Thursday, October 31, 2019

Management (Organizational Behavior) Essay Example | Topics and Well Written Essays - 1000 words

Management (Organizational Behavior) - Essay Example In this essay, the most important qualities of a manager to make a positive impression on others and group skills that are needed to manage a team and the leadership roles that have to be played by the manager are discussed. Interpersonal skills such as coaching, counseling, offering supportive communication, exercising influence, motivating others and managing conflicts are very essential for managers to create a favorable impression to the other members of the organization. Of all these interpersonal skills the ability to offer supportive communication is very essential. According to Golen (1990), supportive communication is the communication that seeks to preserve a positive relationship between the communicator and the group while still addressing the problem at hand. It allows the manager to provide negative feedback or to resolve a difficult issue with another person and as a result can strengthen the relationship. Another factor that increases effectiveness of a manger is his enthusiasm. His passion on the job and his belief in the vision makes himself more desirable in the organization. There can also be some psychological barriers in the mind of the manager such as, premature evaluation which is caused by premature judgments made without proper analysis, lack of attention when a message is sent across, undue reliance on the written word and ignoring the value of face to face interactions and distrust of the communicator. The personal barriers to creating a favorable impression include, attitude towards superiors, fear of challenge, red tapism, lack of trust on the subordinates, lack of awareness of role expectations, lack of sensitivity to the environment and ignoring environmental cues. When manager can listen to the team members more carefully, able to manage personal and job stress more effectively, capable of influencing

Tuesday, October 29, 2019

Cross cultural Coursework Example | Topics and Well Written Essays - 1500 words

Cross cultural - Coursework Example In this empirical research, the leadership style of Indian, UK and US managers have been compared. The basic theory used in this research is Hofstede theory of culture. As the leadership styles are influenced by cultures of different nations, it is important to understand the basic culture of the nation. Thus, Hofstede’s cultural dimensions theory will help in evaluating strategies which leaders need to apply while working in different nations (Hofstede, 2007). Leadership styles Leadership styles across the globe are diverse and influenced by specific attributes dominating the environment. Various leadership styles have been researched and identifies by scholars. These include; 1. Autocratic Leadership It is described as an extreme transactional leadership style. The leader exerts a lot of power over individuals. There is a little opportunity for staffs and team members in terms of making suggestions or decisions. The style is best used during crisis situation. 2. Bureaucratic Leadership In bureaucratic style, rules are followed vigorously and the major objective of the leader is to make sure that every team member follows the guidelines and procedures. This style of leadership will work best on organisations having routine tasks such as factories and manufacturing units. 3. Charismatic Leadership It is a type of transformational leadership. ... Leadership studies Leadership can be defined as an individual’s ability to influence and inspire the attitude, behaviour and thinking of other individuals. The principle objective of a leader is to assure that synergy is achieved in the organisation where the leader works. A leader is expected to bring mutual understanding and coordination in the workplace through joint efforts from the employees working in the organisation (Dowling, Welch and Schuler, 1999). Researches from various studies conducted all over the world have suggested that leadership styles vary from nation to nation and even from region to region. In some nations leadership means authority, control and power (Fatehi, 1996). While in other nations it may signify motivating employees and subordinates, in a manner which is non-coercive. Thus, it is becoming increasingly important for leaders to understand the culture and perception of people/employees, where the company has established its subsidiary (Aycan, et a l., 2000). Countries and leadership styles USA Most of the US leaders tend to use participative, charismatic or directive leadership styles. Freedom of action is less for board of directors and executives in America. There is no congruent culture and the general tendencies include dominance, individualism and functionalism. UK Individualistic, informative and descriptive leadership styles are followed by managers in UK. They have a particular affinity to details and in-depth analysis. They are more willing to take decisions on individual basis and also delegate responsibilities and tasks to others. Comparison of the US, UK and Indian leadership Styles In order to compare leadership styles of America and India, Hofstede Cultural model have been used. 1.

Sunday, October 27, 2019

The War on Drugs: Illegal Opium Markets

The War on Drugs: Illegal Opium Markets Introduction Opium (and opioids) which are obtained from the sap of the poppy plant have routinely been used to control pain in countries throughout the world over many centuries. Opium, also, has historically been used in a social context illustrated by the opium dens in China which has lead to it becoming a trade-able commodity with high values over recent eras. Opioids have therefore developed both legal and illegal global markets and through studying where this stands in society both now and historically it will assist the reader to interpret what is determined to be crime and subsequently justice. The notion of Crime has traditionally been regarded as an offence which goes beyond the personal and into the public sphere, breaking prohibitory rules or laws, to which legitimate punishments are attached and what a society considers to be a crime is socially constructed (Scott Marshall, 2009). Crime, however must not be considered in isolation and can be defined by the power inequalities amongst stakeholders in both how local and global relations cause tensions or aid policies and practice which result in violence, the so called white-collar crime. Wars have been attributed to the opium trade and these contested matters on both individual and national levels cause both social and personal harms (The Open University, 2009(a)). In order to critically analyse opiate use we must understand what constitutes legal and illegal drug use. Legal use can be considered to be prescription drugs, drugs available over the counter (OTC) and other socially accepted means whereas in contrast what is construed to be illegal has constantly in flux and is determined by those in power who attempt to isolate and control behaviours that are out-with social norms (The Open University, 2009 (b)). It is perhaps not by coincidence then that throughout history certain cultures, communities and specific groups have been actively targeted and by penal measures in the justice system or other socially constructed ones held accountable for wrongdoings whereas those in power both in (inter)national corporations and governments have often remained unaccountable for their actions. The war on drugs, who does it really affect? The link between global relations and the illegal opium markets have recurring themes through history. War is one of these and in America in the 1970s there was a real threat to the stability of the preceding government so a decision was made by President Richard Nixon to declare a nationwide war on drugs across the whole of America. Under the guise of this war the regime targeted dissident groups including the Black Panthers and those who canvassed support against the Vietnam War (The Open University, 2009(c)). Wars have both intended and unintended consequences, in this case the government has assisted indirectly in encouraging more violent traits with emerging gangs seeking fresh territory in order to traffic drugs illegally (The Open University, 2009,(c)). On a local level drug trade can be essential for the community to be self-sufficient, especially in poverty stricken areas and those with higher crime and deprivation levels. Such complex relations and competing power balances allow for corruptness to occur in high level positions of authority therefore benefiting those who are involved in dealing or importation, the counter argument provided by individuals living in these deprived areas of Afghanistan are that if work was provided, housing and other human essentials then they wouldnt need to be involved in illegal activities. It is clear that these communities are treated less favourably than more powerful corporations and governments who also break or influence the law. Crime involving drugs are generally associated with anti-social groups, the underclass or those with low income as opposed to the wealthier and subsequently more influential classes, therefore there is just cause in suggesting that class bias occurs when treatment is needed involving opioids. A further relative example is that in the USA black people were, and remain, disproportionally represented in the jails (The Open University, 2009(c)). Why are the powerful able to get away with Crime? The powerful, those with money, those in high positions or with influential sway are seemingly able to get away with crimes which affect locals, crimes against humanity, they hold the responsibility for punishing and regulating others. The question that must be asked is who regulates them? The truth is that they arent and if they are found at fault the problem can be made to go away. The Open University (2009, (b)) argue that there is there is a clear difference between how the justice system treats the perceived legal and illegal elements. There appears to be no regulation in how the pharmaceutical industry can be allowed without question to be involved in the Prescription Drug User Fee Act from 1992 which is linked to the Food and Drug Administration, therefore its accountability to be examined. From this it is clear that large influential corporations whom evade any punishment through the justice system, but internal corruption is more prevalent due to the lack of regulation or risk of punitive sanction within the trade. Corruption is a key area in how corporations and the illegal hierarchy together are able to by-pass the justice system allowing for the trading in opiates to continue despite strict measures attempting to prevent it (The Open University, 2009(b)). Another example in quantitative terms of justice being avoided is highlighted when Purdue Pharma, an international company was fined $600 million because they had deliberately misled their customers by stating that Oxycontin was less addictive that other competitors products. This deception caused several people to lose their lives and many people to subsequently become addicted, all from what consumer would of believed to be a reputable organisation (The Open University, 2009(b)). Again no custodial terms were handed out to the persons responsible which is in stark contrast to the less powerful groups who in the main are targeted as being accountable. This also demonstrates how the global (international) can affect the local (national). Global relations in the form of large corporations and drug cartels, those who together both distribute drugs when analysed actually are more similar that dissimilar, together they want to: provide a reputable service leading to repeat custom; sell their product (often for a profit); manage the risk of harm, violence or penal sanction by having management structures in place, for example those at the top have the most assets but are never seen getting their hands dirty, where the foot soldiers are placing themselves at the higher end of the risk spectrum increase professionalism in product manufacture and marketing (The Open University, 2009(b)) Why do drugs go where the trade goes? The production and use of opium has a complex interrelationship with the 19th Century colonisation where the British began to import opiates into China from its Indian colonies. The Chinese Emperor banned this import of opium due to his country suffering high addiction levels. The British government believed in free trade and took action to ensure that the Chinese would accept opium imports whether it was legal or not (The Open University, 2009(b)). Because Britain was able to exercise this power it continued to be detrimental to China. Ironically centuries later the British Prime Minister Tony Blair cited the same example the Chinese emperor had used in that Britain was being harmed therefore it was necessary to start military action in Afghanistan in order to destroy the Afghanistan opium crops. Both times our government was answerable for causing harm to another nation but not held at legal or moral fault. Instead it was held that it served as in the interest of the nation rather than criminally wrong (The Open University, 2009(b)). Trade boundaries in global affairs are not only influenced by their respective governments. Both Turkey and India contribute to the destruction of Opium crops in Afghanistan and consequentially by restricting this market globally they have control over pricing of opioids, as opposed to higher competition lowering the cost of each unit. Violent clashes followed involving the farmers and government officials but this action only harmed locals by physical violence but taking their only available source of income. By examining Tajikistan which is a country lying to the north of Afghanistan it will assist in understanding how illegal trafficking occurs. It has isolated borders and no road networks between border nations but it is the gateway to the rest of Asia and then Europe. The Tajikistan authorities seize more illegal shipments than all the other Asian counties together (The Open University, 2009(c)). When the Soviet Union collapsed, Tajikistan was devastated and they were exposed to incentives to support illegal activities by trafficking drugs. This meant that more drugs are freely available which has altered the patterns of consumption and the need for stronger drugs like heroin. Global trade in different cultures and countries therefore affects both the illegal and legal methods of importation and drug usage / dependency (The Open University, 2009(a)). Tajikistan itself is a large scale drug industry that again shows how corruption at all levels of society and particular within the police and governments i.e. Border guards and their senior officers demonstrates a blurring of who is at fault, social harms are being created at all levels and if faced with the option to survive or not locals are always going to be found at fault by influential officials (The Open University, 2009(b)). Conclusion Today, we live in a world of global trade and national exchange. I have demonstrated that where open trade occurs then so does the illegal drug market, you cant have open trade and no drugs. Crime is therefore to be considered as a global concern not a local one. In critically reviewing both legal and illegal opium markets it is fair to argue that the power disparities within localities allows for social harms to be created, on a global level what takes place in one country can have a direct impact on another leading to violence and damaged communities. Power is a key theme and is shown during the closing of the Chinese boundaries but Britain still continued to force trading relations alongside the destruction of communities in the USA, Tajikistan and Afghanistan as a result of poverty and corruptness by authorities. The definition of crime at the start is given as its socially constructed and personal, this essay opens up this theory and shows that crime through illegal and legal methods of opioid use is actually a global concern; Tajikistan following Soviet collapse shows the global implications of Crime and Justice. Approximately 1750 words not including the question or brackets. Types of Abuse: Domestic, Financial and Technological Types of Abuse: Domestic, Financial and Technological Abuse occurs when people mistreat or misuse other people. Abusive behaviors are used to manipulate others. But the uncommon types of abuse are just as important as the common ones. They include economic, academic, and psychological abuse. Economic abuse is a form of abuse when one intimate partner has control over the other partners access to economic resources, which diminishes the victims capacity to support him/herself and forces him/her to depend on the perpetrator financially. Economic and financial abuse. Examples of economic abuse are removing or keeping property without consent, dispasing of property against another persons wishes and without lawful excuse, preventing access to joint financial assets, such as a joint bank account for the purposes of meeting normal household expenses. Economic abuse can include an abuser preventing victims from working and accessing bank accounts, credit cards or transportation among other isolating tactics as mentioned before. Money gives us a voice but most survivors of abuse already feel silenced by their experience. Lack of money intensifies feelings of being trapped, developed and alone. People living below the poverty line are the most vulnerable to economic abuse. For those manage to escape the abuse and survive initially, they often face overwhelming odds in obtaining long term security and safety, ruined credit scores, sporadic employment histories and legal issues caused by the battering make it extremely difficult to gain independence safety and long term security. Getting out of economic abuse involves opening separate bank accounts from the abuser. Creating a private account or find a safe place to store cash since saving up in and itself can trigger abuse, victims are tasked with finding ways to make and save money without the abuser finding out. Dean emphasizes that someones ability to save money will depend on the degree to which their adviser exerts control over them. For someone who is bei ng watched 24/7 the money saving process may be much slower. As with any abusive relationship victims must consider their safety after theyve left. Stopping economic abuse is an extremely complicated task because each familys financial situation and relationship is different. Economic abuse is rarely talked about and misunderstood by people but we simply cant afford to talk about it anymore.. Technology abuse is digital partner violence when technology is used such as cell-phones, computers, and location technologies to bully, harass, stalk or intimidate a partner. Often this behavior is a form verbal or emotional abuse perpetrated online, through texts, calls Etc. The internet is one of the most popular dynamics shaping our social, intellectual and moral spheres. The internet empowers individuals with immediate information to collaborate, engage, and participate. Technology abuse is extremely common in abusive relationships. Abusers often misuse technology as a way to control and monitor, or humans victims. Many states have responded to this misuse of technology by passing specific laws to address the behaviors. In other states these acts can come under criminal laws such as harassment, stalking, eavesdropping, unlawful surveillance, etc. There are different types of technology abuse such as sexting, which is the act of sending and receiving sexually explicit text messa ges, photographs or videos mainly through a mobile device. There Is always a risk that a sext could be shared or distributed with additional people electronically without your consent. Another is impersonation, impersonation generally refers to when someone uses a false identity and commits acts that will result in personal gain or that will deceive or harm another person. Some states have laws that criminize impersonating another person with the intent to defraud someone. One more example of technology abuse is Electronic surveillance. Electronic surveillance is a broad term used to describe when someone watches another person actions or monitors a persons conversations without his/her knowledge or consent by using one or more electronic device. Electronic surveillance can be done by misusing cameras, recorders, wiretaps, social media, or email. It can also be done by the misuse of monitoring software (Known as Spyware) which can be installed on a computer, tablet, or smartphone to secretly monitor the activity without users knowledge. Young people are increasingly being subjected to technology abuse. Teen violence prevention organization day one says half of the people ages 14-24 have experienced it. Lesbians, gays bisexuals users are more than twice as likely than straight users, to experience abuse online. The study found that also men and women are subject to similar levels of abuse, the attacks on women were often of a more serious nature of the 20 categories of harassment the researchers looked at. Men were most likely to report being called names and being embarrassed online. Psychological abuse (also referred as psychological violence, emotional abuse or mental abuse) is a form of abuse, characterized by a person subjecting, or exposing another person to behavior that may result in psychological trauma, including anxiety, chronic depression or post-traumatic stress disorder. Psychological abuse is common and yet few understand the psychological abuse definition enough to spot it without the visible signs of physical abuse can stay hidden for years. Psychological abuse though can be just as worse as physical abuse. psychological abuse can affect your inner thoughts and feelings as well as exert control over your life. You feel uncertain of the world around you, and unsafe in your own home, physiological abuse can destroy intimate relationship with yourself psychological abuse also applies to children and may impair their development into a healthy adult. The abuse signs and symptoms may start small at first as the abuser test the waters to see what the other person will accept, but before long the psychological abuse builds into something that can be frightening and threating. Signs include name calling, yelling, insulting the person, threating the person or something that is important to them, ignoring, isolating the excluding them from meaningful events. CITATIONS Campbell, Rebecca. Code to Inspire: Bitcoin Gives Afghan Women Financial Freedom. Bitcoin Magazine. N.p., 14 Apr. 2016. Web. 23 Mar. 2017. Written by Britni De La Cretaz.Britni Has Also Written: How Budgeting Improved My Relationship, Making Financial Amends in Alcoholics Anonymous and My Shopping Addiction Nearly Destroyed My Life More from This Author. How to Rebuild After Escaping Financial Abuse. Daily Worth. N.p., 28 Jan. 2017. Web. 23 Mar. 2017. Technological Abuse, Harassment on the Rise for Teens. CBS News. CBS Interactive, 22 Oct. 2016. Web. 23 Mar. 2017. Tracy, Natasha. Psychological Abuse: Definition, Signs and Symptoms. Healthy Place. N.p., July-Aug. 2012. Web. Mar.-Apr. 2017. Soong, Jennifer. When Technology Addiction Takes Over Your Life. WebMD. WebMD, 12 Nov. 2011. Web. 23 Mar. 2017.

Friday, October 25, 2019

Call To Action :: essays research papers

Call to Action Improve nations balloting but leave control to locals Author Unknown   Ã‚  Ã‚  Ã‚  Ã‚   SUMMARY: A Call to Action is an article from the Houston Chronicle on Thursday, February 20, 2001 informing the nation on the controversial issue of the nations ballots system. The article begins with the announcement of next month’s Census Bureau release of the population’s data. This means that all the voting boundaries are going to be redrawn and reconfigured. It continues to talk about the amazingly close and controversial presidential election on November 7th. Difficulties erupted all over the state of Florida and throughout the United States in which the reliability and accuracy of the balloting system is questioned. Fortunately, because of the controversial ballots and ballot systems there have been numerous groups and committees organized to study and improve our out of date voting system. It says that several people in Congress are working on multiple bills being created to establish nation wide standards for ballot-counting systems. The article states, â€Å" One U.S. House lawmaker, Beaumont Democrat Nick Lampson, wants national standards for voting machines and poll closing times.† The author agrees with Lampson in that the voting machines have multiple flaws, one being the problematic punch card ballots. But he also thinks that the press would throw a fit if there was a national closing time at the polls just for the sake of avoiding early winning announcements. The National Association of Secretaries of State’s task force on election standards suggests leaving the enforcement issue to locals but have the government pay for voting machines. They also recommend â€Å"†¦more voter education, improved training for poll workers and maintaining up-to-date voter rolls†¦Ã¢â‚¬ . In the end the author feels that the communities should take on the responsibilities for reformation instead of an all-in-one government plan. He closes by reminding the reader that the nation’s President is elected through the Electora l College and the communities should supervise the voting procedure. OPINION: I agree with the author’s view on improving the voting system. I believe something needs to be done at least by the next election. In the election of 2000, Florida happened to be the center of the maelstrom. I find it hard to believe that any state that has had problems in the past with voting irregularities would continue to use the same flawed ballot system. Florida continues using a system year after year that allows people to vote twice on one ballot for the same political office, or that makes the results questionable because the paper might not be punched through enough for the machines to compute the votes?

Thursday, October 24, 2019

Reference Models Based on Kimono de Ginza

Kimono de Ginza, or â€Å"wearing kimono in Ginza†, is a monthly event held on the second Saturday of every month. These enthusiasts will meet once a month on the Ginza, an exclusive shopping district in Tokyo, to go for a walk in the vicinity in their kimonos. The meeting is then concluded by a joint evening meal in a Japanese pub. The main aim of this activity is to allow young Japanese to tap on this opportunity to seek advice from their elders on how to wear a kimono and the appropriate kimonos for different occasions. Parallels The kimono is said to be dying, to be utterly too cumbersome for modern life, to be as elegantly anachronistic as the conservative old ladies or geisha who wear it,† (American anthropologist Liza Dalbyin in Kimono: fashioning culture). Similarly, the interest for traditional goods and services in Singapore, such as woven rattan furniture, has died down in recent years. A sharp decline in demand for both cases has serious implications for related businesses. Quoted from Mr Shigenobu Ono, owner of Nagoya black dyeing shop for formal kimonos, â€Å"the question is how to get the younger apprentices in our guild up to scratch†. He notes that even his own son decided to forsake the trade for a career in Western fashion. However, the success of Japanese culture can be seen through the comeback of kimono through its reinvention by the indigenous people. Contrary to the strict dress codes imposed at formal gatherings and on festive occasions, many relish the non-ceremonial style of kimono or the idea of being able to wear kimono more casually. Young Japanese also look to kimono as an expression of fashion statement with the emergence of colourful socks and decorative collars. Explaining its successes using learning models The tipping point by Malcolm Gladwell The influence of Kimono de Ginza can be explained by Gladwell. Gladwell identifies three key factors that determine whether a particular trend will â€Å"tip† into wide-scale popularity. These are namely the Law of the Few, the Stickiness Factor and the Power of Context. I. Law of the Few Connectors MavensSalesmenWider community Connectors are individuals with extensive social networks. Acting as social glue, they help to spread message, engender connections and bring the world together. Kimono de Ginza relies on these people to attract interested public and expand its influence. For example, a similar gathering known as â€Å"Kimono de Vancouver† has been started for those who live in the West and who maintain interest in kimonos. Mavens act as data banks as they love to share information with other consumers by helping them make informed decisions. They are represented by the older participants of Kimono de Ginza who are eager to share their knowledge on kimonos. Salesmen refer to charismatic people who can effectively persuade others to make certain buying decisions. The Japanese kimono group has no lack of such aficionados who fervently profess their love for kimonos through various means. II. The Stickiness Factor This is defined as a special feature that makes the phenomenon memorable by creating an impact and compelling people to act. The unconventional appeal of Kimono de Ginza relies on its flexibility to allow for individualism to shine through. It revives and reinvents a tradition while rejecting the undesirable restrictions. Furthermore, doing away with memberships allow for creative experimentation of identities beyond daily responsibilities. III. The Power of Context The growing global movement to retain local traditions amidst the perceived threat of modernisation provides an ideal backdrop for Kimono de Ginza to prosper. It works by leveraging on the balance between a nostalgic yearn for traditional experiences and a desire to shake off stifling restrictions. The nostalgic psychology will be explained in the later parts of the case study analysis. IN WHERE) Moreover, Kimono de Ginza was established in accordance with â€Å"the Magic Power of One Hundred and Fifty†, in which â€Å"groups of less than 150 members usually display a level of intimacy, interdependency, and efficiency that begins to dissipate markedly as soon as the group’s size increases over 150. † The activity of wearing kimonos takes place within a well-defined group setting that promises a certain sense of protect ion and stability. The gatherings represent a specific form of community that is characterized by being bound to a defined place and an interest in a particular activity and, moreover, involve face-to-face interaction. Ideas for proposal: * Encourage business owners to form a small group within themselves to launch a â€Å"retro campaign† Nostalgia Marketing (Martin Lindstrom) Studies have identified some nostalgic cues that can be exploited and how images and sounds from the past can create favourable attitudes about products. (LIKE WHAT) As we age, our nostalgic yearnings grow, making us more receptive to advertisers and marketers use of what researchers call â€Å"a longing for positive memories from the past. † This desire for nostalgia is further intensified by society's present circumstance of receding predictability and opportunity. As Martin Lindstrom mentioned, â€Å"In the face of insecurity or uncertainty about the future, we want nothing more than to revert to a more stable time† It is much more comforting to think of times when we had simpler lives rather than pondering the issues we are facing today. That is why in times of recession we notice older retro products being brought back. The primary force driving Kimono De Ginza is the desires of the population to connect with its traditions and relive their childhood past when they were first introduced to kimonos. Emotionally, we associate these products of the past with authenticity, history, and a better, simpler time. This explains why Kimono de Ginza was able to attract a significant following and remain sustained for thirteen years. Our nostalgia transcends time as long as each new generation continues to be exposed to Japanese culture in their childhood and develop emotional connections that will last them through adulthood. However, Kimono de Ginza is careful not to â€Å"play up the past too much† for Kimono to be seen as â€Å"dusty, outdated or out of style†. Like a lot of brands and companies, it has â€Å"developed inventive strategies for toeing this delicate line†, through its infusion of modern elements and eradication of stringent rules and restrictions. Ideas for proposal: * (Nostalgic marketing) Broadcast advertisements from the olden days, oldies and catch slogans of that time * Introduce traditional goods to children from a young age so that they will grow up to associate these goods with â€Å"a simpler and more authentic times† Such would be the case of our association with monopoly games and beyblades Kolb’s Experimental Learning Cycle Kolb proposes a four stage learning cycle. I. Concrete Experience A new experience of situation or a reinterpretation of existing experience is encountered when participants is first exposed to Kimono de Ginza. II. Reflective Observation Participants new to the innovative and unconventional concepts of Kimono de Ginza discover inconsistencies between past experience and understanding. This engages them in meaningful reflections. III. Abstract Conceptualization Reflection gives rise to a new idea, or a modification of an existing abstract concept. Participants deliberate over their identity and what they want their kimonos to look like prior the monthly event. There is a great deal of internal tussle within the individual before they figure out their own interpretations of kimonos. IV. Active Experimentation The learner applies them to the world around them to see what results. Creativity represents a key feature of Kimono de Ginza as participants dress up in unique costumes infused with modern features or personal idiosyncrasies and display to the public. They receive feedbacks from interactions within the club, as well as through the public’s reactions as they walk down the streets. Spiral Learning Model Though unintentional, Kimono de Ginza has unconsciously tapped on the spiral learning model to promote Kimono culture. From a young age, almost all Japanese children would have been introduced to Kimonos as part of the Japanese culture. The child may also begin his first conscious exposure of kimono through Shichi-Go-San (â€Å"seven-five-three†) Festival. At the age of 20, young people wear furisode or haori and hakama to celebrate their passage into adulthood. As such, an average Japanese gains multiple exposures to Kimonos throughout his growing years. Kimono de Ginza serves as a culmination point in which an individual identifies himself with a community and expresses his own interpretations of kimono in a creative manner. Ideas for proposal: * Spiral learning model for Singapore’s traditions in formal education, which culminates into business management at polytechnic level. * Encourages autonomy and self expression to add value to traditional products

Wednesday, October 23, 2019

Boeing Bond Analysis

Boeing Bond Analysis Presented to Dr. —– Prepared by Filipe Ferro October 9, 2012 Table of Contents Boeing Company3 Bond Issue3 Unsystematic Risk4 Principal Repayment4 Debt to Invested Capital4 Debt to Equity4 Current & Quick Ratios5 Interest Repayment5 Times Interest Earned5 Credit Position6 Competitor Analysis6 General Dynamics6 Northrop Grumman7 Systematic Risk7 Market Responsiveness7 Duration8 Modified Duration9 Accuracy of Rating9 Interest Rate Expectations9 Summary10 Appendix11 Descriptive Statistics11 Regression Analysis11 Duration & Modified Duration12References13 Boeing Company Boeing is a manufacturer of aircrafts and national defense equipment making it a member of the Aerospace & Defense industry. It was founded in Seattle, Washington on July 15, 1916. It is headquartered in Chicago, Illinois, USA. Commercial aircraft include the 737, 747, 777, and very recently, the 787. Military products consist of high-dexterity and stealthy aircraft such as a the A-10 Th underbolt II and highly-efficient and powerful satellites such as the Boeing 601. 1 Its biggest competitors are Northrop Grumman, General Dynamics, and Airbus.According to Morningstar, Boeing employed 171,700 people and revenue reached $69 billion in 2012. 2 Bond Issue The bond I have chosen to analyze is a debenture with a maturity date of August 15, 2021. Morningstar shows this bond issue consists of 400 million $1,000 par value bonds with 398 of them outstanding. The bond is a semi-annual fixed coupon bond with an annual rate of 8. 75%. The accrual start date was August 15, 1991. The original life of the bond was 30 years and the remaining life as of October 2012 is a little over 8 years and 10 months.This bond issue is non-callable, non-putable, non-convertible, and it is not subject to Rule 144A. These bonds are currently selling at 135. 20% of par value as of September 29, 2012, making their price $1,352. Standard & Poor’s NetAdvantage rates this issue as an A. Its curr ent yield ratio is 6. 47. I have always been enthusiastic about airplanes. My first experiences in flight were in Boeing aircrafts. I also chose this bond issue because of Boeing’s large size, reputation, and financial security.Selecting a debenture is risky and requires strong financial security since the only security backing it is the issuing company’s credit rating. With a current yield of 6. 47 resulting from the relatively high coupon rate of 8. 75%, this is a great bond for a fixed income (coupon pays $87. 50 annually). Unsystematic Risk Principal Repayment Debt to Invested Capital In recent years, Boeing’s debt to capital ratios have been 42% for 2007, 112. 9% for 2008, 85. 2% for 2009, 80. 6% for 2010, and 74. 0% for the end of 2011. Boeing’s total debt to invested capital ratio is 65. 3% (as of June 2012)3. Standard & Poor’s calculates this as (total debt)/(total equity + total debt), 2,466,000+8,735,0005,892,000+11,201,000. This means th at debt makes up about 65% of all invested capital. Boeing still has 35% of capital that is not tied to debt. This is good compared to the last few years. This ratio is on a downward trend. Debt to Equity Boeing’s total debt to equity ratio is 1. 51 (as of June 2012) 3, meaning that for every $1 in equity there is $1. 51 of debt. This is calculated as 8,735,0005,804,000 on the balance sheet.According to Standard & Poor’s Industry Survey, Boeing’s debt to equity ratio at the end of 2011 was 2. 85. The Aerospace & Defense industry average from 1981 to 2011 was 0. 90. 4 The industry survey states that Boeing’s high debt to equity ratio is due to its â€Å"financial arms† since it has a large financing department. It is also probably due to its new model plane, the 787 Dreamliner, which requires a relatively expensive manufacturing processes – unibody parts made up of composite carbon fiber materials – and advanced electronics and sensors . These higher costs require raising more capital than the average model plane.While debt has priority over equity in being repaid, debentures are at the bottom of the list, which is why this high ratio may be a concern for holders of Boeing’s bond issues. If bankruptcy occurs, debentures will be the last of debt holders to get paid. Although it is not exactly good to have this somewhat high ratio, knowing that Boeing has a brand new and appealing aircraft reassures that positive future cash flows will cover this financial leverage. S&P’s NetAdvantage highlights the potential sales to emerging airlines from China and airlines with old worn out planes in the U. S. and Europe.S&P’s industry survey states â€Å"China, India, the Middle East, Eastern Europe, and Latin America, will drive growth in global air travel and demand for new aircraft. †4 The market for aircraft purchases looks like it will grow in the coming years, thus Boeing will have greater oppor tunities for sales. Current & Quick Ratios The current assets to current liabilities ratio was 1. 22 for the 4th quarter of 2011, which means every $1 in current liabilities is covered by $1. 22 in current assets. Boeing has enough current assets to pay off all its current liabilities if it needed to do so. The current ratio has been 0. for 2007, 0. 8 for 2008, 1. 1 for 2009, and 1. 1 for 2010. The current ratio has been on an upward trend since 2008 which would imply added financial security in forecasts. But the current ratio assumes that a company’s current assets are highly liquid. This might not be the case with Boeing, whose inventory is made up of large and expensive aircraft and is not as highly traded as smaller inventory such as food in a grocery store. The quick-ratio would be more accurate for Boeing, which is 0. 39. Boeing – using only its instantly liquid assets – would not be able to pay off all of its short-term liabilities if it was required to. Interest Repayment Times Interest Earned As of December 31, 2011, Boeing had a net income of $4 billion and an interest expense of $498 million. Its times interest earned for the year of 2011 was 4,011+498498=9. 05. From 2006 to 2010, times interest earned has been 4. 72, 21. 7, 6. 12, 4. 94, and 7. 42 respectively. From these figures, it seems that Boeing’s TIE ratio has been on an upward trend since the 2009 ratio of 4. 94. The most recent ratio of 9. 05 suggests that Boeing is capable of paying its interest expense since its profit is over 9 times greater than its interest expense. Credit PositionAccording to Mergent Online, Boeing has never had a bankruptcy proceeding of any type (chapter 11 restructuring, etc), which implies that it has never defaulted on any of its debts. Mergent also states Boeing â€Å"had $4,600,000,000 available under credit line agreements†5. Considering Boeing already has $12,371,000,000 in long-term debt, $4,600,000,000 is still considerab le amount. Boeing is still within reasonably comfortable limits within its credit line usage. In addition, Standard & Poor’s Bond Guides shows that it has rated this issue of Boeing’s bonds in the A range for the last 4 years.Overall, Boeing seems to have good character. Many of Boeing’s bond issues have been rated as A+ over the last 4 years. Competitor Analysis General Dynamics General Dynamics currently has 2 outstanding bond issues, both rated A by Standard & Poor’s. Its debt to invested capital ratio in the 4th quarter of 2011 was 22. 6% compared to 74% for Boeing6. General Dynamics’ assets are tied to a much lower amount of debt than Boeing. The current ratio for General Dynamics is 1. 4 as of 2011 while Boeing’s was 1. 2. In addition to its low debt to capital ratio, its debt to equity ratio is also low at 3,930,00013,232,000=0. 0. Boeing’s debt to equity ratio is a little higher at 1. 51. With a higher debt to equity ratio, Bo eing’s leverage is slightly larger. Boeing’s bond issue may have a little more risk of being subordinated by other bonds. A low debt to equity ratio reflects a financial healthy company because it means that it needs a relatively small amount of financial leverage. Times interest earned for the year of 2011 was 2,252+155155=15. 53. Again, this makes General Dynamics’ bonds less risky. In contrast, Boeing has more liquidity in its stock at an average trading volume of 4,344,230.General Dynamics’ average trading volume is only 1,642,0007 which means General Dynamics’ ratios are subject to more volatility. With a higher trading volume and a new, cutting edge plane, this may offset Boeing’s higher risk compared to General Dynamics. Northrop Grumman The current ratio as of the 4th quarter of 2011 for Northrop Grumman was 1. 4. Its debt to equity ratio was 3,948,00010,715,000=0. 37. Times interest earned was 2,086+221221=10. 44. 8 Like General Dyn amics, Northrop Grumman’s ratios also suggest lower unsystematic risk compared to Boeing.Although the bonds may also be more volatile because just like General Dynamics, Northrop Grumman has a much lower average trading volume (at 1,533,070) than Boeing does. Systematic Risk Market Responsiveness Date| YTM-Boeing| YTM-Avg. A Rated Market| Mar-08| 5. 28%| 6. 24%| Jun-08| 6. 09%| 6. 43%| Sep-08| 6. 01%| 6. 55%| Dec-08| 7. 16%| 6. 70%| Mar-09| 6. 50%| 6. 66%| Jun-09| 5. 92%| 6. 39%| Sep-09| 4. 96%| 5. 56%| Dec-09| 4. 69%| 5. 77%| Mar-10| 5. 13%| 5. 80%| Jun-10| 4. 69%| 5. 44%| Sep-10| 3. 67%| 5. 01%| Dec-10| 3. 89%| 5. 52%| Mar-11| 4. 56%| 5. 52%| Jun-11| 3. 93%| 5. 26%| Sep-11| 3. 66%| 4. 54%| Dec-11| 3. 0%| 4. 40%| Mar-12| 3. 32%| 4. 51%| Jun-12| 2. 63%| 4. 14%| Sep-12| 2. 56%| –. –| Below is a list of Boeing’s yields to maturity and the AA-rated bond market yields to maturity according to the S&P Bond Guide: Yield to maturity has been on a downward trend since December 2008 for both Boeing and the rest of the AA-rated bond market. It seems like the YTMs for Boeing and the rest of the market move together. The null hypothesis for this situation would be that the market movement has no correlation to Boeing’s movement in YTMs; therefore the slope would be 0 for a linear regression of the scatter plot below.The alternative hypothesis is that the market does have some influence. The null hypothesis can be tested with some calculations. The test statistic is calculated by taking the value of the beta 0. 96 and dividing it by the standard error of 0. 11132, we get 8. 62. Using the test statistic and a level of significance of 10%, the corresponding P-Value is 0. 0000000007. Anything to the left of the 10% level of significance is a rejection of the null hypothesis. The P-Value is well below the level of significance of 10% and therefore the null hypothesis should be rejected.This means that the population coefficient of determinati on is not equal to 0 according to our sample of 18 periods. The sample yields a coefficient of determination of 0. 91. Boeing’s movement in YTM can be explained by a movement in market YTM 91% of the time. Boeing’s YTMs have a strong positive correlation with the market’s YTMs and makes its bond issues just slightly less volatile to movements in the market. Duration This bond issue has a par value of $1,000 and a coupon payment of 8. 75% semi-annually. The coupon payment is $87. 50 and the latest rate for the AA bond class, according to the Wall Street Journal, is 1. 3%9 as of October 2, 2012. The present value of this bond is $1,569. 44. The weighted present value of this bond is $11,157. 82. The current duration for this bond issue is 7. 11 years. It will take a little over 7 years for this bond to cover the initial investment. Modified Duration The modified current duration is calculated as the current duration divided by 1 + (bond class interest rate). In th is case it is 7. 111+0. 0183=6. 98. This means that for every 1% increase in market interest rates, this bond issue will go down 6. 98% in value. Accuracy of RatingStandard & Poor’s definition for an A rating is defined as a â€Å"strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances. With a beta of 0. 63 and a current duration of 6. 98%, it seems like the rating of A is accurate according to the â€Å"somewhat susceptible to adverse economic conditions† part of the definition. For the â€Å"strong capacity to meet financial commitments†, I also feel like this fits Boeing since it has a times interest earned ratio of 9. 05 and a current ratio of 1. 22. Interest Rate ExpectationsAccording to the Federal Reserve Board press release of September 13, 2012, the announced quantitative easing program will keep bond prices high and interest rates low, at least for the short-term (next year). Also, the economy has expanded somewhat in recent months, but still at a lower than expected rate10. This suggests that interest rates will remain mostly unchanged since there is not a lot of spending. The Washington Post’s front-page article on October 2, 2012, stated that Americans â€Å"do not want to take any risks with their money – even as the government is encouraging risk-taking†11.According to the Fisher Effect, when expected inflation rises, interest rates will rise12. With low inflation expectations, we can expect a continuation of low interest rates. Instead of trending they will be â€Å"ranging†. As of October 2, 2012, a 10-year Treasury bond had a yield of 1. 64% while AA-Rated bonds had a yield of 1. 83%. The spread is 0. 19. The present value of a single bond from this issue is $1,569. 44. With interest rates rising only 10 basis points by the end of this year and with a modified duration of 6. 98, the present value will drop by 0. 698%. $1,569. 44(1 – 0. 00698) = $1,558. 9. The estimated yield to maturity for Boeing one year from now with a 20 basis point increase is YTM-BA = -3. 2949 + 1. 4426(4. 34) + 0. 001 = 2. 97% for Boeing, up from 2. 63%. 4. 34% is 20 basis points above the last market YTM data point of 4. 14%. This small rise in interest rates means Boeing’s bond issue is going to drop slightly in price. Summary I would definitely buy this bond despite some of its shortcomings. Boeing may be heavily leveraged at the moment, but it still has other ratios that show its financial health, such as market capitalization, the debt to equity ratio of 1. 1 and the current ratio of 1. 22. Additionally, Boeing’s new model airplane, the 787 Dreamliner, is a positive prospect for future financial health. According to Mergent’s records, Boeing has never defaulted on its loans before and with 96 years of history I wouldn’t expect a default any time soon. Appendix Descriptive Statistics YTM-BA%|   | YTM-A%|   | |   |   |   | Mean| 4. 755| Mean| 5. 58| Standard Error| 0. 291509762| Standard Error| 0. 193077925| Median| 4. 69| Median| 5. 54| Mode| 4. 69| Mode| 5. 52| Standard Deviation| 1. 236771176| Standard Deviation| 0. 19160259| Sample Variance| 1. 529602941| Sample Variance| 0. 671023529| Kurtosis| -0. 700358347| Kurtosis| -1. 043305373| Skewness| 0. 246024371| Skewness| -0. 261513425| Range| 4. 53| Range| 2. 56| Minimum| 2. 63| Minimum| 4. 14| Maximum| 7. 16| Maximum| 6. 7| Sum| 85. 59| Sum| 100. 44| Count| 18| Count| 18| Regression Analysis Duration & Modified Duration References 1Boeing. (1995). A-10 Thunderbolt II. Retrieved 2012 05-October from http://www. boeing. com/defense-space/support/maintenance/a10/index. html 2Morningstar. (2012, September 28). Boeing Co BA. (N.Dihora, Editor) Retrieved September 29, 2012, from Morningstar: http://www. morningstar. com 3Standard&Poor's. (2012, October 02). Boeing. Retrieved October 02, 2012, from Standard ;Poor's NetAdvantage: http://www. netadvantage. standardandpoors. com 4Tortoriello, R. (2012 26-July). Industry Surveys: Aerospace & Defense. Retrieved 2012 05-October from Standard&Poor's: http://www. netadvantage. standardandpoors. com. proxymu. wrlc. org/NASApp/NetAdvantage/showIndustrySurveyPDF. do? loadIndSurFromMenu=pdf 5Mergent Online. (2011, December 31). Boeing Co. (The) (NYS:BA): Long Term Debt.Retrieved October 1, 2012, from Mergent Online : www. new. mergentonline. com. proxymu. wrlc. org/companydetail. php? pagetype=longtermdebt;compnumber=1048 6Standard;Poor's. (2011, 12 31). Genl Dynamics. Retrieved 10 02, 2012, from NetAdvantage: http://www. netadvantage. standardandpoors. com. proxymu. wrlc. org/NASApp/NetAdvantage/cp/companyFinancials. do 7Yahoo! (2012, October 03). General Dynamics (GD). Retrieved October 03, 2012, from Yahoo! Finance: http://www. finance. yahoo. com/q? s=GD 8Yahoo! (2012, October 03). Northrop Grumman Corportation (NOC). Retrieved October 03, 2 012, from