give company more managerial talent and help these companies achieve higher level of profitable and also sustainable growth than their competitors. Value creation enhances companys ability to grow up which requires perseverance Discipline and leadership skills. Through his experience, Favaro suggests that: By product, channel, customer, market and technology; skilled managers who always put value creation first will understand how or why value is created or destroyed. Then, they will know whatever cut will be the best reveal the truly capabilities or asset which their company have to do to get profitable and growth. Promoting, celebrating and rewarding managers who see growth is an outcome of their focus on value creation. Briefly, if a company put value creation first in the right way, their managers can identify how and where to grow, they will use capital better than others and build up more talents. Consequently, value creation will offer you a vast advantage to achieve profitable and long-term growth. It should be noted that these multiple approaches are experiencing varying degrees of success. Thus, while some of them are rather a fashion effect, others seem more rooted in the reality of management. This is particularly the case in the field of strategy with the general themes related to the competitive advantage that determines the value that a company can create for its customers and in the field of finance with the concept of maximizing the shareholder value. However, there are two themes refer to distinct managerial logic. In schematising, one can oppose a logic of financial reform dominated the creation of financial value and logic of integration that connects the various aspects of value creation. The financial approach emphasizes the idea that any asset is comparable, at least conceptually, a financial asset whose correct measure is the present value of expected flows of that asset, given the risk that it is linked. Thus, by analogy with financial assets, it is possible to buy or sell at any time comparable assets or reinvest the funds on other opportunities. The option is part of choice and is a factor of flexibility. The logic of integration recognizes the importance of value creation but the analysis as the result of a synthesis of different components of value, whether organizational aspects, competitive or institutional. It puts forward concepts such as basic skills, know-how of cooperation and coordination, competitive advantage. It requires a broader view of performance and the development of a scoreboard, including non-financial aspects. This concept of value creation is currently experiencing a revival and for several reasons. This renewal first undoubtedly result of the transformation of financial capitalism and its origin movements takeover carried out on companies that exploitation not effectively their asset base for shareholders. These practices have provided external visibility to market discipline that has prompted leaders to do more attention to creating value and bring back the shareholder at the centre of the strategy. In addition, development of globalization and the rise of new technologies of information and communication technologies have accelerated the process of internationalization of enterprises and networking complex and globalize. The result is a financial reform of the strategy based on the refocusing on the principal market and the pursuit of critical size. That is why the purchase of shares and options markets external growth is systematically privileged at the expense of endogenous development of the company. But for institutional investors, who control more companies using their power, the ability of business to create value is an essential criterion of assessment. Finally, another external factor that has boosted the value creation is the gradual disappearance of state monopolies especially in the case of France. The purpose of the public monopoly system based on the existence of cross-shareholdings is to ensure a stable partnership. The financial globalization has gradually reduce d the interest of a national shareholding making less essential closures capital that provides few resources. 3. 1. 2. 3. Measuring Value-creation: When evaluating value creation, there are three main measurements are: Cash Flow Return on Investment (CFROI), Economic Value Added (EVA), and Residual Cash Flow (RCF). G. Bennett Stewart III (1991). The Quest for Value. HarperCollins discussed Economic Value Added (EVA) as the heart and soul of Value planning. He described EVA is the one measure which properly accounts for all the complex trade-offs involved in creating value. EVA computed by taking the spread between the rate of return on capital r and the cost of capital c* and then multiplying by the economic book value of the capital committed to the business: EVA = (r-c*) x Capital EVA = (rate of return cost of capital) x capital EVA will increase when: The rate of return earned on the existing base of capital improves; that is, more operating profits are generated without tying up more funds in the business. Additional capital is invested in projects that return more the cost of obtaining the new capital Capital is liquidated from, or further investment is curtailed in, substandard operations when inadequate return being earned. These are the only way in which value can be created

Essay on Nonsense Language in Carrolls Jabberwocky -- Carroll Jabberw

The Importance of Nonsense Language and Sounds in Carroll's Jabberwocky  Ã‚      "Wn a bby fst ts 2 kmnikt the wrds snd gibberish. " No one knows what the baby is trying to say. The poem, "Jabberwocky," written by Lewis Carroll, uses meaningless speech to either frustrate or amuse the reader. When trying to pronounce the nonsense words in the poem, the sounds of the words come out as gibberish. The sounds are the important element of the poem. Often, people like to hear poets read in languages they cannot understand. A woman leaving a reading by the Polish poet Czeslaw Milosz said she was glad he'd read some of his work in Polish because the language sounded exciting, like horse hooves over cobblestones.    Sometimes a poem can mean little or nothing, yet the stimulus of words alone wins our attention. Some poets can even invent words themselves. Carroll combines two words (portmanteau) into one word to compose those weird sounds and words in the poem. In a unique way the meaningless words combine with recognizable words to create a poem almost comprehensible. The language and sounds allow a reader to reflect back on the concept of how to communicate Carroll's theme of survial of the fittest, and besides the battle between animals, Carroll creates a battle for the reader to understand the language and sounds.    For an animal or reader to survive in Caroll's poem it must kill before being killed, or understand the language before reaching the end. The setting of such survival is the forest, and Caroll's forest is a fantasy land where words are foreign to the reader. "He left it dead, and with its head He went galumphing back," (Carroll, 36) has reference to survival of the fittest. The head becomes the trophy of ... ...tree," (Carroll, 36) describes the actual skill of using a tree for camouflage. The tree is the Dumdum and covers up the hunter's stupidity. Is the Jabberwocky harmless? The forest people could have invented a wise tale about the creature for amusement. What the hunter killed was part imagination and part real; the way Carroll's poem is.    The sounds and nonsense language are important elements of the poem. At the same time, we can use the grammar of the sentence to help us imagine the meanings of the nonsense words. The poem is playful and frustrating at the same time. We might say it "plustrate." Works Cited Carroll, Lewis. "Jabberwocky." The Discovery Of Poetry. 2nd Edition. Ed. Frances Mayes. Orlando: Harcourt Brace & Company, 1987. Hunter, Paul J. Footnote. The Norton Introduction to Poetry. 6th Edition. Chicago: Norton, 1996.      

Existence Of Man :: essays research papers

Existence of Man For centuries man has grappled with the riddle of what it means to be a person. But the questions Who is man? and What is the meaning of life? are still unanswered. Yet, while man is still a long way from arriving at any acceptable definitions, there is deep within everyone the hint of an idea of what it means to be a whole person, that is happy, functioning and fulfilled. So, throughout history man has made a continuous search to find out what makes him whole. Every person is different so the special situation in which one person finds fulfillment can't work for everyone. But in the lives of those who have found fulfillment there is a universal pattern. The universal pattern is that those who have found fulfillment have had a willingness to accept change and take risks. Conversely, those who have not found wholeness are characterized by an unconquerable desire to be safe, to be out of danger and to avoid risk. The first step in the search for identity is to answer the question, How do you see yourself? In the play No Exit by Jean Paul Sartre Estelle loses sight of her identity. She says "When I can't see myself, I begin to wonder if I really and truly exist." What a man sees himself as in the mirror largely determines his actions during the day. Estelle had to look into the "mirror" of men to confirm her identity. A man is the number one determining factor in discovering who he is. Each individual must understand that he is responsible for his own pain, misery, unhappiness, or for his own joy. Man is not a product of what people have done or are now doing to us. Man has the power to become whatever he wants to be; to feel as much love or anger or joy as we want to feel. Another subsequent factor in determining our identity is the image, name, or label given to us by society. In other words, what we believe other people think of us. Most people participate in many groups friends, school, family, jobs, clubs, churches and more each contributing to our identity. We have to accept the death of the superman who is alone needing no one, inner directed and indifferent to his surroundings. We see in Dostoevsky's novel Crime and Punishment that when Raskolnkov separates himself from humanity by committing murder that he could not survive. A person needs to understand that they are responsible for their own choices but they cannot discount the fact that there

Giles Corey :: essays research papers

Giles Corey was a successful farmer and an active member of the Salem church, but this reputable model citizen was not looked lightly upon when the word â€Å"witch† started floating around. In April of 1692, Ann Putnam, Jr., Mercy Lewis, and Abigail Williams pointed a scornful finger at Giles. Ann said that Corey supposedly came to her on the 13th of April and asked her to write in â€Å"the devil’s book.† She later said that a ghost came to her, asking to be avenged against his killer, Giles Corey. Corey and his wife, Martha were good friends of the Porter family. Being great enemies of the Porters, the Putnams saw the Coreys as enemies, and dead enemies seemed much safer than living enemies. Thus, a trial began so as to determine the â€Å"wicked† characteristics of the Coreys. For five long months, he waited in prison for word of his trial. When he was let out, several witnesses arrived, demanding proof against the Coreys. In light of his new â€Å"fan club,† he chose to refuse to stand trial. Without a trial, there was a greater chance that his sons-in-law got his farm instead of the government. On Monday, September 19, consequence came for his refusal to stand trial. The punishment was death by pressing, the use of large stones to crush a person to death. On his deathbed, he only begged the executioner to â€Å"use larger stones,† so that he may die quicker. He was refused this meager last wish. Corey's "tongue being prest out of his mouth, the Sheriff with his cane forced it in again, when he was dying," said Robert Calef, a reporter covering the event. It took two days for him to die, and he was buried in a lone patch of grass on Gallows Hill. At the age of 80, Corey chose to die with honor and grit, rather than allow himself to be made a fool of by begging for his life in a courtroom that he knew would never let him live.

Wwii: the Good War?

US History: Surv Since 1877 The Good War? Many Historians call World War II â€Å"The Good War. † The Second World war consumed every corner of the globe, pitting the world’s biggest powers against each other. There were two sides the Axis powers and the Allied Powers. The Axis included many Germany, Japan, and Italy. The Allied powers included the Soviet Union, United States, British Empire, China, and France to name a few. World War II was caused by several things. One was the Treaty of Versailles which Germany could not afford to pay.In turn they empowered a man who vowed to rip up the treaty. Two other reason were the failure of appeasement and the failure of the league of Nations. There are many reasons why people think that World War II was â€Å"The Good War,† Paul Fussell gives a good account on the subject. A Good War, A Just War, A Moral: Fussell's accounts simply show that these terms are simply not possible for the teenage kid being shipped off to fig ht in the war at the tender ages of 18, 19, 20, or even 17. For American troops, the first unpleasant act in their active and dangerous participation in what has been misleadingly termed the Good War was throwing up in the transport conveying them to the United Kingdom (Fussell pg. 15). † Fussell references to how the war is misnamed â€Å"The Good War† here. He suggests how can the war be good when we are putting these young boys in situations were they are throwing up out of fear. The fear is not the only problem, the men ate terrible food twice a day standing up while the officers ate at white linen tables with nice cutlery and better food.This was not the firs blow to his morale though. In training, many draftees were greeted with the letters R. T. C. which the draftee quickly learned meant replacement training center (pg. 95). Many thoughts would enter the draftees head after reading those letters, â€Å"Why, he wondered, were so many hundred of thousands of draft ed boys needed as replacements? For whom or what? Was the army expecting that many deaths or incapacitating wounds (Fussell pg. 95). † He soon learned that the answer was yes which as you can imagination was quite demoralizing and does not condescend to â€Å"The Good War† idea.Another Concept that Fussel used to support his motion that World War II wasn’t the good war everyone was talking about; was disproving the idea that only the germans spared innocent life's. He talks about the measures that the Allied forces used to protect the german assumption that the FUSAG was going to attack at Pas De Calais (Fussell pg. 32). â€Å"To move troops and reserves quickly to this fancied battlefield, Hitler would have to use railways, railway stations, and alas, railway towns, where many French civilians were killed (Fussell pg. 32). The allies bombed many french railroad structures and in the process killed many innocent citizens. The innocent killing of civilians could not relate to World War II being called the â€Å"The Good War. † If World War II, was â€Å"The Good War† then why was there so much desertion. Relating back to one of the problems I mentioned earlier, one of the main causes of desertion was fear. â€Å"Many GIs were so scared that they required special attention. Says an American woman who worked with the Red Cross, â€Å"Just before they went across to France, belts and ties were removed from some of these young men.They were very, very young (Fussell pg. 108). † Fussell tells of a battle in france, where a fresh battalion arrived to relive a unit that was battered from fighting and many of the men had been killed. Their bodies not yet been removed, but were laid out neatly just behind the foxholes and decently covered with pine boughs (Fussell pg. 107). When the reinforcements say this, they instantly disappeared only to show up many months later. How can World War II be â€Å"The Good War† when youn g men are disbanding out of pure fear.World War II may be being fought for a just reason. Hitler is clearly an uncontrollable menace who needs to be put down. On the other hand, World War II cant be â€Å"The Good War† that many historians claim it to be. Just as Fussell suggests a war can’t be good when we are sending our teenage young men in extreme situations which cause them to vomit out of fear. Also how can a war be good when we are taking the lives of innocent civilians. In the end, World War is not â€Å"The Good War† that many suggest it to be.