Risk Analysis

1. The main purpose of this chapter is to present the content of the book, in terms of risk analysis process by guiding the readers from the fundamental principles to the complex processes and by evaluating the approved methods of risk assessments. The chapter highlights various technical tools of risk assessment, the risk analysis elements, the skills required for risk analysis and the selection of countermeasures in terms of theory and practice (Norman, 3).
2. The key question addressed in this chapter regards the basis for the appropriate countermeasures or economic counter measures in the process of risk analysis. The question relates to the security programs that should be employed by organizations after the establishment of reliable methods of risk assessment and security policies that can support the programs so as to attain coordinated countermeasures (Norman, 4).
3. The context of this chapter is the economic, social and political background which the author uses to explore the issue of risk analysis, evaluation and countermeasures. The chapter compares the risk analysis process adopted by the non-governmental organizations and militaries and those adopted by the profit oriented organizations in an increasingly volatile world. The chapter uses the author’s background in the discussion of the countermeasures employed by organizations, the challenges and benefits of such measures (Norman, 5).
4. The most important information in this chapter includes the qualitative and quantitative data from the various studies to conclude that most organizations fail in the adopting of security analysis programs and measures. Information from study carried out in California on critical thinking indicates that curricula of 28 private and 38 public universities see the skill as honorific phrase in many educators’ minds. The chapter also provides the rationale for reading the whole text with the promise for the reader that the knowledge they obtain conform to the requirements of United States Department of Homeland Security (Norman, 5).
5. The main points of view in the chapter is that countermeasures are often poorly conceived so as to protect the firms against assumed risks and for which no empirical that to support them. Many organizations see themselves unable to fund risk assessment hence their security programs are based wholly on one individual’s ill-advised judgments (Norman, 3).
6. The major assumptions underlying the reasoning in this chapter is that many popular methodologies for risk assessment offer poor services to clients and that any methodology that fails to include all risk elements is inadequate and hence cannot provide successful risk mitigation. Another assumption is that checklists for risk analysis are most of the time used by individuals with limited understanding of the potential threats (Norman, 11).
7. The key concepts in this chapter includes asset characterization that involves understanding and describing the assets in the organizations; threat identification that involves understanding and describing the threats faced by the organization’s assets; consequence analysis that involves understanding and describing the assets’ role to the organization’s mission; vulnerability analysis which relates to understanding and expressing the extent to which assets are vulnerable. The other concepts includes threat assessment that relates to understanding how the assets are viewed by the threat actors; risk assessment where risks are expressed in calculation forms ; risk prioritization where most significant risks are mitigated first and the least ones mitigated last; risk management involves providing countermeasures recommendations for the mitigation of the risks(Norman, 14).
8. The alternative considered in chapter is a matrix for decision making which can help in achieving consensus on the right countermeasures solution in case of few ideas or existing options are contentious (Norman, 16).
9. The main interpretation of this chapter is that any risk analysis should lead to the recommendation of countermeasures that can provide a basis for the position that risk mitigation can happen at cost which organization’s operations can afford (Norman, 11).
10. If the author’s line of reasoning is taken seriously, the implications and consequences are that organizations can implement security programs that based on factual judgments and risk mitigation approaches can be successful

              If the author’s line o reasoning is not taken seriously, the firms would adopt security programs or         countermeasures based on individual ill-advised judgments and the resulting risks implications cannot explain the foregone cost.

Work cited

Norman L. Thomas . Risk Analysis and Security Countermeasure Selection. CRC Press. 2009.3-18

Economics

Article 1.Impact of Financialisation on Management and Employment Outcomes

This article explores the emergence of financial business models over the last three decades, the new kinds of financial capitalism which have become necessary in current terms and the ways in which new financial intermediaries influences the employment incomes and firms’ management.  The article highlights the industrial relations rules that have shaped and constrained the managerial decisions and the bargaining power of unions on contracts that influences on human resource practices. The article further notes that weakening power of unions, labour markets deregulation, globalization and deregulation of product markets have moved the power to capital from labour the  results of which includes stagnation of wages , high rate of income inequality and declining quality of job for a the big part of the workforce.  The article attributes the emergence of a new financial capitalism to various institutional changes in United States that destroyed the managerial capitalism system that had been in existent 50 years prior to 1950 (Batt and Eileen,2013). These changes comprised of both organizational and regulatory, so that the regulatory changes changed the business external environment while internal organizational changes brought about new decision making strategies at the corporate level (Batt and Eileen, 2013). This in turn resulted to the separation of business ownership and management, which made it possible for firms focus on capital accumulation while using retained earnings to invest in skills, technology, machinery and research and development.

The emergence of new business models for financial management can be attributed to vulnerability of large corporations to hostile takeovers due to long inflation and recession period, raise of many large competition firms and poor performance. In addition the large corporations that were performing well were seen as having excess cash in hand while poor governance practices allowed complacency among executives who also took advantage of various parks to live in posh lifestyles. Another reason highlighted for the emergency is the  retained earning control conflict between shareholders who preferred high divided to earning ration for more returns and strategic managers who sought low divided to earnings ratio so as to fund internal investments(Batt and Eileen,2013). Financial intermediaries resulted from regulatory changes that availed more capital for stock market investment including pension legislation that made it possible for insurance firms and pension funds to hold high risk bonds and stock shares in their investment portfolios.

Article 2.Against agency

The article provides a critique of agency functionalism approach using the changing theoretical and historical frames used for consideration of investor claim and management compensation and comes up with an alternative explanation of these rewards. The article explores the problem arising from what is perceived as a lack of relationship between management compensation and performance which is normally defined as shareholders value. After considering the academic work and public concern, the article highlights the lack of empirical relation on such pay, with boards failing to restrain managers while holding the assumption that managers are supposed to act on shareholders behalf. The problem of agency functionalism assumption is highlighted as being that it encourages a focus on top managers in a big firm and historically ignores the shareholders claim which had previously rested on parasitic claims (Erturk, Froud, Johal, Leaver & Williams, 2006). These two aspects are indicated as forming the argument against the agency functionalism.

The article outlines an alternative explanation, which relates to past form of positional explanation which had been used for criticizing the shareholders, to give an explanation of high management pay inside big corporations and payments for outside intermediaries. The articles explanation is that management positions allow for managers to draw heir high pay from capturing value. The managers employed in large firms can now be held accountable while the intermediaries such as accountants and investment bankers can barely be traced. Capitalism in the current times incorporates responsibility with neo-liberalism and brings inside and outside managers together while creating opportunities for higher income among these intermediaries who advocate for restructuring and compliance (Erturk et.al 2006). Essentially the paper discusses the changes in theoretical and historical frames that inform the payment of managers and claims by investors. There should be an intellectual inquiry and thorough political discussion on the agency in the current world capitalism (Erturk et.al 2006). Such discussion should focus on value creation and in a present new kind of world economy.

Article 3.Dreaming with BRICs

The article discusses the concept of BRICs as being innovation in finance regimes classificatory, that are perceived as enduring cultural constructs. The paper highlights that these classifications have been done on the basis of differences in developing and developing economies and that various assumptions have been made in relations to expected returns and the various risks related to these differences. The international finance cultural constructs are normally used by economists for classifications of economies. The grouping of BRICS as emerging economies challenge the developed economies in regard to influence and size, and the use of growth projections for the long-term is done on growth models involving neoclassical convergence (Wansleben, 2013).  This classification is done to highlight the absence of representation of real economic superpowers or even the emerging ones within the global bodies instituted for economic governance. The high economic growth among the BRICs presents a challenge for stagnant economies of the incumbent giants made up of developed economies. The article notes that BRICs concept highlights the obvious disparity between the core economies perception and actual proportions shift in global economy (Wansleben, 2013).  This category of economies is primarily aimed at discrediting the current classification by grouping the developing economies with high forecasted growth as being members of core world economy.

The Goldman Sachs economists innovation does not comprise of modeling but rather a model which is already established so as to indicate the investment opportunities availed by the emerging markets. The introduction of the BRICs concept attempts to bring change to finance cultural constructs, reflecting the commercial interests of the economists which are re-defined in cultural terms (Wansleben, 2013). In fact, by coming up with this concept and the resulting attention it receives from the company help in creation of Goldman Sachs Brand (Wansleben, 2013). The article relates this to effort by economists to structure some aspects of modern society in economic terms and offer the structure as important intervention tools. The innovations of various concepts by the economist do not necessarily involve modeling, but may involve innovations for inducing new investment ideas or strategies of doing business. The innovation in economists’ expertise is defined by the way macro-economic analysis changes economic stratifications and pre-conceptions that direct the international investments (Wansleben, 2013). A narrative concept is created so that BRICS projection is analogized by use of huge historic developments. The cultural strategies are further connected to branding and marketing efforts in the global markets of economists’ firms.

Article 4

This article provides an argument in favor of financial innovation re-conceptualization that has been blamed for present crises by those who once supported it. The paper proposes a new financial innovation concept with conjuncture, frame and bricolage as its main elements (Erturk et.al 2006). The article highlights the result of 2007-2008 financial crisis as huge financial capital write offs and large intellectual capital destruction. This crisis was a challenge to the pre-2007 wisdom about the benefit of the advent of new financial instruments to the efficiency of the market (Erturk et.al 2006). The proponents of financial innovation understood from the financial crisis that the idea of financial innovation can bring destruction to the financial system and collapse a capitalist economy. The problem with this idea was attributed to too much innovation of the wrong type of innovation: to the extent that journalists and various mainstream economist unleashed an attack on financial innovation, while recommending less financial innovation. Their arguments did not take into account the available literature that offers discussion about capital and credit in organizational growth and economic system and the possible source of income from money market (Erturk et.al 2006).  

The shifting of the problem to the financial innovation brings about three main problems that comprises of making financial innovation definition to be tautological or circular; reducing the range of possible innovation drivers; supporting benefits claim that have low empirical backing (Erturk et.al 2006). The article views changing structural conditions as being relevant since they provide a sort of macro-frame around financial innovation and such conditions are part of innovation explanation. In addition, conjuncture is a vital innovation condition since it forms the structure for immediate limitations and possibilities for innovation.  Financial bricolage describes the state of finance before the financial crisis. The article argues that bricolage is relevant to financial innovation process since it defines innovation results and portrays the innovation activity in a certain point in a chain of activities. It is important to recognize the frame and conjuncture side of innovation while arguing for financial markets re-regulations (Erturk et.al 2006). Bricolage will always be practiced by well-positioned as long as there are large amounts of loans and savings.

Article 5

The paper carries out a research on the topic of leadership in a divided world by addressing key issues related to trust inequality and includes actions, engagement, values and employee advocacy. In the survey the majority of the population – 67 % questioned indicated that CEOs place too much focus on achieving short term financial goals while 57 % indicated that CEOs focus too much attention on lobbying.  A section of 57 percent indicated that CEOs do not stay long enough to have a long-term positive impact on their role while 49 percent showed trust in CEOs creating jobs (Edelman Trust Barometer, 2016).

In matters relating to profits 7 out of 10 indicated that CEOs should be present in financial results discussion. A population of 8 out of 10 indicated that CEOs should be present in discussing society issues relating to income inequality, public policy and personal views on the issues. On matters relating to business trust impacts, 59 percent attributed increase in business to economic growth production, 45 percent to contributing to greater good while 40 percent to the opportunity allowed being productive in the society. Failure to impart greater good, absence of economic growth and public service are reasons shown for decrease in business trust. For the purpose of building trust in CEOs, integrity is indicated as the best attribute that can achieve this with 51 percent approval (Edelman Trust Barometer, 2016). Engagement, products and purpose follow in that order while operations in the business have lesser impact in building trust in CEOs.  In survey on qualities that make CEO trust worthy done in various regions of the world, being honest and ethical is indicated as the best personal characteristics(Edelman Trust Barometer, 2016). Moreover, employees were the most trusted persons to provide honest and credible information about a firm’s operational performance and financial earnings, treat customer and employees well and handle crisis.   Media spokes person is the least trusted to provide credible results. Further results show that employees’ engagement with society issues increases their level of advocacy through relationships and programs with other firms. The most trusted information by the general public is one which has been created by family and friends on various networking and sharing sites and online-only source of information (Edelman Trust Barometer, 2016). Based on the above information, effective leadership should use purposeful action to create not only profit but societal impact.  It should involve expression of values though ethical engagement and honesty impart advocacy attribute in employees and meet stakeholders through cross channels engagement on what concerns them and where they are.

Article 6 –Digital globalization

  The article discusses the issue of digital globalization in terms of rapid growth in digital flows as seen in transmission of ideas, information and innovation across the world which has resulted to broad participation in the world economy.  The articles attributes the soaring of digital flows to a more interconnected world and cross-border bandwidth growth  which has changed how business across borders is carried out and  small businesses globally are becoming micro-multinationals by use of the digital platforms. In addition, digital platforms have enabled individuals to directly take part in globalization in learning, finding work building personal networks and showcasing their skills and talents.  The change to a more digital kind of globalization has informed who participates, the way business activities are carried out and the direction of economics benefits flow (Mckinsey Global Institute, 2016).

The article highlights the need for countries and companies to take advantage of various opportunities provided beyond their borders by digitalization. This calls for companies to also to re-evaluate the present business models, strategies and operations. In addition, policy makers face new challenges such as cyber security while companies should be privy to cut-throat global competition, pricing pressures and digital business models that can be very disruptive. The strategies for addressing these challenges should address the administrative and policy barriers that prevent global flows, dislocations and investment in human capital (Mckinsey Global Institute, 2016). Moreover, closing the digital divide through building infrastructure, a strong business environment and ensuring that efforts aimed at protect the privacy of data leaves the internet open.

Article 7

The article comprises of a speech on ownership of public company, and considers as a major ingredient the second industrial revolution across the world and as capitalist economies’ fulcrum. A history of companies is described, that involve the various enacted company legislation that have defined the rights, purpose and obligations of companies’ stakeholders. The path of such legislation has been defined by economic, legal and social environment existing at the time (Haldane, 2015). In England, an Act of Parliament or Royal Charter laid the basis of companies’ incorporation, which normally had public good as among their objectives. Limited liability companies arose from the various barriers that unlimited liability had to expansion hindering investors from venturing into unlimited liability investments. Despite the companies directors’ obligation on public good and maximizing shareholders returns, questions arose on how such would be enforced or safety of shareholders investment would be assured (Haldane, 2015).

Amidst a fraying legal framework and proliferation of fraud cases, there was increased acceptance of primacy of shareholders as key goal of a company and various legal cases in US and UK enshrined this objective. The model of shareholder-centric company leads to various challenges especially from the society point of view (Haldane, 2015). This extend beyond shareholders returns to the impact the companies have to the society for common public good and an evaluation of company law is necessary for striking the right balance.

 Article 8: business and ethics

This article discusses the issue of business ethics with a focus on ethics in financialization and finance and an interpretation of finance and ethics and considerations of principal themes in financialisation. A look into financial regulation and ethics shows that most of the ethical issues have already been covered in industrial self-regulation and legal regulations (Ertürk, 2016). Regardless of such regulations, problems still arise as seen in various financial scandals begging the question of why it is hard to follow such regulations. In regard to market economy, the article tries to relate the idea of financial efficiency with ethics concept by giving an outline of classical economic theory’s basic assumptions.  In a market functioning at equilibrium, it becomes reasonable to assume that operations of the agents are performed ethically, justifying the market economies. However , the market economies’ operations have seen the a sharp rise in income inequalities a trend made worse by emergence of new working rich , quest for higher returns for shareholders and intermediaries who are highly paid (Ertürk, 2016).

The  house pricing and limited income distribution limited  participation of low earning groups  in ownership , hence holding back downward wealth diffusion. The notion of increasing wealth disparity has attracted a lot criticism more so from individuals who have supported supply side fixes as main way of economic growth stimulation (Ertürk, 2016). The financialisation of the society through market economies has brought about various ethical issues in both the developing and developed economies. The need to have individuals be efficient for higher returns and avoid risk of being unemployed and benefits arising from such has negated other aspects that affect ones’ future wealth , intermediaries actions, asset price volatility and markets instability(Ertürk, 2016). This underpins the assumption by finance halo effect that everyone acts the same, having a collective interest. Finance practices, however, have become mechanism of control, class expression or rationality narrative related to present capitalism rather than neutral capital allocation.  

Main topic: Business ethics in contemporary business environment

Although market economy has been viewed to be an important condition where needs of many people are met but some lessons have been learnt in the process at a high social cost.  The society and firms have realized the need to focus on how wealth is made, distributed and the sustainability of any business venture. This has happened amidst the growth in size of corporations to sheer might due to globalized neo-liberalism which has also seen unimagined amount of political power being surrendered to corporations. In the developed countries’ business environment, there has been a change in capitalism cultural logic so that states have taken the role of supporting the legitimacy and freedom of corporations.   These firms have become powerful players in political scene while being subject to decreasing control by the state. The effect of such trend is the corporation power which has expanded to the point that it has become comparable with the state, and it is in the context that business ethics has become essential to self-organization and self-regulation and corporations want to make clear their ethical status (Rhodes, 2016). These business ethics have been used to hinder the need for corporations external regulatory control through the inculcation of a system whereby businesses claim they are able o self-regulate. Presently, corporations are not only expected to behave responsibly but they are advocating their ethicality virtues like never before. However, there arguments that the issue of responsibility and ethics has been reduced to a form of moral imperative with a purpose of competition in line with corporate capitalism agenda. 

 With the interest of corporations being at the forefront, the proclamation of corporate social responsibility and business ethics is seen as an excuse for business unregulated activity. In practice, businesses have failed to use their autonomy and discretion in the production of generous and fair outcomes for all the stakeholders’ groups (Rhodes, 2016). This has led to the case of increasing income inequality in the developed economies due to disproportional wealth gains that favours the top earners , and this is seen in households in such countries having not had  advanced incomes as compared to past generations. In fact, their incomes have been falling or remaining flat, which can lead to decrease growth in demand and increase in the social spending need. The impact of this disproportionate income distribution is more paramount on the young population with less education, women and especially the single mothers (Mckinsey Global Institute, 2016). The falling or flat income growth phenomenon can lead to severe social and economic consequences due to domestic unemployment and hence low purchasing power.

In the advanced economies business environment, business ethics has become an important aspect.  Firms today are expected to adhere to business conducts standards in their business activities and which extends beyond what is conventionally expected. Even though the discussion normally concentrates on products, profits and jobs, it accepted across the divide that businesses must remain responsible member of the community in which it operates. The pursuit of economic progress and business return should never lead to ignorance of values, norms and various standards set for quality, respect and integrity (Hamzaee & Baber, 2014). For corporations to engage in reversing the increasing level of income inequality, they must selflessly embrace business ethics that will serve as control measures against the negative consequences of modern capitalism that encourages a form of financialisation whose focus is high capital returns and neglect of public good(Ertürk, 2016).  Improved performance in the business realm in terms of economic progress and profits happen to companies that effectively serve the reasonable expectations of main stakeholders who comprise of customers, investors, employees, suppliers, managers and shareholders and the physical environment in which they operate. Corporations that fail on social responsibility front fail to recover their costs since they cannot meet such expectations.  

References

Batt, R., and Eileen, A. (2013). "The Impact of Financialization on Management and Employment Outcomes." Upjohn Institute Working Paper 13-191. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. Retrieved from: http://dx.doi.org/10.17848/ wp13-191

Erturk,I., Froud,J., Johal S., Leaver,A., Williams,K.(2006).Against agency : a position critique ,Economy and Society. Vol 36.1

Wansleben,L.(2013).Dreaming the BRICs. Innovating the classificatory regimes of international finance. Journal of Cultural Economy. 6:4. 453-471

Erturk,I., Froud,J., Johal S., Leaver,A., Williams,K.(2010).Reconceptualizing financial innovation: frame,conjuncture and bricolage: Economy and Society. Vol. 39.1

Edelman Trust Barometer, (2016).Leadership in a Divided World.

Mckinsey Global Institute, (2016).Digital Globalization: the new era of global flows. McKinsey & Company

 Haldane, A.G., (2015). Who owns a company? University of Edinburgh Corporate Finance Conference.

Ertürk, I. (2016).Business and ethics: Leading and managing in a Global Environment.

Rhodes, C. (2016).Democratic Business Ethics: Volkswagen’s emissions scandal and the disruption of corporate sovereignty. Organization Studies 2016, Vol. 37(10)

Mckinsey Global Institute, (2016).Poorer than their parents? Flat or falling incomes in advanced economies. McKinsey & Company

Hamzaee,R., Baber,J.(2014).Ethics and Market Economic System: A General Review and a Survey: International Journal of Applied Management and Technology. Vol.13.1. 1–32. Retrieved from: http://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=1079&context=ijamt

Business Concepts in the News

Article# 1

Fed Raises Key Interest Rates, Citing Strengthening Economy Rates

This article in New York Times by Binyamin Appelbaum addresses the reason as to why the Federal Reserve embarked on a reason to raise the interest rates. The fed cited that it is important to race the interest rate for the second time since the global financial crisis of 2008 saying that it will facilitate a healthy pace in the economy which president-elect Donald J. Trump pushes for (Appelbaum 1). The considerable fast growth will create a significant employment growth in the economic measures. The rise of the interest rate has been used to prevent the economy from growing too quickly without being stable. With the rise, the economy is expected to perform well despite the fact that high rates discourage borrowing and risk taking (Appelbaum 1).

The benchmark between 0.5 -0.7 by the Federal Reserve has a positive impact to the economy. This is because it will reduce inflation and the money markets will be stable. This means that companies will be making good profits as well as strengthening its currency against that of other markets. This is supported by what the Federal Reserve committee sees happening in the market. They agree that the step will spur a faster growth after the presidential campaign which MR. Trump disparaged. The macro effects of the interest rate will be positive for the economy. The increase in interest rates also reduces the tension between the monetary and the fiscal policy hence the economic impact will not be adverse. The increase in interest rate can be considered to be a vote of confidence in the economy as unemployment will be minimized (Appelbaum 1).

Article #2

Oil Prices: What’s Behind the Volatility? Simple Economic

The article by Clifford Krauss looks at the volatility in the oil prices that is as a result of demand and supply. The oil industry has experienced a rise as well as a fall in the prices but with the greatest downfall since 1990 (Krauss 1). Despite that company in the oil industries have recorded profits in the recent years the oil supply has been limited. Despite the huge investment in the oil rigs in exploration production has not been at its best. Various companies have undergone bankruptcy laying off a large number of employees. The limited supply has plugged the oil prices high despite managed operations to cut down cost. High operation cost has limited the production of oil which has made numbers of wells to remain unprofitable pushing further the oil prices up (Krauss 1).

The increased in oil prices have a huge impact on the economy. The supply chain of the oil is interrupted by the less production driving the prices of other products that have both a direct and indirect connection to it. This means that people have to pay more for the same quality commodities as the demand for the oil is high but the supply is limited. With the high prices, economies lying on oil as a major income for the country have suffered as they have not been able to gain the maximum in oil production (Krauss 1). It is true to say that oil exploration is an industry that needs close attention in order to ensure that countries involved get profits in drilling while the consumer is not exploited as well as having a growing economy in the oil drilling countries.

Work Cited

Appelbaum, Binyamin. Fed Raises Key Interest Rates, Citing Strengthening Economy Rates. New York Times; December 14, 2016. Retrieved from http://www.nytimes.com/2016/12/14/business/economy/fed-interest-rates-janet-yellen.html

Krauss, Clifford. Oil Prices: What’s Behind the Volatility? Simple Economic. New York Times; December 12, 2016. Retrieved from

 http://www.nytimes.com/interactive/2016/business/energy-environment/oil-prices.html?_r=0

Case Study 4.1: Whose Union Is It?

Discussion Questions

Question 1

The issue is that the national salary budget cannot accommodate the existing number of employees to work for additional hours and more pay.   The other issue is that the layoff targets at dismissing even the unions heads thus exposing the young members to danger. In addition the union members argue that they need to maintain their jobs yet they are not ready on working for increased hours (Kearney, & Mareschal 2014).

Question 2

As the union stewards I would proceed by arguing that it is not reasonable for the union leaders to be dismissed. In addition I would work on convincing the workers that   it would not be possible to maintain their positions if they do not want work more as required.

Question 3

The layoffs are most preferable in the generation of the benefits in the situation.  This is mainly because the salary budget cannot fully be able to support the employees with additional hours. Working more means that the employees should be paid more and the budget cannot accommodate the high cost. This means that layoffs would help to support the objective of increasing performance, not underworking the workers as well as decreasing the general cost of operation (Kearney, & Mareschal 2014).

Question 4

The removal of the union’s chairs as well as the stewards would not assist the younger members of the union since their rights would not be well represented.  Younger members of the unions require guidance in understanding their responsibilities as workers and their stated rights.  With the dismissal of their representatives this means that if an issue arises the members would not be able to address the issue adequately.

Question 5

The possible impacts of the situation are that some workers in the union would have to be laid off with an exclusion of the representatives such as the union’s chairs and stewards.  This is to ensure that the  members are represented adequately  and  the salary budget  is  correlated with the  rate  of  working services that is  provided  as the budget  holds.

            Reference

Richard C. Kearney, & Patrice M. Mareschal (2014). Labor Relations in the Public Sector. CRC Press

Budget justification

This is a budget that has been designed to cater for every expense in the course of the overdose prevention intervention. The estimates are considerably within the range of realism considering how the previous intervention budgets the research team had incurred. Justification of every expense has been made as follows.

Personnel expenses: the project coordinator is an expert international leader in fighting drug and substance abuse and hence his high rank is worth the $70, 000 throughout the intervention. The other researchers have been assigned salaries based on the magnitude of duty they hold, the level of education and the agreements that were made during the preparation period. Office supply shall spend $3, 200 which is a considerable amount considering the duration and time that writing and printing shall be used.

Equipment: Since the department does not have all the necessary equipment, 4 laptops, a van and the other included equipment shall be hired. Their prices were confirmed to be as they are in the budget.

Incentives/Promotions: After a lengthy discussion with the project committee members, it was found that online advertising would not pass the information efficiently as we would desire. In this regard, pamphlets, posters and other printouts had to cost $16, 100 for full awareness and reward to the participants. In addition, postage envelops and survey copies were found useful in the intervention.

Transport expenses: We also had to hire a park pavilion which would be large enough to accommodate the expected large number of participants.

Purchasing services: The purchase services were estimated to equal the previous intervention project which amounted to $1, 450.

Project sustainability plan

Mission

The project team is looking forward to have a discussion with community members and staff on the need to embrace the overdose prevention methods that will be proven effective during the intervention.

Goals

The team will also develop logic and specific model of sustainable goals towards overdose prevention.

Relation and involvement of key stakeholders

 The team members will closely work with the leadership schools and faith communities in order to uphold the banner of ‘no to overdose’. For the purpose of building the relations with the leaders and teachers, regular meetings shall be conducted with them and the community members.

Awareness

Written materials shall also be distributed to participants for them to understand the vision and mission of the project team.

Project funding

Finance sustainability of the project on future interventions is dependent on personal contributions, support from government health agencies, fundraisers and sponsors. In addition financial strategies shall be developed by the advisory and staff committee to ensure that clarity and transparency of funds is made sustainable.

Being good stewards

Lastly, the sustainability plan calls all the members of the project to be good stewards of time and resources. Celebrations of the continued efforts will be made after every bit of the project shall have come into completion.

GDP as a ‘false beacon’

In case of a nuclear disaster, it would be argued that an increased economic activity would be the results due to a large-scale reconstruction that would have to be undertaken. As a good measure of economic output, GDP would increase to a great extent. In this situation, a power plant disaster would lead to a severe damage to commercial buildings, roads and other major infrastructures which would result to boom in the construction industry. This will in turn lead to creation of many jobs and thus a big boost to the GDP since the wages salaries and wages paid to workers will be spent and thus stimulating the economy.  In fact, all the major recovery efforts will involve increased financial expenditure, including the cleaning up after the damages and the expenses on health care for those individuals who will get ill as a result. This will just be fallacy, where damages, lost resources and human lives will be measured in terms of resulting growth in GDP and that the situation will be better if the country endures this disaster.

However, if the economic performance is measured by the use of GDP from this perspective, it is not possible to obtain accurate results due to the various limitation of GDP. This implies that GDP will be a false beacon. GDP is just a gross calculation of bought or sold products and services, and does not give a distinction between economic activities that offer well being and those which do not. Furthermore, there is no consideration of the environmental damages that would result from such a disaster and whose results will affect people’s lives in the long-run.

Journal

What I have learnt

 The book “Common Sense Economics” by Gwartney, James D provides great and powerful information which help readers to understand the essential elements in economy (Gwartney, 2016).  I have learnt various key points on economics and I have understood wealth and the reasons why nations prosper.  First, I have learnt about the key elements of economy. In this area, I have learnt that one of the key elements is incentives. This means that in creating economic decisions based on costs and benefits, incentives should control the decisions since it works as a powerful tool which helps in understanding the people’s behavior (Gwartney, 2016).  Other important point in incentives is that it also impacts the political choices since voters supports the political candidates and policies which benefits them and opposes the political options which imposes higher personal costs and diminishes their benefits. On the point of key elements, I have also learnt about trade and how it promotes economic progress. It promotes progress in that it creates economic value by taking goods and services from people who do not value them and moving them to people who need them (Gwartney, 2016). In other words, trade creates value through exchange of goods with trading partners.

Apart from the essential elements of economy, I have learnt about the economic progress and the sources which bring the progress. In this area, I have learnt that one of the major sources is legal system which protects the economy. Legal system plays a significant role in providing protection of property rights.  In this case, trade and property rights go hand-in-hand and legal system protects the rights of the property such as ideas and ownership of labor and prevents invaders and property transfer (Gwartney, 2016).   Other point is that legal system reduces the trade uncertainties and ensures that there is an evenhanded enforcement of contracts.  On sources of progress, I have also learnt that competitive markets ensure progress through the utilizing of available resources effectively and bringing innovation (Gwartney, 2016). On this point, firms which fail to produce quality goods in competition are expelled from the market and successful businesses compete with rivals through various ways such a using innovation to produce quality goods.

 In learning about economic progress, I have gained some new ideas on elements of clear thinking which helps individuals to understanding how the government is involved in economic progress. In this case, I understand that government ensures economic progress by ensuring individual rights and access to goods and services which markets are unable to provide (Gwartney, 2016).  It ensures security, order and enforcement of rules and citizens are protected from any harm.  Other point is that for government to bring economic progress, the political rules should be neutral to the self-interest groups and citizens (Gwartney, 2016).  Generally, national wealth is created through competitive markets, rule of law and trade exchange and all these acts as a cornerstone in bringing progress and wealth.

            Apart from learning about the national wealth, I have gained knowledge based on personal prosperity. In this case, there are practical choices which people can choose and follow in order to create a prosperous life. The first important point is that people should follow the principle of comparative advantage (Gwartney, 2016). This means that in trade, people should understand other markets and their business activities as well.  It is important to focus on areas which produce comparative advantage and use the specialization in order to produce goods of high quality and high value.  Since trade  benefits both business operators, business  should  discover the  areas which require  more productive activities and ensure high commitment and comparative abilities  in order to produce quality products hence  create high productivity  and  prosperity (Gwartney, 2016). Other key point is that in order to create a prosperous life, people should think entrepreneurially. It is important for people to have personal skills and knowledge in making business decisions and by using personal talent, it will be possible to produce new products and create profitable opportunities.  On the point of creating prosperous life, I have learnt that it is important to Save money in order to create a securable life, a financial future and more important reduce financial stress hence create a quality life (Gwartney, 2016).

What I think

 I can express my thoughts and say that it is important to understand the wealth and property in both micro and macro economics. In understanding wealthy, business should value trade.  I believe that trade is a key element which has placed American businesses in high position through production of quality products and exchange of goods and services (Gwartney, 2016). Trade brings a high consumption of products hence creates larger outputs.  I put emphasize on trade to allow people understand that it should be the key elements of economics.  Through trade, business will have the opportunity to specialize in a particular area and as a result, there will be products quantity. In other words, I believe that if businesses follow the principle of comparative advantage, the economy will progress and there will be availability of different goods and services hence the demand will be met (Gwartney, 2016). I would also like to add my thought on competitive markets. This area should be valued most by business since   through competition, businesses which do not have power will leave the competitive market and give successful business room to bring innovation, increase productivity and bring economic progress.

Reference

Gwartney, J. D. (2016). Common sense economics: What everyone should know about wealth and prosperity.

Value Proposition and Financial Indicators for Small Medium Enterprise

Over the years there has been a rise in health complications due to eating disorders that are potentially life-threatening affecting emotional and physical health. The eating disorders develop with time when individual fail to take the right amount of nutritious food especially the young generation who are fond of taking in fast foods. As a result of this devastating eating habit there are serious consequences in health, relationships, and productivity. Due to this reason, the proposal of a healthy food vending machine has come to be. With the technology evolution the vending machine has a BMI reader and a microwave for heating purposes in order to deliver the product to the customer on the spot. For this reason the customer value proposition plays an important role in order to ensure its success (Ringland & Young, 2006).

It’s easier accessibility with minimal effort and cost which ensure that the sure will have a life time experience. Finding out the value an individual will get will vending machine especially in terms of health will draw many consumers in as it will be both nutritious and tasty. Consistency in quality service and products will ensure that a strong positive brand is built for both existing and potential customers. Packaging and messaging is another value proposition (Ringland & Young, 2006). This is important because the target group is the young generation as well as the aging one. The packaging has to be appealing in a prominent position should promote the consumer to make the selection. This is critical as most consumers eat with their eyes which should be seen to be fun and convenient. Assurance of fresh products is a value proposition that will ensure that the consumer is convinced that the product is fresh (Ringland & Young, 2006).

Key Performance Indicators

Performance indicators help in gauging business health. Cash flow forecast plays an important role in indicating the performance of the business. Cash flow problems in the small business can be identified in the early stages of business (Dainelli & Bini, 2011). Positive cash flow indicates that there is enough cash in circulation for the business and there is surplus cash that can be used in case of the unexpected. Gross profit margin shows whether the price of the products is appropriate. This is the difference between the revenue and the cost of goods sold. Net profit is an indicator of the business performance.  This is the difference of total revenue and total expenses. If it is a negative profit this indicates that the business is poorly performing as it is incurring more expenses that the revenue. Net profit margin is also an indicator of business performance. This is a benchmark for profitability that helps in projecting future profits.

Talent Management Challenges

As a new business, there are bound to be challenging especially with talent management. This involves attracting, selecting, deploying, developing and retaining talent.  It is a constraint as the business lacks specialized expertise. This may result due to the fact the organization lacks diversity and proper instructional design. It is further strained by the big companies already in operation that can easily poach the talented work force (Machado, 2015). However these challenges can be eliminated through staff motivation. This may come in form of salaries and bonus. Exemplary work by an employee should be rewarded making other follow suit. Creating better environment at work enhances bonding making it an organizational culture that assists in staff retention. Success in a business is not recruiting the best rather than creating congruence between the employees and the organization will create personal growth as there is a sense of ownership of the employees creating numerous entrepreneurial opportunities of the organization thus increasing staff retention (Machado, 2015).

Reference

Dainelli, F., & Bini, L. (2011). The informational capacity of financial performance indicators in European annual reports. Santarcangelo di Romagna (Rimini: Maggioli.

In Machado, C. (2015). International human resources management: Challenges and changes.

Ringland, G., & Young, L. (2006). Scenarios in marketing: From vision to decision. Chichester, England: Wiley.

Metro DO Porto: Snowball case

The contract between BCP and MdP involved a simple swap contract with an agreement for semi-annual fixed rate coupon at the rate of 4.76 percent. The aim of the contract appears to be very clear, that of ensuring that MdP hedging is in place against a rise in the interest rate over the fixed rate. It is not clear, after the contract renegotiation, what the contract was hedging against. The aim was to reduce a 4.76 percent fixed rate semi-annually to a clear 20-year period fixed-for-floating swap. The goal of covering a 20 year floating loan was a good hedging strategy when he interest-rate risk is considered .The terms of the contract would have one to assume that MdP would be hedging against interest rate fluctuations, as long as the fluctuations did not go beyond the set barriers of 2 percent and 6 percent. The bank had considered various proposals from a number of banks but resolved to enter into contract with BST. In return, the MdP agreed on payment of 1.76 percent to the bank and a quarterly coupon floating rate, with a spread calculation tied to 3-month Euribor.  This simply means that after a period of two years, for each quarter that the 3-month Euribor would fall outside the 2percent- 6 percent interval, this clause would take effect, considering the past spread. The calculation on spread would decrease by 0.5 percent for every time the 3-month Euribor was in 2-6 percent interval but to decreasing below zero.

For the purpose of risk management, one has to consider whether this strategy as represented in the contract would adequately serve the hedging purpose.  Originally, the loan had a floating rate, which means that it was exposed to a rise in the interest rate, a risk that a good strategy has to hedge against. At the time of the interest rate swap, the Euribor rate was within the range of 2 percent – 6 percent, but the agreement did not hedge against a decrease in interest rates. In addition, any loan with a floating interest rate is obviously hedged against a reduction in interest rates, but the above contract limits this, where hedging is done until reference rate is 2 percent. Any movement outside the range, the due periodical payments that are variable can have an exponential growth, without a reset clause. This makes the adequacy of the contract questionable in regard to simple hedging. Such kinds of questions can render this a case of risk management strategy but which was badly timed. If it were for speculation purpose, a hedging aim would be the least for the railway company. Given the nature of the interest rate fluctuation in the market is unpredictable; the speculation purpose on the side of the firm would be quite illogical. A swap of floating rate for fixed rate was, therefore, used for the purpose of protecting the company against any increase in cost of the loan as a result of an increase in the interest loans in the market. The fact that the MdP denied the contract as aiming at effective risk management does not qualify this to be a speculative venture. It was a risk management strategy, only that the interest rates fell below the level that was anticipated in the market.

Net cash flow

Excel workbook

Contracts for interest rates swaps can be of benefits to company’s executives and even for bankers. In the case of companies, executives may enter into such contracts with aim of risk management. If the company borrows on interest rates that are variable -floating – they are usually exposed to the risk of fluctuating interest rates in the future. In order for the executives to mitigate this risk, they enter into an interest rate swap agreement. In the contract, the company will pay fixed rates of interest on the basis of a notional principle to the banker while receiving cash flows on variable interest from the bank (Gottesman, 2016). This provides protection for the firm against the changing rates of interest. If the variable interest decreases, the amount of company’s outflow of interest of cash on borrowing will be lower together with receipts from the banker. An increase in the variable interest will see the offset of the increased cost of borrowing by the increased receipts from the bank. Unlike other tools of managing the risk of interest rates such as interest options and futures derivatives, the swap of interest rates gives a customization advantage (Buetow & Fabozzi, 2000).  Unlike the aforementioned derivatives, termination of swap may not be a difficult and costly process. The management considers such swaps as true hedges for the sake of risk management. The innate motivation for using the swaps is to reduce the earnings variability and therefore, protect the company from any distress and also to reduce taxes (Buetow & Fabozzi, 2000). The management may also enter into such contracts with an aim hedging in order to match cash flows and lower the explosive nature of executive compensation. Another motivation for using the swaps includes speculation purpose. A transient use of the swaps by the executives may indicate a speculative aim rather than a hedging motive (Buetow & Fabozzi, 2000).

Given that firms can access the loan through a fixed interest rates in the first place, there is no rationale for creating a scenario where hedging will be required. Borrowing on such an interest rate can eliminate any risk of fluctuating rates of interests, meaning there is no risk of hedging. The executives using just one type of loan and using a swap of interest rates justify the contract on the basis of lack of access and / or the existence of a comparative disadvantage in this type of loan (Gottesman, 2016). If such a reason does not exist, the executives may not have a reasonable ground for entering into a contract that will see changes in interest rates that increases financial risk to the company. Another reason offered involves an argument on comparative cost which holds that the floating rate may offer comparative advantage to the borrower even though fixed rate is better. The executive will look for a party with a fixed rate comparative advantage and get into a swap contract to have an exchange of the respective cash flows. In this case, the executives are more motivated by the need to reduce cost than reduction of risk (Buetow & Fabozzi, 2000).  Like in the case of MdP, the motives of the company seem to have entered into the contract aiming at reducing the cost associated with interest rates fluctuations.

Banks on the other hand may aim at benefiting from such a contract especially in the case of raising interest rates. If the interest rates rise, deposit runoff, a margin pressure and more defaults on loan from the floating rate borrowers who are struggling becomes a valid concern. More so for the medium-sized lenders and borrowers who are actively involved in the swap market, they stand to gain much from an increase in interest rates (Gottesman, 2016). The idea of a swap contract can also be utilized by banks as a hedge in the time of a rising interest rate environment. The banks will enter into swap agreements with borrowers so as to facilitate a solution for long-term hedging. If the borrower is a going concern who is actually servicing the loan, it obtains higher costs of interests through a rebate (Gottesman, 2016). The bank may also enter into such a swap contract with a dealer who is bigger money-center bank. In case the borrower default in payment when interest rates are high, it would be possible to unwind both swaps. The later swap agreement can be result to gains upon termination which would improve the position of the bank in finding a solution for the troubled commercial loan. The upstream dealer has unquestionable ability to handle its obligations (Buetow & Fabozzi, 2000). It should be considered that the initial purpose of having the interest swaps is to offer tangible payoff when most needed, that is to say when the rates of interests are high.

The use of derivatives may come with various mishaps, due to latent challenges especially in the over- the-counter derivatives market.  Given the many shortcomings associated with how the market functions, derivatives have been viewed as financial weapons of mass destruction (Vahey, 2014).Of the major danger associated with derivatives includes the risk that a party in these derivatives may be unable to fulfill its end of obligations and also lack of margin collateral put in place to cover any possible losses (Gottesman, 2016). The risk is especially high if there is a web of swap agreements that have been created and involving many parties with banks taking a central role. In order to handle such risks reduce the dangers that may arise, a restructuring of the derivatives market may be necessary with a purpose of addressing any excess credit risk relationships. This restructuring would involve some standardized swaps being submitted a central counter party and cleared through it (Gottesman, 2016). This party would stand between two parties that have entered into an agreement and provide a guarantee that there will be the performance of the financial obligations. Unless the derivatives agreements are guaranteed through collateralization, their value will ultimately depend on the credit worthiness of the parties involved.    

Where derivative are used for the purpose of risk management, there should be created a hedging policy that will ensure effectiveness in hedging.  This will ensure that derivatives are leveraged in a disciplined way so that risk is reduced while making sure that managers do not fall into the temptation of speculating on the direction of rates, prices and the markets (Gottesman, 2016). The motivation for transactions should be the management of asset and liability but not the speculation of the future. To avoid any mishap with the derivatives, a comprehensive policy on hedging should be implemented where there is a definition of the risks that a firm will hedge against, quantities and kinds of instruments that should be bought and specifications on the costs to be incurred in the process. In addition, the person to be responsible for the derivatives should be identified, so that they oversee the implementation of the policy in the transactions and following up on the performance of the financial obligations more so for the borrowers (Gottesman, 2016).  Moreover, well structured programs especially on hedging should be developed to reduce the chances of mishaps occurring.  For instance, a hedging program would utilize a combination of agreement on fixed-price and call options. Call options provide the firm the right to undertake certain exchange agreements in future but not the obligation (Kroll, 2005).

References

Gottesman, A. A. (2016). Derivatives essentials: An introduction to forwards, futures, options, and swaps.242-245

Buetow, G. W., & Fabozzi, F. J. (2000). Valuation of interest rate swaps & swaptions. New York: John Wiley and Sons Ltd.7-11

Consumer preferences and demands

Introduction

Microeconomics is the study of people in the ordinary business of life. As the economic wellbeing depends upon the choices of the people based on the allocation and he usage of the resources.  Thus it is important that the normal members of the community and the specialists in the government, education understands the account of these opportunities that I given by the microeconomic theory and this makes it able to develop the analysis of the theory.  It is also important that they are also able to recognize the microeconomic evaluation of the problems and the policies (Mas-Colell, & Whinston, 1995). 

            The microeconomic theory based on the consumer preferences and demands can be explained by the Apple Company. Apple has been innovating new versions of its iPhone and getting more market shares than its contestants. Therefore the research will be based at the Apple iPhone from the microeconomic approach.  This is the way it follows behind the demand and the delivery of the iPhone and it also clarifies the validation following the large and the greatest cost cuts by the Apple Company. The research focuses on the cost configuration of the iPhone and also on the plans and the delineation policies that are used by the Company to not just endure but flourish in the huge smartphone sell (Baumol & Blinder, 2009).   

            Apple is a modernized trendy and the producer of the buyer demand electronics.  The corporation has feigned many individual processors and software which had been known as the Apple computer. This concept reflected the Apple’s alternation from the private processors to the end user electronics and portable handsets. The corporation changed the digital harmony business throughout the iPod transportable tune players’ online stores. The Steve Jobs got involved in the itinerant electronic tools and planned to partner with the Apple (Paroutis, Angwin, & Heracleous, 2016). These Steve Jobs had previously shown concentration in the finger screen expertise and overture to the tablets PSs and PDAs. 

            They later realized the increasing status and the consumer demand for the mobile phones for all conditions including the communication, internet and music.  The CEOs from both companies started to realize that rather than having many tools, people would prefer just one tool from many functions. Manufacturing and the expansion of the iPhone was covered from the partners and the community.  All the merchant associates were confirmed into the confidentiality and the invention growth squad was not conscious about the artifact they were mounting (Paroutis, Angwin, & Heracleous, 2016)

The requirement for the Apple product has been amazing high. Even prior to the launch of the initial iphone, the customers were lining in front of the Apple and their provisions to buy the new smartphone. There was an elevated responsiveness for the iPhone and many of the American cellular phone customers knew of the succeeding start of the latest iPhone by the Company. Those who knew about the products of the company were ready to purchase them. The demand of the Apple’s products continued to increase in the U.S market (Paroutis, Angwin, & Heracleous, 2016).  According to the research carried out, many of the respondents owned a smartphone and planned to buy more.  The Apple Company benefited from the increasing trend in the demand of the smart phones as it fixed a large market distributes.  This demonstrates that the requirement of the Apple iPhone was high in 2008 when the iPhone 3Gs was commenced and pitched with the discharge of a new model phone or a value slash (Paroutis, Angwin, & Heracleous, 2016). 

The interest of the study was based on the collision of the price slice on the order of the manufactured iPhone models.  The business strategy that can be seen to have been created by the Company is that the Company asks the customers who were not planning to buy the iPhone to show up the prices at which they would reflect on retailing it. The company has to slash the price of the iPhone so that they would get the other respondents interested in buying the iphone for the same price. Based on the supply of the Apple phone, the Company struggled in continuing with the towering demand but have deficiency o supply.  The Company had challenging supply issues when it launched its iPhone.  Many of the iphones were sold during that first weekend after it was launched.  This was the start of a new design though many supposed that the iPhone could have been improved if there were no delivery complications and supply challenges (Paroutis, Angwin, & Heracleous, 2016). 

Some of the doubters believed that this kind of the Apple business strategy was to sustain the control over the market and dynamics, the demand and the consumer prices. This made the Company take more time to supply their products instead of using the 24hours (Paroutis, Angwin, & Heracleous, 2016).  The Demand of the remained unmet foe many people in America who was searching it in the rising promotes.  Corporations mainly have a gap of 100, 000 elements in each year among the real and the estimated order statistics but for the Apple Company, the space was increased up to one million due to the higher than anticipated global require for the iPhone. This made the contribution chain challenges for the Apple while their supply chains provided evidence for inadequacy. Thus the supply of the Apple iPhones has remained low and incompatible. If the company had maintained its business strategy and convened all the demands, it would have gained more auctions and sell shares in the years (Paroutis, Angwin, & Heracleous, 2016).

            The value plan at the Apple iPhone is based on the condition of the requirement and the delivery.  Apple could have enlarged the value of its smart phones. The goods which have a high order and low contribution are always sold at higher prices.  This was not the case according to the Apple Company cost policy.  Apple has been lessening the costs of the different models of the iPhones that it has commenced since 2007. If the demand of the Apple’s products had been low, then it would be assumed that the price cut would be an approach to inspire the demand and sales. The occasioning and the velocity of the cost cut are the business strategy choices while the timing price cut in 2007 was measured more untimely as the Christmas was approaching.  The main concept following the cost cuts could be the Apple’s objective to vend the products to more customers and boost the market allocations (Paroutis, Angwin, & Heracleous, 2016). 

While the prices are cut, the Apple Company made its products more attractive to the people who could not afford it. The price cut was a good business strategy to allow the Company has more competitors coming from the other smartphone manufacturers.  By plummeting the 8GB iPhone cost, the Apple Company prepared the product classier and more striking to the customers in a greater period compared to other goods of the competitive corporations such as Google (Cooke, Schmidt, Alfonso, & Montgomery, 2011).

Based on the economic approach, the prices of the Apple products for its phones can be known as inter-sequential price prejudice. Inter sequential price prejudice refers to the setting of high prices for the products initially to sell to the customers with the highest enthusiasm to buy and the reduction of the prices so as to attract those with lower buying determination. Firms get the price prejudice by developing specific product models and give each model at a different price.  According to Apple, the models of the products are different based on their manufacturer time.  Apple had a quality model of iphone which was hunted following the technical confidence clients who wanted to buy the smartphone as soon as it was commenced while the inferior prized description was accessible later (Paroutis, Angwin, & Heracleous, 2016).  The high esteemed customers recognized themselves by making purchases while the low esteemed customers waited to buy.

The Apple’s products cost decrease was to provoke the little valued clients and those who were not eager to buy the products originally due to the higher costs to buy it at an inferior cost.  The Company planned to boost the trade income through superior sales quantity rather than having it in advanced limits. When Apple abridged the prices of its products, its sales increased with a huge percentage.  The high price decrease of the Company’s products has been referred to as the price landing.  This price approach can be used to clarify the value cut of Apple for its iPhones (Paroutis, Angwin, & Heracleous, 2016).

            The microeconomic theory helps us to understand the motivation of the Apple and its decisions to decrease the costs of the iPhones regardless of their high requirement and the low contribution condition.  Apple iPhone is an illustration of a creation that has a low time succession thus the requirement for the iPhone differs in the whole life.  The maximum order is mainly seen at the initiate of the new iPhone as its elevated quality clients tries to be the first in the acquire line of the original produce (Cooke, Schmidt, Alfonso, & Montgomery, 2011). 

            The order for the iPhone at the first time of its foundation was inflexible and turned to be more flexible as time continued. The price policy comes in where the elevated cost is thrilling to low flexibility customers and then the inferior costs to sell to the huge marketplace.  This may not maximize the income of the company but it will if the customers are willing to predict the price in the by prospect. High esteemed clients may wait to buy the merchandise after the cost slash while the pricing policy would turn to be unproductive (Cooke, Schmidt, Alfonso, & Montgomery, 2011). 

The smartphone market has turned to be an oligopoly as there are many few companies that shave the industry supply.  According to the market structure, these companies are independent and the measures in use by the company affect the antagonism in the markets and amend the competition strategy. Thus companies try to keep boundaries of entry such as the economics of sales, cost management and the high asset and product variation so as to hinder the new contestants in the market (Cooke, Schmidt, Alfonso, & Montgomery, 2011).

             The microeconomic theory has created some advantages and disadvantages to the Apple’s organizational structure. The company’s strong control based on the chain of command in the Apple’s structure maintains its strong support in the organization.  The Chain of command in the company controls everything that is carried out in the organization. Through the leadership, the functioning of the organization and the product grouping in the organizational structure, the Apple Company ensures that the directors take the control of the organizational processes (Frank, 2015).

            The advantage can be gained from the economics of scale where there are more well-organized interior systems and the location of the natural features with low property expenses. Thus Apple is famous in making the innovative products such as the iPhone and controlling their market leadership through market campaigns to make a privileged brand. The limited flexibility based on the economy of the Company is a disadvantage as it brings the downfall of the organizational structure and creates lower flexibility.  The Company’s command chain prevents the lower levels o the structure to the elasticity reaction to the business requirements and the market demands. The Organizational structure does not really support the quick alternations as everything must go through the organization’s managerial structure (Frank, 2015).

Conclusion

            The Apple products have been enclosed by disagreements based on their pricing and the harsh competition from the rival smartphone manufactures.  The successive features of the company are at the high technology products quality and the factor that has gratifies the requirements of the technology products and the amazing products to the customers. The demand of the Apple’s company products has improved in each year with the new models and the price cuts. Normally in the free bazaar, cost is resolute by the order and the delivery connection and by this, the cost of the iPhone ought to have amplified but in the Smartphone marketplace, the concept does not happen. The microeconomic matters have been increased based on the price prejudice by the Apple Company which has been the normal trend of the company. Apple seems to have gained the balance of economic through the costly and the strategic suppliers’ relationships of the workings and the production of iPhone. This is enabled the company o reduce its prices without harming its gross margins.

References

Baumol, W. J., & Blinder, A. S. (2009). Economics: Principles and policy. Mason, OH: South-Western/Cengage Learning.

Cooke, C. W., Schmidt, J. C., Alfonso, A., & Montgomery, W. (2011). Steve Jobs: Co-founder of Apple.

Frank, R. H. (2015). Microeconomics and behavior.

Mas-Colell, A., & Whinston, M. D. (1995). Microeconomic theory. New York [u.a.: Oxford Univ. Press.

O'Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.

Paroutis, S., Angwin, D., & Heracleous, L. T. (2016). Practicing strategy: Text & cases.

Higher interest rates, more capital invested

Higher rates generate wonderful results since there is more room for investment aiming at the goal. The scenario happened in U.S.A back in 2008 where it bolstered the economic growth thereby; the nation was able to fight back the global financial crisis. In a situation where investors receive more capitals they are easily able to accept lower earnings on the stock thus; allowing low rates of borrowing (Moskowitz, 2014).

Low interest rates, low capital invested

USA experienced low rates in 2009 where the cut was around 0.6% thereby; there was a prediction that the rates were to remain constant over a long period. Low interest rate is an important scenario for every individual especially the homeowners who are paying inconstant mortgage. With lower interest rates rent tend to lower since they are the largest component on land owners. On the other hand the scenario affected the asset prices as well as shares where the economic growth was affected abundantly (Baumol & Blinder, 2009).

Low interest rates, more capital invested

This scenario is the best for government to invest because all the investment finance through borrowing generates an attractive nature. Low interest rates give better results of borrowing where the return becomes lower as compared to the situation of higher interest rates. Despite the benefits of investment on low rates interest there some individuals loose effectively. Back in 2005 the US baking rates were affected due to lower interest rates since commercial back offers better rates for savers whom in such situations face huge loss (Moskowitz, 2014)..

Higher interest rates less capital invested

Interest rates can have both positive as well as negative effects on the U.S.A economy especially where the government takes action in changing the bank borrowing rates. High interest rates with low capital invested occur in a situation of loan borrowings thus, a disappointment to the borrower because he might not be able to pay the loan. 1982 is a good example when the scenario affected U.S.A through inflation which caused depression since the interest rate raised from 15% to over 20% (Baumol & Blinder, 2009).

References

Moskowitz, J. S. (2014). The 16% solution: How to get high interest rates in a low interest world with tax lien certificates. Kansas City, Mo: Andrews and McMeel.

Baumol, W. J., & Blinder, A. S. (2009). Economics: Principles and policy. Mason, OH: South-Western/Cengage Learning.

The Effects of Watching Television for Hours on Age, Race and Income

Abstract

Television viewing for long hours among adults and children is an ongoing debate as it is established to hold different negative effects.  The issue is becoming worse in the modern society as the general percentage of individuals who watch television and the amount of time that is spent watching is growing rapidly.  With the growing productions of programs that are well targeted for particular age sets, individuals are continuously getting engaged in watching.   Based on the recent studies it has been established that long hour’s exposure of individuals to television affects individuals differently.  To young children the exposure results in  a negative effect of age as well as their general development which  results in issues of behaviors, the disorder of  attention, development of obesity, aggression racial attitudes and decreased production.   The society today is highly encouraging media literacy which is results in negative effects on the general society. Technological advancement is regarded as the movement towards a more developed and beneficial living, however, the development and an increase in media literacy result in the loss of cultural values and the development of different attitudes.  Television viewing is highly linked to racial attitudes development and negative behavioral outcomes in children.  This is mainly because they are generally exposed to   thoughts while they are in the discovery stage.  For the adults longer watching of television results in negative interactions as well as reduced productivity which implies that the amount of income generated in the household is reduced gradually.  Based on the recent studies it has been established that the amount of time that a typical kid is exposed to television watching has doubled recently.   More studies are now claiming that television watching for long period’s results in adverse implications especially on children and general teenagers.  This paper will, therefore, utilize a review of the recent studies in regard to the topic of long hour’s television watching on race, income as well as age.  Contrarily to the previous studies, this paper will focus on establishing the general impacts of long hours television watching.

Keywords: Television, Behavioral Issues, Reduced Income, Age, Race, Productivity. 

Introduction

In the modern society, most individuals enjoy watching television based on the content that is displayed and the quality of entertainment that they develop.  Individuals and especially children who are continuously and for long exposed to different risks as most of the dangerous content is not sieved out (Masiba, & Kyando, 2016).  Therefore watching television implies that individuals are exposed to several advertisements which may have contents that are not favorable. Children own and enjoy a wider stake in the societal families and they joy seems to be of very much concern.it is established that more than 32% of the American society are addicted to television viewing for longer hours (Masiba, & Kyando, 2016).  Television is a great set of entertainment based on the fact that it offers different and interesting programs that are scheduled based on time. This, therefore, implies that individuals have to spend more hours following their favorite programs which act as sources of information in general.  Through this, the designers and the marketers of advertisements tackle this as an advantage of trying to manipulate individuals through the programs (Chang, Jain, & Peng, 2013).  Children especially hold a greater capability of assimilating information in a more increased mode based on the fact that their minds are not occupied.  Teenagers utilize the programs as explorations of gaining ideas in regard to different concepts and ideas.  Through the programs, they are able to discover details to matters that are not discussed in the society for the purpose of maintaining and preserving values as well as morals.  In general, television as a form of media is associated highly with the general change of behaviors especially for young children (Plooy, 2002).  Television is in this case held responsible for influencing developing and behaviors.

Television is a significant strategy that is utilized by most individuals both young as well as old based on the fact that most fresh information is given to the public via the particular channel. Today media and particularly television is a major source of information as it generally attempts to develop the knowledge of individuals through the conducted research (Plooy, 2002).  Television can today be accessed easily through the utilization of satellite or even direct cables.  This provides the public with each type of information that they generally require for work, interest, leisure and so on.  With the growing utilization television, different television programs in the television have now been responsible for catching the attention of most individuals today.  This is because while comparing the media of television to other information channels it can thus be regarded as the most accessible.  For the young individuals, television is considered as their favorite entertainment media.  The rising access and utilization of television have been an ongoing debate for the longest period based on the boundless information access which affects behaviors, development, racial attitude as well as the generation of income (Plooy, 2002).

Watching television for long hours holds various effects in regard to age, race as well as income generation.  The watching of TV is mainly linked to negative impacts of watching as it generally results in reduced productivity (Chang, Jain, & Peng, 2013). This, therefore, implies that the amount of income   that is generated is lower which results in underdevelopment and the rise of the poverty level in a society. Watching television additionally results in the rise of racial discrimination as the media is highly connected to racial connected which may impact the thoughts of those watching. The tendency of watching television increases with a development of age which is associated with negative impacts (Chang, Jain, & Peng, 2013).

Based on the recent research it is clear that individuals who spend longer periods watching television are less productive.  This means that they spend less period of time trying to generate income. The households of such individuals are therefore characterized by less income and increased the level of poverty (Masiba, & Kyando, 2016). It is however argued that television watching acts as a source of benefit to those that participate in gaining entertainment from it. This is mainly because it helps to develop the ability of individuals and especially children to think. In addition, it helps in developing the knowledge of individuals which helps in developing individuals who are more productive and oriented on goals.  The watching of television results in the development of a society that is characterized by racial attitudes.  This is mainly because the content and programs that are displayed on the television may be a revelation of racism and what it entails. This, therefore, means that the individuals that are watching are bound to develop stronger attitudes against a particular group of people based on the information that they acquired.   In comparing the benefits and the negative effects of watching television for increased time period it is established that the negative implications of ways the positive ones in a huge deal.  The television viewers cannot, therefore, be blamed for these effects because it is what the society is exposing them too (Bagchi, 2011).

Continuous exposure to the watching of televising can be considered to be a common trend in the society today and the effects cannot be underrated (Bagchi, 2011).  In particular to television series they can be generally passionate to view and these results in individuals being glued to the media for long which results in viewing a single program after the other. Unproductivity, reduced development, negative behaviors, health issues and racial attitudes and be regarded as negative effects of watching television programs for long hours. The effects cannot be blamed on anyone as they can only be linked to the advancement of technology which has resulted in the rise of an increased curiosity (Bagchi, 2011).

Literature Review

Media literacy is an important thing in the society today.  Media literacy is described in different forms in the conducted studies.  However, the definition in all the studies is similar in that it is mainly focused on the capability of understanding, accessing and creating communication in different grounds (Lee, 2005).  In short, this can be described as the increased capability to read and comprehend visual, digital context and holding the necessary skills of understanding and interacting completely with media knowledge in an analytical and knowledgeable form without fail (Lee, 2005).

Children in the society are being raised and exposed to numerous different aspects such as the internet as well as Television which greatly influences their lives in different ways (Withey, Abeles, 2013).  Instead of utilizing most of the time engaging in productive activities individuals spend more hours watching television which would help in developing their general skills as well as development.  Based on a recent study it is clear that children have exposed to television longer before they get into school. This, therefore, affects their ability to understand and learn new things based on the fact that television provides ready information for digestion.  A television program continuously provides a a false feeling of reality on the the individual which mainly affect their ability to face situations and issues in general (Withey, Abeles, 2013).  It, therefore, becomes very difficult for individuals to differentiate between the actual and fantasy things.  With this,, the productivity capability, as well as cognitive development in individuals, is affected.  The fact that television programs are objected on enlightening and providing knowledge cannot be termed as an innocent thing as they   play part in triggering the emotions and attitudes of individuals in general.  Income for individual to raise their general income,, they are required to work more and waste less time. This, therefore, refers that when individuals are fully engaged in watching television the generated income is reduced (Withey, Abeles, 2013).  Some movie contains details that are directly connected to racial discrimination and this may play a huge part in transforming the attitude of individuals towards the portrayed group that they do not belong to. This results in the development of a violent society that holds no moral value.  Television watching is directly connected to health issues as it may result in obesity and even hurt the eyes for longer views (Withey, Abeles, 2013).

The world today is characterized by a culture where almost every home owns a television set. It is, therefore, an impossible thing of neglecting the negative things that are caused by watching for longer hours (Withey, Abeles, 2013).  Television can be described as a media that holds much to provide as individuals can easily access it and with no doubt television can be regarded as one of the greatest innovation.  However relying on this mode  in order to gain information or  to  acquire entertainment  this  can  result  in  affecting  individuals in a  negative way.  Watching television for a long period can be in other words being described as an inactivity which means that there is zero productivity involved. The effects  of watching television for increased  time period  has grown increasingly to individuals of all ages which ranges from  health issues,  negative  behaviors such as  violence, racial  discrimination, low performance decreased productivity  as well as decreased productivity.  At home, it is very hard for individuals nowadays to avoid viewing television programs as everyone is normally tuned.  In most cases even when individuals are not watching the television it is usually left on and in most cases instead of offering care to children they are given TV as a substitute (Withey, Abeles, 2013).

TV does not provide any educational benefit to those that watches it, especially if it is watched in order to provide entertainment and not a source of information generation (Bryant, 2009).  The activity of watching for longer hours affects the ability of individuals to interact with others fully as the ability to interact effectively is not learned through watching but through participation in life.  Television watching for longer hours additional consumes the time that should the be utilized in the development of significant skills such as social, creativity, movement as well as language. This, therefore,  leads to  the development of a numb mind  which  means that  individuals become  challenged  in  terms of intellectualness (Bryant, 2009).  The ability to imagine things effectively is also affected as individuals fully believe in this that they see which may not be real in the actual worlds. This, therefore, means that individual’s capability of developing better solutions when issues arise in life is challenged.  Based on studies students who are engaged in active watching of television have great issues in paying attention and learning and reduced attention means that they have a challenging moment in learning activities (Bryant, 2009).

Watching TV for longer is associated with less productivity which results in decreased performance. TV exposes individuals to negative aspects as well as encouraging the occurrence of negative habits to children as well as adults in general (Masiba, & Kyando, 2016).  TV programs, as well as advertisement normally, demonstrate alcohol, sexual acts, and the utilization of drugs as well as violence. This, therefore, means that the minds of individuals in the society are built in the portrayed stage. This is because individuals develop impressions based on the things that they see on televisions as visuals create stronger concepts and themes as compared to a message that lacks image (Masiba, & Kyando, 2016).  This is because images tend to remain in the individual's minds for a longer period.  It is established that watching a television for more than three hours is not beneficial.  Individual’s views the world based on how it is portrayed in the television programs rather than how it is in the real sense which affects an individual’s behavior.  It has been established that children who are characterized by violent and aggressive behaviors are long hour’s viewers of television.   This is mainly because the television normally shows them that the best mode of solving the conflict in most cases is through violence.  Watching television is normally seen as the best option of other activities rather than engaging in other activities that are seen as disruptive but they are associated with more benefits (Masiba, & Kyando, 2016).

Hypotheses

Television cannot be termed as bad for individuals completely but it is unhealthy to utilize abnormal amount of time watching television programs.  Countless current researchers have established that watching television for longer hours holds harmful implications on individuals.  Watching television for an increased period becomes the safest mode of escaping from reality.  The hugest step of engaging in too much watching is that it provides a way in which individuals can escape their life instead of looking for solutions (Shabka, & Saville, 2009).  When live is characterized by challenges most individuals opts to gather entertainment from television programs which are a form of sleeping through life on a literary basis.   This becomes a tragedy because individuals fails to realize that the time that they over utilize watching can be used in more constructive activities.  Watching television for extended hours results in the deterioration of the human brain.  Watching television for longer periods means that everything is particular done by what it provides.  This is mainly because watching does not require one to create any information or ideas as everything is readily provided.  For instance when an individual is engaged in reading they utilize their imagination to develop thoughts that are related to sounds, tastes, visuals and the occurrence of events.  The brain is therefore required to utilize the sensations that are given in the book unlike when they are watching television as this is already done. This, therefore, shows that the ability to imagine thins and create fresh ideas is hindered.  At most instances after individuals have been engaged in watching television they normally   feel that their brain is filled with emptiness (Shabka, & Saville, 2009).  This is mainly because the brain holds nothing to get engaged in which is not utilized in longer hours period.

Watching television is associated with decreased productivity and less income mainly because it is associated with strong addiction.  The worst part of getting used to getting entertainment from television is that it is just like an addictive substance that one can never get rid of easily.  This is mainly because it can be accessed easily with much pleasure thus making one forget about the existing troubles in life (Blair, Claster, & Claster, 2015).   This is developed especially because after a single program there is a different one that evolves each time.  The hours continue to add up and once an individual is held up in the programs they handle one for the entire living.  Television watching for too many years is very easy as the mind is swathed and it is s in a manner that nothing else can be thought of except the things that happens on the screen.  TV is considered as the best form of entertainment for all ages without the realization that it results in negative implications.  This, therefore, results in the loss of most opportunities in life.  In life achieving quality can only be achieved through utilizing most of the time in productive activities.  In order to increase productivity, one needs to work hard and utilize less time in pleasure and more time in producing more (Blair, Claster, &, Claster, 2015).  From the evidence, it is clear that the more that an individual is engaged in longer hours of watching the more they are generally exposed to life threats and disadvantages. This is mainly because they are unable to solve issues which affect their abilities to develop as well as handle matters.

Methods

Research methodology can be described as an investigation that is purposed at generating answers to the study question.  The research method of the current study was developed to establish the effects of watching television for longer hours in the context of age, income generation, and race.

The research utilized a descriptive design and sampling.  The methodology utilized was a mixed method as it utilized both qualitative and quantitative research.  Sampling was done to ensure that accuracy of the research was attained. Random sampling was utilized to eliminate the occurrence of biases. Qualitative data was gathered through the use of interviews as well as questions. The questions utilized in the study were both open and closed completed queries. This was opted in order to ensure that maximum data was gathered for the research.

The target population of the research was 100 persons and the sample population was 47. The questionnaires were distributed through emails to the respondents. The filled questionnaires were then returned to the researcher after completion.  The analysis of the data was done by the research in order to maintain confidentiality and increase the reliability of the findings.

Results

From the review of the studies, it is established that watching television for longer hours is associated with harmful effects on individuals of all ages.  Watching television for extended hours is harmful because it hinders the capability of individuals to think properly.  This is mainly because it gives information quickly, generating opinions, evaluation as well as the general criticism in regard to everything.  This, therefore, results into the manipulation of the viewers as well as misinformation.  The negative impacts of watching television cannot be underrated because they affect the issue of race as well as the generation of income.   This is mainly because when individuals are involved in watching continuously they become less productive with less performance thus meaning that income is reduced.

Television watching for a long period is generally associated with negative impacts in the context of age, race as well as income.  When individual’s capability to think adequately is reduced this means that the society is characterized by less productive individuals which may result in the rise of the poverty rate. It is indicated by research that the tendency of watching television grows with age as individuals begin to understand and analyze the visuals displayed on the television. Watching television additionally, results in the rise of racial discrimination as the media is highly connected to racial connected which may impact the thoughts of those watching. With poor cognitive capability, there is less performance and the ability of understanding matters which increases the rate of the racial subject.

Discussion

It is argued that television is associated with more evil as compared to the related benefits.  Television and the growing usage of media in   attaining information as well as entertainment are associated with negative effects on individuals of all ages and especially young individuals.  Television is highly blamed for less productivity as well as society violence (Blair, Claster, & Claster, 2015).  On the other hand, television is viewed as a huge source of international knowledge education and knowledge.  For most individuals in the world today television can be regarded as a consistent presence that cannot be avoided.  In   satisfying the growing curiosity that has been developed by technology individuals mainly utilizes television to acquire information in general.  The world is characterized by an increased usage of media and television is the only cheap and easily accessible source.  It helps in ensuring that individuals are constantly updated about the occurrence of things around.  It additionally offers company and ensures that the world is easily connected through series as the dubbed commercials and films.  This can thus be considered as a positive way which assists individuals in expanding their knowledge in a faster form. However watching television is mainly related to negative effects more than the benefits (Blair, Claster, & Claster, 2015).  This is mainly because it results in destroying relationships which result in negative relations in regard to race based on the incapability to understand and solve matters. Televisions are responsible for making individuals antisocial as outdoor activities neither are nor normally encouraged.  Viewers hold the opportunity of lopping channels one after another which normally affects their abilities to perform significantly.

Conclusion

Television watching for ours can be described as primarily negative in the context of age and generation of income.  Despite the fact that the effects normally depend on the individual who is watching the negative effects of prolonged watching cannot be underrated.  Television is associated with bad language which can influence negative behavior and attitude.  Television is associated with the impairment of development of children especially cognitive and language.  TV additionally provides bad language to the viewers with detailed context which does not give any room for developing innovative ideas.  Television is the most utilized source of information in the society today based on its accessibility and ease of use.  It is, therefore, accurate to develop the conclusion that in general television can be considered as bad rather than good.  Watching television should be watched for less than three hours to ensure that the effects are not negative. Television should not, therefore, be used as the sole source of entertainment or gaining information.

            References

Masiba, W. L., & Kyando, N. M. (2016). The Impact of Watching Violent Television Programs on Secondary School Children in Tanzania.

Chang, R.-S., Jain, L. C., & Peng, S.-L. (2013). Advances in intelligent systems and applications: Proceedings of the International Computer Symposium ICS 2012, held at Hualien, Taiwan, December 12-14, 2012. Heidelberg: Springer.

Plooy, G. M. (2002). Communications research: Techniques, methods and applications. Lansdowne: Juta.

Bagchi, D. (2011). Global perspectives on childhood obesity: Current status, consequences and prevention. London: Academic.

Lee, S. W. (2005). Encyclopedia of school psychology. Thousand Oaks, CA: Sage.

Stephen B. Withey, Ronald P. Abeles. (2013). Television and Social Behavior: Beyond Violence and Children. Routledge.

Jennings Bryant, Mary Beth Oliver. (2009). Media Effects: Advances in Theory and Research. Routledge.

Masiba, W. L., & Kyando, N. M. (2016). The Impact of Watching Violent Television Programs on Secondary School Children in Tanzania.

Shabka, M., & In Saville, K. (2009). The advanced English handbook: Reading, writing and listening.

Blair, S. L., Claster, P. N., & Claster, S. M. (2015). Technology and youth: Growing up in a digital world.