Extreme conditional value at risk a coherent scenario for risk management Free Essays

string(52) returns in the demonstrating of outrageous market events. Part ONE 1. Presentation Outrageous monetary misfortunes that happened during the 2007-2008 money related emergency reignited inquiries of in the case of existing techniques, which are to a great extent dependent on the ordinary dispersion, are satisfactory and reasonable with the end goal of hazard estimation and the executives. The significant presumptions utilized in these systems are that money related returns are autonomously and indistinguishably circulated, and follow the typical dissemination. We will compose a custom paper test on Extraordinary contingent incentive in danger a sound situation for chance administration or then again any comparable theme just for you Request Now In any case, shortcomings in these approachs has for some time been recognized in the writing. Right off the bat, it is presently generally acknowledged that monetary returns are not typically circulated; they are hilter kilter, slanted, leptokurtic and fat-followed. Besides, budgetary returns show instability bunching, along these lines the presumption of freely disseminated is abused. The consolidated proof concerning the adapted realities of monetary returns requires the requirement for adjusting existing systems or growing new techniques that will represent all the stylised realities of budgetary returns expressly. In this paper, I talk about two related proportions of hazard; outrageous worth in danger (EVaR) and extraordinary contingent worth in danger (ECVaR). I contend that ECVaR is a superior proportion of outrageous market chance than EVaR used by Kabundi and Mwamba (2009) since it is cognizant, and catches the impacts of extraordinary markets occasions. Interestingly, despite the fact that EVaR catches the impact of outrageous market occasions, it is non-sound. 1.1.BACKGROUND Markowitz (1952), Roy (1952), Shape (1964), Black and Scholes (1973), and Merton’s (1973) significant toolbox in the improvement of current portfolio hypothesis (MPT) and the field of money related designing comprised of means, change, connections and covariance of advantage returns. In MPT, the change or equally the standard deviation was the panacea proportion of hazard. A significant supposition utilized in this hypothesis is that monetary resource returns are ordinarily appropriated. Under this suspicion, extraordinary market occasions once in a while occur. At the point when they do happen, hazard administrators can just regard them as exceptions and negligence them when displaying budgetary resource returns. The presumption of typically dispersed resource returns is excessively shortsighted for use in monetary displaying of outrageous market occasions. During extraordinary market movement like the 2007-2008 monetary emergency, budgetary returns display conduct that is past what the typical appropriation can show. Beginning with crafted by Mandelbrot (1963) there is progressively all the more persuading exact proof that recommend that benefit returns are not ordinarily dispersed. They show hilter kilter conduct, ‘fat tails’ and high kurtosis than the ordinary circulation can oblige. The suggestion is that outrageous negative returns do happen, and are more continuous than anticipated by the ordinary appropriation. Thusly, proportions of hazard dependent on the typical conveyance will think little of the danger of portfolios and lead to gigantic money related misfortunes, and conceivably bankruptcies of budgetary foundations. To alleviate the impacts of lacking danger capital cushions coming from underestimation of hazard by typicality based money related demonstrating, chance estimates, for example, EVaR that go past the presumption of ordinarily dispersed returns have been created. Be that as it may, EVaR is non-lucid simply like VaR from which it is created. The suggestion is th at, despite the fact that it catches the impacts of outrageous market occasions, it's anything but a decent proportion of hazard since it doesn't reflect enhancement †a logical inconsistency to one of the foundation of portfolio hypothesis. ECVaR normally conquers these issues since it lucid and can catch outrageous market occasions. 1.2 RSEARCH PROBLEM The motivation behind this paper is to create outrageous restrictive worth in danger (ECVaR), and propose it as a superior proportion of hazard than EVaR under states of extraordinary market movement with money related returns that display unpredictability bunching, and are not typically appropriated. Kabundi and Mwamba (2009) have proposed EVaR as a superior proportion of extraordinary hazard than the broadly utilized VaR, be that as it may, it is non-rational. ECVaR is lucid, and catches the impact of outrageous market action, along these lines it is progressively fit to display extraordinary misfortunes during market strife, and reflects expansion, which is a significant prerequisite for any hazard measure in portfolio hypothesis. 1.3 RELEVENCE OF THE STUDY The supposition that budgetary resource returns are ordinarily conveyed downplays the chance of rare outrageous occasions whose effect is more negative than that of occasions that are progressively visit. Utilization of VaR and CVaR belittle the danger of benefits and portfolios, and in the long run lead to gigantic misfortunes and liquidations during times of outrageous market action. There are numerous antagonistic impacts of utilizing the typical appropriation in the estimation of budgetary hazard, the most noticeable being the loss of cash due to belittling danger. During the worldwide budgetary emergency, various banks and non-money related organizations endured gigantic monetary misfortunes; some failed and fizzled, incompletely as a result of deficient capital portion coming from underestimation of hazard by models that expected typically circulated returns. Proportions of hazard that don't accept typicality of budgetary returns have been created. One such measure is EVaR (Kabundi and Mwamba (2009)). EVaR catches the impact of extraordinary market occasions, anyway it isn't intelligible. Accordingly, EVaR is anything but a decent proportion of hazard since it doesn't reflect broadening. In money related markets described by various wellsprings of hazard and extraordinary market instability, it is essential to have a hazard measure that is intelligent and can catch the impact of outrageous market movement. ECVaR is supported to satisfies this job of guaranteeing extraordinary market chance while adjusting to portfolio theory’s intelligence of broadening. 1.4 RESEARCH DESIGN Section 2 will introduce a writing survey of hazard estimation systems as of now utilized by money related foundations, specifically, VaR and CVaR. I additionally talk about the qualities and shortcomings of these measures. Another hazard measure not generally known so far is the EVaR. We talk about EVaR as a headway in hazard estimation strategies. I advocate that EVaR is definitely not a decent proportion of hazard since it is non-intelligent. This prompts the following section, which presents ECVaR as a superior hazard measure that is intelligent and can catch extraordinary market occasions. Part 3 will be worried about extraordinary restrictive worth in danger (ECVaR) as a helpful displaying system that normally defeats the typicality presumption of advantage returns in the demonstrating of outrageous market occasions. You read Extraordinary contingent incentive in danger a rational situation for hazard the board in class Article models This is followed with a near examination of EVaR and ECVaR utilizing money related information covering both the pre-monetary emergency and the budgetary emergency time frames. Section 4 will be worried about information sources, primer information depiction, and the estimation of EVaR, and ECVaR. Section 5 will talk about the observational outcomes and the suggestion for hazard estimation. At long last, part 6 will give blackouts and feature the headings for future examination. Part 2: RISK MEASUREMENT AND THE EMPIRICAL Dissemination OF FINANCIAL RETURNS 2.1 Risk Measurement in Finance: A Review of Its Origins The idea of hazard has been known for a long time before Markowitz’s Portfolio Theory (MPT). Bernoulli (1738) settled the St. Petersburg mystery and determined key bits of knowledge of hazard unwilling conduct and the advantages of expansion. In his detailing of anticipated utility hypothesis, Bernoulli didn't characterize chance expressly; be that as it may, he deduced it from the state of the utility capacity (Bulter et al. (2005:134); Brancinger Weber, (1997: 236)). Irving Fisher (1906) proposed the utilization of difference to quantify monetary hazard. Von Neumann and Morgenstern (1947) utilized anticipated utility hypothesis in the investigation of games and thusly concluded huge numbers of the cutting edge comprehension of dynamic under hazard or vulnerability. In this way, in spite of mainstream thinking, the idea of hazard has been known well before MPT. Despite the fact that the idea of hazard was known before MPT, Markowitz (1952) first gave an efficient calculation to gauge chance utilizing the change in the plan of the mean-fluctuation model for which he won the Nobel Prize in 1990. The improvement of the mean-change model motivated exploration in dynamic under hazard and the advancement of hazard measures. The investigation of hazard and dynamic under vulnerability (which is dealt with equivalent to chance by and large) stretch across disciplines. In choice science and brain science, Coombs and Pruitt (1960), Pruitt (1962), Coombs (1964), Coombs and Meyer (1969), and Coombs and Huang (1970a, 1970b) examined the view of bets and how their inclination is influenced by their apparent hazard. In financial aspects, account and estimation hypothesis, Markowitz (1952, 1959), Tobin (1958), Pratt (1964), Pollatsek Tversky (1970), Luce (1980) and others examine portfolio determination and the estimation of danger of those portfolios, and bets as a rule. Their aggregate work creates various hazard quantifies that differ by they way they rank the danger of alternatives, portfolios, or bets. Despite the fact that the hazard measures differ, Pollatsek and Tversky (1970: 541) perceives that they share the accompanying: (1) Risk is viewed as a property of picking among alternatives. (2) Options can be seriously requested by their peril. (3) As proposed by Irving Fisher in 1906, the danger of a choice is some way or another identified with the change or scattering in its results. Notwithstanding these

Children of Heaven Essay

Viewing the film entitled â€Å"Children of Heaven† caused me to acknowledge how a straightforward plot/story can be as endearing and motivating as some other film accessible out there in the market. It doesn’t take a detailed story with such a large number of exciting bends in the road to make a fabulous film for everybody to appreciate. Despite the fact that the film has a few sections which are vigorously emotional like the scene where Zahra was crying because of Ali losing her shoes, the film despite everything has a transcendent light tone. The film causes the crowd including myself to feel compassion towards the fundamental characters †depicted by Ali and Zahra, two kin who earnestly care for one another. This procedure of contacting the feeling of the crowd is unquestionably viable since it makes them need to go on and finish the film (as I did when the before referenced scene was shone in the earliest reference point of the film). Spellbinding the crowd, be that as it may, doesn't stop there. Remembering certain energizing and risky minutes for their life makes the story all the more fascinating and normal. Instances of which are: the scene when the tennis shoes tumbled off Zahra’s foot at that point arrived into the channels so she needed to follow where the waters went to recoup it and the scene when Ali was at the run race going to win when another kid knock him off the course. More than that, the film additionally carries the crowd to catch the every day way of life and culture of the Iranian individuals (as this film was set in that nation). Having a foundation of the characters causes me comprehend their qualities and perspective. Subsequently, I could fathom the film in a simpler manner since it has this trademark. Catching the practical perspective on the world supported me in identifying with the film despite the fact that I am unfamiliar to the idea it was appearing. Having such a significant number of qualities included in the story, I have learned numerous things with respect to assurance, empathy and familial love. These qualities were scattered in the various scenes of the story. There were some at the outset about familial love when both Ali and Zahra concurred that they share the tennis shoes since they go to class in isolated movements †a characteristic emotional gadget for the story. Assurance was plainly observed when Ali made a decent attempt in the race to win the elastic shoes. Sympathy was obvious in scenes when they dealt with the wiped out neighbor and their mom. Utilizing the normal background and props (through my eyes) made everything natural. Nothing to favor was utilized to show the economic wellbeing of the family †it was not misrepresented. The items to be found in the film were normally accessible in the day by day life of everybody. Additionally, the acting of the characters in the story was extremely common. It nearly seemed as though it is a biography being told and not only a scripted one. I esteem that the perspective on a great many people with respect to those of Iranians will change in the wake of seeing this film. Their certifiable consideration for one another shows the amount they value those individuals and things around them. This negates the generalization given to them as those vicious individuals of the Middle East. Additionally, the film fills in as an inspiring reflection about genuine goodness in humankind †helping balance the adverse partialities that the vast majority venture towards Iranians particularly these days. With all these to be found in the film, I can say that everybody is urged to watch it. Not exclusively will they adapt family esteems and self-restraint, the crowd could likewise be motivated to experience their lives to the fullest in every day that passes.

Childrens Stories About Being Yourself

Kids' Stories About Being Yourself The antiquated Greek narrator Aesop is credited with making scores of stories with important good exercises. A considerable lot of them despite everything reverberate today, including the accompanying stories about acting naturally. Misrepresentation Is Only Skin Deep Aesops tales disclose to us that nature will radiate through regardless of what bundle you put it in. Theres no reason for professing to be something youre not on the grounds that reality will inevitably come out, either unintentionally or forcibly. The Cat and Venus. A feline becomes hopelessly enamored with a man and begs Venus to change her into a lady. Venus consents, and the man and feline lady are hitched. In any case, when Venus tests her by dropping a mouse into the room, the feline lady jumps up to pursue it. The feline can change her appearance, yet not her nature.The Ass in the Lions Skin. A jackass puts on a lions skin and goes around the wilderness terrifying different creatures. However, when he opens his mouth, his bawl gives him away.The Vain Jackdaw. Dressing in the disposed of plumes of different winged creatures, a jackdaw nearly persuades Jupiter to delegate him lord of the fowls. In any case, different flying creatures strip him of his mask and uncover his actual nature.The Cat and the Birds. A feline, hearing that the flying creatures are sick, dresses as a specialist and offers his assistance. The winged animals, seeing through his camouflage, answer that theyre fine and will keep on being so in the even t that he will just leave. All things considered, the winged creatures have much more in question than the feline does. The Dangers of Pretense Aesops tales additionally caution us that attempting to be something youre not can distance others. The heroes in these stories end up more regrettable off than if they had recently acknowledged themselves. The Jackdaw and the Doves. A jackdaw paints his quills white since he enjoys the vibes of the pigeons nourishment. In any case, they get on to him and pursue him away. At the point when he returns to eat with different jackdaws, they don’t perceive his white quills, so they, as well, pursue him away. Think about who winds up hungry.The Jay and the Peacock. This story is like The Jackdaw and the Doves, yet as opposed to craving nourishment, the jay simply needs to swagger like a pleased peacock. Different jays watch the entire thing, appalled, and decline to invite him back.The Eagle and the Jackdaw. A jackdaw, desirous of the falcon, attempts to act like one. Be that as it may, without the falcons aptitudes, he gets himself into a tight spot and winds up as a pet for youngsters, his wings clipped.The Raven and the Swan. A raven who needs to be as wonderful as a swan turns out to be so fixated on purifying his quills that he moves from his nourishment source and starves to de ath. Gracious, and his plumes stay black.The Ass and the Grasshopper. This story is like The Raven and the Swan. A jackass, hearing a few grasshoppers twittering, hops to the end that their voices must be a consequence of their eating routine. He takes steps to eat only dew, and therefore starves. Act naturally Aesop additionally has a large group of tales intended to show that we should all be surrendered to our station throughout everyday life and not try to anything more noteworthy. Foxes ought to be compliant to lions. Camels shouldnt attempt to be adorable like monkeys. Monkeys shouldnt attempt to figure out how to angle. A jackass should endure a horrendous ace since he could generally have a far and away more terrible one. These arent extraordinary exercises for present day youngsters. Be that as it may, Aesops tales about maintaining a strategic distance from affectation (and not starving yourself for excellence) despite everything appear to be applicable today.

Understanding a Criminal Battery Charge

Battery is any unlawful offensive physical contact with another person, with or without his or her consent. The contact does not have to be violent for the crime of battery to take place, it can be merely any offensive touching. Unlike the crime of assault, battery requires that actual contact is  made, while assault charges can be brought with only the threat of violence. Basic Elements of Battery There are three basic elements of  battery that are generally consistent among most jurisdictions in the U.S.: The defendant had offensive physical contact with the victim.The defendant is aware that their actions will result in offensive touching.There was no consent from the victim. Different Types of Battery The laws regarding battery vary from state to state, but many jurisdictions have different classifications or degrees of the crime of battery.   Simple Battery Simple battery generally includes all forms of contact that are non-consensual, harmful or insulting. This includes any contact that results in injury or non-injury to the victim. The battery is not criminal unless willful intent to inflict an injury or another unlawful act on the victim exists. For example, if a neighbor becomes angry at another neighbor and purposely throws a rock right at the neighbor resulting in injury and pain, then throwing the rock could result in criminal battery charges. However, if a neighbor is cutting their grass and a rock hits the blade and spins out and hits their neighbor causing injury and pain, then there is no willful intent and there would not be grounds for a charge of criminal battery. Sexual Battery   In some states, sexual battery is any non-consensual touching of the intimate parts of another person, but in other  states,  a sexual battery charge requires actual oral, anal, or vaginal penetration. Family-Violence Battery In an effort to cut down on  domestic violence, many states have passed  family-violence  battery laws, which require that cases of family violence be adjudicated whether the victim decides to press charges or not. Aggravated Battery Aggravated battery is when violence against another person results in serious bodily injury or disfigurement. In some states, aggravated battery can be charged only if the intent to do serious bodily harm can be proven. This includes a loss of a limb, burns resulting in permanent disfigurement, and the loss of sensory functions. Common Defense Strategies in Cases of Criminal Battery No Intent: Common strategies used in criminal battery cases include the most defense which is to prove that there was no intent to cause harm on the part of the defendant. For example, if a man rubbed up against a woman on a crowded subway in a way that the woman felt was sexual in nature, the defense could be that the man did not intend to rub up against the woman and only did so because he was pushed by the crowds. Consent: If consent can be proven, sometimes referred to as mutual combat defense, then the victim may be considered as being equally responsible for any injuries that resulted.   For example, if two men get into an argument in a bar and agree to take it outside to fight it out, then neither man can claim that their injuries were a result of criminal battery if they both agreed to participate in what could be viewed as a fair fight. There may be other criminal charges that apply, but probably not criminal battery. Self-Defense: If a defendant can prove that bodily harm inflicted on the victim was a result of the victim attempting to cause bodily harm to the defendant first and the defendant protected themselves  within what would be considered reasonable, but resulted in the victim being physically harmed, then it is likely that the defendant would be innocent of criminal battery. The key to this defense is that the self-defense was reasonable. For example, if two women were riding on a bus and one woman began harassing the other woman and then began hitting the woman in an effort to steal her purse, and the woman reacted by punching the attacking woman in the nose, causing her nose to break, then the woman that was first attacked used reasonable self-defense  measures and would likely not be found guilty of criminal battery.

Manic Depressive Illness of Bipolar Disease - 712 Words

Bipolar disease is a serious brain illness. It is also called manic-depressive illness. Adults or children with bipolar disease go through unusual mood changes. They sometimes feel very happy or active more then usual; which is called mania. But sometimes when they feel very sad and less active then usual it is called depression. Everyone feels happy and sad throughout their day but people diagnosed with bipolar disorder have stronger symptoms. Anyone can be diagnosed with bipolar disease; most people usually develop bipolar disease in their early teen or adult years. This disorder usually lasts a life time. A type of bipolar disease that can be the most severe is called early-on set bipolar disease. Children are usually the ones most likely to get this illness. Younger people with bipolar disease may have more mood switches than adults with bipolar disease. Kids that have this illness have a hard time doing good in school or getting along with their friends or even family members. B ipolar disease can be really dangerous because if often gives both children and adults suicidal thoughts or thoughts of hurting themselves. Bipolar disease affects an estimated 5.7 million adults a year. Although bipolar disease is equally common in women and men research indicates that three times the women of men experience rapid cycling of bipolar disease. Women also have more depressive and mixed episodes then men. Statistics also show that one in every five patients diagnosed with bipolarShow MoreRelatedBipolar Disorder1485 Words   |  6 PagesBipolar Disorder HCA/240 Toni Black Andrew Bertrand 11/21/2010 What is Bipolar Disorder? Bipolar disorder, is also known as manic-depressive illness, this is a brain disorder that causes unusual mood swings, energy levels are either up or down and your ability to function a normal everyday life would be a challenge to these individuals with this mental illness. 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Jamison speaks frankly about violent outbursts she’s had throughout her life and within her relationships. â€Å"Both my manias and depressions had violent sides to them. Violence, especially if you’re a woman, is not somethingRead MoreBipolar Dissorder: A Brief Summary Essay1724 Words   |  7 PagesThe event of bipolar disorder has been a mystery since the 16th century. Records have shown that this problem can appear in almost anyone. It is clear that in our social world many people live with bipolar disorder. Regardless of the number of people suffering from the disease, we are still waiting for an explanation regarding the causes and cure. One fact of which we are aware, is that bipolar disorder severely undermines its’ victims ability to obtain and maintain social and occupational success

Top Trends Of Federal Procurement - 1358 Words

Top Trends in Federal Procurement Name Institution Affiliation Trends in Federal Procurement Introduction The year 2017 seems to be one setting in significant changes both in the political and economic scenes. Every other person who has even the slightest interest in current global trends understands that these two issues relate to each other at a very high level. The political atmosphere in the United States is known to greatly affect not only the local, but also the world economy. With a new president taking seat this year, the economic ripple effect will undoubtedly not go unnoticed. To add more significance to this is that the new president (Donald Trump) is by far an economist, greatly contrasting the nation’s history†¦show more content†¦This wave could well be attributed to the ongoing implementation of what is known as Small Business Jobs Act of the year 2010. It is important to also note that with President Trump in power, more focus will be placed on small businesses owned by Americans as beneficiaries of federal government procurement. This comes within the background of Trump’s policy of capitalizing first on the ability of Americans to benefit from their own products. Though this will otherwise spell doom for big corporations with branches extending beyond American soil, it will mean an overall advantage to the locals who according to Trump are the real drivers of the country’s economy. Though most policies do not separate benefits that could possibly be achieved by small businesses from large ones, it is expected that an increasing number of small businesses take the stage in the award of important contracts in the year 2017 and the years to come. One area where small businesses will have undisputed opportunity of being awarded contracts is in the Treasury. Through the Treasury Bureau Small Business Specialist, small businesses classified under legal and economic scopes will have an opportunity of landing single contracts worth over a hundred and fifty thousand dollars each. In a forecast of contract opportunities for the year 2017, the governmentShow MoreRelatedAltruism Over Incentives For Organ Donation Essay1535 Words   |  7 Pagesto produce the desired outcome of increasing the availability of desperately needed organs and tissues. While groups such as the mentioned above can act as a resource and clearinghouse mainly focusing on patient needs, organdonor.gov is run by the Federal Health Resources Services Administration can act as ballast providing information geared toward donors such as statistics, donation legislation and policies and donation resources, as well assuring donors that HRSA oversees the activities of saidRead MoreAltruism Over Incentives For Organ Donation Essay1521 Words   |  7 Pagesorder to produce the desired outcome of increasing the availability of desperately needed organs and tissues. Groups such as the mentioned above can act as a resource and clearinghouse mainly focusing on patient’s needs. Organdonor.gov is ran by the Federal Health Resources Services Administration and can act as ballast providing information geared toward donors such as statistics, donation legislation and policies and donation resources, as well assuring donors that HRSA oversees the activities ofRead MoreU.s. Procurement And Strategic Sourcing Activities2163 Words   |  9 Pagesapplications by organizations globally. The procurement function has been notably stricken by this trend with a foretold growth in e-procurement applications covering each transactional shopping for and strategic sourcing activities (Croom S, 2000). A major contributor behind this development has been the evolution of the procurement function towards an additional strategic role in supporting both, company goals and supply chain objectives. Procurement is a central service provided by a zealous teamRead MoreSwot Analysis Of Jp Morgan Chase997 Words   |  4 PagesSWOT Analysis of JP Morgan JP Morgan and Chase (JPMC) is the top fanatical service of US market and the biggest bank in US. JPCM with its exceptional 5 different business segments, which are corporate and investment banking (CIB), consumer and community banking (CCB), asset and wealth management (AWM), commercial banking (CB) and corporate entity. 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Due to high quality crude oil, potential for future oil production endeavors, accessible location to the vast Western oil market, and continuing trend of non-nationalization, Nigeria has become the largest oil producer in sub-Saharan Africa. These advantages have developed Nigeria into a country entirely dependent on the production and exportation of oil. In 2007, oil encompassed 99 percent of NigerianRead MoreECO 561 Week 6 Final Business Proposal2113 Words   |  9 Pageslogistics surrounded by the supply chain. An impenetrable basis surrounded by the symbol of home improvement creates the opportunities impact and generates properties on obtaining policies, strategies and measures, which are recognized in Home Depot’s procurement technique. Variables Depending on the number of sellers in any one industry, the differentiation of products and the barriers to entry, a market structure could be an oligopoly, monopoly, perfect competition, or a monopolistic competition. 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Cost effective supply chain practices including distribution system, procurement system and logistics system. 4. By making strong use of customer and supplier data, Wal-Mart is able to analyses each demographic consumer behavior and tailor offering accordingly. 5. Fresh Vegetables and Groceries strategy employed by Wal-MartRead MoreTrends in Population Growth and Diversity2549 Words   |  11 PagesIn an ever-increasing world of competition, organizations today must have strategies in place responding to trends in population growth and diversity that could have an impact on an organization s ability to plan, organize, lead, and control. Some factors to be considered include; vendor relationships, population growth, diversity, lawsuits, one stop shopping, and overcoming barriers to new cultures. Wal-Mart is a huge corporation whose operations are heavily scrutinized by the media, the public

Stereotyping (Black Men in Public Space) free essay sample

Stereotypes typically appeal to sex and race, but generally, almost anything can be transitioned into a stereotype. Mr. Brent Staples, author of the essay â€Å"Black Men and Public Space†, is targeted by judgment because of his race. This essay sheds light on the mistreatment towards an ordinary African American male. Ultimately, Staples is the victim of stereotype. Appearance and physique play a role in stereotyping. The way an individual looks and presents them selves determines the judgment of them by others. Staples, an African-American male who stands approximately 74 inches in height, can be mistaken for a criminal simply by his physical appearance. Staples is caught in a dilemma where he happens to notice a Caucasian female in her early twenties displaying signs of worry as he casually walks the streets of Hyde Park. In the essay by Brent Staples, he says, â€Å"After a few more quick glimpses, she picked up her pace and was soon running in earnest† (Staples 294). We will write a custom essay sample on Stereotyping (Black Men in Public Space) or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page What Staples is explaining in this observation is that this woman is afraid. This young woman witnessed Staples physical appearance and quickly made a judgment in which she assumed the worse. This judgment puts Staples in a situation where he is no longer innocent. Staples experiences what it is like to be deemed a threat, but in reality he is victimized by a stereotype. Subliminal stereotyping is miserably carried on throughout generations. Stereotypes get thrown around within society even to this day. Generation after generation is being exposed to these harmful statements that promote negativity. Staples says â€Å"It was in the echo of that terrified woman’s footfalls that I first began to know the unwieldy inheritance I’d come into – the ability to alter public space in ugly ways† (Staples 294). Staples makes known that somehow he has innocently become a threat to the public. He implies that he is forcefully a victim of stereotyping simply because of his African-American inheritance. Judgmental perceptions of a young, innocent and kindhearted African-American male have conclusively proved that generations of stereotyping continue to exist and victimize Staples. Forms of violence can arise from stereotyping. Violence can range from an unspoken insulting thought to a physical force against an individual. Violence promotes negativity in every way, shape and form. Staples conveys the thought that â€Å"Where fear and weapons meet – and they often do in urban America – there is always the possibility of death† (Staples 295). Staples allows the audience to realize the potential danger imposed on the victims of stereotyping. Under Staples circumstances, the fears exhibited by individuals around him inflict conceivable danger towards him. As a victim of stereotypes, Staples risks becoming a victim of death if someone were to foolishly act on their fear. Fear can be communicated through actions resulting from an initial stereotype. Stereotypes have the potential to instill fear into the minds of those who willing and unwillingly seek it. Thus many individuals fail to realize the feebleminded impression of hate and fear they exemplify through their actions. Staples says â€Å"I could cross in front of a car stopped at a traffic light and elicit the thunk, thunk, thunk, thunk of the driver black, white, male, or female – hammering down the door locks† (Staples 295). Staples describes a perfectly vivid example of individuals showing discriminatory acts towards him. The individual in the car exemplifies the subliminal expression of fear by making a conscious effort to lock the doors of the car as Staples walks by. Staples must feel an insulting form of bewilderment as he is once again victimized by a stereotype. Appearance and physique played major roles in the initial judgments made by others whole saw Staples. Many generations of stereotypes have been passed on and continue to be exercised. Unfortunately this has lead to forms of violence and fear being instilled in one another to address these stereotypes. Staples communicated in vivid details the realistic point of view of what it is like to be a true victim of frequent stereotyping. Works Cited Staples, Brent. â€Å"Black Men and Public Space†. The Seagull Reader Essays. 2nd Edition. Kelly, Joseph. London: W. W. Norton Company, 2008. 294 – 297. Print.

Commentary on Hbr Case When Consultants and Clients Clash Essay Example

Commentary on Hbr Case: When Consultants and Clients Clash Essay Commentary on HBR Case: When Consultants and Clients Clash -by Vinodkumar Pralia, Section-D1, 341/47 Is the business relationship between the Statler Group and Kellogg-Champion Securities a lost cause? How should the consultants and the client handle the status meeting? The crux of the problem is the incorrect framing of tasks to be undertaken by Statler Group consultants. This has been the cumulative result of the lack of understanding of merger situations by Kellogg and over-estimation of the progress of the merger by Gray. Since Kellogg hasn’t been involved in the people aspect of his firm and also, this being his first exposure to a merger situation, his understanding about the complexities arising out of mergers is limited. Despite important post merger tasks like finalizing hierarchical levels, reporting structures, executive titles still remaining, Kellogg is of the opinion that the merger is almost done. On the part of Gray, he has taken client’s viewpoints as the starting without himself doing any fact-finding to ascertain the progress of the merger and the tasks remaining for completion of the merger. This has led to situation where consultants’ task formulation includes only policies realignment without considering status of the other tasks. It’s next to impossible for the consultants to complete their assigned task of policies realignment without settling of the hierarchical levels and reporting structure. Even if we assume that the policies realignment task is achieved somehow, it will not be in the client’s interest as once the hierarchy and reporting issues are handled, need for policy changes would invariably arise. We will write a custom essay sample on Commentary on Hbr Case: When Consultants and Clients Clash specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Commentary on Hbr Case: When Consultants and Clients Clash specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Commentary on Hbr Case: When Consultants and Clients Clash specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To tap the synergies of the merger, the client has to settle these pressing needs before it looks into the policies. As the scope of the work is bound to increase with the addition of new tasks, the first thing Gray has to do is be present in person for the next meeting to show his seriousness to the client and also to show that Statler Group has competent people to do the job. He should present to Kellogg how important it is to complete the hierarchy and reporting issues before beginning with policies realignment. To back this he should use his team’s findings in the firm till now and other research data on mergers. This would help Kellogg to understand the complexities involved in a merger situation. He should tell Kellogg that a merger situation is bound to create conflicting interests in its employees and it would help the firm to remove arising uncertainties as soon as possible. Gray should acknowledge the fact that he over-estimated the progress of the merger and should present a proposal for reframing the engagement to include the additional tasks like recommending hierarchical levels and reporting structure. Along with this he should present in details how he plans to accomplish them. He should share with Kellogg that the most important decision criteria for the tasks should be maximize the synergies which can be derived out of the merging entities. One of the key actionable of his plans should be getting Kellogg to introduce the team to the senior management to have everyone on the same page as far as their mission objectives are concerned. The management should come out with circulars stating interim policies till the process is on. This will serve in bringing down anxiety of the employees arising out of the merger situation.

Strong Electrolyte Definition and Examples

Strong Electrolyte Definition and Examples A strong electrolyte is a solute or solution that is an electrolyte that completely dissociates in solution. The solution will contain only ions and no molecules of the electrolyte. Strong electrolytes are good conductors of electricity, but only in aqueous solutions or in molten form. The comparative strength of an electrolyte may be gauged using a galvanic cell. The stronger the electrolyte, the greater the voltage produced. Strong Electrolyte Chemical Equation The dissociation of a strong electrolyte is apparent by its reaction arrow, which only points toward products. In contrast, the reaction arrow of a weak electrolyte points in both directions. The general form of the strong electrolyte equation is: strong electrolyte (aq)  Ã¢â€ â€™ cation (aq) anion- (aq) Strong Electrolyte Examples Strong acids, strong bases, and ionic salts that are not weak acids or bases are strong electrolytes. Salts much have high solubility in the solvent to act as strong electrolytes. HCl (hydrochloric acid), H2SO4 (sulfuric acid), NaOH (sodium hydroxide) and KOH (potassium hydroxide) are all strong electrolytes.

Intentional Infliction of Emotional Distress Cases Case Study

Intentional Infliction of Emotional Distress Cases - Case Study Example No because while the statute does not definitively require due diligence on the part of defendants, plaintiff did receive and pass psychological testing before engaging in the reality program and therefore defendants will likely not be held responsible. A lounge singer and Sacramento native, Mr. Muerton is currently unable to work because he suffers from recurring panic attacks, clinical depression, and paralyzing stage fright. He claims that these serious conditions are the result of Barnett Productions' duping him into participating in a reality television show called "Regular Guy," where, during the show's taping, he was forced to partake in humiliating school-yard contests while a group of athletically gifted "hunks" ridiculed his limited physical abilities. According to the client, show producers revealed, as they pulled up to beach front property which was directly across from the school which was the situs of Mr. Muerton's bullying, that the show was going to be called "The In Crowd Now" and that it would be about men who had been unpopular kids and had transformed into well-liked, successful adults. Only then did, Merton, as he was being prepared for the taping on a new segment based upon bullying learn the show was actual ly called "Regular Guy," and would be about 15 average-looking roommates competing for the affections of one beautiful woman, named Clarissa. Mr. Muerton claims that Barnett knew he would experience a negative psychological reaction to these staged events, which mirrored emotionally scarring grade-school bullying that he had experienced as a child. Prior to the taping of the show, Barnett was completely informed that Muerton that he had been abused while in grammar school. Disclosures included but were not limited to being targeted at recess by large cruel jocks; whippings during games of dodge balls; and verbal taunts such as "Watch the little loser run home to mommy after I nail him," and "I wish the ball was harder so it could crack your skull." As a direct result of the bullying, he was home schooled. Further, Merton stated "when they told me I would be cast in the show pending a background investigation and psychological testing. I passed both." During the taping of the recess segment, Merton was told by the hunks "They shouted insults. I remember, one of them said to another, "What a bunch of losers. These guys look like 14-year-olds. We should kick their asses." And another one said, "See these babies squeal I bet they're about to go in their pants." Originally scheduled to air on the Fox network this fall, the debut of "Regular Guy" has been postponed indefinitely. In sum, the issue is whether there would be a sustainable cause of action for intentional infliction of emotional distress DISCUSSION This memorandum encompasses three cases applied to the facts presented. Against that backdrop, pursuant to Yurick, a cause of action f

Essay Example | Topics and Well Written Essays - 500 words - 207

Essay Example It adopted the military culture and operated under principles reminiscent from the military operation. This culture resulted to decrease of company performance. The principles adopted also resulted to termination of many employees. Shaw (2007) states that, termination of the employee causes low performance of the company because the customers have specific people who should serve them. When a customer finds out that the employees are sucked, they also loose confidence with the company (Sison, 2008). When Frank took over the company changed trend and tried to create or establish a good relationship with employee and customer. In order to attract more customers, it started offering free service of teaching carpentry to children. The company builds up a culture that emphasized on social responsibility. It created different programs that support the customers and environment growth. The company also underestimated the female workers as they were paid low salaries than their male counterparts but after the case was filed in 1997, the issue was resolved. The company provides equal opportunity to all associates, and every body is encouraged to develop and grow professionally (Rezaee, 2008). In respect to the social responsibility principle, Home Depot established programs to minimize their impacts to the environment and also customers effect to the environment. One of the ethical principles is to care and protect the environment and ensure that the company and the customer do not cause harm to the environment. The company has also applied to be certified by the Forest Stewardship in order to access wood at the forest. This is an indication that the company does not want to violate the country’s regulation (Shaw, 2007). Home Depot employees are required to be involved on voluntarily basis in community work and civic activities. Each year the 300 employees are required to take part in the 2 million voluntarily services offered by

Shay`s Rebellion Essay Example for Free

Shay`s Rebellion Essay The 1787 rebellion was led by Daniel shay. He was not much literate, but he portrayed charismatic character. The â€Å"who`s who† of the day had been labeled a rebel, traitor, and coward. However, those allegations were nothing but distant from the truth. He was a devoted nationalist, and a decent military officer supporting America’s devolution. He had devoted over five years of his life in service of America`s government. In addition, besides devoting his life to a patriotic course, he owned little property under his name and was also an accused person in a lawsuit. He mobilized oppressed citizens, both poor farmers and middle class town folks, who disagreed with the government’s actions during the time. He was able to consolidate a militia of over 2000 men. The militia was armed and willing to burn down Boston. According to miller (71), Jefferson heard of the rebellion while, in France but felt that it would not last long. He though that a little rebellion was okay. The political situation was a mess with a weak government that had limited resources and bottomless depts. As a result, they installed large tax levies on American citizens. The uprising divided America`s population into two with conservatives opting to keep of the war. Its events motivated great political progress. Political Events of the period preceding the rebellion depicted a need for big political changes. Voters expressed distaste in government`s actions by developing preference for new leaders. In 1787, Governor Bowdoin lost elections to John Hancock, whom he had defeated in all previous contentions. The people were determined to get rid of every element of oppressive governance. Sherriff Greenleaf was on the state`s side. He held official capacity in Lancaster and employed all possible resources, with the sole objective of monitoring how people related to the rebellion and stopping growth of the militia group. The rebellion created a situation where General Lincoln rejoined America`s political scene. His contributions were in support of America`s government. Shay`s rebellion against political tyranny,  attracted attention from Alexander Hamilton, George Washington, and James Madison who thought that America needed to setup a new government system. Soon, they would start pursuing the agenda of d elivering a federal government system to the American people. Social America experienced a recession beginning in 1784. The government could not survive without extensive external funding let alone subsidizing public projects. They found that salvation could be achieved by demanding a tax increase. According to smith (6), the taxation levels were not ethical. The government tried to exploit farmers and casual laborers, however; their efforts did not make much difference as such persons initially made less money than tax demands. Therefore; the taxman made demands but did not receive equitable monies. Consequently, persons who failed to comply lost property and others were prosecuted in court. Government also owed to soldier. A currency circulation mess, where circulation did not match national wealth was not corrected by government. This led to further escalation of the already unpleasant situation. Crops did very well; farmers brought much harvest from the farms but attracted low market prices. Most farmers did not meet their tax obligations and soon lost rights to continue farming on their land. The labor industry was also in a chaotic situation. Few jobs were available for grab. What`s more, wages attached to such were not enough to get by on. Technology was not advanced and manufacturing did not take place. According to Humphrey and Richard (2), merchants and the government alike oppressed farmers. The rebellion was successful in inspiring a revision of tax rates. Soon, America`s taxman reviewed tax downwards. Cultural Shay`s rebellion was not supported by the conservative clergy. Racisms increased the disparity between the rich and struggling population. Majority of the rich folks were white while many African Americans were defined by poverty. Christianity was popular though it’s disputable that Christian virtues were followed to the letter, because; it appears that injustice consumed the social, economic, and political scene. Racial segregation created a window for crucifixion of the black community. Conservative clergy believed in superiority of white community, and openly displayed that  African Americans occupy an inferior position relative to whites. Therefore, conservative clergy supported and felt that the system was just in its actions. They did not identify with the rebellion`s cry for change. In conclusion, the rebellion was an eruption after a period of constant economic, political, and cultural oppression. America`s population was divided along social status boundaries, living merchants and professionals on the side of government and farmers and laborers on the resistance side. The militia lost the battle but worn the war. They lost to the state but political figure lenient to Shay`s rebellion ideals assumed office and reduced the economic burden. Tax rates were revised. The period also inspired political revolution and resulted in a new government system. Works cited Humphrey, Thomas J., and Leonard L. Richards. Journal of American History 90.2 (2003): 625. Web. 18 July 2015. Miller, Brandon Marie. Thomas Jefferson For Kids. Chicago, Ill.: Chicago Review Press, 2011. Print. Smith, Jonathan. The Depression Of 1785 And Daniel Shays Rebellion. The William and Mary Quarterly 5.1 (1948): 77. Web. 18 July 2015.

Clear Liquid Thought: The Photographs of Jim Dine Essay -- Photography

Clear Liquid Thought: The Photographs of Jim Dine The camera sees even beyond the visual consciousness. --Ralph Eugene Meatyard Argument: The Photographic Unconscious In his article "Photographie avant analyse"1 photography critic Franà §ois Soulages discusses the reciprocal influence between photography (as an emerging technology in the nineteenth century) and the study of the unconscious (prior to the invention of psychoanalysis). To what extent, he asks, did a new technology such as photography enlighten, modify, or enrich the understanding of the unconscious? And, conversely, how did what he calls "the hypothesis of the unconscious" allow for a better understanding of a new technology? These questions, inherent in the beginnings of photography and essentially linked to its role in the comprehension of the visible and the invisible body, have gained considerable importance today. The photographic works I will discuss here participate in our understanding of the unconscious in a paradoxical way, since they do not imply disclosing images of the artist's unconscious specifically encoded into symbolic meaning. On the contrary, my concern is with these works' potential to generate visual equivalents of inner life perceptions in a variety of puzzling formal patterns whose disclosure of meaning is cunningly deferred. The photographic compositions of Jim Dine are not narratives of inner life, but forms of visual experience that inform our ways of thinking the unconscious. ------------------------------------ 1 Franà §ois Soulages, "Photographie avant analyse", Photographie et inconscient (31-35). In this study, Soulage primarily deals with the beginnings of photography and with its paradoxical uses in psychiatry .. ...rundberg, Andy. "Now, the Camera's Eye Turns Inward", in The New York Times, May 28. 1989. Hamon, Philippe. Imageries.Littà ©rature et image au XIXe sià ¨cle. Paris: Josà © Corti, 2001. ------------------------------------ 19 The phrase used in the title of this article is coined after the title of one of Dine's black-and-white photogravure prints, "Clear Liquid Talking", 1996. Krauss, Rosalind.The Optical Unconscious. Cambridge, Mass. : MIT Press, 1993. Meatyard, Ralph Eugene. Caught Moments -- New Viewpoints. Exhibition catalogue. London: Olympus Gallery, 1983. Powers, Richard. Three Framers on Their Way to a Dance. New York : W. Morrow, 1985. Sibony, Daniel. "Une technique de l'instant ou la machine à   clicher", La Recherche photographique 7 (1990) Soulages, Franà §ois. "Photographie avant analyse", Photographie et inconscient, Soulages ed. Paris: Osiris, 1986.

Difficulty paper

Difficulty Paper: â€Å"Near Taurus† In many respects, â€Å"Near Taurus† was a mystery text that perplexed my thought process as I read this masterpiece. For me, as an average reader, I found this piece to be a very difficult to understand; so much so that I can say this is one of the most difficult works I have ever read. The grammar, the stylistic language, the lack of information made the story that much harder to comprehend. However as I read this text multiple times to understand what is being conveyed, I am still grasping new information by reading in a different perspective.Here is what I came to understand of this story. Let's take a look at the very first line of this piece, â€Å"After the rains had come and gone we went down the reservoir† (13). This first line gives us an indication that this is an outside scenery and is beautifully introduced to us readers. The author Jumps straight into the scene and it made me contemplate as to where this setting could be at. I then looked back at the title and it hit me that this was outdoors, maybe on a mountain and the characters where looking to the stars. Taurus†, one of the constellations of the zodiac, is the main topic of this story. There are two people who are looking to the sky and are looking for the Taurus, but see other ones like Orion (13). The Taurus is usually seen in the winter season and is established when the boy says â€Å"the body won't show until the winter† (13). Nevertheless, even though the story was very short, it has still a lot that is uncovered and many passages that left me discombobulated.Initially, the narrator starts to introduce the characters in this piece, stating â€Å"Our voices were high†his, mine; soft, bright† (13). Then, like it was a bad habit, drops the characters description and traits. Why? Is it not important for us readers to grasp who and what the characters are like? Even during the end of the text, the narrator st ates about the boy in the story, â€Å"l could tell you his name. I could and would not† (13).Perhaps, it is done this way because it leads us readers to look for the surroundings and the setting of the story to make our own interpretations. During the end of this story, the narrator after talking about an incident with the boy, who was most likely teenage lovers with the narrator at the time, Jumps to the future and says â€Å"He died, that boy. Light-years! Ages and ages. And here I am: a mother, witness, a raiser of a boy' (13). The style and grammar and even the word choice in this line was very intriguing and confused me.When the narrator said â€Å"light years† and then â€Å"ages and ages† was interesting because she Just mentioned that the boy passed away. I felt that she still had some feeling towards this person, and it even made believe that the boys was the father of the boy she mentioned in that line. I was also confused at when she said she was a â€Å"witness. † What was she referring too? Was it the Taurus or did she witness love? Love because I believe this story is a love story because of the word choices of the narrator and scenery depicted in this story.Nonetheless this word choice chosen by the narrator I believe is fascinating but can confuse us average readers. Unlike many books that I nave read over the years, I believe this piece was very difficult and interesting at the same time. Even though the was less than a page, less than 300 words, I believe it said so much without saying much, which is unbelievable! The word play, the stylistic language and the lack of information was the primary ause of the difficult understanding of the text when reading it the first couple of times.However as I continued to break this seemingly unbreakable text, I started to look at it in a different perspective. I then understood as to what this piece meant, and the title played a great role. Furthermore, the way the author cho se not to introduce any real information about the characters and left us, the readers, to determine as to what we understand about the scene and setting is fascinating to me. This piece unbolted my mind and made me become a better reader I believe.

Evaluation of the options available - Free Essay Example

Sample details Pages: 14 Words: 4331 Downloads: 8 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Introduction There are a few options for S.B. Ltd to consider getting through difficult times. The five main options are firstly, to discontinue the Nottingham division and Leicester and Loughborough divisions could use their spare capacity to produce 60% of Nottinghams 2010 output in addition to their own 2010 output, close the Nottingham division and outsource Nottinghams 2010 output, to launch a major campaign for all 3 products to increase their sales, to introduce a transfer pricing system between the division and the head office to increase motivation among the staff in each division and rightsizing the organisation.. Don’t waste time! Our writers will create an original "Evaluation of the options available" essay for you Create order Discontinuation As seen Nottingham is not making growth, in response to market forces, the first option is to discontinue Nottingham division by selling its assets and settling its liabilities and shifting production from Nottingham to Leicester and Loughborough. The discontinuation decision is a decision when the division profitability highlights the potential of unprofitable (Drury, 2010, pp.91-92). In this option, assuming that Leicester and Loughborough have some spare capacity to produce 60% of Nottinghams 2010 output on top of their own 2010 output. According to Drury (2010, p.92), discontinuing the Nottingham division could aid the company in eliminating cost of goods sold, and other variable costs in the division. Leicester Loughborough Derby Sales Strawberry jam 280.00 Sales Orange Marmalade 240.00 Sales Raspberry jam (60%) 96.00 Total Sales 616.00 Cost of goods produced and sold 173.00 153.00 326.00 Gross Profit 290.00 Advertising costs 30.00 Distribution costs 50.00 Local administration expenses 30.00 30.00 60.00 Head Office Costs 150.00 Net Profit Other cost such as advertising costs, distribution costs and Head Office costs remain unchanged and is not affected by the discontinuation of the Nottingham division. OHare (2010, Management Accounting Lecture 3) suggested other factors which will affect an organisation to discontinue a division, the division is making a loss, to identify avoidable costs or to discover other saving. Outsourcing Outsourcing option is also known as sub-contracting option has become increasingly common in organisations, which enables organisations to concentrate on their core performance while outsource other specialist their secondary activities (Collier et al, 2007, pp.220-221). In S.B. Ltd case, according to Oxford University Press (2009), outsourcing could help to get through this hard time by going on a process of business process downsizing. Outsourcing allows operations that have seasonal demands to bring in additional resources in time of needs. Other advantages of outsourcing are, outsource activities will allow S.B. Ltd to focus on important functions without sacrificing quality or service, outsource specialist could help improve the quality and standard of the jam. It may also be able to purchase the jam more cheaply or perhaps more quickly. Assuming the outsource price for raspberry jam is 20% more then the cost of goods produced and sold for raspberry jam. Hence, the sales of raspberry jam remains the same and Leicester division and Loughborough division have spare capacity which gives them room for expansion of 30% more sales each. All other expenses remain the same for both Leicester and Loughborough divisions. This gives the Head Office a net profit of 76,000 Leicester Loughborough Derby Sales Strawberry jam 364.00 Sales Orange Marmalade 312.00 Sales Raspberry jam (Outsource) 160.00 Total Sales 836.00 Cost of goods produced and sold 182.00 156.00 338.00 Outsource price 132.00 Gross Profit 366.00 Advertising costs 30.00 Distribution costs 50.00 Local administration expenses 30.00 30.00 60.00 Head Office Costs 150.00 Net Loss 76.00 On contrary to the advantages, outsourcing the jam to some specialist could lead to risk of unsatisfactory quality and standard of the jam. Other disadvantages could be leak of procedures and techniques of making the jam, outsourcing usually focuses on short-term cost-saving, and ignores the unchanged overhead burden. Major Campaign Another option is to launch a major advertising campaign for all three products to increase their sales and keep all three divisions. Advertising could boost awareness and generate demand of the sales of jams of S.B. Ltd. and hence acquiring more orders. In the advertising campaign, assuming the advertising cost increase by 20% and it bring the sales of each product to an increase of 20% each. It simply boost up the profit of the company to 96,000. Leicester Nottingham Loughborough Derby Sales Strawberry jam 336.00 Sales Raspberry jam 192.00 Sales Orange Marmalade 288.00 Total Sales 816.00 Cost of goods produced and sold 140.00 110.00 120.00 370.00 Gross Profit 446.00 Advertising costs 90.00 Distribution costs 50.00 Local administration expenses 30.00 30.00 30.00 90.00 Head Office Costs 150.00 Net Profit 66.00 Transfer Pricing The other option is when an organisation chooses to decentralise its divisions, transfer pricing helps decide what price to charge for in-company transactions (Collier et al, 2007, p.38-39) and as a form of promoting divisional autonomy (OHare, 2010, Management Accounting Lecture 8). It is useful when goods are transferred between divisions; hence, the performance measurement of each division is not prejudiced by the corporate objectives. The profitability of each business units will be affected and according to Solomon (1965 cited in Collier et al, 2007, pp.38-39), companies might take advantage of the transfer pricing which are suitable for evaluating divisional performance for the corporate interest, instead of the business units. Transfer pricing strategies and can produce substantial tax savings in addition to enhancing operational performance and improving cash flow. In many organisations, in order to avoid de-motivating effects on different business units, negotiated prices ar e adopted. Say, each product is transferred to Derby division and it pays each division 70% of the sales it made from selling all the jams and yet still bare the cost of advertising, distribution and the head office costs. The local administrative expenses shall be bare by the respective divisions. Leicester Nottingham Loughborough Derby Sales Strawberry jam 280.00 Sales Raspberry jam 160.00 Sales Orange Marmalade 240.00 Total Sales 680.00 Transfer price revenues 196.00 112.00 168.00 Cost of goods produced and sold 140.00 110.00 120.00 Gross Profit 56.00 2.00 48.00 680.00 Total cost of transfer 476.00 Advertising costs 30.00 Distribution costs 50.00 Local administration expenses 30.00 30.00 30.00 Head Office Costs 150.00 Net Profit 26.00 (28.00) 18.00 (26.00) There are downsides of transfer pricing. The political process in an organisation might affect the transfer pricing between divisions. Incorrect prices adopted can distort reported performance, by making some divisions more profitable at others expense. Opportunities exist to avoid taxes using artificial transfer prices to transfer profits from a high tax division to a low tax division. Rightsizing Rightsizing, or corporate restructuring, with the aim of reducing costs and improving efficiency and effectiveness is also one option in difficult times. Rightsizing is downsizing in the belief that an organisation really should operate with fewer personnel. The primary reason to engage in rightsizing is to make the daily operations of a business more productive. For example, a company may be able to replace assembly line employees with machines which will be quicker and less prone to error. In addition, rightsizing increases profits by reducing the overall overheads of a business. S.B. Ltd operates a full cost (TAC) standard costing system. The standard costs set fot the year 31 March 2010 and information about future costs and selling prices are in Appendix 2. Part 2 (700) Assuming the company decided to go for the option of keeping all divisions open and launching an advertising campaign, you are required to produce a standard cost card for each product and a budget for the company showing clearly the costs attributable to each division for the year to 31 March 2011. State clearly all assumptions made. Appendix 2 Standard cost data Standard cost cards for the year ended 31 March 2010 (per batch of 40 jars each of 500 grams) Strawberry Jam Raspberry Jam Marmalade Selling price 28 32 40 Fruit 16kg 4.8 16kg 5.6 24kg 4.8 Sugar 8kg 1.6 8kg 1.6 12kg 2.4 Labour 1 hour 6 1 hour 6 2 hours 12 Other variable costs 1 2 2 Fixed overheads 1 hour 2 1 hour 2 2 hours 4 15.4 17.2 25.2 Profit 12.6 14.8 14.8 Other information Demand With the right promotion the company believe that they could sell 20% more of each product at the 2010 standard selling price Material wastage It is considered that improvements can be made but input weight will always be at least 10% more than output weight for jam and 50% for marmalade Labour Currently operates at 80% efficiency levels Prices Strawberries are sourced from the UK and prices are expected to rise by 2-5% Raspberries are sourced from the UK and prices could rise by up to 15% due to poor weather Oranges are imported and paid for in euros euro prices are expected to be as 2010 Discounts on all fruit can be negotiated if quantities increase Labour rates per hour have been the same for the last 2 years Variable costs may rise by up to 5 % Fixed overheads may rise by between 5 and 10% Standard Cost Card A standard cost card can be defined as a detailed listing of the standard amounts of materials, labour and overheads that should go into a unit of product, multiplied by the standard price or rate that has been set for each elements (Anon 2, 2010). A standard cost card, for example must include the price, specifications, quantity and quality of material required, as well as such factors as the period of credit allowed from suppliers, cash and quantity discounts, spoilage due to wastage and deterioration. A standard cost card demands an investigation of all contributing factors that can constitute a cost before the cost is adopted. According to Drury (2010, p.278), standard costs are predetermined costs and they are the target costs that should be incurred under efficient operating conditions. The standard cost card will be subjected to updating caused by revision of standards such as changes in prices, discounts, etc. Standard costing is a control system which sets standards that are ideal, expected and achievable (OHare, 2010, Management Accounting Lecture). Collier (2007, p.36) put forward that standard costing is a control technique which compares standard cost and all of production revenues with actual results. It is to obtain variances of each division and product (OHare, 2010, Management Accounting Lecture 8), which are used to stimulate improved performance and to increase motivation of staff in each division. It is a detective control used to prevent problems from reoccurring as it measures variances as it occur, thus allowing management to take necessary corrective action. The standard cost card for the year ended 31 March 2011 (per batch of 40 jars each 500 grams) for Strawberry Jam, Raspberry Jam and Orange Marmalade are as below: Strawberry Jam Selling price 28.00 Fruit 16/kg 0.31 4.90 Sugar 8/kg 0.20 1.60 Labour 1 hour 6.00 6.00 Other Variable Cost 1.50 Fixed Overheads 1 hour 2.10 2.10 15.65 Profit 12.35 Raspberry Jam Selling price 32.00 Fruit 16/kg 0.40 6.44 Sugar 8/kg 0.20 1.60 Labour 1 hour 6.00 6.00 Other Variable Cost 2.10 Fixed Overheads 1 hour 2.10 2.10 18.24 Profit 13.76 Orange Marmalade Selling price 40.00 Fruit 24/kg 0.20 4.80 Sugar 12/kg 0.20 2.40 Labour 2 hours 6.00 12.00 Other Variable Cost 2.10 Fixed Overheads 1hour 2.10 2.10 23.40 Profit 16.60 Budget The principal tool in planning is called a budget. A budget is a collection of predictions. It is an estimation of the revenue and expenses over a specified future period of time. There are three purposes of budgets as identified by Emmanuel et al (1990 cited in Collier, 2007, pp.39-40), as forecasts of future events, as motivational targets and as standards for performance evaluation. Budget is a financial plan or qualitative statement for implementing the various decisions to be pursued during a specific accounting period, that management has made in the previous period. Collier (2007, pp.39-42) suggest that budgets provide a control mechanism through both the feed forward and feedback loops. The control mechanism in the budget is to provide a performance monitoring function to the appropriate managers who are responsible for implementing the various decisions by producing and presenting the performance reports. According to Drury (2010, pp.8-9), the performance report provide feedback information by comparing planned and actual results. Generally, a functional budget is drawn up for each division of S.B. Ltd. These budgets are, then, merged together into a single combined statement, which is known as the master budget, of S.B. Ltds expectations for the future periods. The master budget consists of budgeted profit, which it is expected to convey to everyone in the organisation the part that they are expected to achieve in implementing managements decisions. The master budget, usually, consists of a budgeted profit and loss, a budgeted balance sheet and a budgeted cash-flow statement. In order to finalised a budgeted profit and loss, other budgets for the individual divisions and produced, such as the sales budget, direct materials usage budget, direct materials purchase budget, direct labour budget, and selling and administration budget. Master Budget Budgeted Profit and Loss Account for the year ending 31 March 2011 Forecast sales (Schedule 1) 816,000 Purchases (Schedule 3) Materials Fruit 130,272 Materials Sugar 46,080 Cost of raw materials consumed 176,352 Direct Labour (Schedule 4) 155,520 Factory Overheads (Schedule 5) 68,040 Cost of Sales 399,912 Gross Profit 416,088 Selling and administration expenses (S6) 350,000 Variable Costs (Schedule 7) 40,320 Budgeted operating profit for the year 25,768 Schedule 1 Sales Budget for year ending 31 March 2011 Product Batches Sold Selling Price Total Revenue Strawberry Jam 12,000 28.00 336,000.00 Raspberry Jam 6,000 32.00 192,000.00 Orange Marmalade 7,200 40.00 288,000.00 816,000.00 Schedule 2 Annual Direct Material Usage Budget Leicester Nottingham Loughborough Total Units Strawberry 192,000 192,000 Raspberry 96,000 96,000 Orange 172,800 172,800 Sugar 96,000 48,000 86,400 230,400 288,000 144,000 259,200 Schedule 3 Direct Materials Purchase Budget Strawberry Raspberry Orange Sugar (units) (units) (units) (units) Quantity necessary to meet production 192,000 96,000 172,800 230,400 requirements as per material usage budget Planned unit purchase price 0.31 0.39 0.20 0.20 Total Purchases 58,752.00 36,960.00 34,560.00 46,080.00 Schedule 4 Annual Direct Labour Budget Leicester Nottingham Loughborough Total Budgeted production (units) 12,000 6,000 7,200 Hours per unit 0.80 0.80 1.60 Total budgeted hours 9,600 4,800 11,520 25,920 Budgeted wage rate per hour () 6.00 6.00 6.00 Total Wages () 57,600 28,800 69,120 155,520 Schedule 5 Annual Fixed Overheads Leicester Nottingham Loughborough Total Fixed Overheads hour 1 1 2 Fixed overheads rate 2.10 2.10 2.10 Fixed Overheads per batch 2.10 2.10 4.20 Total Fixed Overheads () 25,200.00 12,600.00 30,240.00 68,040.00 Schedule 6 Annual Selling and Administration Budget Selling: Advertising Costs 60,000.00 Distribution Costs 50,000.00 110,000.00 Administration: Local Administration Expenses 90,000.00 Head Office Costs 150,000.00 240,000.00 350,000.00 Schedule 7 Annual Variable Cost Budget Leicester Nottingham Loughborough Other variable costs 1.00 2.00 2.00 Variable costs per batch 1.05 2.10 2.10 Total Variable Costs 12,600.00 12,600.00 15,120.00 40,320.00 It is now April 2011. The actual results for the year 31 March 2011 are in Appendix 3. Part 3 You are required to: (a) Produce an operating statement for each division based on your own budgets. (b) Write a report to the board appraising the performance of each division using whichever indicators you feel are appropriate. You should also suggest what other information should be obtained in order to improve your appraisal. (c) Write a report to the company management accountant on whether the company should change their traditional approach to accounting for overheads to one based on Activity Based Costing. Appendix 3 S.B. Ltd Trading results for the year ended 31 March 2011 Leicester Nottingham Loughborough Derby 000s 000s 000s 000s Sales Strawberry Jam 11000 batch 330 Sales Raspberry Jam 6250 batch 200 Sales Marmalade 6000 batch 250 TOTAL SALES 780 Fruit 170000kg 53 100000kg 36 140000kg 30 Sugar 84000kg 21 48000kg 12 68000kg 17 Labour 10000 hours 70 6000 hours 39 6000 hours 39 Variable costs 12 10 13 Fixed Overheads 10000 hours 22 6000 hours 12 6000 hours 15 Cost of goods produced and sold 178 109 114 401 Gross Profit 379 Advertising costs 60 Distribution costs 60 Local administration expenses 32 32 32 90 Head Office Costs 155 NET PROFIT 14 Note Sales = Production (a) According to Anon 3 (2010) and Anon 4 (2010), an operating statement is a detailed periodic report of the financial reports or a financial statement of a firms operations. In many organisations, management rely on the financial and quantitative statement provided to record performance achieved by that area of the operation, for a selected budget period, for which the management is responsible (Oxford University Press, 2009). S.B. Ltd practices a decentralised control over its responsibility centres where Derby division is delegated as the controlling costs centre. Decentralisation means there is a delegation of authority in decision making in the organisation. According to CIMA Official Terminology (Collier, 2007, pp.13-14), the financial control in divisionalised businesses is the divisional performance control by producing a budget and the monitoring of actual performance towards the budget. Each division management will carry out a significant function in analysing and interpreting financial information and will achieve the target given. Below is the operating statement for the individual division based on the budget prepared in part 2. Operating Statement for S.B. Ltd Description Leicester Nottingham Loughborough Derby Sales Strawberry Jam 336,000 336,000 Sales Raspberry Jam 192,000 192,000 Sales Marmalade 288,000 288,000 Total Sales 816,000 Cost of Sales Purchases Fruits 58,752 36,960 34,560 Purchases Sugar 19,200 9,600 17,280 Labour 57,600 28,800 69,120 Variable Costs 12,600 12,600 15,120 Fixed Overheads 25,200 12,600 30,240 Cost of goods produced and sold 173,352 100,560 166,320 440,232 Gross Profit 162,648 91,440 121,680 375,768 Operating Expenses Advertising costs 60,000 Distribution costs 50,000 Local administration expenses 30,000 30,000 30,000 90,000 Head office costs 150,000 30,000 30,000 30,000 350,000 Net Profit 132,648 61,440 91,680 25,768 Solomon (1965 cited in Collier, 2007, pp.13-14) highlighted three purposes for financial reporting at divisional level; to guide divisional managers and top management in decision making, and to enable top management to appraise the performance of divisional management. (b) TO: The Directors of S.B. Ltd From the earlier budget, the performances of all four divisions are appraised. The overall companys performance as seen on Derby division operating statement seems to have achieved the budgeted gross profit. However, all the other costs, such as the advertising costs, distribution costs, local administration expenses and head office costs, influence the net profit not achieving the budgeted figure. The overall sales, although did not attain the budgeted sales, did make a good number and managed to produce the goods at a much lower price compared to the budgeted figure. Operating Statement for Derby Division Description Current Period Budgeted Sales Strawberry Jam 330,000 336,000 Sales Raspberry Jam 200,000 192,000 Sales Orange Marmalade 250,000 288,000 Total Sales 780,000 816,000 Cost of goods produced and sold 401,000 440,232 Gross Profit 379,000 375,768 Operating Expenses Advertising costs 60,000 60,000 Distribution costs 60,000 50,000 Local administration expenses 90,000 90,000 Head office costs 155,000 150,000 365,000 350,000 Net Profit 14,000 25,768 The performance of Leicester division is seen not to be performing to the budgeted figures in the operating statement. The actual sales of the strawberry jam was just 6,000 less than thee budget and managed to pull off a noteworthy net profit, although not as expected as in the budget. According to ACCA (1988, p.54), preparing a set of costing will be a waste of time unless it has a purpose. Comparing the current period figures with the budgeted figures, in order to establish costs control and efficiency in the division and to prevent unnecessary use of services. Operating Statement for Leicester Division Description Current Period Budgeted Sales 330,000 336,000 Cost of Sales Purchases Strawberries 53,000 58,752 Purchases Sugar 21,000 19,200 Labour 70,000 57,600 Variable Costs 12,000 12,600 Fixed Overheads 22,000 25,200 Cost of goods produced and sold 178,000 173,352 Gross Profit 152,000 162,648 Operating Expenses Local administration expenses 32,000 30,000 Net Profit 120,000 132,648 The actual sales of the raspberry show a positive comparison. However, the gross profit figure is slightly lower than the budgeted figure. Unfortunately the increase in local administration expenses razed the actual net profit figure. The cost of purchasing sugar was expected to be lower in the budget as well as the labour costs was projected to be lower. Auspiciously, the current period net profit has achieved a positive figure. Operating Statement for Nottingham Division Description Current Period Budgeted Sales 200,000 192,000 Cost of Sales Purchases Raspberries 36,000 36,960 Purchases Sugar 12,000 9,600 Labour 39,000 28,800 Variable Costs 10,000 12,600 Fixed Overheads 12,000 12,600 Cost of good produced and sold 109,000 100,560 Gross Profit 91,000 91,440 Operating Expenses Local administration expenses 32,000 30,000 Net Profit 59,000 61,440 The Loughborough division, on the other hand, is making a good profit from the sales of marmalade. The sales of marmalade were projected to be higher; however, the current period gross profit and net profit are more than the budgeted figure mainly attributed to competitive purchase prices of oranges and sugar, low labour costs, low variable costs and low fixed overheads. Operating Statement for Loughborough Division Description Current Period Budgeted Sales 250,000 288,000 Cost of Sales Purchases Oranges 30,000 34,560 Purchases Sugar 17,000 17,280 Labour 39,000 69,120 Variable Costs 13,000 15,120 Fixed Overheads 15,000 30,240 Cost of good produced and sold 114,000 166,320 Gross Profit 136,000 121,680 Operating Expenses Local administration expenses 32,000 30,000 Net Profit 104,000 91,680 (c) TO: The Management Accountant Traditional Costing System The traditional costing approaches were developed in the early 1900s and they are still widely used by organisations today. They rely broadly on arbitrary cost allocations. These approaches rely on an essentially arbitrary allocation of indirect costs. Such approaches do not give managers accurate product cost information; therefore, accurate production profitability calculation is not possible. The overhead rate in traditional costing approaches would typically by calculated using direct labour hours, machine hours or units. Consequently, this could lead to accurate product costs when direct costs were high and indirect costs were low. According to Collier (2007, p.60), under the traditional costing approaches, organisation production runs to obtain the lowest unit of cost production and support the mass production model that seeks economies of scale. The overhead rates calculation to the traditional costing approaches is relatively straightforward; hence, they are widely understood in the business. Although, they are relatively cheap to operate and were seen as fairly accurate until the rise of activity-based costing in 1987, many other organisations are using them after many decades. Traditional costing approach is a systematic costing approach that prevailed before the rise of the activity-based costing in 1987. Since then, the traditional costing approaches weaknesses were fairly visible. Their reliance on arbitrary rather than cause-and-effect allocation of overheads and their inability to produce accurate product costs in multiproduct companies were very much clearer. Their failure to analyse non-manufacturing costs made it less appropriate for modern costing approach in organisations. Activity-based Costing As proposed by Professor Johnson and Kaplan in their book Relevance Lost: The Rise and Fall of Management Accounting (1987 cited in Oxford University Press, 2009), they question the widespread misconception exists that using accounting information and the inadequacy of conventional approaches arises from a lag in replacing the modern cost accounting approach. The new approach is designed with modern information and accounting systems for financial reporting and tax purposes, hence it recognises that costs are incurred by each activity that takes place within the organisation and that products should bear costs according to the activities use. In Professor Johnson and Kaplans method, the cost drivers are identified, together with the appropriate activity cost pools, which are used to charge costs to products. The fundamental of this approach is the view that the forces which drive overheads, undeniably most organisational costs arise from specific activities (Miller and Vollmann, 1985, p.144 cited in Ashton, 1991, pp.52-32). As a result, overheads control must focus on the management of these activities. The purpose of the activity-based costing approach are to stabilise unit costs of production per period and the reported gross profit per unit will be comparable from one period to the other by stabilising unit costs. Comparison In this time of rapid technological change, vigorous global and domestic competition, and enormously expanding information processing capabilities, management accounting systems are not providing useful, timely information for the process control, Johnson and Kaplan (1987, pp.144-146) suggested that the activity-based costing approach has catalysed an enthusiasm for motivating every member of the business organisation to meet profit goals. Also according to Johnson and Kaplan (1987, pp.144-146), present-day critics often note that successful Japanese and German manufacturing firms use this approach. Both traditional costing and accounting-based costing vary in their level of sophistication (Drury, 2010, p.165). The traditional systems often tend to be simple and straightforward while activity-based costing tends to be sophisticated and more accurately assigning indirect costs to cost objects. Although the traditional accounting is simpler to prepare while the activity-based costing is highly sophisticated to prepare, the activity-based costing tend to result in lower costs of errors and high level of accuracy. The downside of activity-based costing is that it is expensive to operate and they are sophisticated. However, they minimise the costs of errors which will save the company a lot in profit in the longer run. The activity-based costing extensively use the cause-and-effect cost allocations compared to the traditional costing approached extensively use the arbitrary cost allocations. Recommendation ACCA (1988, p.171) recommended that the choice between the traditional costing approaches and activity-based costing approach in budgetary control depends on the method of accounting used in S.B. Ltds cost accounting system. If the operating expenses were charged to the respective divisions, it would reflect the use actually made by each division. Then, the overhead costs of the divisions will be established more accurately. Traditional cost system often report inaccurate product costs and the company tend to lose out due to over priced products, incur hidden losses due to under priced products. The benefit of activity-based costing is that when it comes to improving productivity, it opens up for a much wider array of measures or methods. By examining the activities systematically, one will not only be able to identify surplus capacity if it occurs, but also lack of capacity and misallocation of capacity. A result of this might be that costs are cut the customary way, but might as well lead to a reallocation of capacity to where it is needed most which will yield better productivity. The rapid pace of todays technological change continues to shorten product life cycles, thus our company do not have the time to make cost adjustment once errors are detected. Today computer technology prices are decreasing and are more affordable, the cost of adopting and operating an activity based costing system has also decreased. Therefore, the company should adopt the activity based costing in order to facilitate cost management and improve financial management. According to Karolefski (2004, p.18) activity based costing works better if it is kept simple. Nevertheless, when implemented properly activity based costing yields benefits to the company, its business partners, and to consumers. Reference OHare, J. 2010. Lecture Notes: Management Accounting Drury, C. 2006. Cost and Management Accounting. Sixth Edition. London: Thomson Learning Anon 1. Topic 9: ACCA F2: Lesson 9 Relevant Costing. Online. Retrieve from: World Wide Web: https://www.accountingclassroom.com [25/04/10] Drury, C. 2010. Management Accounting for Business. 4th Edition. Hampshire: Cengage Learning EMEA Collier, P. M. and Agyei-Ampomah, S. 2007. Management Accounting Risk and Control Strategy. Oxford: CIMA Publishing, An imprint of Elsevier Oxford University Press. 2009. Oxford Dictionary of Business and Management. Oxford: Oxford University Press Anon 2. 2010. Standard Cost Card Definition. Accounting for Management. Online. Retrieve from: World Wide Web: https://www.accountingformanagement.com/standard_cost_card_definition.htm [02/05/10] Anon 3. 2010. Operating Statement. The Free Dictionary by Farlex. Online. Retrieve from: World Wide Web: https://www.thefreedictionary.com/operating+statement [02/05/10] Anon 4. 2010. Operating Statement. Business Dictionary.com. Online. Retrieve from: World Wide Web: https://www.businessdictionary.com/definition/operating-statement.html [02/05/10] ACCA. 1988. ACCA Study Text: 2.4 Cost and Management Accounting II. First Edition. London: BPP Publishing Limited Johnson, H. T. and Kaplan, R. S. 1987. Relevance Lost: The Rise and Fall of Management Accounting. Massachusetts: Harvard Business School Press Ashton, D, Hopper, T. and Scapens, R. W. 1991. Issues in Management Accounting. First Edition. Hertfordshire: Prentice Hall Karolefski, John. 2004. Time Is Money: How Much Are Your Customers Costing You?. Food Logistics. Issue 69 p.18-2224