Natural Output Levels: Fiscal and Monetary Policy Impact

Regular Output Levels: Fiscal and Monetary Policy Impact In this exposition I examine whether the financial and money related approach has sway on the regular degree of yield. Common degree of yield, as such potential yield is a complete total national output (GDP) that could be delivered by an economy if every one of its assets were completely utilized. This implies if the economy is at characteristic degree of yield, the joblessness rate approaches the NAIRU or the regular pace of joblessness and different production lines, for example, innovation and capital are kept at ideal limit level. We can determine the common degree of yield work. It is given by: Yn=Nn=L(1-un) where normal degree of yield is equivalent to regular degree of work and it is equivalent to the work power L times 1 less the characteristic rate joblessness rate un. Also, the regular degree of yield fulfills this condition: F((1-Yn)/L,z)=1/(1+ãžâ ¼) The common degree of yield is to such an extent that, at the related pace of joblessness, the genuine compensation picked in wage setting the left half of condition is equivalent to the genuine pay suggested by value setting the correct side of condition. Be that as it may, it is difficult to change the normal degree of yield as it is hard to change the regular degree of joblessness. Lets consider why common joblessness rate can't be changed by government arrangements. Popular financial analysts Friedman and Phelps clarified that utilizing Phillips bend. They contradicted this thought on hypothetical grounds, as they noticed that if joblessness somehow happened to be for all time lower, some genuine variable in the economy, similar to the genuine compensation, would have changed for all time. Why this ought to be the situation since expansion was higher, seemed to depend on deliberate silliness in the work advertise. As Friedman commented, wage swelling would in the end get up to speed and leave the genuine compensation, and joblessness, unaltered. Henceforth, lower joblessness must be achieved insofar as pay swelling and expansion desires lingered behind real swelling. This apparently was just a transitory result. Inevitably, jobless ness would come back to the rate dictated by genuine variables autonomous of the swelling rate. As indicated by Friedman and Phelps, the Phillips bend was in this way vertical over the long haul, and far reaching request arrangements would just be a reason for expansion, not a reason for all time lower joblessness. The strategy suggestion is that the common pace of joblessness can't for all time be decreased by request the executives approaches (counting financial arrangement), yet that such strategies can assume a job in balancing out varieties in genuine joblessness. Along these lines, we should discover what precisely sway the administration strategies have to the countrys economy. Right off the bat, we ought to consider money related strategy and whether it has influence to the regular degree of yield. Financial arrangement is the procedure an administration, national bank, or fiscal authority of a nation uses to control the gracefully of cash, accessibility of cash, and cost of cash or pace important to accomplish a lot of goals situated towards the development and steadiness of the economy. Fiscal approach is alluded to as either being an expansionary strategy, or a contractionary strategy, where an expansionary strategy builds the all out flexibly of cash in the economy, and a contractionary strategy diminishes the absolute cash gracefully. Expansionary strategy is customarily used to battle joblessness in a downturn by bringing down loan costs, while contractionary strategy includes raising financing costs to battle swelling. Lets look how the money related arrangement is functioning and that is then happening to harmony yield. Assume that administration is running the expansionary fiscal arrangement and increment the degree of ostensible cash from M to M. Accept that before th e adjustment in ostensible cash, yield is at its normal level. So now we will attempt to discover does the money related strategy influence the characteristic degree of yield. In the Figure 1 we see that total interest and total gracefully cross at point A, where the degree of yield is approaches Yn, and the value level equivalents P. Figure 1. Assume the ostensible cash level increment. Recall the condition Y=Y(M/P,G,T). At a given cost level P, the expansion in ostensible cash M prompts an expansion in the genuine cash stock M/P prompting an expansion in yield. Total interest bend shifts from AD to AD. In the short run economys harmony goes from A to A, yield increments from Yn to Y and costs increments from P to P. After some time, the harmony changes. As yield is higher than the regular degree of yield, the value level is higher than was normal so the pay setters overhaul their desires which cause AS bend to move up. The economy climbs along the total interest bend, AD. The change procedure stops when yield is come back to the common degree of yield. In the medium run the total flexibly bend is AS, the economy is at point An and the value level have rose and is equivalent to P. So the main impact accomplished by financial strategy in medium run is value level ascent. The corresponding increment in the ostensible cash stock is equivalent to the relative increment in costs. So we can see that expansionary money related strategy didn't influence the normal degree of yield. We ought to consider why it didn't succeed. As we realize that settling expansion will likewise balance out yield at its characteristic level, so it recommend suspicion that money related approach doesn't influence normal degree of yield, yet just changes genuine degree of yield and returns it to the situation of regular degree of yield. In this way, in the short run, financial arrangement influences the degree of genuine yield just as its organization: an expansion in cash prompts a diminishing in loan costs and a deterioration of the money. Both of these lead to an expansion in the interest for merchandise and an increment in yield. In the medium run and the since quite a while ago run, fiscal approach is unbiased: changes in either the level or the pace of development of cash have no impact on yield or joblessness, so it can't influence the characteristic degree of joblessness and the regular degree of yield. Changes in the degree of cash lead to corresponding increment in costs. Changes in the pace of ostensible cash development lead to comparing changes in the expansion rate. Besides, we ought to consider the financial strategy and whether it influences the regular degree of yield. Monetary strategy is the utilization of government use and income assortment to impact the economy. Financial approach can be appeared differently in relation to the next principle sort of monetary strategy, fiscal arrangement, which endeavors to balance out the economy by controlling loan costs and the flexibly of cash. The two principle instruments of monetary arrangement are government consumption and tax assessment. Changes in the level and structure of tax assessment and government spending can affect on the accompanying factors in the economy: total interest and the degree of financial action; the example of asset portion; the conveyance of pay. Lets consider the financial arrangement effect on countrys economy and common degree of yield. Take a model the administration is running a spending deficiency and chooses to diminish it by diminishing it spending from G to G and leave charges T unaltered. Accept that yield is at first at the characteristic degree of yield with the goal that the economy is at point An in figure 2 and yield rises to Yn. Figure 2. The lessening in government spending from G to G moves the total interest bend from AD to AD: at a given cost level, yield is lower. In the short run, the harmony moves from A to A: yield diminishes from Yn to Y, and the value level declines from P to P. As should be obvious the deficiency decrease prompts lower yield. In the medium run insofar as yield is beneath the regular degree of yield, the total flexibly bend holds moving down. The economy descends along the total interest bend AD, until the total flexibly bend is given by AS and the economy arrives at point A. By at that point, the downturn is finished, and yield is back at Yn. Like an expansion in ostensible cash, a decrease in the spending shortfall doesn't influence yield until the end of time. In the end, yield comes back to its regular level. Anyway there is a significant contrast between the impact of an adjustment in cash and the impact of an adjustment in shortage. For this situation yield has returned to the characteristic degree of yield, however the value level and the loan cost are lower than before the move. So we can presume that monetary strategy can't influence the regular degree of yield it just influences the genuine degree of yield which in the medium and since quite a while ago run returns to its common level. Thirdly, we ought to consider whether government has whatever other arrangement that can influence the normal degree of yield. We have discover neither financial nor money related strategy can't influence the regular degree of yield without anyone else. In any case, utilizing both of these approaches together in proper manner can cause an attractive outcome and a change the characteristic degree of yield. Gives look access Figure 3, which shows the blend of financial and monetary strategy. There are two different ways to balance out pay at Y*, which is the normal degree of yield. To begin with, there is expansionary or simple financial arrangement. This prompts a high IS plan IS1. To hold salary under wraps with such an expansionary financial arrangement, tight money related approach is required. Government pick a low cash gracefully target, which is spoken to by LM1 plan for the Figure 3. Balance E1 is at yield Y*, yet has the high financing cost r1. With high government spending, p rivate interest must be held under tight restraints. The blend of simple financial arrangement and tight fiscal strategy suggests government spending G is a major piece of national salary Y* yet private spending (C + I) is a little part. Then again, government keen on since quite a while ago run development may pick a tight financial arrangement and simple money related strategy. For this situation target salary Y* is accomplished with a lower financing cost r2 at the harmony E2. With simple money related approach and tight financial strategy, the portion of private use (C + I) is higher, and the portion of g

Essay about State of the Organization

Exposition about State of the Organization Exposition about State of the Organization Condition of the Organization Jenny Hower HCS/514 Condition of the Organization In this paper a depiction of an association regarding its structure and usefulness will be examined. While having this data accessible it will permit an association to plan a methodology for improving its presentation. Plan Baptist East Hospital has had a long history in Tennessee; it has a decent notoriety of serving quality consideration to the inhabitants in the western Tennessee territory. Baptist East emergency clinic is situated in Memphis, Tennessee and had been serving people in general for more than forty years. Presently, Baptist East is a general clinical and careful medical clinic with 464 beds. The crisis office has 31 treatment suites staffed by 24-hour-a-day crisis doctors for the treatment of grown-ups. It additionally has a different, devoted five-room pediatric treatment region set up nonstop with in-house pediatric crisis doctors. There is a children’s medical clinic in development that will have the ability to have a 15 bed pediatric ICU and a 10 bed pediatric CCU that ought to be finished by the spring of 2015. This a colossal expansion to the office wherein a ton of time has been given to ensure the office is the thing that the network needs. Alongside this new experience th e emergency clinic has additionally experienced a few different changes. In 1983, the medical clinic extended the capacities of its cardiology office and in 1996 Baptist East converged with two littler emergency clinics in the zone to make it simpler for our patients in the external zones to get care. This merger has permitted the office the capacity to have more assets, extended consideration, and a bigger asset of specialists who spend significant time in administrations taking into account what every network

No time for your stupid question.

No time for your stupid question. Posthumous isnt the right word, but its among my favorite in the English language and Im so dedicated to you, gentle reader, that I would indeed write a posthumous entry if I had to. This is the number one song in heaven. Last Thursday, I had the pleasure of attending the Ig Nobel awards ceremony in H****** Square. The Igs, sponsored by a bunch of Mensa nerds actual Nobel Laureates from both H****** and MIT, celebrate nontraditional research in a variety of disciplines. This year, awards were bestowed upon ten leading researchers from four different continents for answering some of the following questions: 1. Do people swim faster in water or in syrup? 2. What internal pressures are observed upon penguin defecation? 3. Are neutered pets somehow less happy than regular pets? 4. What about Star Wars Episode IV: A New Hope is most appealing to a common cricket? 5. How can we best improve our nations economy? 6. Why bother to photograph and retrospectively analyze every meal youve eaten over a period of 34 years? and the best part of this adventure was that it was totally free courtesy of my dorms IFAF allotment. The culture of the dorm is more-or-less floor-basedusually money is allotted by floor, so you tend to have study breaks and go on trips mostly with your floor. Because, I mean, its actual free money. As a result, most people end up becoming great friends with their neighbors early on in their MIT experience. So, to encourage bonding between floors, the housemaster set up an inter-floor activity fund whereby the entire dorm gets $3000 a term to plan activities that integrate two or more floor. Since this is also literally free money, we have to stage a battle to the death at an ExecComm meeting in late September to allocate the preciously limited funding. This year, Conner 2 was crafty enough to procure about $1000 of the funding, $30 of which went toward buying me this awesome ticket specifically so I could blog it for you. But I digress. Want to know the answers to the nagging scientific questions above? Battle on, reader. 1. Do people swim faster in water or in syrup? Professor Edward Cussler won the Ig Nobel in Chemistry (move over, Schrock) for proving, along with 20 student volunteers from the University of Minnesota, that humans swim equally fast in syrup and water. Before you ask, rest assured that backstroke, breast stroke, freestyle, and whatever the other one is were all tested thoroughly. In his mercifully brief acceptance speech (speeches longer than 60 seconds in length were interrupted by Miss Sweetie Poo imploring, Please stop. Im bored. Please stop. Im bored.) Professor Cussler explained that the reasons for this are complicated and left the stage with a flourish. 2. What internal pressures are observed upon penguin defecation? Dr. Victor Benno Meyer-Rochow of Bremen, Germany found out and won the Ig Nobel prize in Fluid Dynamics for this paper, which I can understand embarrassingly well after 10.301. Its good to know that you can model parts of the process as a Newtonian Fluid. The laureate also wore a t-shirt bearing this helpful diagram from his paper. 3. Are neutered pets somehow less happy than regular pets? Of course they are. This led Gregg A. Miller to develop Neuticles, a prosthetic testicular implant available in three sizes and three degrees of firmness. Though, in his own words, it took him a few months to get the ball rolling on the venture, just three years later he became the proud recipient of the Ig Nobel prize in Medicine. From a simple man with a dog and a dream to Ig Nobel laureate truly, Mr. Miller has shown that only a tireless commitment to an abstract ideal can produce truly inspiring scientific research. 4. What about Star Wars Episode IV: A New Hope is most appealing to a common cricket? Darth Vaders TIE fighter. Not enchanted? You must not be a cricket. The Ig Nobel Peace Prize went to Claire Rind and Peter Newcastle University for electrically monitoring the activity of a locust brain cell while showing the cricket selected highlights from Star Wars. This might actually be the most scientifically valid Ig Nobel awarded this yearby determining how the cricket reacted to different shapes and velocities, the researchers did make substantial progress in understanding the visual processes of insects. But, of course, showing Star Wars to a cricket can only help promote inter-species peace. 5. How can we best improve our nations economy? Mitra has been bothered for the past few weeks that although the MIT community has been abuzz with news of Professor Schrocks Nobel Prize in Chemistry, Robert J. Aumanns (MIT PhD 1955) prize in Economics has cone mostly ignored. Well, I say, what about Gauri Nandas Ig Nobel in economics? Nanda, a student resaarcher in the media lab has designed an alarm clock that runs away from you until its absolutely sure your awake. The little bugger has recieved quite a lot of national press, and now its invaluable contribution to our nations economy (by ensuring that people actually get up and go to work, thus doing something economical) has been recognized. The cool thing about the media lab is that you can make an alarm clock that runs away or a piece of clothing that changes color or a bumper air hockey table and, like, get your PhD in doing that. 6. Why bother to photograph and retrospectively analyze every meal youve eaten over a period of 34 years? Well, Im not sure this one has a clear answer, really. Dr. Yoshiro Nakamats, winner of the Ig Nobel in Nutrition, delivered perhaps the most inspiring and concise acceptance speech at the Ig Nobel ceremony: Life is long should be longer speech should be shorter Good night. Or perhaps this profound, almost poetic summation of the human condition merely seemed to be a brief moment of clarity amidst an opera dedicated to counting to infinite, programs being folded into paper planes and thrown at the stage (sometimes during the speeches of actual Nobel Laureates) and 24/7 speeches on animal morphology, primate locomotion, the purpose of life. The lattermost of these consist of speeches of 24 seconds that convey everything there is to know about a topic and then 7 words that summarize it in a manner that is understandable to everyone. Anyway, all this commotion left me with quite a favorable impression of Dr. Nakamats. Then some other people on my floor went to the free Ig Informal lectures and discovered some more about Dr. Nakamats, as well as getting the distinguished scientist to autograph their program for him: The toppled thinker is, of course, the international symbol of Ig Nobel. I guess somebody who was actually there should describe this, but in the mean time you can get an idea of it by checking out the good Doctors amazing CV. Apparently he wrote MIT on the chalkboard and asked what it stood for, then made Zach 08 stand up when he got the wrong answer. What did MIT actually stand for? I dont know. He concluded much more curtly than at the ceremony I attended: I have no time for your stupid question. Goodbye. The rest I can only describe via hearsay, but you can extrapolate from the content of this interview. And these quotes: I have a special way of holding my breath and swimming underwater-thats when I come up with my best ideas. Ive created a Plexiglas writing pad so that I can stay underwater and record these ideas. I call it creative swimming. these are snacks Ive invented, which I eat during the day. Ive marketed them as Yummy Nutri Brain Food. They are very helpful to the brains thinking process. They are a special mixture of dried shrimp, seaweed, cheese, yogurt, eel, eggs, beef, and chicken livers-all fortified with vitamins. Twice a day I take thirty-minute naps in a special chair Ive designed-the Cerebrex chair. It improves memory, math skills, and creativity, and it can lower blood pressure, improve eyesight, and cure other ailments. Special sound frequencies pulse from footrest to headrest, stimulating blood circulation and increasing synaptic activity in the brain. An hour in my chair refreshes the brain as much as eight hours of sleep. [Rather than being 1 percent inspiration and 99 percent perspiration as Edison suggested, genius is] 1 percent perspiration and 99 percent ikispiration. Now, more than ever, we have to have ikispiration. This means I encourage myself to go through my three elements of creation: suji, the theory of knowledge; pika, inspiration; and iki, practicality, feasibility, and marketability. In order to be successful, you must go through all three stages and make sure that your ideas stand up to all of them, which is ikispiration. Also, these days, the computer saves time and cuts out the 99 percent perspiration. Im so glad I had the opportunity to be in the presence of this magnificent man, however briefly and distantly. By the way, I am somewhat more benevolent than Dr. Nakamats and do have time for your stupid question I mean, dont be discouraged from commenting. Next up: camping!

How to Ask for Directions in Italian

Michelangelos Sistine Chapel is around the corner. Or so you thought the sign said until you ended up lost and without any idea how to get where you wanted to be. Avoid missing the highlights of Italy with these simple phrases and keywords for asking for directions in Italian. Vocabulary Let’s start with some must know vocabulary words. Some of the most common words you’ll encounter are: Andare - To goCamminare - To walkGirare - To turnFermare - To stopDiritto (dritto) - StraightA destra - RightA sinistra - LeftNord - NorthSud - SouthOvest - WestEst - EastVicino - CloseLontano - Far When giving directions in Italian, the Imperative mood is used. For the most common verbs listed above, the Imperative mood  is as follows: Andare – (tu) VAI/va’, (lui, lei, Lei) vada, (voi) andateCamminare – (tu) cammina, (lui, lei, Lei) cammini, (voi) camminateGirare – (tu) gira, (lui, lei, Lei) giri, (voi) girateFermare – (tu) ferma, (lui, lei, Lei) fermi, (voi) fermate Besides this keyword vocabulary, it is also important to know how to describe where something can be found. In English these types of directions would translate to, â€Å"The bar is around the corner† or â€Å"It is in front of the market.† Phrases In Italian instead, you want to use these descriptive directional phrases: Vicino a - Close to / near / nearbyDietro a - BehindAll’angolo con - At the corner ofDavanti a (di fronte a) - In front of / across fromAll’incrocio con - At the intersection ofAccanto a - Next to Additionally, the following sentences are worth memorizing and will ensure you get the right directions every time. Mi sono perso/a, Lei puà ² aiutarmi? - I am lost, can you help me?Cerco†¦ - I am looking for†¦   Ã‚     - Il teatro - The theater   Ã‚     - La stazione - The train station   Ã‚     - Il supermercato - The supermarket   Ã‚     - Un ristorante - A restaraunt   Ã‚     - Un bagno - A bathroom   Ã‚     - L’aeroporto - The airport Quantà ¨ lontano a...? - How far is it to...Dove sono i gabinetti? - Where is the bathroom? (polite way to ask in a public place)Dovà ¨ il bagno? - Where is the bathroom?Posso usare il bagno, per favore? - Can I use the bathroom, please?Me lo puà ² indicare sulla mappa/cartina, per favore? - Can you show me on the map, please? Typical responses to requests for directions include: A destra - RightA sinistra - LeftVicino - NearLontano - FarGira a - Turn toIl primo/la prima a destra - First on the rightIl secondo/la seconda a sinistra - Second on the left Some more handy tips: Often times, when asked where something is, Italians will answer â€Å"Vada sempre diritto!†   It means Straight ahead!One kilometer (or un chilometro in Italian) 0.62 miles.If you cant find what youre looking for, enjoy what youve found. Sometimes when traveling, the best experiences happen serendipitously.

The Types and Stages of Insect Metamorphosis

Government Intervention in Market Free Essays

The Market Structures The complete economic activities are handled in four different market structures, namely perfect competition, monopolistic competition, oligopoly and monopoly. The nature and degree of competition varies among the all the above-mentioned four markets. In summarized manner we can describe that as the number of sellers increases, each firms’ ability to charge high prices reduces. We will write a custom essay sample on Government Intervention in Market or any similar topic only for you Order Now If number of buyers increases then buyers practice to purchase the goods at his choice price diminishes. The sellers have to face price competitions if the product is homogeneous and price and non-price competition exist if goods are differentiable. A large number of buyers and sellers make competition perfect. A homogeneous good with a number of sellers put the market in competition but a homogeneous good in a few sellers and a number of buyers leads the competition in another directions and put sellers in relatively good position.The complete knowledge of buyers and sellers regarding market price and goods encourage fair competition on the other hand incomplete knowledge of product, alluring misleading advertisements and forced differentiation of the goods break the pure competition. Production of a good by a particular producer or a few producers put the economy in their hands (monopoly) but if only a few buyers or a union of the buyers is controlling (monopsony) the market then market becomes non-competitive.All of the above there are some peculiar goods, which are non-excludable (can be consumed by any one without paying the cost) and non-rivalrous (no one has exclusive right over its consumption), that are not produced by any profit making companies such as military service to protect the nation. Market Failure Causes From the above discussion it is very clear that except perfect competition rest three market structures are not fulfilling the optimal criteria of economy i. e. high over all economic growth, full employment and fair distribution of income among the different parts of the society.The reasons for such market failure or non-attainment of the Pareto optimality (efficiency in exchange/consumption, efficiency in production and overall Pareto efficiency) are as follows: 1. Imperfect Market: Whenever the market is imperfect as under monopoly, monopolistic competition or oligopoly, the perfect market will fail to achieve the Pareto optimal conditions. 2. Externalities: If the prices in a market do not reflect the true marginal costs and/or marginal benefits associated with the goods and services traded in the market then there must be present of some externality.If the productivity of an individual affects the benefits of the others is called the production externalities and if the consumption levels of others affect the welfare of the individuals then consumption externalities occur. 3. Public Goods:Because public goods are non-excludable and non-rivalrous, they are not sold in a free market like private goods. Therefore, they cannot be provided by private firms. 4. Increasing returns to scale:There are increasing return to scale or decreasing costs due to technical externalities that lead to market failure under perfect competition.When there are increasing returns to scale in a perfect competitive market, they lead either to monopoly or to losses. 5. Asymmetric or Incomplete information:In the real world, there is asymmetric or incomplete information due to ignorance and uncertainty on the part of buyers and sellers of goods. Thus they are unable to equate social and private benefits and costs. Type of Government Intervention At this stage Government intervention comes into effect and Government try to provide the following benefits: 1. Control non-competitive behavior of the firms. a. Taxation of monopoly profits (the Windfall Tax) . Regulation of oligopolies/cartel behavior c. Policies to introduce competition into markets (de-regulation) 2. Using Tax or subsidies or by environmental policies combat externalities. 3. Provide public goods. a. Direct provision of public goods (military services) b. Price controls for the recently privatized utilities 4. Provide information and assure information flow by various law and policies. 5. Government changes the income distribution by society by imposing income tax and inheritance taxes etc. Why corn/ soybean or wheat like agricultural commodity market do not need government intervention:The agriculture commodity market for corn/wheat/soybean like commodities fulfill the conditions of perfect competitive market as a) Many small producers b) Homogeneous product c) Many buyers d) Free entry and exit e) All the producer’s face the same cost as they have equal access to the same technology. In the perfect competitive market a seller/producer has to simply determine how many units to produce and sell at the current equilibrium price. If a perfectly competitive firm earns short run economic profit, new firms enter in the long run and market supply increases hence the price decreases.As the price falls each firm’s economic profit diminishes. To restore the economic profit, existing firms make every effort to become more efficient, but their success encourage s further entry in the market. Due to this continuous entry in the market in the long run each firm get a normal profit. If firms face the economic loss in the perfect competitive market and they are optimally efficient with current available technology then this environment compels some (weaker) firms to leave the market in the long run. As some firms exit, the market supply decreases and price increases.The process continues in the long run till each surviving firms earn a normal profit. The graph below demonstrates the longrun equilibrium in a perfectly competitive market, where profit equals zero: [pic] We observe that the following is the case for a perfectly competitive market in long-run equilibrium †¢ Profit (? ) = 0 because P = ATC. †¢ P = MR = MC = ATC. †¢ The firm is producing the quantity where ATC is at its minimum point. Technological Efficiency:At given cost of production (resources used) if the output produced is maximized then it is called technological efficiency.From the above diagram it is clear that the firm is technologically efficient as it is producing the output at the lowest point of its cost curve (ATC). It is natural as i) All profit maximizing firms want to increase their profit by minimizing the cost of production; as in the perfect competition they cannot raise the prices of homogeneous product. ii) As in long run profit equals to zero for a perfectly competitive firm, hence, if the firm does not choose to minimize the production-cost, ATC will increase and profit would be less than zero.Allocative Efficiency:It occurs when resources are allocated to the production of goods in such a manner that society is a well off as possible. Marginal social cost (MSC) captures the opportunity cost of using another input in the production of a good, where opportunity cost refers to the best alte rnative use of an input. If more of a good is demanded in the market, additional inputs (e. g. labor, electricity, etc. ) are required to produce additional output of that good. We can measure the cost of added production by looking at the marginal cost (MC) of producing one more unit of the good.The rule to achieve allocative efficiency is that the additional benefits received by consumers from consumption of a good equal to the incremental costs of producing another unit of that good. MSB = MSC To achieve allocative efficiency in the use of productive inputs, marginal social benefit must equal marginal social cost for a good or service. If marginal social benefit is greater than marginal social cost (MSB gt; MSC) then the benefits attained by consumers from the consumption of another unit of the good or service exceeds the opportunity cost of the allocation of additional inputs into the production of that good. In other words, when MSB gt; MSC, society wants more of the good produced and uses the market to signal that desire. How does the market convey this information? Since price (P) equals marginal social benefit (MSB) and marginal cost equals marginal social cost (MSC), we have the condition that: P = MSB = MSC = MC; or P = MC So the Pareto optimality conditions fulfilled. Hence the agriculture commodity markets for corn/wheat/soybean like commodities need not any government intervention. Local Cable TV or local gas company need government intervention:The local cable TV or local gas company in many countries works as a monopolist. The required conditions to be a monopolist are: 1. There is one seller or producer of a homogeneous product. 2. There is no close substitution of the product available 3. There is perfect competition in the factor market so that it can minimize the cost of the production 4. There are many buyers of the product but none of them can influence the price of the product. 5. There is no threat of entry of exit. Given above assumptions, the price, output and profit under monopoly are determined by the forces of demand and supply.The monopolist has complete control over the supply of the product. He is also a price maker who can set the price to his maximum advantages. But he cannot fix the price and output simultaneously. Either he can fix the price and leave the output to be determined by the consumer demand at that price or he can fix the output to be produced and leave the price to be determined by the consumer demand for the product. Thus whatever price he fixes, whatever output he decides to produce are determined by the condition of demand. [pic]We observe that the following is the case for a perfectly competitive market in long-run equilibrium †¢ Profit (? ) gt;= 0 because P gt;= ATC. †¢ P gt;= MR = MC †¢ The firm does not produce the quantity where ATC is at its minimum point. Technological Efficiency:Although each firm in monopoly want to reduce it’s cost of production to maximize the profit yet the industry/ market does not produce the output at the minimum point of ATC so the monopoly market is technologically not efficient. Allocative Efficiency:As we have already discussed that the condition to attain allocative efficiecy isP = MSB = MSC = MC; or P = MC But as P is greater than MC in the case of monopoly so it is inefficient on allocation basis, which is called deadweight welfare loss (social cost). We may say that the monopoly leads to misallocation and underutilization of resources and reduction in consumer’s welfare. Government may impose regulations to control a monopoly: For industries where the average total cost curve displays tremendous economies of scale, the government may decide that having a single provider is desirable.Using the measures of productive and allocative efficiency, regulators know that when left alone, a profit maximizing monopoly produces less of the good or service than is desired by society and at too high of a cost. Regulated monopolies agree to adhere to government oversight in order to sustain their monopoly status. 1. Forbidding the formation of monopolies (e. g. , antitrust laws) 2. Forbidding monopolistic behavior (like predatory pricing) 3. Ensuring standards of provision. 4. Ensuring competition exists (e. g. deregulation) 5. Imposition of a lump-sum tax on a monopolist (shifts AC upwards), and supernormal profits are taken as tax. Governments may also regulate MC/AC pricing for monopolies. Effects of MC/AC regulating pricing by government intervention : Marginal Cost Pricing : Regulators set price where marginal cost equals demand. This is the most efficient solution as allocative efficiency is achieved: P = MC and therefore MSB = MSC. But the firm is losing money, as total revenues are less than total costs (see the figure given below).In the long run, if this condition prevails, the firm will shut down and cease to operate, not especially a desirable outcome if the monopoly provides an essential good or service such as electricity or water. It is sometimes called optimal price regulation. It does not work with natural monopolies (they will not earn a profit, and would exit the industry). See the following figure. Average Total Cost Pricing : For natural monopolies, the regulator can force monopolies to charge the price where ATC crosses Demand.At this price economic profit will be zero, although there will be normal accounting profits. Sometimes called non-optimal price regulation. This is a more efficient outcome than no regulation at all. Price still exceeds marginal cost and therefore, marginal social benefits exceed marginal social costs. With average cost pricing, allocative and productive efficiency are not achieved. The firm earns accounting profits but no economic profits. Smaller deadweight loss than unregulated monopoly. See the diagram given below. [pic] How to cite Government Intervention in Market, Papers

Consumer Behavior American Premium Handbag and Accessory Industry

Question: Discuss about theConsumer Behaviorfor American Premium Handbag and Accessory Industry. Answer: Introduction of Coach Coach is one of the top sellers in the American premium handbag and the accessory industry. The primary aim of the firm is to be loyal to the customers and develop good and effective relations with them. The firm is continuously growing throughout the concerned market segments of China and United States and because of slow generation of the sales the firm is planning for rebranding and the transformational plan (Schiffman et al. 2016). Executive Summary of Article The article reveals the increase in the consumers for the luxury brands. China has emerged as the fastest growing country economy throughout Asia having a large number of the middle-class consumers. The increase in the salaries of the concerned urbanized consumers has enhanced the economic development of the country (Schiffman et al. 2016). Coach is one of the American luxury brands of handbag and accessories whose demands throughout China have increased significantly. The article overall reflects the increase in the demands of the luxury branded products by the middle-class consumers throughout china and the Asia-pacific. Characteristics Shared Among the Customers of Luxury Brands within China The luxury brands aim to target the middle-class consumers throughout china as they contribute 51% of the total population (Szmigin and Piacentini 2015). The shared characteristics among the luxury brands include the strategic movement within the third-tier and the second-tier cities, expanding the business processes rapidly, developing effective relations with the middle-class consumers and controlling product supply chain along with delivering a quality of the products to the targeted consumers (Solomon 2010). Moreover, the luxury brands are developing the excellent Chinese-oriented communication strategy for the consumers especially for the middle-class consumers getting higher salaries. References Schiffman, Leon, Aron OCass, Pamela Paladino, and Jamie Carlson. 2016. Consumer Behaviour (6Th Edition),. 6th ed. Australia Pty: PEARSON. Solomon, Michael R. 2010.Consumer Behaviour. Harlow, England: Prentice Hall/Financial Times. Szmigin, Isabelle and Maria Piacentini. 2015.Consumer Behaviour. Oxford: Oxford University Press.

Providing a Financial Aid to the Developing Countries

1. Nowadays, it became quite clear to just about anyone that the idea that, by providing a financial aid to the so-called ‘developing’ countries, Western nations would be able to help these countries to get out of poverty, has been deprived of the remains of its former legitimacy.[1]Advertising We will write a custom research paper sample on Providing a Financial Aid to the Developing Countries specifically for you for only $16.05 $11/page Learn More This could not be otherwise, because ever since the ‘aid’ paradigm has attained the status of the UN official policy, in regards to the Third World countries, there has been not even a single instance reported of the policy’s implementation having produced a positive outcome. Quite on the contrary – the more this ‘aid’ has been pumped into the concerned countries’ economy, the faster they grew detached from the notions of progress and development, i n the first place. In its turn, this leaves very little doubt that the assumption that aid can serve as the tool of development, is conceptually fallacious. In this paper, I will explore the validity of the above-stated thesis at length. 2. One of the reasons why, during the course of the late 20th century, it became a commonplace practice among ‘progressive’ politicians in the West to advocate the idea of aid, is that during this time it used to be fashionable to assess the essence of the ongoing developments on the international arena within the conceptual framework of political Constructivism. According to the paradigm’s foremost provision, as time goes on, the very purpose of the independent states’ continual existence undergoes a qualitative transformation. [2] In its turn, this was supposed to justify the idea that rich countries should preoccupy themselves with trying to improve living standards in the Third World. Nevertheless, as time goes on, it becomes increasingly clear to more and more people that, discursively speaking, political Constructivism is nothing by the instrument that allows Western countries to conceal their actual (Realist) agenda, concerned with: a) political/economic expansion, b) maintenance of a political stability within, c) destabilization of competing states. What it means is that Western countries cannot be genuinely interested in having aid, which they provide to the ‘developing’ countries, to prove effective, by definition. After all, the fact that people in the West enjoy the world’s highest standards of living is the direct consequence of the Western countries’ existential mode remaining largely ‘parasitic’. The validity of this statement can be well illustrated, in regards to the FRS’s practice of emitting billions and billions of dollars, without bothering to ensure that the money in question does reflect the value of any material assets. As a resu lt, the US currency had ceased to represent any objective value, whatsoever, while being turned into essentially the tons of a valueless green paper (nowadays, it is rather the bunch of digital zeroes in the FRS’s main computer).Advertising Looking for research paper on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More Yet, it is specifically this currency (the US dollar), with which the Western world pays ‘developing’ countries, in exchange for their natural and human resources. In the similar manner, Spanish and later British colonists used to buy land from the American Natives, in exchange for glass-beads. Therefore, the Western practice of providing the Third World countries with aid, while these countries are being robbed clean by the very same ‘aid-providers’, is a hypocrisy of the worst kind. Being strongly hypocritical, this practice cannot possibly result in the improvement of l iving standards among the world’s most impoverished people. Quite on the contrary – it prompts aid-recipients to adopt the mentality of beggars, which are doomed to rely on others, while trying to meet the ends.[3] In its turn, this causes the ‘poor and needy’ to become resentful of their moralistically minded ‘beneficiaries’. In this respect, it would prove quite impossible to disagree with Bindra, who suggested that: â€Å"Far from being productive or necessary, the donor-dependant relationship most often ends in mutual hatred. And amid the final acrimony, one crucial fact is forgotten: the longer the relationship has carried on, the less capable the dependant of reducing his dependence†.[4] This explains the phenomenon of legal and illegal immigrants from the Third world continuing to arrive to the Western shores in big numbers, despite remaining deeply resentful of the so-called ‘Western values’. These people are perfec tly aware that in their own countries, they do not have even a slight chance of a social advancement, by definition, which in turn is the direct consequence of the West’s ‘well-meaning’ geopolitical arrogance, reflected by the euro-centric belief that aid can indeed serve as the tool of development. This, of course, once again exposes the sheer fallaciousness of the assumption that by throwing ‘crumbs’ from their richly served tables to those people that have to struggle with hunger on a daily basis, philanthropically-minded Westerners would be able to make a difference. There is another reason why there can be no rationale, whatsoever, in thinking that there may be any objective benefits to the policy of providing aid to the ‘developing’ countries – especially if the latter happened to be situated in Africa. This reason has to do with the fact that, in the evolutionary sense of this word, these countries’ citizens cannot b e considered equal with their Western or South-Asian counterparts. After all, it does not represent much of a secret that the average rate of IQ among citizens of the world’s most impoverished countries, such as Nigeria, Equatorial Guinea and Ethiopia, amounts to as low as 50-60.[5] What it means is that the very assumption that aid can trigger the process of the evolutionary underdeveloped individuals being set on the path of progress, does not stand much of a discursive ground.Advertising We will write a custom research paper sample on Providing a Financial Aid to the Developing Countries specifically for you for only $16.05 $11/page Learn More The reason for this is apparent – it is only those individuals that are capable of operating with highly abstract subject matters, which in turn is being reflected by the rate of their IQ, who have what it takes to be able to enforce the virtues of a rationale-based (and consequentially prosperous ) living. After all, it is specifically one’s ability to understand the meaning of abstractly sounding terms/definitions, which creates objective preconditions for the individual in question to be capable of exercising a rational control over its animalistic urges. One of these urges is concerned with the intellectually underdeveloped people’s tendency to remain tribally minded, throughout the course of their lives. In its turn, this can be discussed in terms of a metaphysical ground, out of which these people’s taste for corruption actually stems. This helps us to understand why, as practice indicates, at least 60% of a financial/material aid that is being provided to the ‘developing’ countries annually, on the part of the West, ends up being stolen by the local officials, in charge of distributing this aid among the most socially disadvantaged citizens. [6] Yet, it is not only that this does not cause aid-providing Western countries to reconsider the legitimacy of the policy in question, but it in fact appears to provide aid-donors with an additional incentive to keep on throwing money into the bottomless pit of the Third World. Such a seeming illogicality, however, can be well explained once we realize that, in the geopolitical sense of this word, the term ‘aid’ is nothing but the well-sounding euphemism to the term ‘extortion’. The rationale behind this suggestion is as follows: By providing aid to the Third World countries, Westerners contribute to the maintenance of the situation when the representatives of the corrupted ruling elites in these countries, are able to remain in the position of power, while continuing to lead a parasitic existence. The price of this is that the rest of ordinary citizens are being kept in the state of an extreme poverty. After all, the more impoverished citizens are, the easier it is to provide them with the incentives to participate in elections/publicly held mass- rallies, which in turn legitimize the earlier mentioned state of affairs. This is because the cost of the impoverished citizens’ active participation in the earlier mentioned activities is comparatively cheap.Advertising Looking for research paper on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More For example, it represents a common practice, on the part of politicians in many ‘developing’ countries, to hire people to participate in the mass-rallies (staged to prove that these politicians indeed enjoy much of a public support), by paying every individual ‘supporter’ as little, as $1 per day.[7] This partially explains the reason why, while pumping finances into the economies of the Third World countries, the UN bureaucrats never cease stressing out that the provided financial assistance is also meant to promote the values of democracy. While knowing perfectly well that, within the Third World settings, democracy necessarily breeds corruption, the earlier mentioned bureaucrats simply strive to maintain the present status quo in the ‘developing’ countries, concerned with the situation when the small minority of these countries’ richest citizens continues to subject their less fortunate countrymen to the most extreme forms of an econ omic exploitation. Therefore, the democracy-rhetoric, on the part of those Western politicians who popularize the idea that aid can indeed be considered the tool of development, indicates that, despite having condemned the legacy of colonialism formally, Western countries nevertheless continue to remain essentially colonial – although this time, their colonial aspirations are concealed with the politically correct wrapper of ‘aid’.[8] Finally, the idea that aid may serve as the instrument of development cannot be considered thoroughly valid, because it is nothing but the byproduct of White people’s endowment with the sense of a perceptual euro-centrism. That is, the concerned idea appears to be consistent with solely the Western outlook on what the notion of development stands for, because it reflects While people’s tendency to associate this particular notion with the notion of quality. What it means that there are no good reasons to consider this idea applicable, within the context of how people in non-Western countries go about addressing their evolutionary agenda of securing and expanding the affiliated environmental niche on the planet. The reason for this is apparent – even though that, regardless of what happened to be the particulars of their ethno-cultural affiliation, all people are similar, in respect of being ‘programmed’ to seek domination, the strategies that they deploy during the course of the process, reflect the measure of the concerned individuals’ existential complexity. Whereas, some people strive to maintain their evolutionary fitness by the mean of contributing to the pace of the technological/cultural progress (quality), the others pursue the same agenda by the mean of making babies on an industrial scale. In the eyes of evolution, neither of the mentioned strategies can be deemed ‘superior’ – all that matters, is that the chosen strategy ensures the eventu al survival/dominance, on the part of its affiliates.[9] [10] In its turn, this implies that, despite the fact that many citizens in the Third World countries do suffer from undernourishment; ‘aid’ (in the Western sense of this word) is the last thing they need. For example, within the matter of forty years, the population of Ethiopia has tripled – despite the fact that, throughout this time, Ethiopians continued to suffer from the never-ending civil war and famine.[11] Perceptually ‘feminized’ Westerners, on the other hand, grow ever more incapable of addressing even the most basic life-challenges – despite enjoying the world’s highest standards of living. As opposed to the Western societies of whining degenerates, which have effectively ceased evolving, the Ethiopian society is blessed with the Darwinian vitality, which in turn allows its members to successfully deal even with the most unimaginable hardships – without needing t o be ‘aided’ by those who cause these hardships, in the first place. 3. I believe that the earlier deployed line of argumentation, in defense of the suggestion that the notions of ‘aid’ and ‘development’ are mutually inconsistent, fully correlates with the paper’s initial thesis. Apparently, aid cannot lead to development, by definition. Bibliography Bebler, Anton. â€Å"Self-Assertion in the Third World.† International Political Science  Review 1, no. 3 (1980): 369-380. Bindra, Sunny. â€Å"Men Behaving Badly.† In Missionaries, Mercenaries and Misfits: An  Anthology, edited by Rasna Warah, 147-155. London: AuthorHouse, 2008. Ghosh, Arun. â€Å"Self-Reliance, Recent Economic Policies and Neo-Colonialism.†Ã‚  Economic and Political Weekly 27, no. 17 (1992): 865-868. Hodgson, Geoffrey. â€Å"Darwinism and Institutional Economics.† Journal of Economic  Issues 37, no. 1 (2003): 85-97. Jones, Jack. â€Å"Soc ial Darwinism Reconsidered.† Political Psychology 3, no.  ½ (1981): 239-266. Lynn, Richard, and Tatu Vanhanen. IQ and the Wealth of Nations. Westport: Greenwood Publishing Group, 2002. O’Higgins, Eleanor. â€Å"Corruption, Underdevelopment, and Extractive Resource Industries: Addressing the Vicious Cycle.† Business Ethics Quarterly 16, no. 2 (2006): 235-254. Olssen, Mark. â€Å"Radical Constructivism and its Failings: Anti-Realism and Individualism.† British Journal of Educational Studies 44, no. 3 (1996): 275-295. Szeftel, Morris. â€Å"Misunderstanding African Politics: Corruption the Governance Agenda.† Review of African Political Economy 25, no. 76 (1998): 221-240. Tomlinson, Bill. â€Å"What Was the Third World?’, Journal of Contemporary History 38, no. 2 (2003): 307-321. White, Phillip and Lionel Cliffe. â€Å"War Famine in Ethiopia Eritrea.† Review of  African Political Economy 27, no. 84 (2000): 329-333. Footnotes Bill Tomlinson â€Å"What Was the Third World?’, Journal of Contemporary History 38, no. 2 (2003): 311. Mark Olssen â€Å"Radical Constructivism and its Failings: Anti-Realism and Individualism.† British Journal of Educational Studies 44, no. 3 (1996): 280. Anton Bebler â€Å"Self-Assertion in the Third World†, International Political Science  Review 1, no. 3 (1980): 375. Sunny Bindra, â€Å"Men Behaving Badly.† In Missionaries, Mercenaries and Misfits: An Anthology, ed. by Rasna Warah (London: AuthorHouse, 2008), 149. Richard Lynn and Tatu Vanhanen, IQ and the Wealth of Nations (Westport: Greenwood Publishing Group, 2002), 120. Eleanor O’Higgins â€Å"Corruption, Underdevelopment, and Extractive Resource Industries: Addressing the Vicious Cycle.† Business Ethics Quarterly 16, no. 2 (2006): 237. Morris Szeftel â€Å"Misunderstanding African Politics: Corruption the Governance Agenda.† Review of African Political Economy 25, no. 76 (19 98): 219. Arun Ghosh â€Å"Self-Reliance, Recent Economic Policies and Neo-Colonialism.† Economic and Political Weekly 27, no. 17 (1992): 866. Geoffrey Hodgson â€Å"Darwinism and Institutional Economics.† Journal of Economic Issues 37, no. 1 (2003): 90. Jack Jones â€Å"Social Darwinism Reconsidered.† Political Psychology 3, no.  ½ (1981): 245. Phillip White and Lionel Cliffe â€Å"War Famine in Ethiopia Eritrea.† Review of  African Political Economy 27, no. 84 (2000): 332. This research paper on Providing a Financial Aid to the Developing Countries was written and submitted by user Lyla U. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

COURSE PROJECT Essay

COURSE PROJECT Essay COURSE PROJECT Essay Devin Martin MIS 535 Managerial Applications Of Information Technology Professor: Mr. Sibrizzi Course Project How to Improve a Broken Accounting Information System Table of Contents 1. Introduction 2. Step to implementing an integrated accounting information system 3. Benefits and advantages of a computerized accounting information system 4. Emerging technologies 5. Conclusion 6. References Can you imagine in 2012 working for an entity whose Information systems hasn’t been improved since the 90s? Well I did. I was in my sophomore year of college, when I received a call from the City of St. Louis Human Services Department secretary. Ms. Lajoyce offered me an opportunity I was so patiently waiting on, the accounting clerk position. I was extremely excited and believed this was the beginning of my journey to being an Accountant. It was now time for me to put all my education to use. Once I was there, I quickly learned the accounting department didn’t operate with an integrated information system or collaboratively as a team. Each accountant had there own database or spreadsheet systems, which decreased productivity and efficiency. Information systems are essential for conducting day-today business. First, I will focus on describing each accountant’s database or spreadsheet system and identity the problems. Then, I’ll educate the manag er on how to effectively implement an accounting information system. Lastly, I will provide the advantages and benefits for the accounting department if a well structured accounting information system is implemented. I found the best way to prepare myself for my first real job was to learn the organization, its culture, and environment. In the accounting division there was the manager, accounting coordinator, internal auditor, three accountants, and four accounting clerks. The division still operated as command and control environment, which means no matter how many good ideas I had the upper-level management would not listen to them. The first accountant maintained the books for the Homeless division, the second accountant maintained the books for the St. Louis Agency on Aging, and the third accountant maintained the books for the Youth and Family Division. All of the accounting division employees were given the necessary hardware to complete their duties, but lacked the necessary software needed to successfully complete their duties in a timely manner. The accounting manager has been unsuccessful in convincing the Department Director, to approve funds to update the accounting information system. The Youth and Family accountant, over the years, decided he would purchase the software he needed to create his own database. He quickly taught himself how to build a database using access. The database the youth and family accountant created consisted of several transaction processing systems. Once a transaction was input into the system, it updated the system’s master file that permanently maintained sites and vendors information for the youth and family division. The data in the system was combined in different ways to create reports of interest to management and government agencies and to send payment to the sites. The TPS supplied data to the accountant’s general ledger system, which is responsible for maintaining records of the firm’s income and expenses and for producing reports such as income statements and balance sheets. His system decreased data redundancy and cut cost. Unfortunately the accounting coordinator and other accountants weren’t educated on using an access database, so they couldn’t comprehend his system. The division must be aware of and open to the influences of information systems to benefit from new technologies. The Homeless division accountant and the SLAAA accountant had several excel spreadsheet systems they created to

Research Paper Essay Example | Topics and Well Written Essays - 1250 words - 4

Research Paper - Essay Example Traditionally, these problems were not apparent because tourists were very responsible in helping preserving the pristine nature of places they visit. But today the environment are becoming an eye sore because of exploitation through ecotourism. Wildlife is also threatened. Reasons for this could be poor management so that the environment and wildlife are not conserved. Ecoutourism became a form of business rather than appreciation of nature. Thus, most often it hastens the decline of natural resources and causes the imbalance of environmental ecology as a result of some extinction of fauna brought about by extensive tourism. Modern ecotourism should be transformed from its current state to the position where it contributes to ecological preservation, nature protection, and social responsibility. (Make sure you describe the problem fully in introduction. I think the problem was fully described. Besides I will be going beyond 5 pages if I will revise the introduction. I even went beyo nd the number of word count required in your paper)(he said to me need more describe so you can change some words by another words which is more value of describe) Ecotourism is believed to contribute to ecological preservation. This had been observed in the case of turtle based ecotourism at Mon Repos Beach just near Bundaberg, Australia (Tisdell, Clem & Wilson, Clevo, 1). The development of turtle based ecotourism contributed positively in its preservation. It was even adopted by other countries like Sri Lanka as their â€Å"come on† tourist attraction. Observation also reveals that when people are interested in certain place, the more that the host communities are going to exert effort to preserve its natural beauty. An example of this is the Great Wall of China. Ever since it attracted tourist from all over the world, the Chinese government started to pay particular attention in the maintenance of the wall as well as planting

Shakespeare's Othello theme and characterization Essay

Shakespeare's Othello theme and characterization - Essay Example 34). Lago characterization is basically presentation of black sheep in the societies that how they play with individual’s life and destroys them. Their mind games are of pure evilness and immorality; utmost desire to get power, wealth & ranks can lead them to do any spiteful task. Lago in the quest of such desires makes a big spectrum in which he plays with many individual’s life and creates conflicts in between them so that he would lead to the ultimate path of success. His agenda is self fulfilment of worldly desire for which he would take any step (Rees, 186). The theme of the author is to concentrate readers on such kind of devil-men who are present in the human race. Othello is depicted as hero in the novel; however his did some immoral acts due to ignorance about the occurrence of certain events. Lago is the main person behind this whole game plan. The writer wanted to depict that sometimes even good people can commit crime due to ignorance, resentment, jealousy, envy and unawareness but their agenda is not to prevail destruction among the society. Their acts are in the light of presented facts and figures and thus they feel resentful inside thus take bitter actions. Othello killed her wife due to genuine misunderstanding; though taking a human life due to jealousy, betrayal and revenge is not justifiable in any book of law (Toole 73). Todd & Kenneth (371) illustrate that Othello after knowing the real picture of the handkerchief incident commits suicide as he feels extremely sorry for his act of killing her wife, disrespecting her and disregard Cassio services. The writer wanted the readers to understand that the good one’s cannot resist after hearing the truth as they feel ashamed of their wrong deeds prevailed. Also man with a noble and gentle heart knows that what’s right and wrong in life so killing an innocent due to a great

Balance Score Card As A Performance

Balance Score Card As A Performance Leading organizations has been successfully using performance measurement to gain insight into the organization and the effectiveness and efficiency of its programs, processes, and people. However, they do not stop at collecting and analysis of data rather, these organizations use performance measurement to force improvements and successfully transform strategy into action. Therefore, they use performance measurement for managing their organizations. The balanced scorecard (BSC) is the most widely applied performance management system today. The BSC was originally developed as a performance measurement system in 1992 by Dr.Robert Kaplan and Dr. David Norton at the Harvard Business School. Unlike earlier performance measurement systems, the BSC measures performance across a number of different perspectives-a financial, a customer, an internal business process, and an innovation and learning perspective. BSC was introduced at a time when businesses were evaluating performance only through a financial scope and the different perspectives added a new dimension to the performance management concept. However over the years a number of alternatives have been introduced to replace BSC such as Applied Information Economics (AIE), Performance Prism, Results based management Model etc. This is mainly due to the changes in the environment which is beyond the four quadrants of BSC and basic implementation issues experienced in BSC. The Balanced Score Card has to go through a transformation in order to survive and revive itself as powerful performance management tool. Balance Score Card Introduction The field of performance management in todays day and age is vital to any organization. This importance can be defined through John E Jones quote What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated. John E. Jones. Performance Management can be of two main aspects. In one view, the performance of the company as a whole and further the effectiveness of the management of their capabilities of running the business successfully are looked at while in another view performance management system of evaluating employees to help them reach their respective goals and thereby ensure that the company meets the companys overall objectives. When the word â€Å"measurement† comes to our mind, it has always been through a financial scope. There by performance of an entity was always measured through measures such as Return on Investment (ROI), Earnings Per Share (EPS),Gearing Ratio, Net Profit After Tax (NPAT), and Sales Turnover etc. However when the environment became gradually more competitive and complex there were more stakeholders involved in a business. The customers were one of the main stakeholders interested in the activities in the organization. Their demand evolved and along with that how they perceive performance also too dramatic change. They were no more content with only financial evaluation of the organization; measures such as market share, customer satisfaction, productivity, and innovation etc were more appealing. It was during this transition, the balance score card was introduced by Dr. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give a more balanced view of organizational performance. The balanced scorecard is a strategic management tool used for translating an organizations strategic objectives into a set of performance indicators distributed among four quadrants. Some of these indicators are maintained to measure an organizations advancement towards its vision and other indicators are maintained to measure the long term drivers of success. Through the balanced scorecard, an organization monitors both its current performance and its efforts to improve processes, motivate and educate employees. Balance Score Card History The balance score card has been known to be created by Kaplan and Norton however there is a historical twist to this as for my findings on www.wikipedia.com. The first balance scorecard was created by an independent consultant called Art Schneiderman in 1987.He participated in a research study in 1990 led by by Dr. Robert S. Kaplan and was able to describe his work on balanced score card. Subsequently, Kaplan and David P. Norton included anonymous details of this use of balanced scorecard in their 1992 article on Balanced Scorecard. Kaplan and Nortons article wasnt the only paper on the topic published in early 1992 but the 1992 Kaplan and Norton paper was a popular success, and was quickly followed by a second in 1993.The balances score card was widely spoken of only through their articles and journals. Kaplan and Norton researched on BSC through a project involving 12 companies. Thereby BSC became Kaplan Norton Balance Score Card and they were identified as the creators. Balanced Scorecard has been awarded a prize by the American Accounting Association as the â€Å"best theoretical contribution in 1997†. Balance Sore Card Perspectives As explained earlier BSC is a tool which monitors organizational strategies by using a combination of financial and non financial measures. It is designed to interpret strategy in to objectives and measure it across four balanced perspectives, namely Financial, Customer, Internal Business Process and Learning and Growth. The BSC directs to develop metrics, collect data and analyze as for these for quadrants in order to have an overall perspective. The pictorial view of the perspectives is as follows: The Financial Perspective This perspective reviews if the strategies of the company contribute towards the bottom line of the company. The virtue of Balance Score Card (BSC) is that it represents both leading and lagging performance measures. Traditional lagging indicators include financial measures, such as revenue growth and profitability. As it implies financial data is mostly historical data and organizations are measured based on its past performance. This perspective clearly describes how the organization looks to the shareholders. Few of the measures that can be used are : Return on Capital Employed (ROCE) Return on Investment (ROI) Market Share Revenue Growth Profitability Economic Value Added ( EVA) The Customer Perspective This aspect reviews how customers perceive the organization. And today, the buzz word in the corporate world is customer service. The importance given to this concept is immense due to the competitiveness and the buyer bargaining power. Therefore customer focus, customer satisfaction, on time delivery etc are leading indicators. Poor Performance from this perspective is a leading indicator of downfall in future business even if the financial indicators are healthy. In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups. Metrics for the customer perspective could include: No.of Complaints On Time Deliveries Repeat Purchases Customer Acquisition Customer Retention The Internal Business Process Perspective This assesses the quality of people and processes. This perspective refers to internal business processes which the company should improve in order to achieve its objectives and give customers both satisfaction and productivity. Traditional methods only looked at improving existing systems however the balanced scorecard has the ability to identify entirely new processes that the business should succeed, in order to achieve customer satisfaction. The measures for this have to be developed very carefully as understanding the business process is crucial. The measures should focus on internal processes that will have the greatest impact on customer satisfaction and achieving business objectives. Potential measures for the internal perspective include: Amount of reworking Increase in productivity % of defects Increase in capacity utilization The Learning Growth Perspective This perspective concentrates on the areas an organization must improve, on continuous improvement, and creating value in the future. The focus is on the intangible assets of the organization. The future of any organization today lies on how innovative and evolving it is, thereby this perspective encourages this aspect. Further the perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. The following metrics could be used to measure success in relation to the innovation and learning perspective: No of New Products introduced No of Trainings done per period Research Development as a % of Sales Employee suggestion which were implemented Critical Evaluation of the Balance Score Card An organization without a performance management system is like a ship in the deep blue sea without a compass, not knowing if the direction it sails is correct nor knowing how to improve its direction. Therefore the purpose of measuring performance is not only to know how the entity is performing but also to enable it to perform better. The Balanced Scorecard concept measures whether the companies are aligned with its larger-scale objectives in terms of vision and strategy. It focuses not only on financial outcomes but also on the human aspect as explained earlier under the introduction and the perspectives area. Thereby the BSC provides an overall view of the organization and the business. This is contrasting to the traditional method of being only financial oriented only. The measurements used in the separate perspectives are explained in the earlier section. The balanced scorecard is not only a measurement system but is a management system as well. It enables organizations to clarify their vision and strategy to its employees and translate them in to operational goals or action plans. The evolution of BSC from its simple performance measurement framework to a strategic planning and management system is gradual. Further the BSC is also useful to communicate the expectations expected from the employees. This can be done through clearly defining the measures or KPIs to be achieved by individual or department. To elaborate this in order to achieve overall objectives of the organization of Sales growth by 10%, Employee A,B C of Production Department can contribute by keeping the lead time of goods 98% as expected or better than customer expectation. Employee D E of Sales team can target to ensure customer complaints are attended to within 24hours which is an industry norm. As explained in this, the Sales growth of 10% is expected to come through attending to customer order on time (lead time) and customer service (handling complaints). Cascading the organizational objectives to the lowest level employee will pave the way for success. As explained the balance scorecard has evolved over the years to be identified as a â€Å"strategic linkage model† or a strategy map. The strategy map enables organizations to clarify their strategy and assist organizations with creating their BSC framework and measures. A generic corporate strategy map is provided below to illustrate the â€Å"Strategy Map† concept. The balance score card has the ability to identify the key areas which can make a huge impact in an organization. The critical success factors of each perspective can be identified through the well defined measurement criteria. As for the results of the KPIs the management has the ability to identify the superior and weaker link of the organization and take action to correct the situation. A business might be performing well with increased sales, however the production team might have a ratio of increased defect rates. This might not reflect in the top line as the production team ensures the sales are not slowed down by covering up with increased production. If the internal process is not reviewed properly the production defect rates will not highlighted. This is where the BSC becomes a critical tool to identify critical success factors. The balanced scorecard approach can be used and applied at both the individual and the organizational level. It provides a balanced approach to evaluate the employees performance in a comprehensive manner. Traditionally, measuring the employee performance refers to only the comparing of their action plans and behaviors with the standards set. However the BSC actually measures the results of their actions like profits, increasing market share. It considers the progress towards achieving the goals and objectives of the organization and the effectiveness of the process. Thereby, the balanced scorecard gives the full view of the employees and the organizational performance and it helps to align the employee performance plans with the organizational goals. The Balanced Scorecard provides a stage for feedback and in turn a process for learning as well. Feedback about products, new learnings discoveries can be included in to the scorecard. Based on the measures employees can be given feedback and also training in order to improve the processes. This helps to refine the processes on a continuous basis with the use of the feedback. Thereby once a balanced scorecard system is in place, it allows for ongoing monitoring of goals and objectives. BSC benefits to maximize co-operation between teams. Employee helps one another to achieve their respective overall KPIs. This helps to build the team culture in the organization. The BSC drives a performance drive in to the business with its set objectives and continuos feedback. And if the objectives are linked to rewards, employees are very well motivated to achieve the set targets. The BSCs ability to give a wide view of the business operations makes it a formidable tool in the business world. The four perspectives of the scorecard permit a balance between short term and long term objectives, between desired outcomes and the performance drivers of the outcome, between soft measures and hard measures. However having gone through the positives of the Balanced Score Card, this tool has its negatives as well. The Balanced score card in was introduced in the early 90s and now the business environment has seen many changes. Has the Balanced Score Card got all requirements to still qualify as good performance management tool in current context? , will be discussed in detail in the following section. The organization through different elements in BSC analyzes the organizations performance and these measures are vital in creating a good balanced scorecard. Once the balance score card is implemented, you can not presume the business environment to be the same. In current context the volatility of the business environment is so rapid therefore the nature of your business can change in time, which means the BSC too has to be modified accordingly. It is a time consuming affair to maintain a scorecard but if it is not done properly the organizations ability to evaluate its employees will become an issue. The business should be able to give a considerable time to upkeep or maintain the scorecard, if not; it might not be a good solution for the business. The balance scorecard attempts to involve employees from all levels in the organization by cascading the vision and strategies. Despite inherent attempts to empower employees, the balanced scorecard is still seen to be based around a centralized, prescriptive model. Even though BSC focuses on dynamism and constant feedback it would still react slow to bottom level suggestions based on the organizational culture and background. In their book in 2007, Kaplan Norton (2007) mentioned that implementing a BSC would take a minimum time line of 26 months. Another weakness in BSC or a question which remains unanswered is how well the BSC will function in a dynamic environment. Organizations today are going through a paradigm shift. Internet and Information Technology as a whole has made the world a global market. Thereby the businesses also have to adapt to different environments, new changes in order to survive. Is BSC a model which is fast enough for this adaptation? , is a query in most peoples mind. Currently any measurement tools have to be modified taking in to account the dynamic changes in the environment in order to make it a pervasive tool. As discussed in the previous areas the BSC is designed to measure performance through four major perspectives. However questions are raised now whether these perspectives are sufficient to measure a business performance. As indicated in the BSC History this model was introduced in the early 90s, however the organizations and the environments they perform in have moved much further and there are many other concepts which are significant for an organizations long term sustainability. As an example the Green concept was only a thought in the early 90s but today its a way of life for organizations. Even customers are concerned in how respectful their brands are to the environment. Corporate Social Responsibility is another indicator that organizations have stepped out of the traditional financial performance criteria, and they are actually weighed for the contribution they make to the society. It is used as a way of marketing too. These areas have a special place in the annual report an d it is the pride of any organization to report their contribution to the society and the environment. Further ethical practices play a main role in reporting and in anything an organization does. After the Enron issue ethics have been discussed in the corporate tables and it does matter in blue chip companies to be ethical towards its stakeholders and shareholders. However these elements have not been touched upon on the balance score card. Another observation on BSC is on the weight given on the four perspectives, the standard weight given may not be applicable to all organizations. It might vary from industry to industry and even internal divisions might have varied measures, thereby based on the importance of the perspective has to be reviewed before weighs are assigned. Based on the research by Kaplan Norton (2003) it has been found that using about 20 -25 measures is the usual recommended practice. Figure 3 drawn from an article written by Dr David Norton illustrates the weights assigned for each perspective, with greater emphasis on internal business process, as it is the primary source through which the strategy of the organization is implemented. The balance score card weights should not be a pre defined and should be a management decision based on industry norms etc. At IFS which is an organization keen on research and development and learning, the emphasis on the internal process and learning and growth perspectives will be high. However if we take a bank, Financial stability, Customer service and the Internal Processes are all vital and require high weight. Thereby it is crucial on understanding the concept properly on assigning weights as it is a crucial part of BSC. The stakeholders form the main category of any organization, because they are the group of people who will be affected from the decisions made by the organization. The customers perspectives have been included in to the Balanced score card however the other main categories which I felt lacking in BSC are the suppliers and the competitors. The suppliers are key to a companys source of raw materials and supplier management can bring monetary benefits to the organization. Organization should always keep a tab of its competitors and scores should be kept to follow up on direct competitors. As adding more perspectives will complicate the BSC, I have suggested a recommended way of handling this under recommendation section. Though the balanced score card could be reward the employees it is criticized when performance evaluation and incentives are related to it. It has been found that when rewards are linked to the scorecard directly, productivity drops considerably. This is mainly due to the fear by the employee that he/she maybe made responsible for factors which is beyond their control. Thereby they may tend to keep a margin or levy when agreeing upon targets in order to achieve the targets and get the incentives in a relaxed way. However this is not critic on the BSC concept, it is an issue with the implementation. Another criticism is that the Balanced Scorecard does not provide a bottom line score. The scores are not assigned based on any proven economic or financial theory. The bottom line score does not give a unified view with clear recommendations. It acts only as a simple list of metrics and how they are interpreted will vary from organization and industry. Therefore the implementation and the management commitment and intelligence in interpreting the measures play a main role in the success of BSC. Further to elaborate on this for BSC it is not usually sufficient to use generic measures used by other organizations. Each business should strive to identify the firm specific measures that are appropriate to implement their strategies and achieve the vision of the company. This relies upon the competency of the management. Further many companies use only lagging measures which shows results of a past event. For the balance score card to be successful the business should include leading measures as well, which will indicate the future of the business. Many managers get carried away with BSC by only including non financial measures however to reap the full benefit of BSC managers have to include future indicators (leading measures) as well. A research conducted by Claude Levy, a professor at the Free University of Amsterdam reported that the failure rate of BSC implementation is 70% and this is mainly due to the many number of metrics and employees not having an understanding of the metrics. Due to its long duration in implementation many organizations use a balanced scorecard system. However this cost a lot of money in training time and additional money for any consultants that are needed during the process. Therefore the initial cost in implementing the balanced scorecard is huge. Balance Score Card Recommended Improvements Based on the evaluation above I suggest the following to improve the current balanced score card. The main stakeholders such as competitors and suppliers should also be entered in to the BSC. As including another area will complicate the score card, I suggest these stakeholders are identified under internal business process however even 2-3 measures/KPI each has to be assigned for each stakeholder under this area. Many alternative tools have been designed based on the BSC framework and the â€Å"Performance Prism† is one such customized BSC framework which takes in to account five perspectives, which includes stakeholders as well. The BSC design should be broader in order to accommodate the environmental aspect, Society and Ethics. However complicating the BSC with many perspectives will not serve the purpose either. Therefore the balanced score card should have an industry specific format with assigned measures. This standard could be used for the firm and customized if required. The measures used should be between 25-30 maximum with the newly included areas as well. Too many measures mean most of the time nothing gets measured at all. The weights assigned to the perspectives should be decided based on the firm and the importance of the processes relevant to the business. I feel that it is hard to pre-define the weights in todays context and it should be a management decision, however in order to ensure order prevail they could get audit support on assigning weightage. On implementation of the BSC it is of utmost importance that the objective of the concept is clearly communicated. Further if the measures/KPIs are discusses with line managers and staff before entering it to the scorecard the employees will feel ownership towards the KPIs. And thus can avoid any issues later arising when rewards are linked to KPIs. Linking incentives to the achievement of these KPIs is a motivator, and I feel should be an integral part of BSC. The BSC will not be successful if it does not include leading measures as well as the lagging measures. At the end of the day it is all about improving your future. Thereby there should be a specification on BSC that out of the total measures even 40% should be leading measures and that there should be even one for each quadrant. The balanced scorecard or any other performance management tool is driven by a well defined strategy of the organization. It is the understanding of the linkages between the objectives and metrics that is the foundation of the BSC. Thereby if the business is not equipped with a good strategy and competent management team, I feel the BSC is not the performance management tool for them. The balance score card with its metrics should be an automated system. In present scenario, unnecessary issues can be resolved if a balanced scorecard software is installed. The organization should also give adequate time for training the staff. Conclusion The Balanced Score Card is the pioneer tool in focusing on a range of perspectives which included financial and non-financial factors. The tool is built to focus on past and future of the business with its lagging and leading measures. However in an ever evolving business environment, the BSC has failed to evolve with time. And the balance scorecard depends heavily upon how it is used or interpreted. Therefore the management commitment towards BSC is vital for its success. The biggest critic for BSC is that its disability to be maintained in a dynamic environment. The industry specific BSC designs will be more applicable and more flexible. And these formats can include the perspectives relevant to that industry. For example for the power generation industry the environmental perspective should be mandatory. Further if the Balance Score card software is used the time factor for implementation can be reduced. The weights assigned to each perspective should also be firm specific and the KPIs should be reviewed on a constant basis in order to ensure that they are real time KPIs. The balance score card is still a popular tool among many mainly due to its simple to understand concept. All organizations are trying to gain an advantage over the other at all times, therefore if one organization takes the first step towards another performance management tool, the Balance scorecard will see a slow death.

Customer Relationship Management and Systems Essay

1. What concepts in this chapter are illustrated in this case? Symantec Corporation started out with good intentions. Shortly after acquiring Veritas it began an ERP rollout that was designed to standardize and unify the Symantec and Veritas information systems. The goal was to create a single ERP system, within which all of the company’s extensive network of resellers, integrators, distributors, and customers could place orders for over 250,000 different products Symantec offered in the same way. That follows the basic concept of enterprise systems which are based on a suite of integrated software modules and a common central database. When new information is entered by one process, the information is made immediately available to other business processes. Although companies can rewrite some of the software in ERP systems, the software is unusually complex and extensive customization may degrade system performance, compromising the information and process integration. If companies want to reap the maximum benefits from enterprise software, they must change the way they work to conform to the business processes in the software. Although Symantec and Veritas had each used Oracle E-Business Suite 11d prior to the merger, both used highly customized versions of the systems that made integration a daunting task. An overhaul of the combined company’s enterprise systems was needed to join together Symantec and Veritas’s data from key business processes. Enterprise systems help large companies enforce standard practices and data so that everyone does business the same way worldwide. Enterprise systems help firms respond rapidly to customer requests for information or products. Unfortunately, the two companies bungled the implementation of the enterprise system almost from the beginning. 2. What management, organization, and technology factors were responsible for Symantec’s difficulties in overhauling its ERP systems? Management: Most of the issues were due to the company’s shortsightedness in implementing Project Oasis. The initial reaction to the launch of the new system was decidedly negative. Once customers reached a Symantec employee, they could spend up to 20 more minutes troubleshooting problems, and were often told that there was nothing that could be done. There was simply too much change occurring all at once for typical customers to handle. Partners were unhappy with Symantec’s slow response to many of the problems. Organization: The company was unprepared to meet the increased demand for customer support after the rollout. Symantec neglected to coordinate the development of its new ERP system with the launch of other products from different divisions within the company. The changes to the licensing system were not coordinated with the rest of the project. Customers were unhappy with changes to the stock-keeping unit product system (SKU system). Symantec had overlooked the needs of many customers while designing a technically sound but user-unfriendly ERP system. Technology: Both companies used highly customized versions of Oracle’s E-Business Suite 11d prior to the merger. Users struggled to process the large amount of information provided to them and were overwhelmed by the increased number of steps, all of them new, required to place orders. Some smaller distributors and partners didn’t update their systems to handle the new SKUs and were unable to submit purchase orders electronically. After the rollout, licensing became much more difficult for Symantec’s customers and partners, forcing them to wait multiple weeks before receiving their licenses. 3. Was Symantec’s response to the problem adequate? Explain your reasoning. The company initiated a follow-up project named Project Nero. The goal of the project was to recapture the loyalty of customers who were disenchanted by the changes brought about by Oasis. The project reached out to customers and fixed the problems with the information systems to improve response times and streamline operations. The company began by adding over 150 new customer representatives to handle the increased volume of calls, reducing wait times and increasing customer satisfaction. Executives traveled the country to improve relations with angered customers and partners. The company introduced a master list of product releases readily available and standardized its communication methods between departments regarding new projects and change management. Symantec used Net Promoter methodology to measure and increase customer loyalty. The results identified specific criticisms and customer problems and dramatically aided Symantec in correcting those problems. Project Nero helped the company weather the worst of the crisis. However, the company does not release the results of its Net Promoter surveys to the public so the extent to which it has repaired its reputation is unclear. 4. What would you have done differently to prevent the implementation problems that arose at Symantec? Student answers will vary but some of the principles that should be included in their answers are: Even the most careful planning and well-designed systems can quickly go awry if customers are unable to make use of the new system. Enterprise applications involve complex pieces of software that are very expensive to purchase and implement. The total implementation cost of a large system, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, might amount to four to five times the initial purchase price for the software. Enterprise applications require not only deep-seated technological changes but also fundamental changes in the way a business operates. Business processes must be changed to work with the software. Employees must accept new job functions and responsibilities. Most implementation projects fail or experience enormous problems because executives, managers, and employees did not understand how much organizational change was required. Specific Symantec problems that perhaps could have been avoided: †¢ Communicate with employees better to counteract the negative attitude towards the project. †¢ Communicate with customers and distributors better about the upcoming changes. †¢ Make sure all of the systems that were changing were coordinated throughout the organization. †¢ Not change as many systems all at the same time. Even though stretching the implementation out over a longer period may have cost more money, perhaps it would have prevented some of the massive problems overall. 5. If you were a partner or customer of Symantec, would you have switched vendors in response to the ERP overhaul issues? Why or why not? Student answers will vary. Some principles to keep in mind are: Enterprise applications introduce switching costs that make it very costly to switch vendors. Companies become dependent on the vendor to upgrade its product and maintain the installation. Many of Symantec’s partners and smaller distributors were reliant on Symantec and perhaps could not afford to switch vendors. That would mean they would have to switch all of their internal systems at great cost. Customers are often reluctant to switch vendors based on historical relationships. If the problems seem temporary, the customers will hang on. If the problems seem insurmountable, some customers will desert the sinking ship.