Competitive Intelligence Essay Example | Topics and Well Written Essays - 1250 words

Competitive Intelligence - Essay Example The evolutions of new challenges like technological advancements and out sourcing have posed new challenges for the business operations. Understanding these challenges and acting according to the implications required an acute sense of understanding the situations and the analyzing to the best. The competitor analysis has diversified into more specific issues of planning, collection of more influential data, analysis and communication, which were undeniable influencers of success. The research is conducted by taking individual tasks and integrating it to the organizational concerns making the analysis more robust and to derive more refined facts. The country analysis gives a broad idea about the investment atmosphere prevailing in the country under consideration. The current position of the industrial sector under consideration, the amount of market capitalization existing in the country for the sector, the number of existing players competing and their presence in the market., the government approach for the development of the sector, the entry norms for the investors, the resources availability, the supportive industry presence for companies like the smaller parts manufacturers for automobile industries etc, The volume of the business to be explored, the number of years for turnaround to gain the considerable market reach, and the socio-economic factors of the country that may influence the business potential. The above factors may differ from one country to the other. For example a Canadian company is planning to enter new market in Ontario. The company has to know the feasibility of the business in the Ontario. The compa ny has taken help of a consulting company to know the market environment in the region. The consulting company has given details of components related to the competitors, recent trends fallowed by the competitors, the financial status. Comparison between New Zealand & Canada: New Zealand, competitor intelligence is a pioneering issue under consideration that has been given preference only after 90's (Craig S. Fleisher, 2004). The business elite group is not known of using the competitor intelligence tools as much. The study perceived by Procter revealed some interesting facts that the business environment was more inclined towards domestic markets rather than concentrating on the growing need to globalize (Craig S. Fleisher, 2004, P 43). The New Zealand business sectors are optimistic that competitor intelligence has more important role to play in the due of time. The New Zealand business sectors sensed the constraints they need to overcome to sustain in their respective business but they are yet to open to the implementation of competitor intelligence strategies to raise their business levels to globally acceptable level. The business sectors are not ready to face the realities like the constraints they need to know about their external environment they are into. To address these new business requirements the business entities need more resources like internet, product patent information etc (Patents and competitive intelligence). The modes of business education were only

Management of Human Resources Class Discussion wk2 Assignment

Management of Human Resources Class Discussion wk2 - Assignment Example The engaging of the Human Resource to the external environment is more challenging as they have to cover more area than the usual internal environment capacity that they are familiar with. Meeting external responsibilities means more time, more resources, and more responsibilities as it is an expansive area that requires more attention to be able to handle the environment more efficiently. These will ensure a smooth transition and cooperation in making the relevant adjustment to the organizational structure response to external issues (Mabey, 2012).Taking the first step to deal with the issues is better than waiting the problem to catch up with the organization. Engaging in the external issues gives an insight and understanding of the environment the organization is existing in and how to prepare for the impacts that will cause either positive or negative. The economic globalization and political landscape has completely transformed the shape of the current Human Resource management. The competition is high, and one wrong move can destroy the whole organization (Noe, 2006). The Human Resource has to be keen on political matters because they are very sensitive and might affect the entire organization either negatively or positively The Human Resource has to engage a Rights Dispute for employees who are hired in unfair labor conditions.The Human Resource has to file a complaint with the relevant authority that will protect him from whistleblowers.The Human Resource has to exercise their legal rights as an employee by contacting OSHA immediately because the complaint must be filed within the legal time limits.These are to ensure that the company follows the stipulated laws that are laid down for favorable conditions of the workers (Gilbert,

Brand Improvement Recommendations for Toyota

Brand Improvement Recommendations for Toyota Introduction The modern age of business can be defined as age of competition. The competition within an industry is gradually increasing with the expansion of business as many new players are entering into the market. There are several reasons behind this intensifying competition. Firstly, globalisation is one of the primary reasons for expansion of trade and business that lead to increase competition. Many business organisations have found greater opportunities in overseas market, and free trade policies and agreements between multiple countries facilitated their market expansion programs. The domestic markets have turned into global markets that heightened competition rivalry among existing domestic and new multinational enterprises. Since last two decades, the society has been experiencing a rapid technological improvement. The technological advancements have led to change the structure entire trade and business. The management tasks and operational process are now backed with technology like e-commerce and e-business. A better grip of technological advancement helps a business organisation to gain an upper hand position. Finally, enhancing economic condition of consumers and increasing their disposable income have strengthened their purchasing power. This has also changed their consumer buying behaviours and they have developed their specific brand preferences (Vashisht, 2005, p.68). In the modern and competitive business world, business organisations always try to position itself in market for avoiding unnecessary competitions. In this process they aim to achieve strong competitive advantages and core competencies that enable them to gain upper hand position in the market. There are multiple ways to achieve competitive advantages; however, brand development is the most preferred way for creating high business value. The increasing demands of brand development is due to two primary factors i.e. urge for acquiring higher market share and increasing concern towards consumer value. The modern management style and thought process of decision makers have transformed. The modern management concept more focuses on long term benefits by creative a sustainable businesses environment where stakeholders wealth and value creation is the first priority. When a company is able to meet these responsibilities towards stakeholders, society, community and environment, it is able t o create a high brand image in the market. Managements in modern organisation culture follow management theories and models which are very effective in achieving common organisational goal. In this respect, they concentrate on two-way communicational system within cross-functional teams and with its consumers. For example, the existing management system deliberately tries to implement integrated marketing communication that focuses on better marketing strategy for enhancing consumer values. These efforts made by the modern managements are very helpful in brand development and hence, they try to draft specific plans for branding strategies. This paper will attempt to deal with brand improvement strategies for Toyota Motor Corporation and primary aim of this paper is to offer a plausible set of recommendations based on findings of primary research and secondary research data analysis. At first, a brief description of Toyota Corporation will be offered to understand fundamentals of it. The second section will explain the research question and objective based on which the entire research methodology will be constructed to obtain viable and valid results. The third section will present theoretical background and models relating to marketing and branding. Marketing and branding are interrelated with each other and the later is an integral part of marketing. Multiple marketing theories and models are very helpful for brand development. Moreover, many scholars have developed brand specific theories and models which facilitate brand management tasks. The fourth section will include the research methodology, and research framewo rk will be framed as per the requirements of this research paper. Finally, based on data analyses and its findings, the entire project will be summarized and a set of credible recommendation will be developed. Chapter 1 A Company Overview: Toyota Motor Corporation Toyota Motor Corporation is a multinational automobile company and it is famous as Toyota in global market. The company is a Japan-based company and it is present in the most of the international markets. Sakichi Toyoda laid the foundations of automobile company and latter, in 1933, his son Kiichiro Toyoda opened an automobile department after conducting an extensive research on engines powered by gasoline. Automobile department was known as Toyoda Automatic Loom Works, Ltd. One of the sister company of Toyota, called Hinode Motors (now known as Aichi Toyota) introduced its first A1 prototype cars and G1 truck during 1935. In 1937, Kiichiro Toyoda established Toyota Motor Company Ltd. and in 1938 he started producing SB trucks in its Honsha plant in 1938 (Toyota-a, 2011). Toyota brought a revolution in automobile industry of Japan during 1930s to 1950s by incorporating innovation and growth oriented business model. At present, Toyota is one of the leading and the largest automobile manufacturing in the world. It is also one of the pioneers in automobile innovation which is the companys core value. The technological expertise is prime competitive advantage that has helped the company to cater the global automobile market. Since the inception of Toyota, the company is committed to produce reliable and value added vehicles, Innovation is the major tool for the company and it also uses its technological expertise in meeting social and environmental responsibilities. In order to operate in the global market, the company has formed its seven specific guidelines and principles. These principles mainly include with business ethics, respects and honour for every country and its culture, and develop a growth oriented organisation with the business partners etc (Toyota-b, 2011). Presently, Toyotas global headquarter is at Toyota City, Aichi of Japan and its president and representative director is Akio Toyoda. As of March 31, 2010, the company owned nearly 397.05 billion yen of capital. It has a number of subsidiaries and affiliated companies over the world and currently, it has nearly 320,590 employees in its international business (Toyota-f, 2011). Currently, Toyota is trying to use its innovation for bringing development in the society and environment. The company has realized increasing negative impacts of industrialization and carbon emission from increasing number of vehicle. Therefore, the company is now focusing on eco-friendly cars like hybrid and electronic cars. Toyota has identified three major environmental issues relating to its vehicle manufacturing and hence, it has developed and incorporated necessary steps for making the things better for environment. Firstly, it attempts to enhance its transmission and engine efficiency by downsizing measures. Secondly, energy management is another major task for Toyota in this respect. Finally, for reducing overall vehicle load, it tries to lessen rolling resistance, air drag and vehicle mass (Toyota-c, 2011). Quality and safety are two major parameters for Toyota and hence, the company strive to bring constant development in its operational and management process. Toyotas production system â€Å"is steeped in the philosophy of the complete elimination of all waste imbuing all aspects of production in pursuit of the most efficient methods† (Toyota-d, 2011). The global operation of Toyota is primarily based on two concepts of modern management. â€Å"The first is called jidoka (which can be loosely translated as automation with a human touch) which means that when a problem occurs; the equipment stops immediately, preventing defective products from being produced† (Toyota-d, 2011). The second concept is the just-in-time process that helps it to maintain a smooth process of operation without maintaining high inventory. Table 1: Consolidated Vehicle production As Toyota has been able to capture significant share of market in these regions, its financial position has been quite strong. The following table and graph present key financial performance indicator and sales revenue by region. Table 2: Consolidated Performance As per the above figure and table, during 2009, Toyota faced loss due to the effect of global economic crisis. However, with the recovering economy, the company has been able to regain high profitability. From Japan and North American market, Toyota earns the highest revenue. Besides, from other markets like Europe and Asia, the company generates high revenue. Toyota was in the face of a grim crisis when one of its leading models of the Lexus and Prius brand was badly hit by a series of manufacturing defects in the US which led to loss of innocent lives. The company had to pay a major price for this defect as its public relations strategy was widely criticised. In addition to this the company had to face major lawsuits which led to payment of hefty fines by the company and large scale product recall that had a wide impact on the brand image of the organization. The discussions have pointed out the fundamental features and condition of Toyota that make it a successful company in the global automobile market. The efficient operations with technological expertise are the primary base of the company. In each market, it has developed trust and confidence among the target consumer group and hence, it has been able to capture higher market share. Research Question The research paper will be looking at the branding strategies which Toyota may adopt to augment its tarnished brand image. The discussion will be carried out with an analysis of earlier branding strategies of Toyota. Adding to it, some relevant branding strategies of other leading organisations will also be taken into account; so that, an appropriate branding framework can be developed for the company taking references from the company as well as its competitors. Chapter 2 Literature Review Branding â€Å"[Branding is] a 15-second elevator pitch that every employee in the organization can not only get and articulate, but can talk about their role in bringing that to life† -Davis, M. S. (Wiley, 2003, p.1). In todays competitive world of business, marketing and advertising have significant contribution to create ‘branding of any product or service or may be of a whole organisation. The significant portion of branding has experienced a dramatic shift in the last few decades. Both the traditional branding and the role of brands were subject to continual review and redefinition. According to Kotler, a brand can be defined as â€Å"the name associated with one or more items in the product line that is used to identify the source of character of the item† (Guzman, n.d., p.1). The American Marketing Association (AMA) has defined a brand as a name, sign, term, design symbol, design or a combination of them which are intended to categorize the products and services offered by one seller or group of sellers. The brands are also used to differentiate them from those of their competitors. Keller has expressed a different view. According to him, whenever an organisation introduces a new name, symbol or logo for a new product, he or she has created a brand. However, today those brands mean much more than that. According to these definitions, in simple term it would not be wrong to say that the brands act as identifiers. Earlier, brands and brand building processes would be thought as just another step towards the marketing or selling off products. Since a long time, brands were treated as a secondary step of the marketing process. According to Kotler, branding has become a significant issue in the product strategy. The brand communication strategy has its focus towards representation of the brand and the creation of the brand image. In the year 2000, Aaker and Joachimsthaler mentioned that as per the traditional branding model, the objective is to develop the brand image (Ali, 2007). The brand image is a strategy element driving the short term results of the product as well as the organisation. In the year 1997, Kapferer mentioned that the brand is an external sign whose responsibility is to disclose the hidden qualities of the product or service (Nijte, 2005, p.20). In todays competitive business environment, the challenge is to develop a string and distinctive image. The brand is expected to serve as the identifier of a product by displaying the distinguishing elements from the competition. Powerful brands develop meaningful metaphors in the consumers minds. The meaningful images are created through development of brand image and enhancement of reputation by differentiating and potentially having an affirmative influence on the consumers buying behaviour. The Keller Model has a considerable contribution in the branding theory. The model has identified the concept of customer based brand equity and the brand hierarchy. According to Keller, brand equity is the effect that the brand knowledge would have on the consumer response to the brand marketing, which would have the effect happening when the brand is known and the customers would possess favourable, strong and unique brand associations. This customer-based Brand Equity (CBBE) model has identified about four steps, representing the questions asked by the customers and displaying a branding ladder. In this model, each of the steps is dependent on the achievement of the earlier one. All these steps consist of six brand building blocks which would have a number of sub-dimensions. While building a strong brand, the objective is to reach at the apex of the pyramid where there would exist a harmonious relationship with the customers. At the very first stage, this model should represent a correct brand identity by answering the customers question ‘Who are you?. The aim is to develop an identification of the respective brand and display an association with the respective product class or the specific requirements. The initial stage involves of the brand building block ‘salience. The next step considers the question ‘What are you?. The question is answered through the establishment of brand meaning in their minds and associating the brand with certain properties. In this step, there are two brand building blocks: performance and imagery. The following step is ‘brand response, whereas the appropriate customer responses to the brand identification and meaning are brought out. This step is also achieved with two building blocks judgement and feelings and answers the question- What about you? The final step in the model is ‘brand relationships where the brand response is transformed to a passionate, active loyalty relationship between the customers and the brand. This stage addresses the customer question -What about you and me? The final brand building block is ‘resonance which is at the apex of the pyramid. â€Å"Kellers conceptual framework provides guidance in building, measuring and managing brand equity. While Keller claims that the model can be applied in a B2B context and a consumer environment, it does not appear to have been tested for industrial brands. The similarities and differences between business and consumer markets have long been debated with organisational buyers found to differ in many ways, suggesting that the application of such a model in a B2B setting will pose challenges† (Kuhn Alpert, n.d., p.3). Today, there has been a considerable shift in the brand management processes. Concerning with the brand management process, Aaker and Joachmisthaler have discussed the traditional branding model where the brand management team would be responsible for creating and coordinating with the brands management programs (Guzman, n.d.). In such a case, the brand manager was not at the top of the management hierarchy and his focus used to be the short term financial results of both the brands and products in the respective markets. The basic objective has been the coordination with the manufacturing and sales departments. The coordination is necessary in order to solve any problem associated with sales and market share. According to this strategy, the responsibility of the brand has solely been the concern of the marketing department. In general, majority of the companies thought that focusing on the latest advertising campaign would mean concentrating on the brand itself. The model is strateg ically significant and reactive rather than being creative and visionary. The brand has always been referred to as more like a series of tactics and never like any strategy. In 1997, Kapferer has mentioned that before the 1980s, a different approach was there towards the brands (Kapferer, 1997, p.23). Earlier, the organizations wished to purchase a producer of pasta and chocolate. After 1980, the consumers are looking for Buitoni and KitKat. Such an instance displays the fact that earlier, the consumers were not bothered about the brands; rather they were more focused on the required product. However, after 1980, the consumers are aware of the product names. Buitoni has established the brand name in pasta and KitKat has marked its position in the world of chocolate. This distinction is quite significant. In the first case, the organizations wish to purchase the production capacity and in the later years, they want to create a place in the consumers minds. In other words, the shift in the focus towards the brand would start as it was understood that the brands are more than plain identifiers. According to Kapferer, a brand serves eight functions: Identifi cation, Practicality, Guarantee, Optimization, Characterization, Continuity, Hedonistic and Ethical. Identification of the brand would enable the consumer to clearly see, make sense of the offer and to quickly identify the required after products (Kapferer, 1997, p.29). Practicality would enable the consumers to save on time and energy through identical purchasing and loyalty. Among the other function, optimization is significant one to make the customers sure of finding the same quality indifferent to the time and place of the product or service. The characterization in brand management reflects the confirmation of the product or service image, presented to others. There must be continuity in the brand which is supposed to bring in satisfaction through familiarity and intimacy with the brands, which were used or consumed by the customers since a long period. The brand is supposed to bring in satisfaction linked to the brand attractiveness; the brand is required to be hedonistic. Th e brand is also required to be ethical as satisfaction of the consumers must come through reasonable behavior of the products and those must be reflected in its relationship towards the society. Among these eight functions, the first two are quite mechanical and are concerned with the essence of the respective brands. The brands are expected â€Å"to function as recognized symbol to facilitate choice and to gain time† (Guzman, n.d., p.2). The next steps are meant for reducing the apparent risk and the final three steps are related with the pleasure side of any brand. The brand value emerges from its ability to attain an exclusive, positive and significant mark in the minds of a large customer base. As a consequence, the organizations must carry out branding and brand building to develop the brand value. He has perceived the brand value to be in monetary terms and accounted the same in the intangible assets. However, according to Doyle, brands fail to explore the value creatin g opportunities if the managers pursue strategies, not oriented to maximize the shareholders value (Guzman, n.d.). There are four factors which could be there in the consumers minds and which could be combined to establish the perceived value of any product or service brand. This would also determine the â€Å"brand awareness; the level of perceived quality compared to competitors; the level of confidence, of significance, of empathy, of liking; and the richness and attractiveness of the images conjured up by the brand† (Guzman, n.d.). According to the theory by Kapferer, adding brand image, perceived quality, evocations, familiarity to the brand awareness would create the brand assets which can also be thought as the brand added value perceived by the customers (Kapferer, 1997, p.123). Deducting both cost of branding and cost of invested capital from the same would be equal to the finance value of the brand or brand equity value. Brand Identity ‘Identity is very significant for any individual or for any entity to make others feel its presence. In case of marketing, it is very necessary to remain in the mind of target consumers and in the market. It is very important for any business organisation to create a unique identity in market and this identity is very crucial for generating sales revenue. The business organisations or companies can develop identity as per its corporate name, product or services. There are some examples of such identity. Xerox Corporation is a world renowned company that offers printers, copiers, scanners, projectors etc. The company was very successful for its photocopier machines. It used it corporate brand name for marketing the photocopier machines and now, the photocopier machines are now famous as ‘Xerox Machines. Another famous example of developing identity using product name is ‘Marlboro Cigarette. It is the worlds largest selling cigarette brand manufactured by Altria Group Philip Morris International. The companys corporate identity is not so popular but it is popular for its product identity i.e. Marlboro. However, the above examples have been explained to make understand the importance of identity for being successful in market and for being famous among the target consumers groups. Therefore, every company must try to build its unique identity though its corporate name, product or services. Each product or services and each company have its own unique identity and consumers perceptions for each identity are different from other competing product. For example, consumers perceive Mercedes as premium brand as it offers its premium cars to very niche market. On the other hand, Wal-Mart is perceived as low-cost brand as it offers ‘every day low price to its consumers (Talley, 2011). Both the companies (Mercedes and Wal-Mart) have developed their own typical identity as per their core marketing approaches. The above discussion has focused on importance and some example of identity. In marketing this identity is known as ‘brand identity. Different scholars and critics have presented their views regarding brand identity and how it is important for companies for their sustainability in a market. In this respect, Jean-Noà «l Kapferer has related the brand identity with globalisation. He has offered the definition of brand identity from the globalization perspectives. He believes that brand identity must help a company in globalising of its brand image. He has explained that â€Å"the brand must have as identity that will serve as medium for its globalisation, in both tangible and intangible terms† (Kapferer, 2008, p.488). Sometimes, brand identity and brand image is considered to be similar or identical but these two terms are very different from others. The brand image of company or of a product can be defined through the others perception i.e. consumers view; whereas, brand identity is a companys attempt to project itself before its target consumers (Wilson and Blumenthal, 2008, p.58). Therefore, it can be defined that brand image is an outcome of an attempt to develop brand identity among the consumers groups. Hence, building brand identity is very crucial step for buildings brand image. In the process of framing brand strategy, establishment of brand identity is the foremost task for a company as it offers a company purpose, aim, direction and proper significance to a brand. In order to explain a brand identity, Aaker has identified three prime components in a brand identity. The following diagram shows these three components. As per the above figure, three essentials of brand identity are core identity, brand essence and extended identity. The core identity refers to the â€Å"timeless center of the brand† that must consist of basic features of a company like its values, ethics, belief etc (Salver, 2009, p.41). Brand essence can be defined as soul of a companys brand that makes the core brand more comprehensible, accessible and valuable. The extended brand helps to add more value to the core brands identity. These three components are not basic integral part of a brand strategy but understanding of brand identity helps brand managers in recognising the prevailing brand position (Salver, 2009, p.41). Toyota has attempted to develop its brand identity for each of its brand product like Lexus, Prius, Innova, Corolla etc. The brand identity is basically determined by specific features of the product. For example, Toyota Prius has been able to develop its brand identity among the tech-savvy and environmentally conscious people and Lexus had gained its specific brand identity among the luxury car market. Lexus has been a premium brand for its target consumers as they perceive Lexus as high quality and value added vehicle. Toyota has successfully understood the core brand identifies and brand essence, and it has promoted its distinct brand products in accordance to target market (Toyota-h, 2011). Brand Building To establish the strong brands in a cheaper, better and faster way, the organisations require pursuing a different, effective and efficient approach altogether to the brand building. The cornerstone of the brand building is the fusion of future economics, organisational capabilities and customer insights. Brand building demands the organisations to focus more on the segments which would drive the organisation develop organisation propositions and deliver products according to the customers preferences (McKinsey Company, n.d., p.12). Brand Awareness In the above sections of literature review, the importance and explanation of brand image have been discussed. However, without proper understandings of brand identity and brand awareness, the brand image cannot be formed for target market. A company can build a higher brand image in the mind of consumers when it is able to successfully create its pre-determined brand identity through brand awareness programs. Therefore, the importance and understanding of brand awareness is significant in brand image building process. For building a strong brand, it is necessary to incorporate brand identity and brand awareness. The following model shows the importance and correlation between brand identity, brand awareness and brand image. The above model shows that in the process of brand building, brand identity and brand awareness are the two primary areas followed by brand image association, brand quality, brand loyalty and brand broadening. As per the above figure, brand loyalty is an outcome of brand image that is an effect of successful creation of brand identity and brand awareness. Brand loyalty provides a company a competitive advantage over its key competitors that helps it to counter and avoid unnecessary competition. Brand loyalty can be defined from the availability of brand loyal consumers. However, Knox and Walker has identified that there is significant difference between brand loyalty and repetitive purchasing (Ranchhod and Marandi, 2007, p.80). They explained that â€Å"this lack of clarity has led to a great deal of difficulty in interpreting many of the brand loyalty studies† (Ranchhod and Marandi, 2007, p.80). However, they also admitted that brand loyalty also includes the repetitive purchasing and word-of-mouth marketing from consumers end. Therefore in order to develop significant amount consumers, plausible brand awareness programs are inevitable for a company. Brand awareness defines the strength of a brand in a consumers mind, and a strong effect of brand awareness determines the longevity of brands image in target consumers mind. According to Keller, brand awareness includes performance of brand recall and brand recognition. Bran recall refers to consumers ability to regain a brand from their past experiences while making any buying decision. Brand recognition is consumers knowledge regarding a specific brand. The consumer should be able to recognise their brand when they are given wide ranges of choices. McLoughlin and Aaker have been able to understand major draw backs in implementing brand awareness programs for a company. They believe that, most of the companies consider brand awareness as a promotional mix and hence, they more focuses on promoting a product rather than brand development or brand awareness. Brand awareness is also very necessary for creating brand equity. McLoughlin and Aaker have designed a model showing brand aware ness and its important outcomes. As per the above figure, brand awareness is directly related to brand equity which includes brand related assets and liabilities. Successful implementation of brand awareness and better brand equity lead to develop higher brand loyalty and brand association of consumers. While discussing about the brand awareness, it is necessary to deal with the consumers buying behaviours. Brand awareness deals with consumers perception for an offered brand that helps them in recalling the past experiences while buying. The influences of brand awareness are very substantial in the process of making a buying decision. Gustafson and Chabot have provided five major steps for planning and implementing brand awareness. These five major steps are given below. Cleary identify and understand potential target consumers and market Develop a unique name, slogan, and logo for a company or for offer product brand Offer value added features and services along with offered branded product or services Effective promotional mix and advertising focusing on brand creation Develop proper public relation with consumers by following-up the post-sales period (Gustafson and Chabot, 2007) The above steps are very helpful in establishing a strong brand awareness programs to build brand image in the mind of target consumers. Recently, Toyota has faced a drastic brand crisis in its Swedish market due to quality issues. It caused to develop a negative brand image in the mind of target consumers. Moreover, in American market, the company faced a crisis, and mass media played very active role in spreading the ‘Toyota crisis news. However, due to previous effective brand awareness programs, certain group of loyal consumers were not influenced by that crisis news. This case provides an evidence for the importance of brand awareness creation in the mind of the target consumers. On the other hand, the prevailing management of Toyota was not able to cope up with that crisis situation. In such situation, management could have restructured its entire brand awareness program to maintain its corporate image (Feng, 2010). Brand Positioning Brand Positioning can best be described as the process of identifying the niche of the market for a certain brand. This can be assumed as one of the oldest marketing tricks as it was found as early as in 1969. During the start of marketing policies the organizations focused only on the benefits which took them away from competition in the market which may also form differentiation. When we talk about the term ‘positioning we need to realize what it actually means. It can be defined as making a place in the customers memory, providing them with reasons or characteristics of brands that would make them choose their brands instead of same brands in the industry from different

Linux Versus Windows NT Essay -- essays research papers

Comparing any network operating system is really like comparing an apple to an orange. To judge between the underlying functionality of each operating system geared towards different networking environments is too broad of a subject to come to a reasonable conclusion. However, one could argue about the advantages and disadvantages pertaining to the Unix based Linux operating system and the infamous Windows NT operating system. I can compare and contrast these two operating systems, but I can’t take a strong stand because it all depends on a number of situations including the different networking environments, the applications that are readily available, and most important what the user wants. The goal is to find out which of these two operating systems is the lesser of two evils by examining their features. I have decided not to discuss cost because it goes without saying: Linux wins the price to performance ratio. What is more important to discuss is the initial hardware and software fees, and maintenance and reliability which often go hand in hand. According to Sunworld, the estimated minimal required hardware costs that would go with a Linux machine is $200. In an NT machine, the minimal hardware cost rose up to $1300. This is because NT requires at least a 486 Pentium with 16MB of RAM. Linux can run fine on a 386 computer with only 8MB of RAM. What do the majority of users need a computer for? Mainly word processing and the use of a database program. An NT user doesn’t have to go with Microsoft Office, but a lot of people do, costing a couple hundred dollars. Linux can run an Office Suite program that is very similar to Office for at least half the cost. Even a free version of WordPerfect 8 is available for Linux. A Linux system comes with a range of development tools (C/C++ Compiler, Perl, Tcl/Tk, Python, CORBA, Ada, Pascal, Lisp, REXX, Java, etc., as well as many text editors and integrated development environments), all of which are free. In order to create software under Linux, there is no expensive package to buy. Many NT users complain about system crashes or the dreaded “blue screen of death.'; NT systems face a lot of down times, which creates a problem for mission critical situations. It is very frustrating to be working on something for a couple of hours and see it vanish or crash. Unix based systems have experie... ...n that path. NT, however, does not provide the source code; therefore, limiting the user to only Microsoft’s networking and programming solutions. The creator of Linux, Linus Torvalds, developed this operating system using past versions of Unix strengths, and avoiding the weaknesses and flaws that have been created for more than 30 years. Linus also got help from would be programmers from all over, many being hackers, to create this sophisticated operating system. Having a wide variety of help and feedback supports the integration of a system that can satisfy most users. NT, on the other hand, is developed by their own team, not taking much consideration to what consumers really want to see. Although this report isn’t very cohesive to intervene between each subject, I think it provides grounds to see clearly how well Linux presents itself over NT. Although Linux is still in its primitive stages, the mark it has put in this world is quite remarkable. These early version of Linux provides a stepping stone for later versions to come, and possibly dominate the market when executives and upper level managers alike come to see that Linux is a great industry solution.

Macro and Micro Economics

Micro Economics:- Microeconomics is a branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (e. g. coffee industry). Areas microeconomics covers: Supply and demand ?Competition ?Monopolies ?Profit and loss ?Opportunity cost Elasticity †¢Rigid laws:- Businesses may be doomed to be non starters due to restrictive business environment which may take the form of rigid government laws ( no polluting industry can ever be located in around 50 Km radius of the Taj) , state of competition ( Car manufacturing capacity presently in the country is far in excess of demand) etc. †¢Environment impact :- The present and future viability of an enterprise is impacted by the environment For eg no TV manufacturer can be expected to survive by making only B&W television sets when consumer preference has clearly shifted to color television sets. Key Inputs:- The availability of all key inputs like skilled labor , trained managers, raw materials, electricity, transportation, fuel etc are a factor of the business environment. †¢Public awareness:- Increasing public awareness of the negative aspects of certain industries like hand woven carpets (use of child labor ) , pesticides (damage to environment in the form of chemical residues in groundwater), plastic bags (choking of sewer lines) have resulted in the slow decline of some industries. †¢The Market:- Organizations closely monitor their customer markets in order to adjust to changing tastes and preferences. A market is people or organizations with wants to satisfy, money to spend, and the willingness to spend it. Each target market has distinct needs, which need to be monitored. It is imperative for an organization to know their customers, how to reach them and when customers' needs change in order to adjust its marketing efforts accordingly. The market is the focal point for all marketing decisions in an organization. †¢Marketing Intermediaries:- Physical distribution firms help the organization to stock and move products from their points of origin to their destinations. Warehouses store and protect the goods before they move to the next destination. Marketing service agencies help the organization target and promote its products and include marketing research firms, advertising agencies, and media firms. Financial intermediaries help finance transactions and insure against risks and include banks, credit unions, and insurance companies. Macro Economics:- Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the entire economy. This includes a national, regional, or global economy. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. In Macroeconomics there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Areas of macroeconomics covers: ?Money supply ?Interest rates ?Fiscal and monetary policy ?Unemployment ?Growth ?Inflation ?Inflation:- In recent years, a confluence of macroeconomic and industry-specific factors has led to record-high prices and unprecedented volatility in the global agricultural commodity markets. Specifically, simultaneous increases in demand and production costs along with intensifying supply-side pressures have led many experts to forecast extended periods of higher-than-average prices for many commodities. Farm-based commodities have recently experienced unprecedented growth in demand from both traditional and non-traditional sources. Traditional demand has increased primarily via worldwide population growth. The world’s population currently exceeds 6. 5 billion, is projected to reach nearly 9. 5 billion by 2050. Increases in demand have also been driven by global industrialization’s positive effect on disposable income in emerging economies like China and India. As a result, citizens of these countries have begun to shift away from the grain-centric diet of developing countries to the protein-rich diet common to countries with higher per capita GDP. Because, on average, one pound of protein requires nearly seven pounds of grain to produce, the increase in demand for meat has a large multiplier effect on the demand for grain. Moreover, increased globalization, free trade, and currency exchange considerations have increased agriculture-based exports from producing countries like the U. S. Canada, and Australia, as well as Europe and South America, which has increased competition and intensified demand on a global scale. In addition to traditional food-related demand, coarse grains such as corn, sorghum, barley, oats, and rye and edible oils and edible oil products have experienced exponential demand growth due to the rapidly expanding biofuels initiative in the United States, Brazil, and the European Union. The World Bank estimated that nearly all of the increase in global corn production between 2004-2007 was used for biofuels production in the United States. Moreover, as evidenced by Congress’s recent mandate to increase domestic ethanol production nearly five-fold by 2022, the biofuels component of agricultural commodity demand is not likely to decline in the near, or even intermediate, future. Most agricultural commodities are also experiencing significant supply-side pressure from a variety of sources. Recently, the global supply of agricultural commodities has been severely affected by unfavorable weather conditions (e. g. , droughts, flooding, and freezes) in several regions, including the U. S. , Europe, Canada, Argentina, Ukraine, and Russia. As a result, global stockpiles of agricultural commodities have fallen to their lowest levels in many years. At the same time, increased competition for productive crop land and the reconfiguration of planting decisions to maximize returns from biofuels-related plantings (e. g. , corn and soybeans) have drastically affected the supplies of most agriculture commodities. Significant increases in production costs, led by record oil and fertilizer prices, and increasing scarcity of productive farmland and sufficient and accessible water supplies have further contributed to limits on worldwide production capacity. Finally, political unrest in producing countries has slowed or stopped production on otherwise physically productive land, further tightening supplies. Unlike many other commodities, agricultural commodities are crucial to the survival of nations. In a recent study, researchers concluded that nearly 60 percent of all global conflicts over the past two decades have been primarily driven by disputes related to food, land, or water. Recent spikes in food prices have lead to food smuggling in some countries and riots in others. Because of the universal necessity for food and the irreplaceable role that agricultural commodities have in worldwide food production, market analysts, including the United Nations Food and Agricultural Organization (FAO) predict that â€Å"when commodity supplies eventually recover and prices moderate from current high levels, the new equilibrium prices will be significantly higher than has traditionally been observed during periods of market balance. † As summarized in the table below, even when the volatility is removed from short-term prices, long-run ommodity price projections forecast equilibrium prices for most major crops that are 19 to 110 percent higher than their recent five-year average. The preceding analysis suggests agribusiness and agricultural-related firms may present interesting investment opportunities. Companies with operations and/or substantial investments in one or more key grain producing nations, such as the U. S. , Canada, Europe, Russia, Brazil, an d China, may be favorable over countries operating primarily in resource poor nations. Companies with significant command over their supply chain are likely to display significant operating advantages, but because of the capital-intensive nature of the industry, especially for companies with significant supply chain investment, firms with low debt, good credit rating, and/or relatively easy access to credit markets are preferred in light of current global economic conditions. Moreover, any company with significant supply chain investment should be providing logistical synergies and optimizing efficient operation of all its assets. In particular, companies that invest in technology to produce more robust, more efficient farmland and crops may provide unique opportunities for investment in the short- and intermediate-term. In summary, although current prices and volatility may not be sustainable in the long term, the long-term factors affecting agricultural commodities will most likely result in an extended period of high, although not necessarily record, prices. As a result, investments in agriculturally-oriented firms appear to be promising over intermediate- and long-term horizons.

A Film Adaptation of One Hundred Years of Solitude Essay

We have reached an age, where most things are done through TV and cinema. It is unfortunate many people do not read many books anymore. People would rather sit for a few hours in a dark room eating popcorn and watching a screen. In my opinion it is necessary for more books to be adapted in films. Some people might argue whether a great book such as Madame Bovary and The Great Gatsby can shine in the same light with a film adaptation. With the film techniques available and the great talent this is very possible. I am a strong believer that watching an excellent movie on Pride and Prejudice or any other literary masterpiece is equal to reading the book. For this reason I have taken on the responsibility of adapting chapter 1 of One Hundred Years of Solitude. One Hundred Years of Solitude by Gabriel Garcia Marquez is a novel about a family, the Buendias living in a town called Macondo. The novel is postmodern. There are many instances where time jumps around. Along with the postmodernism feel there is also an element of magical realism. The magical realism is where characters can do things that are not possible in real life. In example of this is Remedios’s ability to fly in the air and go away. The elements of postmodern and magical realism make One Hundred Years of Solitude a difficult novel to adapt. For this particular paper I have chosen to adapt chapter 1. Chapter 1 includes flashbacks, magical realism, and the encounters with the gypsies. I have chosen chapter 1 because it includes the elements the novel is based on. The title of my film on One Hundred Years of Solitude is Opportunity. The main reason I have chosen this title because it is rooted in the last sentence of the novel, â€Å"†¦Aureliano Babilonia would finish deciphering the parchments, and that everything written on them was unrepeatable since time immemorial and forever more, because races condemned to one hundred year of solitude did not have a second opportunity on earth (Gabriel Garcia Marquez 448). In this quote, Marquez discusses how civilization with cease to be if there continues to be the solitude that is outlined in One Hundred Years of Solitude. Because the Buendia was the first attempt at a ‘perfect’ world, I have called it Opportunity, since this family was the first opportunity at the ‘utopia’. By adapting chapter 1 of One Hundred Years of Solitude I hope to show that a film can be just as or better than the novel it is based on. One Hundred Years of Solitude is an excellent choice for a film because more and more, films are becoming postmodern and One Hundred Years of Solitude is a prime example of postmodernism. Also, this film would serve as a great tool to show the history of Latin America, as it is a microcosm of it..

C-section essays

C-section essays Lets cut to the uterus and get the fetus out. The purpose of this paper is to inform you of the possible complications during pregnancy and delivery. You will learn about the possibility of having placenta previa and placenta abruption. You will also understand how ultrasounds and cesarean sections are performed. Hopefully you will never have any of these complications or conditions but if you do you will have knowledge about them and be able to better take care of yourself and unborn child. A cesarean section is a surgical procedure where a doctor makes an incision in a womans abdomen and uterus walls to remove a baby. Approximately 22-25% of all births in the United States are by cesarean section. (Giving birth by cesarean section.) There is nothing new about cesarean section as it is mentioned in both eastern and western cultures in folklore in the 1500s. The earliest use of a cesarean section was extracting a fetus from a dead or dying mother for religious reasons. A Swiss farmer carried out the first recorded cesarean in which the mother and baby survived in the 1500s also. Cesarean sections that were performed between 1787 and 1876 that were recorded showed that not a single Parisian woman survived the surgery. Due to better antiseptic practices and anesthesia in the 1980 a cesarean section proved to be a safe surgical procedure. However in the 1980s cesarean sections grew to represent nearly 25% of all deliveries. (C-sections: Then and now.) Doctors do not always decide to perform a cesarean section until labor has started unless there are complications with the pregnancy. There are numerous reasons why a cesarean might be the only way to give birth. I will give a couple examples and explain them as to why a cesarean section is the best choice for an outcome of a healthy mother and child in these examples. Early in the pregnancy most doctors like to give the pregnant wo...

Cloning is Wrong essays

Cloning is Wrong essays Cloning should never be done to humans or any other of Gods creations. The internet has many examples of why cloning should not be done. even the encyclopedia has articles against cloning. Cloning is a threat to the human race, immoral, and we should never allow it to take place. First lets talk about Recombiant DNA. The Websters World Dictionary gave this definition for Recombiant DN@ DNA formed in the laboratory by splicing together pieces of DNA from different species, as to create new life forms. This is wrong why would anyone want to create a new life form? The effects could be very dangerous the life on the earth. The author on recombiant DNA says: Public reaction to the use of recombiant DNA in the genetic engineering has been mixed. The production of medicines through the use of genetically altered organisms has generally been welcomed. However, critics of the recombiant DNA experiments might develop extremely infectious forms that could cause world wide epidemic. In an effort to prevent such an occurrence the National Institutes of Health (NIH) has established regulations restricting the types of recombiant DNA experiments that can be preformed using such pathogens. If the cloning and combing of disease-caused organisms were done, it could cause extremely large amounts of illness and death. Why would anyone want to inflict that upon the living creatures of our earth? The human race is in no need of new diseases that we havent got a cure for. What could happen to the human race if man was cloned? Aaron Hawley, a high school student who has researched cloning, put some of the information on a web site. Aaron says, The largest problem with the use of cloning on a large scale would be the decline of genetic diversity (www.vub.org/apvio/clone/wrong/htm). If we do clone humans on a large scale, every clone would be made from the same genetic material. If we s ...

Analysis Of The Wanderer Religion Essay

Analysis Of The Wanderer Religion Essay The Wanderer's brave practices were centered on God and Destiny. He was thought that people's lifestyles were managed by them and may "place males into jobs where it appears difficult in order for them to arise with recognition" are evaluated by their option that they execute their goal that was selected . The bravery to avoid the fate of one caused the thought of Popularity, which "is not anything lesser than Destiny": will's effectiveness and also human beings' bravery, and also the storage that could protect their actions. He'd to possess bravery since it frequently intended experiencing excellent bodily struggles, comprehending that he'd probably die if he opposed his destiny. However the Wanderer prefer to die within an early, death that is brave, attempting to accomplish Popularity in the place of resting back and doing nothing, since " he is never died for by Popularity ". The unhappy wanderer prays frequently for empathy And from mercy from Lord God; however for quite a long time. Future decrees that having a large heart he should drop. Their oars into frozen seas, operating his pasaje within the ocean. He must-follow exile.Fate's pathways is inexorable! . The Wandereris faith incorporated an afterlife's perception in Heck or Paradise; he'd devoted during his existence wherever one went relied about the sins. Since where one went in his afterlife come from his steps, Christians didn't have confidence in Fate's concept. Alternatively they respected within God's justice. Catastrophe and beat were more straightforward to comprehend within this faith. Although one endured on the planet, but brought a great lifestyle dedicated to Lord; this is exactly why the wanderer thought that he'd be compensated for his suffering within the Paradise. Funeral may be the compliment of dwelling males After his demise, he should abandon He'll did great actions on the planet against The malice of his enemies, and respectable works From the demon, the kids of males Might reward after him, and his beauty reside For good using the angels within the elegance. (lines 90-93) Where's the mount gone? Where the person? Where gold's provider? Where's he eating location? I mourn the soldier in his corselet, the sparkling mug. The prince's beauty. On the subject of the setting, emotions of the wanderer after demise of his lord differentiate two types of configurations: a real setting, which means isolation of location without his Master, a lonely spot completed by dim dunes, seabirds, etc. Along with a religious environment, making mention of the wandereris center, who recalls his friend's isolation: God and his Master. For that wanderer, all the actual world's pleasures are eliminated. He's no mead area to contact no other kinsmen to safeguard him, no master to function, and their own. Their world continues to be changed into a mystical and unfamiliar organization. He understands the only genuine friend to 1 who's exiled is sorrow that is vicious and he chooses he isn't any longer likely to turn to supply sadnessis and yesteryear fire, but instead turn to the near future and extinguish sorrow. Where they're accepted and in a position to improve their existence like a fellow-man of the hall their wish would be to ultimately arrived at a brand new empire. The wanderer completely realizes that his destiny is set. He'll travel often looking for a brand new people utilizing wish as his way of answer. He that has had long to forgot the lawyer of the precious master knows certainly how, when sadness and rest together join poor people occupant-alone, it'll appear to him in his brain he is adopting and acquiring his liege lord and installing his fingers and his directly his leg, because it some occasions was within the past when he got part within the present-providing. This passing present us the wandereris sadness makes him realizad he has become their own target by permitting sadness to "hole" him alone while he rests. When he wants him he must-stop lamenting about his aged master and discover a brand new the one that may never leave him and continually be there. He'll quickly arrived at the conclusion the only master he'll actually discover that'll welcome him is God. The wanderer focusing on the institution of the religious escape path from all of the injured and discomfort that has affected him and is actually throwing away his need of the real planet. It required being exiled to achieve of comprehending that correct satisfaction originates from within the knowledge. "...this middle earth every day drops and fails ". He understands he should make an effort to acquire the approval of the being that is greater than that of the planet that is known; or individual lifestyle proceeds to beat him. And he currently should make an effort to turn into an area of the the Heavens: "No guy might certainly become smart before he's had his share of knowledge nowadays's kingdom" The Wanderer would be cared for by the signal of the comitatus; he permitted to eat in Mead Places, and the lord might compensate his topic with items if a he was faithful to his master. "The Wanderer" is mimetic once the speakers think about benefits and the dinner places throughout the Anglo Saxon times. Individual encounter or whether declaration, these are occasions which in fact happened in Anglo-Saxon period that is. They're not merely stanzas of hype written by an inventive writer; this poetry is insights of the life span of the Anglo Saxon tradition, encounters of the folks, the circumstances which are created, specifically, the exiles and divorce from lords, are certainly trae of the Wanderer. As pagan, they thought in several gods, however they also thought firmly in pagan brave practices that dominated literature and their culture. The wanderer appears to think for doing this that by performing great works and dealing with paradise, one may acquire popularity. He also still thinks within the pagan viewpoint of Fortune: "However fate is mightier, God is stronger than any guy may know.".Even although he believes the one and just true God produces oneis future; this is exactly why they can not escape in the customs of the Anglo Saxon period. Like a summary "The Wanderer", an poetry provide us, as visitors in contemporary times globe about how exactly existence was for that Anglo-Saxons a peek within the early generations. This encounter or declaration of the time display the way the Anglo Saxon culture was structured and also the need for god to his comitatus; customs and also the perception of God and Destiny; the Wanderer requires about values of his faith, and display the primary battle of the tradition throughout that period: the move from Paganism to Christianity.

Stationary Cameras and Crime Essay Example | Topics and Well Written Essays - 1000 words

Stationary Cameras and Crime - Essay Example Different types of data were collected from this study. Firstly the people were asked to identify various crimes that took place in their locality. A nominal measurement scale which categorizes variables was used to collect data pertaining to different types of crime perpetrated in the locality. The majority of the people stated different types of crime like killing, attempted rape, physical assaults, robbery that took place. Secondly the people were asked to rate the crimes that were perpetrated in the order of the most frequently occurring crime. The ordinal data which indicates the order of attributes studied was measured on the scale of most frequently occurring crime on one extreme and the least occurring crime on the other end. The result showed that most of the people interviewed considered robbery and attempted rape as the most frequently occurring crime. Similarly killing was rated as the least occurring crime. Next there were questions pertaining to the usefulness of statio nary cameras for reducing crime. For this purpose, interval scales were used where all the levels of the scale are equal and which provide quantitative information. On a scale of one to five the respondents were asked to measure the use of cameras in reducing crime. It was found that the majority of the people considered it a very useful tool for combating crime. Finally open ended questions were presented to describe whether the crime rate has reduced after installing the cameras. Ratio scales which enable ratio comparisons were used to measure the amount of reduction in the crime rate. For this purpose the local authorities were questioned regarding the amount of cases registered after the installation of stationary cameras. It was found that there was reduction in the registered cases by 85 percent. Validity and reliability This test possesses three types of validity. First internal validity; the ratio scales and the interval scales showed that the use of cameras was effective in reducing crime. Thus it is seen that there is a causal relationship between the two variables which states its internal validity. Secondly the two variables also show a positive relationship which states their conclusion validity. Finally the construct validity is established as the study was successful in measuring the outcome of installation of cameras. The study however lacks external validity. These results cannot be generalized as they deal only with that particular location which is crime prone. A similar study would yield different results where the types and degrees of crime perpetrated as well as the locality is different. The test also possesses three types of reliability. First is the inter-rater reliability. The results showed that the majority of the people were in agreement of the types of crime perpetrated as wel l as the effectiveness of the stationary cameras in combating crime. This result established the inter-rater reliability. The second is the internal consistency reliability. The study showed that the majority of the people answered positively on the use of cameras as well as the reduction in crime rate after the installation. The study however lacks the test-retest reliability. The results of the study were obtained during a single occasion. As

Well-Being And Education Essay Example | Topics and Well Written Essays - 1000 words

Well-Being And Education - Essay Example It is an ambiguous term used widely and frequently in public discourse. Well being can be viewed as a positive mental condition, originally embraced by some scholars as a way of focusing on satisfaction with life and health, as opposed on the focus on mental illnesses and its cures. In a dynamic way of viewing it, â€Å"Well being|† is a state in which a person is able to develop his or her creativity, productivity, potential, and work. It helps one-build positive and strong relationships with others as well as contributes largely to their communities. It is through education that an individual’s well being can enhance a sense of purpose in the society (Kennedy, 2006 45-6). Promoting well being is a legitimate aim of education. Many professionals in the education sector firmly perceive that their work makes individuals have a high self-esteem and have a positive view of their lives. Research shows that most of the adult learners gain evidently in optimism and confidence because of successful learning. Such experiences have also been realized by most practitioners in workplaces, communities, and in colleges. There are numerous justifications for considering the promotion of well being legitimate in education. Apart from being desirable in itself, it has a positive view on the future and a feeling of one’s ability to control his life are crucial to further, on-going successful learning. ... Most importantly, well being creates a focus on the emotional and social features of effective learning including managing feelings, empathy, self-awareness, social skills, and motivation. Educationists typically gauge the well-being of students in terms of test scores, academic achievement, university entrance trends, attendance records, engagement, or success in up to date accountability culture, and international league. The paper presents that promotion of well being is a legitimate aim of education in an exploration of wellness in schools to achieve an overall consideration of this issue. Well being is the foundation or basis on which academic excellence is build and the exemplary behavior is prized. It is quite logical to argue that well being and achievement of learners go hand in hand (Noddings, 1995, 41-2). Indeed, people who have received quality education say that they have the satisfaction in life and that they carry out worthwhile activities. However, it is not always tr ue that education necessarily brings about happiness. The well-being of a learner is as well affected by the way he or she feels, including the health factor. Well being as a legitimate aim of education It is a justifiable aim of education; after all, education is goal-oriented. Moreover, when it comes to parents educating their children, it is believed that well being is a goal worth of pursuit their goals. As a relatively educational, goal, well being is assumed to prepare learners to develop into independent critical thinkers as ethically responsible citizens. It is a global requirement or legal expectation of the whole world that all children get access to universal education for a common good. Education

Annotated bibliography Assignment Example | Topics and Well Written Essays - 750 words - 3

Annotated bibliography - Assignment Example rch, I have examined various sources that contain valuable insights about the business model and management structure of Wal-Mart, one of the most successful companies in the world. One of the best journals done on this company, which I have found to be very reliable as far as understanding the company include, â€Å"Wal-Mart and Values: Painting the Town Red?,† which was done by Carden Art, Charles Courtemanche and Jeremy Meiners. This journal gives an analysis into the business empire developed by Wal-Mart. It examines the values and principles that have made the Wal-mart business, enabling it to become of the most successful companies in the world. The journal gives the business model that the company boosts of, which has helped the company in its business growth and expansion across many countries in America and Europe. According to the authors of this journal, the company has a wide clientele, appealing to both the high end and low end citizens. The company offers goods that are affordable coming in various ranges like electronics, food items among others. The journal gives the strategies and approaches being used in the company’s expansion program. Hellen has taken time to explain about the growth path which Walmart has taken in its growth in Canada as well as in most other countries not only in America but across Europe. Hellen explains that Walmart has embarked on establishing 11 new departmental stores that will help improve its competitive advantage and market position. The Canadian market has been thought to be quite productive, considering that the country does not have many large stores that can match those that Walmart has established in the United States. The author explains that the branches that had been established earlier have continued to perform outstandingly because of the effective management. One of these retail stores includes Bentonville, which is the Arkansas-base retail shop that is part of the first to be established by the

Pestle Framework of Business Essay Example | Topics and Well Written Essays - 2000 words

Pestle Framework of Business - Essay Example From this discussion it is clear that  regarding the influence of the political environmental factors, matters of restrictions, policy, and other derivatives of the environment determine the nature of operations in ways that determine the trends of business. These factors have the capacity of enhancing the nature of business just as they have the potential of providing some robust framework that is used for the general performance of the business.This discussion highlights that it is important to consider some of the issues attending to the processes of business in terms of the various issues that affect and are in turn affected by the environmental factors. An awareness of these factors is necessary for the processes of planning, strategizing, budgeting, and the general management of the business. The development of strategy is usually determined by the ability of the business to use all the positive values and qualities that are necessary for the sustenance of the business. In es sence, the levels of success or failure of a business is necessarily determined by the manner in which the business connects with environmental factors as considered within the aspect of reality.  The political environment usually occurs in ways that are generally available for the determination of the levels of performance of the business. It is important to consider the fact that the political factors are connected to the other macro-economic factors that determine the nature of the operating environment.... The political environment usually occurs in ways that are generally available for the determination of the levels of performance of the business. It is important to consider the fact that the political factors are connected to the other macro-economic factors that determine the nature of the operating environment. Political factors in the environment of business could be conducive or hostile depending on a range of factors. Political environments that feature stringent conditions and policies will essentially stifle the aspect of competition within the process (Murray-Webster, 2010, p. 121). The realization of the range of factors that attend to the issues and values of the organization will essentially lead to the development of issues based on some of the matters that attend to matters of relevance and the determination of a range of factors that attend to the issues related to commerce and enterprise. Some of the issues that affect the operations of business are largely regulated by the fact that issues affecting business are essentially regulated by concerns in the world of business. Regarding the economic forces, certain economic factors have a direct impact on the manner in which businesses operate as understood within the framework of environmental factors. Generally, some of the issues that attend to the matter of challenge are necessarily controlled by the manner in which certain issues and processes are regulated. Economic growth and exchange rates are some of the economic factors that affect the performance of businesses within certain economic environments (Cheverton, 2005, p. 30). Economic growth encompasses a range of factors such as the availability of efficient banking services and robust and dependable

Newtons Second Law of Motion Lab Report Example | Topics and Well Written Essays - 1000 words

Newtons Second Law of Motion - Lab Report Example In this lab experiment, we shall focus on the validation of this law by applying the behavior of an almost frictionless motion of a car on a horizontal aluminum track and a constant force T will be applied on the car. This motion will be recorded by a motion sensor and used to analyze this law. From the experiment and data analysis above, a number of things can be noted. The value of gravitational acceleration in the constant mass of the moving system is greater than the expected value of 9.81m/s2. This means that an increase in the value of gravitational acceleration is directly proportional to the net force. An increase in the net force will cause an increase in the gravitational acceleration. In the second experiment, the value of gravitational acceleration towards the sensor is higher as compared to the value of gravitational acceleration away from the sensor. An explanation to this phenomenon can be attributed to the fact that for an object at rest, the force of gravity acts on that particular objects but on the other hand, a counteractive force from the surface acts on it. For an object on a slope, some of the gravitational force is acted upon by the gravitational force that is provided by the slope. The remaining force may force it to move down slope and hence the data collected. This proves that Newton’s second law is followed

Public health and road safety in Australia focus on NSW state Essay

Public health and road safety in Australia focus on NSW state - Essay Example This document examines the validity of this approach with respect to the current situation in New South Wales, Australia and provides justification for the involvement of the public health department in this initiative. It raises points as to why road safety merits the interest of the public health department and is a necessity for the improvement of overall public health. Public health, as defined by the National Public Health Partnership (1998) is â€Å"The organized response by society to protect and promote health and to prevent illness, injury and disability†. Considering that the main focus of the public health department is public health, it is apparent that road safety, which accounts for numerous injuries, disabilities and death in the population is also a point of concern for the public health department (PHD). Road traffic accidents are known to claim over 1.3 million lives a year all over the world (WHO 2011). In Australia alone, 1507 fatal road traffic accidents w ere reported in 2009. New South Wales accounted for 453 of these (nearly one third) (RTA 2010). Considering that each of these incidents could have been prevented, it is obvious that there is a lot of scope for improvement of road safety. A review of the statistics reveals that alcohol and fatigue were quite often the cause of road accidents in the state.

Newtons Second Law of Motion Lab Report Example | Topics and Well Written Essays - 1000 words

Newtons Second Law of Motion - Lab Report Example In this lab experiment, we shall focus on the validation of this law by applying the behavior of an almost frictionless motion of a car on a horizontal aluminum track and a constant force T will be applied on the car. This motion will be recorded by a motion sensor and used to analyze this law. From the experiment and data analysis above, a number of things can be noted. The value of gravitational acceleration in the constant mass of the moving system is greater than the expected value of 9.81m/s2. This means that an increase in the value of gravitational acceleration is directly proportional to the net force. An increase in the net force will cause an increase in the gravitational acceleration. In the second experiment, the value of gravitational acceleration towards the sensor is higher as compared to the value of gravitational acceleration away from the sensor. An explanation to this phenomenon can be attributed to the fact that for an object at rest, the force of gravity acts on that particular objects but on the other hand, a counteractive force from the surface acts on it. For an object on a slope, some of the gravitational force is acted upon by the gravitational force that is provided by the slope. The remaining force may force it to move down slope and hence the data collected. This proves that Newton’s second law is followed

Brazilian Literature Essay Example for Free

Brazilian Literature Essay For a long duration, Dom Casmurro, Machado de Assis’s novel has moved its readers to opening a debate on if Santiago’s wife, Capitolina, had been faithful to Santiago. The narrator was believed to have loved his wife since their childhood. His mother, who later passed on had wanted the narrator to become a priest thus avoid getting married to his girlfriend. They later got married but later starts to suspect the wife of an affair with Escobar, a close buddy of his. Escobar later on perishes in an accident and the narrator’s wife got a baby boy, Ezekiel. The conflict of the narrator reaches climax as the people around him indicates that the born child resembles Escobar. The narrator is left sad with this as he accuses his wife of infidelity and longs for revenge while on the other hand trying to prevent himself. The supposed infidelity of the narrators wife is not the main issue, but the most debated issue in this novel is the manner in which reader is positioned by the novel in asking or deciding the himself question or just his version of the issue. In order to respond to such questions, one is expected to view the events in the novel in order to take position. The whole narration comes out from the narrators view point as he converts the subjectivity into mere fiction. In the novel, the reader of the novel is enticed by the narrator, Casmurro into his confidence as well as being manipulated to condemn Capitu, his wife. This makes the reader perceive him as a person who took the responsibility of his wife’s death and the other reprehensible behaviors of the life he lived there after (Joaquim, Maria). There are several clues in the presumed eyewitness’s account of truthfulness. But closely looking at the clues given by the narrator leaves one to finalize that the narrator is living a lie and the way in which the desire he expresses in trying to fill in the central existence of his, fails since the fact of the life he is living is in a lacunae which he is not in a position to have it in the story of his life. Casmurro, right from start, portrays himself as the figure with authority in the story and starts to manipulate the audience. The insight into Casmurros personal traits is portrayed in the first chapter as in â€Å"DO titulo† (the title) he tries to link to audience with the way in which he got his nickname Dom Casmurro. He goes ahead to inform the reader not to find the meaning of the word Casmurro in the dictionary, however, he indicates that it implies tight-lipped person who is withdrawn within himself. On the other hand, the name is a old fashioned Portuguese word defined by the dictionary as obstinate, bull-headed or fearful, withdrawn, aloof, dour and gloomy(Scott). The narrator is believed to have gotten his nick name from a young gentleman within his neighborhood who was feeling being insulted by Casmurro. This name, Dom Casmurro was given to the narrator during one of his journeys by train to Engenho Novo. On the way, he met the young man who was reading some poems for him. Tired, Casmurro fell asleep even without getting what the young man was reading for him in his poems. The following day, the man whop felt ignored stated calling the narrator ‘Dom Casmurro’. Because of the narrator’s humble nature, Dom was used in a belittling manner. The entire neighborhood saw the name Casmurro as being fitting to him so much that it got stuck. Casmurro makes the nickname the title of his story after giving it definition for the audience as well as discrediting it with a lot of humor. He goes ahead to portray himself as a real gentleman and an honest man. Looking at the meaning of the name in the dictionary leaves on to start questioning the truthfulness of the narrator (Assis and Gledson 246). The narrator, who just refers to himself as Dom Casmurro, is reluctant in identifying his true identity. The audience only learns later on that Casmurro’s real name is Bento Santiago. The narrator does not want to assume this identity but prefers to remain just as Dom Casmurro. He later tries to recall all the happenings of his earlier life hoping to go on with reorganizing his life the way it used to be. As he gives introduction of his memoirs, he talks of some recollections which he refers to as charming and sweet. As the narrator promises to provide a faithful narration of his earlier life, he also posses the expectations of having the reader taking his story as true but not consider issue outside the meaning of his narration. The question the reader is left asking himself or herself is whether he or she can believe whatever the narrator is saying. With this said it is clear that Casmurro wants to relinquish the influence of the story as well as leaving the whole story in the reader’s hands. He does this by inviting the audience to have the gaps in the story filled. But the reader is left with little chance to do so since he is making sure that the reader adopts to his views and ignores the questions out side this. But the reader can condone the narrator’s behaviors if he decides to expose them. In trying to tell the story from his own point of view, the narrator wants to create a link of trust as well as establish confidence with the audience. But he has indicated to the reader a number of his fault as well as discounting the sternness with unwarranted explanations for behaving in that manner. Casmurro comes out to be unable to keep the needed control over the audience in the chapter. In order to fill in this gaps the reader, can do so by taking the case of the narrator has been in long defense of himself. By misleading the reader in the initial narration, Casmurro conflates Bento Santiago with Dom Casmurro. The narrator is sufficient distinct from bento Santiago and needs to be another character. As in the events which follow this, the narrator used the name Casmurro as the persona in the narrative to give picture of his life and allow him to relinquish the responsibilities that could be associated with Santiago wants life. The real truth of the story lies in the gaps left for the reader to fill which appears to be the responsibilities of the reader, thus the reader has to choose the role to play. The name Casmurro does not appear as the most suitable title for this story since it does not flow with the ideas of the story. The slum This is a novel which takes one back to the history of a naturalistic movement of Brazil, in which the major characters are slum residents in the Botafogo neighborhood of Rio de Janeiro which contributed to a great part of the social problems experienced in the society. This kind of live has disordered the slums growth and development for many years. One of the main characters, Joao Romao arrives in a scene of the slum yarning for money and more power. This indicates how the powerful have concentrated resources to them selves forgetting the poor ones in the slum. The rich and powerful society of Brazilian as alienated from the Brazilian culture leaving the poor to struggle on their own. Many people, in the initial setting are exposed to the harsh slum live. The rich are depicted as being greedy merchants who like associating them selves with the Portuguese (Joaquim 254). The roles of the women in the slum include being submissive family heads, prostitutes, subjects to the rich and objects. There is a lot of racism exhibited considering the way the blacks are treated by the Portuguese and the Italians. Bertoleza, a slave grocer living in the ghetto, represents the many people fighting to make survival. She sells ox baits and fried fish. She is a symbol of the many slum dwellers who are in their situation because of being black which is seen as the cost of working all day long for the masters. She works hard despite the low wages she raises from her job. Development in the slum is indicated when she intents to use some of the money she earns to purchase an earth strip for expansion of her business and built a house for herself as she is tired of the informal house she lives in the centre of the Rio de Janeiro slum. The slum people have created a social macrocosm. Very early in the morning the slum live starts, the residents open not their eyes but their infinity of doors and allied windows. The characters exhibited to in the slum as fighting, working, copulating, singing or even singing. The slum comes out as a place where the blacks as well as the mulattos are ever engaged in scrambles with the Portuguese and Italian in order to move up from the bottom line of the social food chain. This indicates a live that lack social pathologies, violence, sordid betrayals, illicit sexual relationships, lesbians and homosexuals as well as cheap prostitution business, illicit liquor, increased drug abuse and small organized crimes associated with increasing juvenile delinquency. The Portuguese civilians in the slum represented by Jeronimo and his wife find a group of people represented by Rita Baiana and Firmino who are the poor residents of the slum in the normal slum social groups. The story of the slum is also concerned with the love affair of Romao, a land owner in the slum who gives out everything as well as his Brazilian wife in order to win a white lady and those of his land tenants ending up destroying several lives including those of spitfire Rita Bahiana and Jeronimo and his own too. He had risen from being a proprietor of a small business to a slum dog lord. This represents the urban discontent, is portrayed to have its people having some personal traits which exhibit rampant materialism as well as souls which are restlessly shaped and influenced by great ambition and desire to gain power and immediacy. The social vices exhibited in the slum are as a result of the poverty associated with the slum which has driven its people to desire for more than what the society they are living in can offer. These are exhibited as the characters of most slum dwellers who survive at any opportunity, given the chance to find their breakthrough. The people with money in this society have taken the advantage of the situation to get cheap sexual satisfaction from the Poor’s wives. The near by neighborhood of Portuguese is seen as being rich one. The interaction of the Portuguese with the slum dwellers starts is believed to bring some changes to the slum. It is due to this that the slum dwellers start to have closer relationships with the Portuguese who employ them in better jobs. Others get into personal relationships or even marriage with the Portuguese attracting better packs for their lives as the presence of the Portuguese increases in the slum. They start get interest of developing the slum into a better environment where they would invest. Some developments are portrayed when some of the rich slum people like Romao establishes a quarry and goes ahead to in invite Jeronimo to help in its management. With so much rivalry developing in the slum due to hatred and envy of some Brazilian getting associated with the Portuguese, the slum is burned down at some point. Later on, it is built up with some improvement in the building structure by the middle class society thus eliminating the initial state of poverty and disorganization experienced by the slum dwellers before. This changes the former kind of live style that the slum dwellers had adapted. As the intermingling of the Brazilians with the Portuguese increase, the level and standard of living went up. The former slum dwellers started to live in better houses. The number of marriages between the two societies increased and more investments were started in the former slum area which had developed into better residential area. After the slum is burnt and some new houses are developed by the middle class, most of the vices exhibited initial by the slum society are not any more. The cases of illicit sexual relationships, fights and poor housing are replaced by a society which has burning desire for development, as the middle class society starts to put their interest for investment which turns the once unhealthy society into a meaningful livelihood suitable for human settlement. Other characters exhibited by the Brazilian slum live include the people’s despair, the slum excitement, and the perfumes. The dwellers of the slum always have the ever burning desire to live the lives of the neighborhood which is full of luxury. The slum itself is perceived as an organic unit, with all sorts of live present there. After the development, the slum starts to fills with urban college students and artists who also contribute to its gentrification. The slum life was initially portrayed as full of sadness and tragedy as seen in its naturalism but with these developments some sense of lively hoods have started to be seen. Another major development of the slum is the manner of ownership that is shown before and after the burning and housing of the land. Initially, the bigger percentage of the slum land was owned by some few individuals such as the slum lord, Joao Pomao who is seen as one of the big hypocrites and who exhibited a lot of control over the slum many landless. After the recreation of new houses most of the land was owned by several middle class people. Work Cited Caldwell, Hellen. The Brazilian Othello of Machado de Assis. Berkeley: University of California Press. 1953. Joaquim, Maria. Machado de Assis. Dom Casmurro, Berkeley: University of California Press. 1953. Scott, Infanger. Living a Lie: the Silence of Truth in Dom Casmuro, Vanderbilt University, 2002, viewed on 13 July 2009 from http://www. umassd. edu/cas/portuguese/lyinginportuguese-texts/scott-livingalie. doc Assis, Machado and Gledson, Joao. Dom Casmurro. New York: Oxford University Press, 1998, p. 246.

Factors That Affect the UK Pension Crisis

Factors That Affect the UK Pension Crisis Investigating the factors that affect the UK pension crisis Introduction This review examines the background literature regarding the causes of the UK pension crisis[1], and the various measures taken to combat the crisis. In order to understand the nature of the problem, it is first necessary to consider a bit of background on the UK pension system, and UK demographics. There is some debate over which types of pensions – pay as you go (PAYG) or funded schemes – are best. Barr (2006, 2) explains that ‘[i]n a PAYG scheme pensions are paid out of current income. In a fully funded scheme, pensions are paid from a fund built over a period of years from members’ contributions. Virtually all state pension schemes are mainly PAYG; private schemes are generally funded (though not necessarily adequately).’ The UK state system ‘is a complex mix of several components, paid for on a pay-as-you-go basis though a mixture of national insurance contributions and general taxation’ (Hills, 2006, 116). Non-state, voluntary schemes include occupational pensions which may be either defined contribution (DC) or defined benefit (DB) schemes, and private pensions which are usually DC. In recent years the majority of occupational DB schemes in the UK have closed. The demographics of the population have changed significantly over recent years. Barr (2006, 4) argues that ‘[a]verage age at death in the UK (and similarly in other countries) has been rising steadily at least since 1860 Clearly, as more and more people live to pensionable age and, having achieved that, live longer and longer beyond that, the costs of pensions rise and, as a proposition in pure logic, rise disproportionately.’ However, the UK also faces some country-specific pension issues, and these will be the focus of this dissertation. At the root of the problem with PAYG schemes is the ageing population, but there are other factors which affect the supply and demand of funded schemes, and against which policy may be more easily directed. Three of these are drawn out in this dissertation. As such, and for clarity, this literature review is structured around the three themes: public knowledge and understanding of pensions in the UK; the level of private savings in the UK; and the recent decline of DB schemes in the UK. However, it should be noted that these three factors are interrelated, as will be demonstrated in the analysis that follows. Public pension knowledge Pensions are always subject to a problem of imperfect information – when one considers how and how much to save for retirement, the decision is made on an estimate (not a certainty) of life expectancy. However, there are further problems in terms of knowledge and understanding of pensions, particularly in the UK. ‘On the microeconomic side, the advantages of consumer sovereignty are predicated on well-informed consumers, a very strong assumption in the case of pensions. Individuals are imperfectly informed, first, because of uncertainty about the future—individuals are not well-informed because nobody is well-informed. Second, they are imperfectly informed in the face of risk (Barr Diamond, 2006, 20). This second problem is particularly acute in the case of the UK. As the DWP (2006, 12) outlines, ‘[a] long-standing feature of the UK pensions system has been its complexity, which can confuse both employers and individuals trying to make the best financial decisions for the long term.’ Hills (2006, 123) confirms this point, and elaborates on it: ‘The UK pension system is—perhaps understandably—poorly understood, and that understanding has if anything declined in recent years: in 2000, only 53 per cent of the population reported at least a ‘reasonable, basic’ knowledge of pensions, but by 2005 this has fallen to 47 per cent. At the same time, levels of trust in pension providers and financial products are low. Even if people do realize that their pension will be inadequate, this combination makes it very hard for them to make a plan to do something about it.’ In addition to high levels of confusion about the pension system in the U K, there is relatively high freedom for the individual to decide how and how much to save for retirement. Banks et al (2002, 16) explain that ‘[t]he UK pension system allows individuals a great deal of choice over how much they save for their retirement and in which form they save.’ The DWP (2006, 6) claims that it is ‘helping people to make better informed choices about their retirement, introducing a range of pension forecasts to give individuals an understanding of the income they are likely to receive in retirement. Since their introduction, the Government has issued just over 20 million of these forecasts and we are developing web-based retirement planning services.’ These measures may not, however, be sufficient to guide individuals through what remains a complicated system. Considering the government also seeks to place the responsibility for pension decisions firmly with the individual[2], it is likely that more needs to be done to increase public knowledge and understanding of saving for retirement. Blake (2000, 233), for example, does not view such measures as sufficient. ‘The fact that membership of pension schemes at the second pillar remains voluntary is highly worrying for reasons of myopia and moral hazard. Compulsory contributi ons are seen as one way of dealing with individual myopia and the problem of moral hazard. Myopia arises because individuals do not recognise the need to make adequate provision for retirement when they are young, but regret this when they are old, by which time it is too late to do anything about it. Moral hazard arises when individuals deliberately avoid saving for retirement when they are young because they know the state will feel obliged not to let them live in dire poverty in retirement.’ In the next section, the problem of the lack of private savings will be considered in more detail. Lack of private savings Relative to many other countries, there is a lack of private saving in the UK. As the DWP (2006, 11) explains, ‘[r]etirement undersaving has arisen for a variety of reasons: because individuals have not trusted private pensions, because suitable savings vehicles have not been available to them, and because, in the face of a historically complex pensions system, financial short-sightedness and inertia have left inaction as the default option.’ This demonstrates the interrelationship between public knowledge of pensions and retirement income and levels of saving (eithrer through pensions or otherwise). This point is reiterated by Davis (2004, 22) who claims that ‘[s]urveys suggest there is a major underestimation of saving needs for retirement – and most individuals focus on pensions only 10 years ahead of retirement†¦ The saving problem may partly be linked to poor information.’ Clearly a lack of easily accessible and comprehensible information ha s contributed to the low levels of private savings in the UK. However, there are also other reasons. In addition to understanding how the system works, it is necessary that individuals are presented with the right incentives to encourage private saving. Davis (2004, 4)explains that ‘essential background for evaluating private pensions is provided by the structure of social security pensions. As in all countries, the scope for developing funded private pensions in the UK is conditional on the nature of compulsory, pay-as-you-go social security pension provisions. Broadly speaking, the development of social security in the UK has been favourable to private schemes, particularly as a consequence of the rather limited scope of social security on offer and the ability of employees to opt out of earnings-related social security pensions.’ However, in practice, low levels of private saving suggest that such incentives have not been sufficient. In addition, there are various disincentives to save for retirement and, indeed, there are disincentives for financial advisors to provide advice on retirement savings to those with low incomes. This is due to the risk that by the time they retire, their savings will disqualify them from certain means tested benefits to which they would otherwise have been entitled. Davis (2004, 10) argues that in the UK ‘[a] systemic incentive problem is that income support has a non-pension income test, such that benefits are withdrawn when incomes accrue, which discourages saving by low-income workers, and may also discourage membership of pension schemes.’ In a similar vein, the Economist (2005) argues that ‘[m]uch of the blame lies with the pension credit, one of Labours pet policies, which is damaging the incentive to save. By 2025, almost two-thirds of pensioners will be eligible for this means-tested payment, which tops up the meagre basic state pension. Since it is withdrawn at a rate of 40%, they will thus in effect be liable to the top rate of income tax on their savings income.’ In order to combat the low levels of saving in the UK, the government has developed various initiatives to promote and encourage saving. According to the DWP (2006, 15), they are going to ‘[i]ntroduce low-cost personal accounts to give those without access to occupational pension schemes the opportunity to save. People will be automatically enrolled into either their employer’s scheme or a new personal account, with the freedom to opt out. Employers will make minimum matching contributions.’ By creating a scheme into which people are automatically enrolled unless they opt out, this is likely to impact on private savings since, as Hills (2006, 123) explains, ‘[s]avings behaviour does not follow the optimizing pattern predicted by some economic models. Instead people procrastinate about difficult financial decisions and display considerable inertia. Interestingly, it appears that membership of otherwise identical pension schemes in terms of incentives such as employer contributions is much higher when people are automatically enrolled into them, with the right to opt out, than when they have to make a conscious decision to opt in.’ The closure of defined benefit schemes Traditionally, the UK has had a high level of private pensions as the state pension was meager and most employers offered DB occupational pensions. In recent years, however, most DB schemes (at least for private sector employees) have been closed to new entrants. This can be seen as a result of two key factors: increasing longevity and, more recently, the poor performance of the stock market. According to the DWP (2006, 10), ‘[s]ince the 1970s, employers have been retreating from occupational pensions as rapid increases in life expectancy and then the end of the high equity market in the late 1990s pushed costs higher than had been anticipated when occupational pension schemes were designed. This trend has continued, with 2 million fewer members of open private sector occupational pension schemes in 2004 than in 2000.’ The relatively poor performance of the equity market has certainly had a major impact on the nature of occupational pensions since funded pension schemes in the UK have traditional relied very heavily on investment in the stock market. The Economist (2002), for example, claims that ‘Britains pension funds have punted heavily on equities for many years. That strategy has paid off handsomely, but it does expose them to greater risk in the short term than more cautious strategies which put more money into less volatile bonds. The bear stockmarket of the past two years has hit pension funds hard and brought home to companies the investment risk that they are shouldering. At the same time they have become more aware of the risk of rising life expectancy at older ages, which increases the cost of a defined-benefit promise.’ These two issues combined have led to the closure of many schemes, and by the end of 2002, many schemes were running with large deficits (Davis, 2004, 12). The closure of so many DB schemes is deemed to be a contributing factor to the pensions crisis for two main reasons. The first is that the alternative – usually an occupational DC schemes – is considered more risky for individuals. The second is that there is generally a lower take up of DC pensions as compared with DB schemes. Thus, in effect, the switch to DC schemes is discouraging saving. Each of these two reasons will now be examined in turn. As Barr (2006, 2) explains, ‘[i]n a DB scheme, often run at the firm or industry level, the pension a person receives depends on his or her wage history and on length of service. One feature of this arrangement is that the risk of differential pension portfolio performance falls on the employer, and hence is shared more broadly than with DC arrangements. Second, the pension a worker gets is not fully actuarially related to his or her previous contributions.’ However, it can be deomnstrated that DC schemes actually tend to be more beneficial for employees who change employers several times over the course of their career (since such employees are effectively punished for each switch of employer in the DB system). Since most individuals these days do change employer at least a few times, this provides a strong argument for the case that a DC pension can be at least as good as a DB pension. Turning to the second reason, there is indeed evidence to suggest that individuals take up DC pensions at a lower rate than DB pensions. According to the Economist (2005), ‘[w]hen companies close their DB schemes, they typically offer a defined-contribution plan, in which employees build up their own pot of pension money. However, contribution rates into these DC plans tend to be much lower. According to the GAD [Government Actuary’s Department] survey, the total contribution rate from employers and employees into DC schemes is 8.9% of earnings compared with 18.8% into the private DB schemes.â⠂¬â„¢ This problem again relates back to the problem of lack of public knowledge and understanding of pensions. If DC pensions can be shown to be at least as good as DB pensions for the majority of employees, and yet the take up rate is lower, there must be a problem of information or incentives. In order to combat the so-called ‘problem’ of the closure of DB schemes, therefore, it may be more important to improve information about, and incentives to take out, DC pensions, rather than to try to resurrect the system of DB pensions. In the words of the Economist (2002), ‘[t]he way forward is not to lament the demise of final-salary schemes but to make DC plans work.’ Conclusion At the heart of the UK pensions crisis are two issues which work together to cause a crisis. With an ageing population, the dependency ratio increases to the extent that it is not possible to rely on PAYG schemes. At the same time, the level of savings within the UK is too low for the retired population to be able to rely on funded pensions. The low level of savings can be seen as caused by a number of factors, including a lack of clarity and information on pension requirements and choices, a lack of trust in the financial services sector and the information it provides, as well as certain disincentives which discourage individuals, particularly in the low income sector, from saving. The closure of DB schemes has interacted with the poor information and lack of trust to discourage certain people (who would previously have enrolled in a DB scheme) from enrolling in the DC alternative. All of these problems are interrelated and it is the combination of them that can be seen as causing the UK pension crisis. In the words of Davis (2004, 22), ‘the savings gap is aggravated by †¦ the deficits and closure of defined benefit funds, loss of confidence in personal pensions and also in life insurance generally following mis-selling of personal pensions.’ As such, it is a combination of policies that is required to tackle these problems. Bibliography Banks, J., Blundell, R., Disney, R., Emmerson, C. (2002). Retirement, Pensions and the Adequacy of Saving: A Guide to the Debate. London: Institute for Fiscal Studies. Barr, M., Diamond, P. (2006). The Economics of Pensions. Oxford Review of Economic Policy , 22 (1), 15-39. Barr, N. (2006). Pensionse: Overview of the Issues. Oxfor Review of Economic Policy , 22 (1), 1-14. Blake, D. (2000). Two decades of pension reform in the UK: What are the implications for occupational pension schemes? Employee Relations , 22 (3), 223-245. Davis, E. P. (2004). Is there a Pension Crisis in the UK? London: The Pensions Institute, Cass Business School. DWP. (2006). Security in retirement: towards a new pensions system Executive Summary. London: Department for Work and Pensions. Economist. (2002, February 22). End of the party: How bad for employees is the decline in final-salary pensions? The Economist . Economist. (2005, June 23). Pension reform: The shape of things to come. The Economist . Hills, J. (2006). A New Pension Settlement for the Twenty-First Century? The UK Pensions Commissions Analysis and Proposals. Oxford Review of Economic Policy , 22 (1), 114-133. Mullan, P. (2002). The Imaginary Time Bomb: Why an Ageing Population is not a Social Problem. London: I B Tauris. Footnotes [1] While discussion of the UK ‘pension crisis’ is very common, it is worth bearing in mind that the current situation is not unanimously viewed as a crisis. Barr (2006), for example, argues that a problem exists but not a crisis. Mullan (2002) does not even consider it to be a problem. [2] â€Å"We need to be clear that individuals must be responsible for their own plans for retirement. The reforms will ensure the provision of high-quality savings vehicles, and a solid state foundation to private savings. But the choice of how much to save, the level of risk to take with investments, and how long to work must be available to the individual. That provides the right balance of choice and support for individual responsibility.† (DWP, 2006, 22)