PEST Analysis of Proton Essay

1.0 Introduction: PEST is a study which is apprehensive by describing the exterior of ecological manipulates on a company. The abbreviation locates for the Political, Economic, Social and Technological matters with the intention of may perhaps influence the tactical growth of a company (ESCAP 2009). Here I choose a business organization which is PROTON to classify PEST which manipulates a helpful technique of abbreviation the exterior surroundings in which this business functions. Nevertheless, it has to exist trailed up through thoughtfulness of how this company ought to react towards these pressures. The purpose of this document is towards the center of attention on the matter of proton within conditions of confronting dissimilar quandaries within the Malaysia as well as worldwide automotive business (ESCAP 2009). 2.0 BACKGROUND OF THE COMPANY: 2.1 Introduction The automotive business in local is regard as solitary of the majority essential as well as important tactical businesses within the developed region. Malaysia is mainly a traveler concern market and the trade is well thought-out as a national market-directed. The most important cause why traveler concern market is well-known within the nation is for the reason that of the financial position of the nation (www.proton.com). 2.2 Company History It all started in 1979. Malaysia’s Minister of Modernization, Tun Mahathir Mohamad, debated the thought of launching an automotive gathering as well as developed business in our nation. On May 7, 1983, the vision was rewarded after PROTON was formally integrated (www.proton.com). Furthermore, on July 9, 1985, their initial replica, the Proton Saga was commercially begun. In the beginning, every one of the mechanisms of the vehicle was totally man-made through Mitsubishi, but the local element has been able to be used, as technologies were transported as well as capacities were enlarged (Frost  & Sullivan 2002). The symbol of the vehicle was distorted as of the Malaysia’s coat of arms as well as a fourteen-pointed star to a stylized tiger head. It represents PROTON’s administration method as well as industry term, even as its potency is replicated in each and every PROTON products (Histomobile. n.d). 2.3 Products and Services They created their 1 millionth car in the year 1996. This accomplishment was marketed through more than a few important novel replica begins consist of the Proton Tiara, Proton Wira 2.0 Diesel as well as the two-door Proton Putra, additionally to their obtaining arrangement of the Proton Wira, Proton Satria as well as Proton Perdana. In the next ten years, they continue to plan and produce an innovative variety of replicas consist of the Proton Waja, Proton Juara, Proton Arena, Proton Gen 2, Proton Savvy, Proton Persona, Proton Innova as well as Proton Preve (www.proton.com). Furthermore, we produced new invention replicas consist of the novel Saga, Waja CPS, Gen 2 CPS as well as the Persona Special Edition. Nowadays they are persistently looking for improvement that makes PROTON as a product that includes not just manufacturing the best vehicles, but accepting the principles that arrives with it (www.proton.com). 3.0 Introduction of PEST Analysis: 3.1 Political Governmental agencies are essentially to what rank the authority interfere in the austerity. These issues explain about official and non official regulation which their aggregation must be attached to. Accurately, constitutional causes accommodate field such as taxation administration, employment constitution, ecology classification, export sanctions, expense, and domestic assurance (Businessballs.com). General agency may also accommodate effects and applicability which the general wants to arrange or be arranged and those that authority does not want to be arranged. Additionally, authorities accept excessive agency on the fitness, edification and root of a democracy (pestleanalysis.com). 3.2 Economy Effectual agency accommodate effectual advance, annual percentage rate, currency exchange rates, commission levels, lasting advance anticipation of a provincial, bankruptcy, career chain, GNP trend-sand, extension amount and health possibility and cost. These factors have major impacts on how business operate and make decision. For excuse bank rate alter a compact’s amount of dominant and consequently to what area business grows and aggrandize. Currency exchange rates change the amount of shipping stuff and the accumulation and cost of intention stuff in an austerity (pestleanalysis.com). 3.3 Social Social issues include beliefs, attitudes, language, gender roles as well as religion. Not just that, it also consist of the cultural features as well as including of health awareness, residents demographics, age distribution, profession manners, profits distribution, consumerism, stage of education as well as importance on protection. Tendency in societal issues influence the demand for a business’s goods along with how that business operates. For instance, businesses might alter a variety of administration tactics to adapt to these social tendencies (Businessballs.com). 3.4 Technological Technological issues regard as the progression in technology as well as the latent in the market. Technological issues consist of technological features for instance R&D action, mechanization, technology inducements as well as the rate of technological alters. They could establish obstacles to entry, minimum well-organized invention rank as well as manipulates outsourcing conclusion. Moreover, technological shifts could influence prices, values as well as guide to novelty (pestleanalysis.com). 4.0 Relate Framework to Organization: 4.1 Political Component The existence of AFTA otherwise ASEAN Free Trade Area is one of the vital issues to think about. Presently, the majority of ASEAN district are gratis  deal otherwise 96% of the whole ASEAN deal. AFTA was well-known in January of 1992 in categorize to eradicate tax barriers amongst the Southeast Asian states. It intended to decrease taxes in 15 years amongst the six states during an ordinary effectual special tax since Malaysia has two nationwide vehicle creators which are Proton as well as Perodua plus the government requests to defend their benefits. Sadly, the supposed growth might verify to be a provisional key. There is a large opportunity to facilitate the local market will be ruled through importation vehicles if we are about to ensure on the elevated advertising costs of the nationwide vehicles of Malaysia for the reason that of high invention prices as well as be short of merchant effectiveness. Thus, there will be raise in the quantity of the cars on the road as well as there will be accumulation of used vehicles in the market, for the reason that citizens will be likely to deal their vehicles for lower prices as well as importation products. Furthermore, the factor concerning the surroundings is very important since it is regard as one of the majority converse in relation to subject in the earth. Besides, the ecological instruction in Malaysia is able to be copied back through the colonialism of British which begun the ecological principles regarding the mineral as well as agricultural possessions to Europe. 4.2 Economy Component The automobile sales in the country is expected to fall by 12.4% due to dissimilar financial feature, the issue of global financial crisis which exaggerated the local economic position of the state in 2009. The administration of the state is looking for a slower financial enlargement for the state which can influence the buying attitude of the clients. Moreover, AFTA had enlarged the competition which will affect the presentation of Proton. Nevertheless, the presentation of the automobile business will be preserved as well as managed due to the large sum labor force. In addition, the unemployment rate was only 3.5%, which illustrates an approximately full employment in spite of the slower financial growth in 2003. 4.3 Social Component The rising inhabitants in the state can influence the automobile business. The state has a sum of 27.5 million people in the year 2008 which has the ability to give a larger amount of markets. Furthermore, the fraction of vehicle possession in the state is fairly high which indicates that citizens are taking into consideration vehicles are as main stuffs in their lives. Customers are anticipated to defer buying diverse motor vehicle for the reason that of the employment market hesitatingly for the reason that of the worldwide and local economic disaster. The rising facts as well as performance of the citizens concerning diverse ecological factors is an extra issue to think about. The collision of the illustration to the faithfulness of the client is another factor. 4.4 Technology Component The vital issue in the automotive business is technology. The growth in technology is rising as well as impacting the presentation as well as arrangement of all the business in the automobile business because of the rising competition. Moreover, it is also vital to reflect on the development of technology, mutually among the development and ability of developing. This is for the reason that it could influence the novelty procedure of any business. Intellectual property is well thought-out as a precursor of legitimacy as well as exclusiveness is an additional vital issue. By reason of the dissimilar technologies, mainly the assist of PC as well as the internet, the possible for novelty and improvement is rising. 5.0 Conclusion: 5.1 Summary of Analysis Proton was regard as the nationwide vehicle producer of Malaysia as well as regard as the most important competitor within the business. Nevertheless because of the dissimilar issues, mainly the accomplishment of AFTA, the auctions as well as market share of the business refuse (Ghani & Zainuddin 2008). However, because of the constant backup of the administration, plus the constant arrangement of the business in the market, it could be alleged so as to the business botched to focal point on the vital feature of a business consecutively to preserve competitor advantage as well as that is novelty (BuildBoard n.d). Consecutively to resolve the recent circumstances  of the business, it will be vital to focal point on novelty or R&D procedure. This may perhaps be completed by centering on relating latest IT or IS in the direction of accelerating the procedure of scheming (BuildBoard n.d). References: 1. www.proton.com 2. Ghani, K.,Zainuddin, Y.,Fereidouni, H. G. & Ziaee, A. (2008). ‘AFTA: Effect on Malaysian Economy’. Journal of Management and Social Sciences. Vol. 4, no. 2, pp. 134 – 141. 3. Hax, A & Wilde II, D. (2003). ‘The Delta Model – A New Framework of Strategy’. Journal of Strategic Management Education, vol. 1, no. 1. 4. www.slideshare.net/mandalina/marketing-plan-proton 5. PEST analysis method and examples, Businessballs.com. 6. Howard Thomas, (2007) â€Å"An analysis of the environment and competitive dynamics of management education†, Journal of Management Development, Vol. 26 Iss: 1, pp.9 – 21. 7. Atul Gupta, Jason C. McDaniel, S. Kanthi Herath, (2005) â€Å"Quality management in service firms: sustaining structures of total quality service†, Managing Service Quality, Vol. 15 Iss: 4, pp.389 – 402. 8. www.proton-edar.com.my/ Home / About-Us aspx 9. George O. K’Aol, Francis Wambalaba, â€Å"Homegrown Kenya: the horticultural industry under fire on CSR†, Emerald Emerging Markets Case Studies Collection, (2011). 10. 12Manage. Porter’s Five Forces Analysis. Available from: http://www.12manage.com/. [25th March 2009] 11. Frost & Sullivan (2002). The impact of AFTA on the ASEAN Automotive Industry. 12. Nijssen, E. J. & Frambach, R. (2000). Creating Customer Value Through Strategic Marketing Planning: A Management Approach. Springer. 13. ESCAP (2009). V. Malaysia. Available from: http://www.unescap.org/tid/publication/part_two2223_mal.pdf. [Accessed 24th 2009].

CDA competency goal Essay

In order to provide a safe environment to prevent injuries I’d do the following: †¢I would check every toy and equipment the children will be occupying for broken or missing parts often, to ensure that they remain safe for use and play. †¢I would make sure that all chemicals and cleaning supplies are put away out of the reach of children or stored away in locked cabinets to prevent injury or poisoning, I would also baby proof every corner of each table and make sure to place an outlet plug on each power outlet, to make sure that no child ever bumps their fragile heads and gets shocked at any point in time †¢I would liked to be trained in emergency evacuation procedures and plans so I know what to do if there ever is a tornado, hurricane or in the events of a fire so that I am able to remove all children from the classroom and/or building to safety. †¢I am training to be certified in First Aid and CPR,which makes me knowledgeable of caring for accidents and injuries. Functional Area #2 – Healthy: In order to provide an environment that promotes health and prevents illness, and teaches children about good nutrition and practices that promote wellness, I would ensure to do the following: †¢I’d sanitize all toys daily and immediately after being put into a child’s mouth, to prevent the spread of germs. †¢I will wash my hands and wear gloves before and while handling food, I would clean my hands after handling food, helping with toileting, cleaning noses to prevent germs from being spread †¢I will follow the center’s policies for sick children to prevent other illnesses throughout the classroom. Functional Area #3 – Learning Environment: In order to use relationships, the physical space, materials, daily schedule, and routines provided to create a secure, interesting, and an amusing environment that promotes engagement, entertaining exploration, and learning of all children including children with disabilities and special needs, I would take these necessary precautions: Well arranged space , which meets the developmental needs of children during routines and play, is provided. A variety of developmentally and age appropriate materials are available. Materials that will be used for play are well-organized.

Alexander Hamilton and Aaron Burr Duel

Therefore, he married Elizabeth Schuyler. Where his father-in-law was a Senate and in 1791 G. Philip Schuyler lost his Senate seat to Burr. Due to Hamilton popularity in Federalist, he blocked the Federalists to nominate Burr for governor. Then in 1792, Burr declared himself a Democratic-Republican. John Adams called Burr â€Å"unprincipled both as a public and private man† Hamilton was a Federalist and Burr was a Republican. Both men have repeatedly opposed each other. Hamilton owned the Bank of New York. Burr broke the stranglehold of the Federalists financers. Hamilton had lost the power of the purse and his political prominence all because of Aaron Burr. In that year, a tie between the Democratic-Republican candidates Aaron Burr and Thomas Jefferson, Hamilton in effort for denying Burr for becoming the winner for candidate, he favor Jefferson and crushed Burr campaign that let to Jefferson winning the election. On June 27, Burr formally challenged Hamilton to a duel, and Hamilton accepted because Hamilton political led him to refuse to deny the challenge. The duel wasn’t the result of the 1804 election but more of a culmination of their rivalry and disagreement between both of them for decades. Hamilton death was truly a tragedy for America because his efforts during American Revolution and Secretary of the Treasury. Alexander Hamilton and Aaron Burr Duel Therefore, he married Elizabeth Schuyler. Where his father-in-law was a Senate and in 1791 G. Philip Schuyler lost his Senate seat to Burr. Due to Hamilton popularity in Federalist, he blocked the Federalists to nominate Burr for governor. Then in 1792, Burr declared himself a Democratic-Republican. John Adams called Burr â€Å"unprincipled both as a public and private man† Hamilton was a Federalist and Burr was a Republican. Both men have repeatedly opposed each other. Hamilton owned the Bank of New York. Burr broke the stranglehold of the Federalists financers. Hamilton had lost the power of the purse and his political prominence all because of Aaron Burr. In that year, a tie between the Democratic-Republican candidates Aaron Burr and Thomas Jefferson, Hamilton in effort for denying Burr for becoming the winner for candidate, he favor Jefferson and crushed Burr campaign that let to Jefferson winning the election. On June 27, Burr formally challenged Hamilton to a duel, and Hamilton accepted because Hamilton political led him to refuse to deny the challenge. The duel wasn’t the result of the 1804 election but more of a culmination of their rivalry and disagreement between both of them for decades. Hamilton death was truly a tragedy for America because his efforts during American Revolution and Secretary of the Treasury.

The Development of Models for a Multimedia Presentation Assignment

The Development of Models for a Multimedia Presentation - Assignment Example Despite the fact that the car is the only car, its effect can be easily distinguished without application of a lot of expert interpretation or read its label. The reference materials have been exploited as much as possible. They include the rocky texture of the ground and the green watery plants common in cool places mostly inhibited by snails, the smoke below and past the car signifying the speed of the car, and many other observable references. It is also worth acknowledging the presence of various anatomical errors, used intentionally to express that the snail is frightened. These include references like the teeth and mouth of the snail, which are not present in the real-life appearance of a snail, as expressed in Figure 2 below. On the other hand, it is evident from the actual appearance of the car represented in Figure 3 below, that some details are not very accurately represented. For instance, this is a low clearance vehicle, which cannot rise as high as it is represented on the picture created. The objects captured in the created in the outcome (represented in Figure 1 above) involved the application of box modeling, and further subdivision and extradition of the objects to attain the right shapes. Figure 4 below is a collection of images representing the process of coming up with the snail’s shell. It began with a box, then adding lines to mark the edge flow, edges and vertices moved to shape. Thereafter, the subdivision of was done was applicable to attain better specifics, through chamfering or connecting edges. Occasionally pulling parts nearby with the Magnet/Tweak tools to acquire the shape of the snail, and the final appearance of the snail is represented in Figure 5 below. It is worth noting that sequence of modeling followed the highly advocated for steps as highlighted in the subsequent sentence.  

Essay about Church Growth Example | Topics and Well Written Essays - 1250 words

About Church Growth - Essay Example For the present action plan therefore, a combination of ideas and thought from both sides of the argument are being considered. In its totality therefore, this is going to be an action plan on how to map up ways of increasing the physical quantum of the church’s membership and there after find means of equipping the spiritual content of the members who are won into the church. This shall be done by following the planning process steps to come up with a comprehensive way of guaranteeing a paper-work church growth formula. Planning Processes Step 1: Purpose and Goal Setting The very first step is for the church to have a purpose and set out goals on what it wants to achieve. Already, it has been indicated that as far as church growth is concerned, there are two major schools of thoughts as to what church growth constitutes. For this reason, it is important that the church comes clear on which of the two ways it wants to pursue as it sets out its purpose and goal. The goal settin g ought to have some key conventional qualities. For instance the goals ought to be specific, time bound, achievable, relevant and measurable. The purpose should also have some key features such as the fact that it should have alternatives and monitoring and evaluation components. Giving the background of the church therefore, there could be a purpose and goal that seeks to increase the membership of the church by one hundred (100) souls in three (3) months and leading the new members through various spiritual activities that will help them become born-again Christians after two months of joining the church. Step 2: Surveying After the purpose and goals have been set, the way will be paved for surveying to take place. Surveying will particularly involve the act of going to the grounds to measure the real ‘size’ of the job at hand. By size, reference is being made to the length of work that will be involved should the action plan be eventually implemented (Bunzel, 2002). The surveying should therefore have several considerations that include the amount of money needed to carry out a perfect job, the scope of places to go, the kind of people to approach, the schemes and strategies to use for the soul winning exercise and the expected feedback that will result from the eventual work. Timing should also be another key aspect of the surveillance. This is because when the church implements its action plan within a very conducive time frame, there are several conditions within the timing that can affect the results. In a typical example, it is common knowledge that during occasions like Easter, 31st Night and Christmas, a lot of people become very religious. Because of this, they respond to church activities more quickly. Such a time would therefore be a better timing season to implement the church’s plan. Step 3: Planning Undoubtedly, the best time to go about planning for the church growth concept is after the surveying is complete. This is beca use the surveying will come out with tangible results and responses on the actual steps that need to be taken in the course of the implementation of the action plan. At the planning stage therefore, the church growth team will be dealing with a more realistic approach to getting the action plan underway. For

Essay on Artistic Appropriation Example | Topics and Well Written Essays - 1000 words

On Artistic Appropriation - Essay Example I focused on the historical background of the origin of appropriation practice and the methods of doing it in a way that it formed collage work. My work has a premise that is similar to the work of other scholars, nonetheless, it is unique in the way I have approached it. In order to develop my argument and to strengthen it along the way, I took help from the various literature that were available on the electronic journals and periodicals. These researches provided a strong base to this research and developed the initial path for this research to reach its destination. The culture of artistic appropriation in the historical times was compared with the modern to shed light on the differences that have arisen in terms of law, perspective and practice. My strong focus was on the legal history of copyright law. I surveyed the treaties and agreements that govern copyright law, domestically and internationally to develop an international view point instead of remaining limited to one aspe ct only. Significantly, my research is based on the United Kingdom’s copyright laws along with the international treaties. The study of the UK laws provided time and space to develop a strong analysis of the modern copyright law application. In case, the scope of study was spread over various countries, it would have become impracticable as well as less effective. The data collection from other countries would be time consuming, costly as well as of low quality. Therefore, I focused on the practice of copyright laws in UK and their impact on the UK artists only. I relied on the recent and landmark judgements related to the artistic appropriation cases both involving artist Jeff Knoos. The cases dealt with the act of copyright infringement through artistic appropriation and the related judgements which affected such cases in the future. Furthermore, I discussed the concept of fair dealing and fair use as perceived and practiced in UK. The study is purely legal and provides an argument that the modern copyright law has provided the artists with the method to get protected and at the same time continue with the artistic work under the fair use or fair dealing clause. Thus, providing an effective method to investigate the argument that the modern copyright law has not provided protection to the artists when they appropriate other artist’s copyright work. The research method adopted acted as a means of examining a myth from the legal perspective and from the perspective of the artists. The primary units of analysis are the artists, creators, sculptors, painters and intellectual property stakeholders having interest in the appropriation of artistic works. These stakeholders are the primary effected persons who have undergone the adverse effects of appropriation. Furthermore, the global bodies like World Intellectual Property Organization was also taken into consideration to answer the research questions and to achieve its objectives. The process of dat a collection is based on various processes like Sampling Frame. It provides the researcher with the option to collect data for the research expeditiously whilst remaining within budget to achieve effective and efficient results. A proper sampling frame includes age, color and location of the units that are analyzed. The sampling frame for artistic appropriation research design has the sample of Artists, Painters, Sculptors and International Bodies and

The tate gallery Essay Example | Topics and Well Written Essays - 1000 words

The tate gallery - Essay Example This is where marketing comes in handy. Marketing is a very important function of any business. Marketing involves identifying the customer needs and then making products that will satisfy those needs (Kotler et al 2007). Marketing is very important and beneficial to all the parties since the consumer will be provided with the goods he or she needs while the producer or seller will sell most if not all of the products since the products are produced as per the demand (Scott, 2008). The Tate Gallery uses marketing in advertising its artwork. They send out staff that studies the market and then brings the results. An area of study could be: prevailing conditions in the market (Kotler et al 2006). The Gallery then advertises those artworks which are most likely to attract the attention of the public. The artworks could be those that represent the current situations faced by various countries or the world in general (New York Times, 2009). The public’s curiosity will be stirred and they will want to see more of what the art Gallery has. This will draw more customers to the Gallery (Chamot et al 1964). Marketing is characterised with the marketing mix which is also commonly referred to as the 4Ps (Kotler et al 2007). These Ps include price, place, product and promotion. Price is that amount that is charged on a product. Price is determined by factors such as buyers perception of the value of the product, costs of the raw materials, level of competition, market share etc. Product is defined as that object or service that is produced in large numbers. Examples of products are the art paintings, sculptures etc. Examples of services are the hotel service, tourism etc. Place is the site at which the product is bought; the place maybe a physical location or a virtual location. Promotion is the means through which the marketer communicates any kind of information that will help him or her in his or her job. There are four major aspects

Nikolai Rimsky-Korsakovs Scheherazade Essay Example | Topics and Well Written Essays - 750 words

Nikolai Rimsky-Korsakovs Scheherazade - Essay Example Of course, the orientalism of the symphonic poem makes a significant impact on the images the listener may have in his / her mind; however, the way they are represented depends on the listener’s experience only. Personally, I like the first part the most. For me, it is the most bright and memorable when it comes to visual imagery. This part of Scheherazade is definitely about the sea. With the first sound of the woodwinds after the main theme, I see the sunlight that goes through the calm and glassy water so it shines and even become hard to look at. After the entrance of the second main theme, when the orchestra plays tutti, it is the time for the ship to appear. It is a massive, powerful ship with huge sails; it seems that no wind and no storm can destroy it. Music renders the feeling of greatness and stability. Also, it reflects the movements in the see, namely, how waves roll back and forth calmly and steadily. Suddenly, a blast of wind destroys quietness at sea; the waves become larger and larger, calmness turns into a heavy storm with the ship being its victim which is thrown to and fro. All the themes interweave, and the string party become more restless. The image of the storm is com pleted with despairing exclamations in the wind instruments. But the storm blows over, and the see is calm and peaceful again. The second part of the symphonic poem starts with the theme from the first part followed by a rich ornamented theme in bassoons which is developed in variations in parties of other instruments. The theme is so smooth and melodious that it reminds of a human voice, like someone is telling a story. Further, tense surges up and becomes more uneasy, emotional and enthralling. The exclamations in the group of brass instruments reminds of fanfares, and it creates an image of a blistering battle, a struggle to the last breath. In fact, the entire march-like episode based on these

Do media in China enjoy more autonomy today Essay

Do media in China enjoy more autonomy today - Essay Example ile in many democracies, in the west, and the press is free to criticize the government without fears of reprisals, this is still a dream to the Chinese media. The CDP (Communist Partys Central Propaganda Department) is the main body charged with the censoring of all information be it on TV print or even the internet. In retrospect, the Chinese press may have enjoyed a degree of freedom in the past, today the communist government is tightening the leash against the media in an attempt to control the information that filers to the public. This is according to observers from both inside and outside China; interviewed by Deutsche Welle Wolfgang BÃ ¼ttner said that freedom of the press has taken a turn for the worse in the recent past (Blau, 2012). Herein, some of the problems that are experienced by the Chinese media (inclusive of online media) are examined with the conclusion entailing a projection of whether the situation is likely to change in the near future. One of the main courses of these increased clampdowns could be the revolutions in Egypt and Syria which were instigated from a social medial platform. The Chinese government fears that its citizens may attempt the same after an online appeal to the Chinese to follow suit (Bennett, 2011). The Chinese constitution requires that any online company should be ready to co-operate with the state in apprehending those who leak state secrets, however, the definition of state secrete is rather vague. Conveniently, this could be any information the government deems a threat to its economy or reputation, whether true or not. In 2010, the government launched its first white paper that requires for everyone using the internet in China, including foreign correspondents should adhere to the laws of China in what is commonly known as media sovereignty (Bennett, 2011). In view of the harsh economic times and the corruption that seems to be etching itself in government circles, the party is aware that the Chinese people might

What does work mean Essay Example | Topics and Well Written Essays - 500 words

What does work mean - Essay Example Scientifically, work is related to change of energy to come up with finished good for consumption or for visible results (Loutfi, 2001, p. 87). According to scholars of physical science, work can only be done when force is applied to an object. There are different categories of work, which include Full time in which an individual is found to be in working place actively carrying out daily chores for about thirty-eight hours for every seven days (Batsleer, & Davies, 2010 p. 52). A full-time worker enjoys right to leave every year during which he is supposed to receive regular monthly payment.Furthermore, the full-time worker should be granted sick and individual excuse from the job. Additionally, full-time work enjoys right to work in a good environment and early information in event of any changes at the workplace (Lederman, &Teresi, 1993, p. 62). Part-time workers are found working for few hours a day but they have the specific time to attend job.Moreover, casual workers attend job at regular hours and they do not have to work every day. Their pay is not fixed and they do not enjoy the benefit of work protection and increment of payment (Friedman, 2005, p. 77).On the other hand, Contract workers are employees who make some agreement with business organizations or individuals to do some job for the organization setting particular remunerations.Basing our discussion on studies carried out about work, scholars have observed that people engage in work so as to earn their living.

Can Globalization Be Reversed Essay Example for Free

Can Globalization Be Reversed Essay With the coming of the industrial age, the wheel of progress turned. Factory based mass production replaced independent artisans, who now worked for business firms (Volti, 2009, p. 187). The workers became dependant on businesses to provide facilities to work in, tools to work with, and wages to take home, creating a society of employees (Volti, 2009, p. 187). Since work and income was now dependant on the factories, workers need to find homes in relative proximity, thus leading to higher density of individuals within the urban areas surrounding the manufacturing centers. With urbanization came a need for production and transportation of food to the growing cities. In the 18th and early 19th centuries, this food was generally produced locally on the surrounding farmlands with only the occasional delicacy imported from a foreign land. While factory work was hard and the hours long, people chose it over subsistence farming as it lead to a better standard of living for themselves and their offspring. Bertha Black remembers her family’s move to a mill town: We all went to work, in the Amazon Cotton Mill and we all worked there all our lives. We were all anxious to go to work because, I don’t know, we didn’t like farming. It was so hot from sunup to sundown. No, that was not for me. Mill work was better. It had to be. Once we went to work in the mill after we moved here from the farm, we had more clothes and more kinds of food than we did when we was a farmin’. And we had a better house. So yes, when we came to the mill life was easier (Rivoli, 2009, p. 110). Thus began urbanization which continues to this day, with 50% of the global population residing in urban centers (Satterthwaite, 2010, p. ). This urbanization is directly coupled with wealth, where the â€Å"more urbanized a country, the higher the individual incomes (Satterthwaite, 2010, p. 1)†. The United States, one of the top 20 global incomes per capita (World Bank, 2011, p. 1), supports this, as 82. 1% of the population live in urban centers (Satterthwaite, 2010, p. 2). Urbanization trends have been linked to enhanced democracy, technological innovations, economic progress, and higher living standards (Satterthwaite, 2010, p. 2). Is it any wonder then that â€Å"[n]o matter the path of economic development a country has chosen, urbanization remains an inevitable outcome of this effort across the world (Satterthwaite, 2010, p. 1)†. As the living standards and population densities of urban centers increase, so too do the distance that food needs to be transported. Today, a large urban center, like the greater New York City metropolitan area with a population of over 21 million people (US Census, 2010), has to reach to great distances for its food. This is because 1. acres of arable land are required per person to maintain the diverse diet American’s enjoy (Pimentel Giampietro, 1994). This translates to 25. 2 million acres of arable land being required to feed New York City. Thus 7% of the US population (US Census, 2010) requires 10% of America’s farmland (USDA, 2012, p. 56). It should come as no surprise then that our agriculture imports exceeded $94 billion in 2011 (USDA, 2012, p. 90). The comparative wealth of the American populace, coupled with their culinary desires leads to a demand for imports of produce and other horticultural items during the off seasons in the US. Put another way, Americans’ desire for fresh tomatoes on their Del Taco tacos in February in the American northeast drives global trade to farmers in Central and South America. The motivation of the labor market, to increase quality of life, explains the willingness of individuals to accept factory work and their desire to progress to better, higher paying jobs. Neo-classic economic theory explains business motivation to achieve maximum profitability through efficiency of production (Weintraub, 2002). Efficiency is maximized through three inter-related and adjustable parameters: technology; labor; materials. Technology, as expressed in terms of facilities and equipment, is a fixed cost of production, whereas labor and materials, including transportation expenses, remain variable costs (Starr, 2008). In achieving the optimal balance, any large discrepancy will heavily weight the calculation. For example, the wages for textile workers in southeast Asia are 7% of the wages in United States (Rivoli, 2009, p. 104). This large of a differential in the variable cost makes it virtually impossible to create an equivalent model through enhanced technology, especially when most technology advances can be applied to factories located in the lower labor cost countries. Thus Rivoli’s â€Å"Race to the Bottom† continues (Rivoli, 2009, pp. 92–104), bringing with it industrialization and urbanization. As with any race, there are winners and losers. The countries acquiring the manufacturing jobs and the companies maximizing their profits through relocating manufacturing to the lower labor cost countries are obvious winners. The employees of the factories being off-shored are initially the losers, until the race progresses to the next industrial sector. A clear example of this is the Carolinas, where many textile worker’s jobs have been lost to southeast Asia, now have opportunities for better paying jobs in auto manufacturing. BMW opened a plant in Spartanburg, SC, the middle of the cotton belt, which generates over $1. 2 billion in wages and salaries annually (Ramsey, 2009). Thus the race continues, moving from industry to industry, as total production cost dominates companies’ decisions on where to locate manufacturing. However, many of those losing their jobs in America raise the cry to stop globalization, reconstitute local manufacturing and local food markets. This would not appear to be a feasible alternative for three reasons. First, the degree of urbanization present in the United States makes it unreasonable to expect food to be produced locally. Similarly, the relative wealth and current lifestyle lead many to expect and demand fresh produce year round. Together, these preclude a shift to locally grown and produced foods. Second, most companies in America today have some aspect of globalization present in their value chain. This can be upstream in their suppliers of materials and/or equipment or downstream in their customers. This is readily apparent in large corporations, such as Nike and WalMart, but it is also present in smaller companies. Rygaard Logging, Inc. out of Port Angeles, Washington is a good example. This small company relies on equipment imported from South Korea and Germany to harvest logs. China has become the largest buyer for timber from the northwest, thus becoming an attractive customer for Rygaard (Springer, 2011). Unwinding these value chains to bring manufacturing back to America may be possible, but would require the will of politicians in Washington to face the public backlash as prices increased, and selections decreased (Rivoli, 2009). Third, the growing population requires more land be utilized for their living and working environment. Current estimates show each person in the US consumes one acre for housing, work facilities, and supporting infrastructure (World Bank, 2011). Further, the current population growth is over 50,000 new people per week (Pimentel Giampietro, 1994), meaning that over 2. 5 million acres of arable land or bio-diverse forest land is lost annually, increasing the pressure on food production. Plus, these people are generally employed by firms that rely on globalization in their value chain, as described above. Together, these factors make it highly improbable that the US can return to 100% locally produced foods and companies whose value chain resides 100% within America’s boarders without significant changes in lifestyle.

Rent-A-Captive Insurance Company Development

Rent-A-Captive Insurance Company Development A Critical Analysis of the Benefits, Risks and  Implications of Creating an Off-shore  Rent-a-Captive Insurance Company in Bermuda. Contents (Jump to) Abstract Chapter 1    Methodology Chapter 2 –   Research Process Chapter 3 – Findings and Evaluation of Findings 3.1 Captive 3.2   Analysis of Benefits, Risks and Implications 3.3 Rent-A-Captive 3.4 Pestle Analysis 3.5 Porter’s Five Forces Abstract The potential for utilizing a rent-a-captive facility in Bermuda represents a method that is a business proposition to examination the risks, benefits and implications of utilizing this as a viable strategy. Inherent in equating any strategy are its suitability, ease of entry and exit as well as costs and weighing these against the learning curve and relative benefits that will accrue in best and worst case scenarios. To reach such a determination, the examination will employ a number of strategic as well as financial tools, along with the advantages and disadvantages of the methodology to determine its viability in a general, specific and overall sense. The use of any business strategy has either direct and or indirect implications which represent variables that must prove their worth in their ability to further the overall aims, objectives and purpose of the entity and to be particularly of benefit in adverse economic conditions and or unforeseen occurances. The preceding tough evaluative climate represents the acid test via which to effectively prove or disprove its potential worth to the enterprise. A ‘captive insurance company’ represents an entity that is set up for the limited purpose by parent insurance companies to finance risks from the main organization and or its subsidiaries (Bawcutt, 1997, pp. 8-9). Rather than representing a new concept, captive insurance companies have been around since the mid 1870s, borne out of ‘protection and indemnity’ clubs of that period which offered marine insurance in coverage of third party liabilities as well as expenses emanating from either operating or owning ships as a principle (Braithwaite and Drahos, 2000, p. 157). The preceding was a result of the passage of the Lord Campbell Act of 1846 (Alabama Law Review, 2004, p. 884), which â€Å"†¦ was enacted by the English Parliament †¦Ã¢â‚¬  and titled the ‘Fatal Accidents Act of 1846’ whose purpose was â€Å"†¦ to alleviate the harsh results †¦Ã¢â‚¬  from either serious injury or death on ships during that period (Alabama Law Review, 2004, p. 884). Claim liability potential was increased as a result of the flood of immigrants traveling to the United States as well as the higher value of cargos and injuries to crew members. The Protection and Liability Clubs pooled resources to cover claims arising from the passage of the act and minimize exposure for the primary insurance carriers such as Lloyd’s of London (Alabama Law Review, 2004, p. 884). Captive insurance companies can be utilized to provide insurance coverage for commercial purposes, as well as industrial and governmental entities to insure either all or part of the risks facing an organization (Geisel, 2004). Captive insurance companies also can be formed as a result of companies that have similar business risks joining together to pool said risks in a cost effective manner to have the needed insurance coverage for these types of areas (Geisel, 2004). The increased growth in this industry segment is a result of the change in the way businesses and organizations see the way to finance their risks as it represents a more flexible approach against potential losses, augmenting catastrophic risk that is covered via conventional means (Sammer, 2001). Critical to the preceding is understanding that insurance represents â€Å"coverage by a contract binding †¦Ã¢â‚¬  one party to â€Å"†¦ indemnify another against specified loss †¦Ã¢â‚¬  as a return for pr emiums paid covering said insurance (Houghton Mifflin, 2006). It, insurance, represents a form of ‘risk management’ that is a hedge against some type of financial loss that has a probable incidence of occurring, thus insurance represents the transfer of this risk from one entity to another as a result of the exchange of premiums calculated based upon the potential of occurrence. The preceding summary will provide an understanding of the purpose and niche regarding captive insurance companies as well as how they fit into the overall realm of the insurance industry represents important background information that is germane to the topic of ‘a critical analysis of the benefits, risks and implications of creating an off-shore rent-a-captive insurance company in Bermuda’. Chapter 1 – Methodology The methodology that will be utilized in this examination will consist of understanding the nuances involved in the process of single parent captives as well as rent-a-captives to determine the subtle and or obvious differences that represent either positive or negative factors which a company would need to be aware of as well as consider to have a full understanding of the process. Inherent in such is the understanding of the legal, business, regulatory, financial, operational and administrative facets of the process and how these impact upon each other in the utilization of a rent-a-captive facility. The preceding represents a broad based understanding as well as in depth with regard to the benefits, risks, implications and related factors. In equating such this examination will employ such tools as Porter’s Five Forces framework, a SWOT analysis, as well as a Pestle Analysis and a discussion of the Balanced Scorecard to aid in reaching a determination of the foregoing. The limitations to the methodology may be in that the tools of analysis are not directly suitable to analyze the process, and or they may be too many business, operational and or industry variables to enable equating if the process is or will be effective in all or most instances. The methodology is limited by the complexity of the problem in that the decision branch tree factor may be too large to adequately cover all of the potential nuances and aspects which might be important. As the basis for the study is the suitability of a certain structure for potential utilization, the methodology is thus simplified into gathering and comparison as a means to uncover the basics and related detail factors which appear in multiple sources. Chapter 2 Research Process The research process will consist of secondary measures utilizing books, journals and online sources to provide a wide cross section of ideas, viewpoints, concepts, theories and practices to ensure that the salient foundational information is based upon the true and actual conditions present. Through a comparative analysis entailing systematic methodologies of collecting, review and analysis of data, the foregoing will provide for such an outcome. Yin (1994) advises that in conducting research, one should seek to equate the positioning of such against real life phenomenon by virtue of gathering a number of viewpoints to reach a balanced understanding. Yin (1994) also adds that the broader the examination, the better will be the grasp of the information and thus conclusions reached. Maxwell (1996) supports Yin’s (1994) approach and cautions that quality is more important than quantity, thus the research process will seek to weed out lesser sources in favor of more established ones through a comparative process. The preceding represents the suggested approach as put forth by Lieberson (1991), as well as King et al (1994). As the subject represents a pragmatic consideration whereby theory is less important, the comparative analysis of sources is easier as the base information should be relatively close, if not identical, depending upon the jurisdictional locale. Said variable renders the research process as relatively straight forward. Chapter 3 – Findings and Evaluation of Findings In examining the subject matter, background information as well as facts, details and information pertaining to the field of captive insurance companies is an important foundation to understanding the benefits of a rent-a-captive as a comparison. The forgoing includes an understanding of the jurisdiction in which the rent-a-captive is located. 3.1 Captive 3.1.1 Bermuda Bermuda’s entrance into the international insurance market got its start in 1947 when it was selected by C.V. Starr â€Å"†¦ as the location for his American International Company, Limited (Bermuda Market Solutions, 2005, p. 3). The captive concept was promulgated by Fred Reiss in the mid 1960s as â€Å"†¦ an insurer owned by a non-insurance parent †¦Ã¢â‚¬  (Bermuda Market Solutions, 2005, p. 3) which was established to finance the insurable exposures of the parent. Bermuda is the global leader in the captive insurance market, growing dramatically during the 1980s as a result of group captives that were created to permit smaller companies to align with those of similar interests to thus gain greater control over their insurance through the pooling of risks (Bermuda Market Solutions, 2005, p. 3). One of the largest of these was the OIL Insurance Ltd. that was formed by petroleum companies in the early 1970’s as a result of difficulties they were facing in the property insurance market. Table 1 – Total Insurance Assets for all International Insured’s (in billions) (Bermuda Market Solutions, 2005, p. 3) Bermuda, is the premier domicile for captive insurance companies as well as rent-a-captives with in excess of 1700 insurers (Lowtax.net, 2004). The captive insurance market has slowed over the last couple of years in contrast to its rapid growth pace of the late 1980s and 1990s with other locales offering similar advantages thus effectively bringing its share of the global market down to approximately one third of all captives from a high of 40% in the mid 1990s (Crombie, 2005). Locations such as the Cayman Islands, British Virgin Islands, Hawaii, Guernsey, and Barbados as well as Dublin, along with an addition 45 other jurisdiction as well as a number of states in the U.S. have slowed Bermuda’s growth and market share as a result (Crombie, 2005). Other factors in this trend have been (Crombie, 2005): the increased popularity of risk retention groups whose small size, in general, does not make them really suitable for location in Bermuda, increased marketing by new jurisdictions such as Hawaii and Vermont which have the advantage of being American states, developments in the varied types of corporate vehicles that are available, notably segregated account companies, and lastly, the ways in which some jurisdictions count their captives, including those that have formed and not removing them once they have been dissolved. Another important consideration is cost. Bermuda is expensive and thus since cost does matter to smaller captives as well as those operating on slimmer margins, there selection of locale takes this facet into account. Bermuda’s client base primarily consists of large U.S., European and South American companies whose presence has been in that location for some time (Crombie, 2005). The cost is offset by Bermuda’s reputation, quality of professional expertise as well as the ease of access thus minimizing the cost variable over the long term as a result of the foregoing and the locale’s stability. Another factor that must be considered with respect to Bermuda’s global positioning in terms of the attraction of new captives is the limited infrastructure on the island for residences, schools and traffic. Bermuda is basically more of an exclusive club which is based upon quality as opposed to quantity (Crombie, 2005). As the third largest insurance local after Ne w York and London, Bermuda’s new business formations in 2004 saw approximately 50% in the form of captives (Lowtax.net, 2004). The country is the number one location for segregated account companies with 83 that include 6,234 cells within cells as compared to 126 protected cell companies in all other locations as of 2003 (Lowtax.net, 2004). Table 2 – Captives by Domicile Year End 2002 (Towers Perrin, 2004) Table 3 – Leading Captive Domiciles (Elliott, 2005) The preceding represents data on captives as of year end 2002, thus accounting for the higher figures indicated above, showing captive numbers for domiciles mentioned as a comparison. 3.1.2 Rent-a-Captive Insurance Companies A rent-a-captive insurance company provides ‘captive’ insurance facilities to other companies for a fee and protects itself from any losses via individual programs that are further isolated from losses via other programs in the same company (Banham, 2001). Banham (2001) provides the analogy of thinking of a rent-a-captive insurance company â€Å"†¦ as a mall of stores †¦Ã¢â‚¬  and each store represents â€Å"†¦ the self insurance program of a particular company†. The rent-a-captive concept represents the fact that a company does not have to go through the procedures and regulations entailed with incorporating its own captive as it is able to lease one instead. The preceding represents a business rationale for creating an off-shore rent-a-captive insurance company, leasing out its existence. The concept of the rent-a-captive provides much of the same benefits that corporate owned captives do in that it provides (Banham, 2001): increased control regarding losses as a result of improved claims management, the ability to derive a profit from underwriting along with investment income from the funds that are set aside for claim reserves, various tax benefits, and avoidance of accounting and audit issues, which are the responsibility of the rent-a-captive sponsor. The advantages of the establishment of a rent-a-captive insurance company depend upon a number of factors on the part of the interested company. These aspects shall be discussed in the analysis of the benefits, risks, and implications of a rent-a-captive. 3.2 Analysis of Benefits, Risks and Implications In equating the reasons, as well as benefits, risks and implications of forming a rent-a-captive it is important to have an understanding of the reasons as to why captives are formed, thus providing an understanding of the benefits of a rent-a-captive. The following represent the foregoing (Elliott, 2005): To reduce and or stabilize cost Generally, the financing of risk under a captive lowers overall cost and aids in stabilizes costs long term as a result of being less susceptible to changes in the insurance market. Examples of cost savings are represented by the fact there is: no profit load, the reduction and or elimination of commissions to brokers, lower costs for administration, the owners in a captive share in all of the earnings through policyholder or shareholder dividends, a captive avoids costly insurance regulations as well as the exclusion of payments into residual market pools and premium taxes, savings in loss – cost is another area as captives serve to increase the awareness of risk management as well as cost awareness among top management. The savings benefits, in general, exceed the expense of both setting up the captive as well as administering it. Increase capacity and provide access to reinsurance A captive can access the capacity of reinsurance markets and might be able to provide more coverage limits than available within the retail market. An example of the preceding is whereby multiple insurers participate in what is termed as a slip to offer millions in added capacity which would not otherwise be available. A ‘slip’ is a binder that often includes more than one insurer. An example of the preceding is provided by Lloyd’s of London whereby the slip is passed from underwriting to underwriter to initial and subscribe to specific parts of a risk (captive.com, 2006). Control One of the reasons for the origin of captives is due to insurance buyers that were tired of the vagaries of the market regarding insurance and looked for more control concerning underwriting, rates, investments and claim settlements. Captives provided them with these benefits. Coverage An advantage of captives is that they can provide coverage to subsidiaries and other firms that might not otherwise be possible or available for such areas as professional liability, certain business risks and punitive damages. Rate and form freedom The benefits of special constructed wording can be written by captives as a guide for reinsurers to follow to thus provide coverage’s for obscure areas. Establishment of better than average claim experience As the claim history for a captive insured may be improved or batter than the overall class of business for an insurer in the commercial category, this aspect makes a sound argument for retention of that risk in this framework as opposed to the broader and poorer claims experience as a whole. Recapture of investment income and to accelerate and or manage cash flow The investment income derived from a captive may be completely or partially retained by the captive as opposed to staying with commercial insurers thus providing revenues that would otherwise be lost. Insurance accounting Special tax treatment accrues to insurance companies, such as tax deductible reserves for claims not paid and in the instance of life insurance reserves no taxes are paid on the internal build up of interest income. Tax deductibility Other tax advantages are possible such as in the case of multiple owners or insured as well as in the cases where the insured and shareholders are not the same. Another area is in the deductibility of premiums along with the deferred taxation of insurance income. Careful consideration of tax benefits need to be investigated prior to adding such advantages to the list of benefits. Perceived safety of formalized services As the books and records of captives are audited along with the claim reserves being under constant review by actuaries, investments managed by professionals and accounts that are maintained by managers that are independent, these services represent checks and balances with so many differing external factors checking the books and accounts that the system has extra measures of safety that in most cases is superior to other means whereby a number of these functions is performed in-house or by the same company. Favorable regulations Many captives are formed offshore to avoid certain unnecessary regulations concerning solvency. However, just as in onshore solvency regulations, offshore captive solvency regulations are designed to protect policyholders. In some instances this regulation is weak in offshore locales, which is not the case for Bermuda as well as the state of Vermont in the United States. Administrative tool for funding retentions In many instances, large organizations create captives to fund differences between their large corporate deductibles or retention and smaller deductibles or retention of its individual business units. Under the captive format the main organization is able to offer fixed cost rates that are above the smaller deductibles and balance the equation of as a result overall larger rate, thus spreading the deductible or retention and achieving savings. Risk management Captives provide the risk manager with more leverage than the annual cost allocation process. Innovative deals Captives can increase the access to certain deals, such as more creative loss portfolio transfers achieved by transferring liabilities from one balance sheet to another. Warehouse data Being in a captive can provide a tool for the collection of better as well as more data in support of its cost management efforts. An example of this is that a captive can be the central repository for what is termed common disability cost management for instances when an organization elects to finance certain employee risk benefits as well as worker compensation risks. Strategic partner support Coverage can be made available by organizations for their various business partners as represented by key suppliers and or customers, as well as independent contractors, etc. when the normal market pricing and or terms are not favorable. The preceding may very well provide tax management as well as profit advantages. Profit In some instances captives are created to underwrite the risks of a customer or to provide third party insurance. Such undertakings can provide and or add value to an organization as a result of tying the customer to the owner. Some of the preceding areas represent clear financial aspects as well as non financial operating areas which can in certain instances turn out to be as important or more important than the financial considerations in creating or utilizing a captive. The understanding of the benefits, advantages and implications of a captive are integral in the discussion of a rent-a-captive in that the reasons and rationales that are found in the former also apply to the latter. As such, a discussion of the structuring of captives is an important aspect to be considered in this context, as such aids in the understanding of a rent-a-captive. There are three primary aspects of captives, the financial, operational and of course personnel. Captive financial resources consist of premiums along with capital and investment income. The premiums and or capital can consist of non-investment instruments such as a letter of credit and these financial resources must be sufficient to accomplish three tasks (Geisel , 2004). First is the facet of financing the legal obligation as part of the insurance and or reinsurance agreements. Secondly, the financial resources must be sufficient to finance a reasonable level attributed to adverse development, and lastly, the financial resources needed to fund the expenses of operating the captive. It is important to understand that captives, as well as rent-a-captives operate in a somewhat similar fashion as traditional insurers. It, the captive, directly issues policies to insured’s, and or reinsurers via a fronting insurance company (Geisel, 2004). It also collects the premiums and pays claims as well as setting reserves aside to pay for legal obligations stemming from its insurance and or reinsurance agreements, and pay for the captive’s operating expenses, and dividends (Geisel, 2004). One of the advantages is that captives usually utilize a captive management company to run the day to day operations, maintain books and serve as the liaison with the regulators and Board of Directors (Towers Perrin, 2004). Captives also can and often do utilize specialty service providers, accountants, legal council and actuaries to aid in the operational aspects thus eliminating the need for finding, retaining, and setting up office space to house these aspects, which represent a considerable cost savings in internal administration. In terms of managing costs, captives have the following benefits and or advantages (Elliott, 2005): Actuarial Bermuda requires an actuarial analysis as an aspect of the feasibility study concerning the area(s) of insurance and or reinsurance being contemplated for setting up a captive. The premiums as well as losses are thus based upon this information and when the actuarial review has established a level of confidence in these figures, the captive will thus make a better impression on regulators, tax advisors and reinsurers. Bermuda requires ongoing actuarial analysis. Expenses In most circumstances a captive should be able to operate in a more efficient manner than commercial insurance companies. The captive’s expenses should be in the area of below twenty percent of premiums, unless loss control dictates a higher ratio. Investment It is a general practice among captives to set premiums to reflect the time value of cash in the assumption that the investment returns will closely approximate the amortization of the premium discount over time. The captive investment policy should thus be in keeping with the assumptions that are utilized to set premiums. 3.3 Rent-A-Captive The foregoing analysis and details concerning captive insurance companies provides the needed foundational and structural information to better understand the nature of the entity and thus the implications, benefits and other facets associated with electing to utilize a rent-a-captive format. Given the preceding, the reasons and rationales for electing to choose a rent-a-captive format takes on increased meaning. Rent-a-captives represent the fastest growing segment of the captive category and the indications are that they will continue this trend and become even more broadly utilized in the future (International Risk Management Institute, 2004). Large corporations usually establish a captive to aid in the underwriting of its risk as well as to assume portions of its losses based upon the prospect of making or deriving a profit from these operations (Elliott, 2005). In essence, the corporation enters the business of insurance in an attempt to gain control over its losses as well as t o lower the cost of its insurance as a result of deriving a return of profit from underwriting and or investment income. Smaller companies lacking the financial resources to cover the costs of setting up and meeting requirements for a captive can derive much the same benefits through renting a captive as the alternative to receiving the indicated benefits from their insurance program(s). Rent-a-captive insurance companies are in general funded, created and â€Å"†¦ rented by insurers, brokers or groups of affiliated businesses† (International Risk Management Institute, 2004). The determination as to whether a rent-a-captive represents a viable as well as sound proposition is dependent upon a number of facets that can be summarized as follows (Geisel, 2004): size of the company considering utilizing a captive, or rent-a-captive, the amount of losses it ha

Personal Previous Job Reflection Social Work Essay

Personal Previous Job Reflection Social Work Essay DISCUSSION: This question reveals a lot about you. You want to indicate that what you liked best about your last job are things that will appeal to the Hiring Manager. Show that your last job allowed you to demonstrate many of the desirable Behavioral Competencies that are discussed at the beginning of this Guide. Give specific examples of how your last job allowed you to flex your skills and show your maturity. Never make statements like I like that my last company gave me a lot of vacation days, or something similar. When answering about what you liked least, keep it short, do not be negative, and relate your answer to how your last job limited you in your ability to exhibit positive Behavioral Competencies. What I liked about my last job was the fact that there was good on the job training. I was able to really develop my X skills, which I know will help me succeed here if I am fortunate enough to be able to join your team. What are the qualities and skills of the people who have been most successful at this company? One thing I liked about my last job was that it allowed me to develop my leadership skills. FOR EXAMPLE, I was put in charge of a project where I had to earn the buy-in of people from multiple different departments including Marketing, IT, Product Development, and even HR. I held all the responsibility for getting this project completed on time, even though I had no real authority over my teammates since they did not report to me. I was able to create a project vision that the team agreed on, and then day-to-day I made sure that each team member completed their work on time. I did this in most cases by appealing to my teammates own self-interests. FOR EXAMPLE What I liked least about my last job was that the management style was pretty hands off, and this was fine for me because I am self-motivated and work hard to achieve. But the lack of structure sometimes allowed some of my teammates to slack off from time to time and I often ended up having to pick up the extra work. I would not mind that SOMETIMES, but it got old after a while. I had to constructively approach my manager and let her know what was going on WITHOUT creating any friction between me and the slacker teammates, who I actually liked as people. In the end, it worked out well, because I was pro-active. Have you ever run into that type of situation as a manager? What have you learned from your mistakes? DISCUSSION: Show that you are able to learn from your mistakes, but dont offer up any negative examples concerning your past performance. Show that you have been successful, but that you have the maturity it takes to examine your own behavior so that you can learn and grow and be a better employee. Be brief. Good question. Well, I have been successful at every job I have had, but I have had the normal ups and downs. Id say that I do actively try to monitor my work habits and the quality of my work so that I can constantly be improving myself. FOR EXAMPLE, I have had one or two hiccups with customers where their satisfaction was not where I thought it was. I learned that I have to really monitor certain difficult customers closely and take their temperature so I can keep their satisfaction level as high as possible. Have you had any customers like that here? Give me an example of a problem you faced on the job, and tell me how you solved it. DISCUSSION: This is a problem solving question that tests your critical thinking skills. This is a great question for showing that you are a creative and capable problem solver. The problem you select to use as an example should be as similar as possible to a problem that you are likely to face at the job you are interviewing for. I try to take a systematic approach to problem solving where I take the time to gather the relevant data, clearly define the problem or goal, then come up with possible solutions. I think it is important to get the information and clarify the problem first before you start coming up with possible solutions, or wasting other peoples time. FOR INSTANCE, when I was at Job X What kinds of challenges are you currently facing in your department? How tough a position does this put you in? What could the ideal candidate do to help solve this problem in his or her first three months on the job? Describe a situation when working with a team produced more successful results than if you had completed the project on your own. DISCUSSION: This is a behavioral interviewing style of question. The Hiring Manager wants to learn more about your thought process, and how well you can form examples to answer this teamwork related question. You will want to show your ability to solicit ideas from others, listen carefully, and persuade people to your point of view. Well, I have worked both independently and as a member of team, throughout my career. I enjoy both, and can do both equally well. I will have to say, though, that working with others has often yielded great results for projects I have worked on specifically when it comes to brainstorming. I try to get everyone involved in coming up with new solutions by making time for sessions where there are no wrong ideas or answers. The creativity of a group of people is always going to be greater than that of one person, and thus the results will be more successful. I did that a lot a Job Y. FOR EXAMPLE Working with others allows you data-mine other peoples skills and experiences, get perspectives and ideas that you would not have on your own, and check the quality of your own work before it goes out the door. FOR EXAMPLE, at Job X I worked with many great people. I was able to pick their brains so to speak about the effectiveness of various techniques, estimates on how long it would take to get various things done, etc. I would not have been able to do my job as effectively with out them. Will there be the opportunity to work in team situations at this job? Describe a time when you were faced with problems or stresses at work that tested your coping skills. What did you do? DISCUSSION: Workplace stress is an issue for everyone. Dont pretend that you never get stressed out. You want to show that you can deal with stress and cope with difficult situations. Show that you are calm under pressure, and know how to avoid stress in the first place through planning and time management. Well I think it is important to remember that stress effects everyone, and it is inevitable that sometimes people are going to have bad days. That is why I try to give people the benefit of the doubt when they seem to have a short fuse. What I do personally is try to control my response to a situation. You cant necessarily control what happens to you, but you can control your response. What I try to do is lengthen the time between the stressful situation and my response so that I can identify the cause of the stress and decide what I can do about it. FOR EXAMPLE, on several occasions I have had to deal with very irate customers who actually yelled at me. What I did was stay calm and not let them get under my skin. I really tried to listen and decide exactly what it was that was at the root of their problem. Then I provided solutions that could be completed within a specific time-frame. I always find that it is best to face those types of situations head-on and be objective about the m. I do my best to be professional and not get my emotions involved. Also, I try to avoid stress in the first place by tackling difficult tasks or conversations sooner rather than later. Does that make sense? What was your role in your departments most recent success? DISCUSSION: Youll want to be very specific here, and frame your answer in terms of how you saved time and money. The Hiring Manager is looking for a pattern of success, and you need to describe recent successes in detail. Use the S.T.A.R. Statement formula for your examples. Be prepared with at least three examples concerning your recent successes, and make sure at least one of them relates to teamwork and something you accomplished as part of a group. Make sure you address how your work made other people FEEL, as well as the time you saved and the revenue or cost-savings you generated. I guess that would be a recent project for client X. I handled all of the communication with the client for our last project. It was a three month long project where my team had to build a custom package based on the needs of client. I was instrumental in translating the clients business needs into detailed product features. I had to make sure that my team understood what the client wanted, and then check the quality to make sure that we were delivering a quality product with the features that the client was expecting. Well, it was an ongoing process that required a lot of communication and teamwork with my team as well as the client. I think my role really was to clarify the scope of the project, and then manage the clients expectations. We were able to deliver on time, and the client was thrilled! I was able to make sure no time was wasted on adding unnecessary features, and since we were working on a fixed bid price, we saved my company time and money. My manager and everybody on my team felt great because the project went so smoothly. Is that the kind of experience that would help me be successful here?

Essay --

Betty Hart and Todd R. Risley conducted a clinical language intervention at Turner House Preschool in Kansas City, Kansas. Most interventions use an IQ test as measurement, but they chose to instead look at the growth of the everyday language of the children. The test also included University of Kansas professors' children for comparison. The language intensive activities used resulted in a spur of new vocabulary words, but the effects were only temporary. By the time the children moved to kindergarten, the effects from the vocabulary boost were gone. There was a noticeable difference in vocabulary growth rate between the Turner House children and the professors' children. This concluded that if they were to understand the reasons for the different developmental trajectories, they would have to examine the very start of vocabulary growth. They looked at 42 families for an hour each month and children from 7-9 months old until three years old. Families were selectively recruited through birth announcements. Betty and Todd wanted to make sure they had a diverse and reliable selection. Selected families spanned almost the whole socioeconomic ladder. Thirteen were upper class, ten were in the middle, thirteen were lower class, and six were on welfare. After years analyzing the collected data they saw the first results. The children's vocabularies were greatly influenced by their parents. The welfare family children had the smallest vocabulary and lowest rate of vocabulary growth. These children's skills were diverging from the skills of the professors' children. Curious to see if the children's initial vocabulary would influence school performance at ages 9-10, Betty and Todd hired Dale Walker to examine this. His findings w... ...kheim defines what he calls â€Å"social fact† in his book â€Å"The Rules of the Sociological Method† is â€Å"the beliefs, tendencies, and practices of the group taken collectively†. This could also be read as â€Å"the religious denominations, political and literary schools, and occupational corporations of a particular social system†. Social fact can’t exist without well-defined social organization. Durkheim claims â€Å"most of our ideas and tendencies are not developed by ourselves, but come to us from the outside†. This ties back to what â€Å"The 30 Million Word Gap† was about. The social facts imposed on children by their parents and teachers will precisely shape the child’s image. As the child grows older and becomes part of their society, their ways of thinking and feeling exist outside of their consciousness. Whether they realize it or not, their social fact has been imposed on them. Essay -- Betty Hart and Todd R. Risley conducted a clinical language intervention at Turner House Preschool in Kansas City, Kansas. Most interventions use an IQ test as measurement, but they chose to instead look at the growth of the everyday language of the children. The test also included University of Kansas professors' children for comparison. The language intensive activities used resulted in a spur of new vocabulary words, but the effects were only temporary. By the time the children moved to kindergarten, the effects from the vocabulary boost were gone. There was a noticeable difference in vocabulary growth rate between the Turner House children and the professors' children. This concluded that if they were to understand the reasons for the different developmental trajectories, they would have to examine the very start of vocabulary growth. They looked at 42 families for an hour each month and children from 7-9 months old until three years old. Families were selectively recruited through birth announcements. Betty and Todd wanted to make sure they had a diverse and reliable selection. Selected families spanned almost the whole socioeconomic ladder. Thirteen were upper class, ten were in the middle, thirteen were lower class, and six were on welfare. After years analyzing the collected data they saw the first results. The children's vocabularies were greatly influenced by their parents. The welfare family children had the smallest vocabulary and lowest rate of vocabulary growth. These children's skills were diverging from the skills of the professors' children. Curious to see if the children's initial vocabulary would influence school performance at ages 9-10, Betty and Todd hired Dale Walker to examine this. His findings w... ...kheim defines what he calls â€Å"social fact† in his book â€Å"The Rules of the Sociological Method† is â€Å"the beliefs, tendencies, and practices of the group taken collectively†. This could also be read as â€Å"the religious denominations, political and literary schools, and occupational corporations of a particular social system†. Social fact can’t exist without well-defined social organization. Durkheim claims â€Å"most of our ideas and tendencies are not developed by ourselves, but come to us from the outside†. This ties back to what â€Å"The 30 Million Word Gap† was about. The social facts imposed on children by their parents and teachers will precisely shape the child’s image. As the child grows older and becomes part of their society, their ways of thinking and feeling exist outside of their consciousness. Whether they realize it or not, their social fact has been imposed on them.

Anna Letitia Barbaulds Washing Day Essay -- Washing Day Poem Analysis

Anna Letitia Barbauld's Washing Day In "Washing Day" Anna Letitia Barbauld has done what Romantic poets can do best. She writes of an event that occurs periodically in every-day life, but she elevates the washing day chore to a challenge of epic proportions. Barbauld views the experience of wash day from the perspective of the woman she is and the child she was. At all times she is the poet who relates the Muses' song as a medieval minstrel might. Her skillful use of irony and hyperbole allows this poem to convey to contemporary readers the same humor and insight that an eighteenth-century audience would have appreciated. Â   Barbauld uses classical references and a few archaic words to give the poem an epic feeling. However, since the subject is a rather mundane one, the poem has an ironic mood throughout. The muses of literature and art are now absorbed in the domestic gossip of housewives at work. All the petty subjects of daily life, the delights as well as the annoyances, are replacing the tragedies of the Greek Pantheon. She has the muses trade their bus...

Jack Kevorkian Essay -- essays research papers fc

After talks with her husband, sons, minister, and local doctors; Janet Adkins decided she didn ¹t want to undergo the sustained mental deterioration that Alzheimer ¹s Disease caused (Uhlman 111). She began to realize she had the disease when she started forgetting songs and failed to recognize notes as she played the piano (Filene 188).  ³She read in Newsweek about Dr. Jack Kevorkian and his Å’Mercitron ¹ machine, then saw him on the Å’Donahue ¹ Television show ² (Filene 188). With her husband ¹s consent but objections by sons and doctors, she telephoned him to arrange to kill herself (Filene 188). She still had a life expectancy of at least ten years with the illness, but she wished to die. She wanted to die before the disease robbed her of her competence (Larson 229). Kevorkian later killed Adkins and faced the consequences boldly (Hendin,  ³Suicide in America ² 247). The background, process, and effects of Dr. Kevorkian ¹s questionable first patient, Jane t Adkins, have a very detailed story in them. Janet Adkins led a very productive life up to and even after she had been diagnosed with Alzheimer ¹s, but she couldn ¹t handle losing control of her brain (Filene 188). She was 54 years old and lived in a wealthy Oregon suburb with her stock broker husband, Ron. She was also the mother of three sons, taught English and piano, went hang gliding, trekked in Nepal, climbed Mount Hood, and generally behaved with a lot of energy (Gutmann 20). She and her husband were longtime Hemlock society members, which advocates Euthanasia in some cases (Betzold 22).  ³Doctors at a Portland hospital told her that eventually she would be dependent on her husband for feeding and bathing ² (Gutmann 21). She did not want to take her own life in case she messed it up, and her own doctors wouldn ¹t help her (Hendin ,  ³Seduced by Death ² 132). Though she was still able to carry on clear conversations and demolish her son at tennis; her husband explained that if she was going to go, she ¹d probably want to go to soon rather than to late (Gutmann 21). After hearing about Kevorkian, Ron Adkins contacted him to employ his services (Wolfson 56). Her husband complained to Dr. Kevorkian that he had to remind her of the times of her tennis lessons, and that she kept leaving her purse in the house. After the brief conversation, Kevorkian agreed to meet with her (Gutmann 20).  ³Dr. Kevorkian was a ret... ...termining how ill she was. Also the method of which he carried out the suicide raised questions (Hendin,  ³Seduced by Death ² 130). Among supporters of Euthanasia he became something of an antiestablishment here (Larson 230). This was the first of over a hundred assisted suicides that he would perform (Uhlman 111). Works Cited Betzold, Michael.  ³The Selling of Doctor Death. ² New Republic 26 May 1997: 22-28. Fessenden, Ford.  ³Matters of Life and Death. ² Newsday 10 June 1995: 7. Filene, Peter. In the Arms of Others. Chicago: Ivan R. Dee, 1998. Gutmann, Stephanie.  ³Death and the Maiden. ² New Republic 24 June 1996: 20-22. Hamel, Robert. Must We Suffer Our Way to Death. Texas: Southern Methodist Press, 1996. Hendin, Herbert. Seduced by Death. New York: W.W. Norton and Company, 1997. Hendin, Herbert. Suicide in America. New York: W.W. Norton and Company, 1995. Larson, Edward. A Different Death. Illinois: Intervarsity Press, 1998. Uhlman, Michael. Last Rights. Washington D.C.: Ethics and Public Policy Center, 1998. Wolfson, Adam.  ³Killing of the Dying. ² The Public Interest Spring 1998: 56.

Connective Tissue

Connective Tissue Characteristics of connective tissues †¢Extracellular matrix separates cells †¢Most widely variable of tissues †¢Many varied functions †¢Common (mesenchyme) origin †¢Degrees of vascularity Functions †¢Binding †¢Suport †¢Protection †¢Insulation †¢Transport Structural Elements †¢Fibers ?Collagen (white) fibres ?Elastin (yellow) fibers ?Reticular fibers †¢Ground substance ?Amorphous material fills space between cells and contains fibers ?Holds fluids ?Acts as molecular sieve ?Consists of interstitial fluid, cell adhesion proteins â€Å"glue†, proteoglycans †¢Cells Each class of connective tissue has a fundamental cell type that exists in an immature and mature form ?Undifferentiated cell gets suffix â€Å"blast† i. e chronoblast, they are actively mitotic, secrete fibers and ground subtance ?Once the cells synthesise the matrix they assume their less active mature mode indicated by suffix â €Å"cyte† i. e. lymphocyte Summary Fibers Ground Substance Cells Collagen Interstitial fluid Immature form â€Å"blast† Elastin Cell adhesion proteins â€Å"glue† Mature form â€Å"cyte† Reticular Proteoglycans Types of connective tissue †¢All consist of cells surrounded by matrix Differences reflect cell type, finer type and the proportion of matrix contributed by fivers †¢These differences determine connective tissue classes and their subgroups ?General (fibrous) connective tissue â€Å"proper† ?Specialised Connective tissues (skeletal – bone and cartilage, adipose, lymphoid, blood) Cells found in ‘Prototype' Connective Tissue †¢FIbroblasts †¢Adipocytes (fat cells) †¢Cells which migrate from blood ?WBC ?Other cells concerned with tissue response to injury Connective Tissue Proper Two subgroups – classification mainly based on finer arrangement and density: †¢Loose CT Areolar ?Reticular †¢Dens e CT ?Dense regular ?Dense irregular Connective Tissue Proper Sub groups Characteristics/Structural elements Loose Areolar Semi fluid Gelatinous ground substance Collagen, elastin, reticular loosely distributed Fibroblasts and macrophages are abundant Occasional adipocytes (fat cells) Widely distributed packing material of body Loose Reticular Matrix contains reticular fibers Reticular fibers form network of reticular cells (fibroblasts) Dense Regular Closely packed collagen fibers orientated in same direction Mainly fibroblasts Poorly vascularised (no blood vessels)White, flexible tissue with great tensile strength in one direction Wavy fivers – allow minimal ‘give' until fibbers are straightened Elastic CT has high elastic content i. e. ligaments and tendons Dense Irregular Closely packed collagen fibers orientated in same direction Mainly fibroblasts Poorly vascularised (no blood vessels) Collagen bundles are orientated in MANY directions Forms sheets where tension i s exerted in from many directions i. e. dermis of skin, fibrous joint capsules, fibrous capsules of many organs (kidneys, testis, bone, muscles) Blood †¢Classified as a connective tissue †¢Cells in matrix (plasma) Fibers are soluble proteins which only become visible during clotting †¢Functions ?Transport of nutrients (glucose, oxygen) ?Transport of wastes (CO2) ?Transport of gases (oxygen, CO2) ?Hormones Cartilage †¢Somewhere between dense CT and bone †¢Tough but flexible †¢Cartilage cells â€Å"chondro† prefix †¢Ground substance has firmly bound collagen fivers †¢Contains lots of tissue fluid (80% water) †¢No blood vessels or nerves (good for joints) †¢Perichondrium (dense irreg. CT) surrounds most cartilage †¢Growth both interstitial and appositional †¢Types: ?Hyaline ?Elastic ?Fibrocartilage Bone â€Å"Bone† can refer to: Osseous tissue (type of CT) †¢Organs of the body i. e. humerus (consisting of se veral tissue types) Bone as a tissue †¢Bone is connective tissue (osseous tissue) †¢Cells contained in a matrix †¢Matrix is hardened by deposition of calcium salts and other minerals = calcification (mineralisation) Functions of bony skeleton †¢Support †¢Protection †¢Rigid attachment †¢Levers for muscles †¢Blood formation †¢Electrolyte balance †¢Acid base balance †¢Detoxification General features of long bone †¢Compact bone †¢Spongy bone †¢Medullary cavity †¢Diaphysis (shaft) †¢Epiphysis †¢Epiphysis plate/line †¢Articular cartilage †¢Periosteum and endosteum

Native Tribes

Cormac McCarthy’s â€Å"Blood Meridian† deals with racism in the form of The Judge’s attitude toward the orphans, the tangible efforts of the gang to be more savage, and even in the Kid’s role in the border skirmishes between the American settlers, the Native Americans and Mexicans living along the border. In a novel that some have called the greatest American novel since â€Å"Moby Dick†, McCarthy discusses racism on an inherent level, making people examine the historical context and the situation itself. Remarkably, the novel has a lasting appeal as a commentary on the way Americans address their southern neighbors even today.The first evidence of racism the book offers is in the Judge’s attitude towards the orphans. The Judge is a pedophile, raping the orphans and then killing them or having them killed to hide his indiscretion. In his mind, the Judge justifies his actions with the thought that many of the children in the orphanage are hal f-breeds and somehow therefore less important than people who are purely Caucasian. In his mind, the Judge and others who look after the orphans, even as wantonly as the Judge does, are doing their Christian duty and providing for children that are otherwise unwanted.In this way, the book takes a hard and accurate look at the racism that was prevalent in the West regarding children descended from Native Americans and Europeans. The children were dismissed by white society as half savage and by the Native populations because they often represented the humiliation of one of the women of the tribe—either voluntarily or involuntarily. To some extent, these children were more accepted in the Native populations when their parents were both accepted by the tribe, but even then they were mostly second class citizens.The next evidence of racism and its extreme application comes from the Gang. Though the gang is composed of outlaws of Caucasian and Native descent, as a means of instill ing terror in their victims, the gang resorts to scalping those they killed. As history demonstrates, only a very small number of Native Tribes took scalps as counting coup, but the stereotype of the novel and of the gang members was that Injun’s took scalps and that would make people more afraid of them. It is also interesting to note that primary targets of the gang were settlers coming up from Mexico or those of Hispanic descent.The stereotype that the Mexican were outlaws or lazy ot somehow second-class citizens is prevalent in the novel. Perhaps equally interesting in the long-term is the prejudice within the Hispanic/Mexican/Chicano community itself. Even now, those who are descendents of the Spanish Conquistadors are sometimes offended by being identified as Mexicans, whom they identify as those of mixed blood between the conquistadors and the Native American people of Central America. However, Chicanos in Southern California would be equally offended by being called a Hispanic as they take pride in their connection to Mexico.The fact that this racism persists to this day is both interesting and depressing at the same time. The simple reality of Cormac McCarthy’s novel is that it portrays an evil man attempting to justify his actions via racism and a gang of thugs using racism to make themselves seem bigger and badder than they are, when in truth murder should have been enough. McCarthy’s ability to capture the tenor and reality of the racism without pandering to it does make this a novel worth reading.

Price Discrimination Revised Essay

Jane, thinking that a vacation in San Francisco to visit her parents would provide her with a much-needed rest, bought a ticket two weeks in advance for a weekend flight.   She would be sitting in 11A.   On the day before Jane’s flight, Freya gets a call from her boss, instructing her to attend the company’s meeting in San Francisco.   She booked a flight for the next day immediately upon getting the call.   Freya sat in 11B   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Freya paid $500 more than Jane for basically the same service, occupying adjacent seats. And this is a prime example of price discrimination. * *   *   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Price discrimination is simply the charging of different prices to different customers (Stavins, 1996, p. 3).   It is characterized as price discrimination when the difference in prices are not due to difference in costs.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Scott Woolley writing for Forbes.Com simplified it further, saying that price discrimination is when an airline charge some customers more than other customers for the same (or almost the same) thing (Woolley, 1998.)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Tricia Ellis-Christensen stated that price discrimination is a widespread practice, and it doesn’t â€Å"necessarily imply negative discrimination.†   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Price discrimination is categorized into degrees depending on the market segmentation, the customer’s ability to pay or demand elasiticity. (Ellis-Christensen, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   First-degree price discrimination occurs when identical goods are sold at different prices.   This is most evident in the sale of both new and used cars wherein the salesperson gauges the maximum price at which the car can be sold.   This type often includes bargaining, or negotiating for a lower price (Ellis-Christensen, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Second-degree price discrimination is when lower prices are charged for bulk or higher quantities (Ellis-Christensen, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Third degree price discrimination requires understanding the market, and is more prevalent.   This type often plays on segments of the target market.   An example is discounts offered to students. (Ellis-Christensen, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Conditions for Price Discrimination.   Joanna Stavins further explains that for an airline or company to successfully discriminate on price, it must have some market power, to be able to charge prices above the marginal cost. Typically it has monopolized that business.   Another condition is the heterogeneousity of its consumers.   Lastly, product resale should be costly and impossible, to prevent arbitrage. (Stavins, 1996, p. 3)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Stavins also explained that the â€Å"monopolistically competitive: conditions in air transportation business allows for price discrimination.   (Stavins, 1996, p. 3)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Stavins stated that   airlines differentiate between each other by offering different flight schedules and routes.   Stavins also wrote that airlines attach various restrictions to cheaper tickets, making them more unattractive to consumers who give more importance to time and convenience.   Meaning, a business traveler wouldn’t mind paying more to ensure that he arrives on time, as opposed to a passenger on a budget.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Advantages.    In some cases, price discrimination can implement efficient prices (Armstrong, 2006 p. 6).   Arvind Sahay writes that pricing products differently can increase revneues and profits by 8% and 25% (Sahay, 2007, p. 54).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Price discrimination also opens markets, as in offering one’s goods at a high value market at a certain price, while giving it at a lower price at a lower value market.   (Armstrong, 2006 p. 8)  Ã‚  Ã‚   This way, a business owner can reallocate demand to more suitable times while supply is limited (Sahay, 2007, p. 54).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   On a more practical level, price discrimination will enable more firms to increase revenue, which can then be used for research and development.   Consumers, on the other hand, will be able to benefit from lower fares (economicshelp.org, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Disadvantages. On the other hand, some consumers will end up paying higher prices.   Price discrimination will also cause a decline in consumer surplus.   There maybe costs associated with segmenting market.   Price discrimination also opens the field for predatory pricing (economicshelp.org, undated). Price Discrimination in Airlines   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The increasing use of price discrimination, in all industries, is due to the new and affordable technology that most companies can install and use.   Recent studies have also shown that consumers will pay different prices if the companies use the right approach (Sahay, 2007, p. 53).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In short, these days, airlines are pulling off price discrimination easily.   On a purely technical level, Airlines are able to practice the third degree of price discrimination (segmentation-based), and even to some respects, the second degree of price discrimination by employing yield management tools.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cunningham and Brady explains that airlines have been dividing their customers into groups: government vs. business vs. leisure travellers, first or economy class, etc.   With the advent of the computer and I.T., airlines have gained more ability to match fares with their customers’ demands. (Cunningham and Brady, 2001, p. 10).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Yield Management tools allows the airline to sell the right seat to the right passenger at the right time and price, basically charging various rates for the perceived service benefit (Cunningham and Brady, 2001, p. 11).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Also, yield management allows for Ramsey pricing, which involves varying the prices for fare based on demand elasticity in relation to the marginal cost.   Meaning, the more sensitive the market is to its price, the closer its price will be to the marginal cost.   This explains why business market fares are higher than those who are on vacation (Cunningham and Brady, 2001, p. 11).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Since it is not easy to explain various yield management techniques of airlines, it would be best to look at practical scenarios for airline companies.   Empirically, here are some examples of airline price discrimination.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Joseph Turow, writing for the Washington Posts, cites an example regarding airline Web sites that offer lower fares for first-time customers (Turrow, 2005).   Technology has also made it easier for businesses such as airlines to do customer profiling.   Turrow (2005) and Wooley (1998) insinuates that since businesses can now use computers and databases to store more information about a customer, it can create profiles on that customers and price accordingly. Turrow cited the case when Amazon.Com came under fire for selling the same compact disc album to different customers at varying discounts.   Wooley, on the other hand, says that catalogs sent to somebody who lives in a high-end neighborhood include only one price, while the another version of the catalogs featuring the same products sent to other less-glitzy neighborhoods have discount information on them.   With more and more information about the customer being easily made available, the more airlines know how to push the correct buttons and learn their ability to pay, and their willingness to pay.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Airlines also give â€Å"early-bird discounts† wherein those who book early get lower prices.   This type of price discrimination plays on demand inelasticity.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   People who book late are usually those who needs to be on the plane, and thus would be willing to pay any price just to get to where one wants to be. (Riley, 2006).   Differences in ticket pricing is most reliant on supply and demand (Devlin, 2002).   Fredrik Wallenberg explains that to get an advance purchase discount, one will have to book from one to three weeks in advance. (2000, p. 7)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   On the other hand, SoYouWanna.Com advises that some of the cheapest plane tickets become available at the last minute.   This is due to the fact that airlines typically want to fly with a full plane.   Also, airline seats are seen as a perishable product, in the event that they are not used before â€Å"expiration† it becomes worthless (Sahay, 2007, p. 55)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Other airlines also use â€Å"Saturday night stay-over† as a mechanism for price discrimination.   Airlines set a higher rate for business travelers who are unwilling to spend the weekend away from home (Wallenberg, 2000).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   For some, airlines often reward loyal customers with a lower price on premium tickets if they’ve reached a certain number of mile on their frequent-fliers programs.   Keith Devlin said that he was able to buy a round trip ticket from San Francisco to Milan for a bargain price of $1000.   Devlin upgraded it to business class at no cost.   Devlin got the bargain beceause he has earned enough miles on United’s Mileage Plus.   Devlin adds that a colleague who will be on the same flight at the same time, was not able to upgrade (Devlin, 2002).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   US Airways has the EZ Savers Club, which is actually an automated mailing list where subscribers can get mails detailing reduced rates on specified travel dates (Bringing market discipline†¦, 1998).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Other programs are age-dependent.   Students and seniors typically get a discount on airlines.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Another form of price discrimination employed by airlines is temporary seasonal discounts for airfares that are meant to increase business. (Ellis-Christensen, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Airlines have a big market with a large number of heterogenous customers, the more disparate their customers are and their behaviors, the more willing their customers would be to pay different prices (Sahay, 2007, p. 56).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Is Price Discrimination Illegal? Price discrimination may be illegal in some cases.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   However, for it to be deemed illegal, it has to be seen in light of anti-competitiveness.   Carl Person said that the Robinson-Patman Act protects victims of unlawful price discrimination.   Persons provided the following example where in a retail store purchases the same thing from the same supplier for a much higher price.   The store who bought the merchandise at a higher price would be unable to compete on price and usually loses business to its competitor (Persons, 1997).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Federal Trade Commission clarifies that price discrimination may be used as a â€Å"predatory pricing tactic† to harm competition at the supplier’s level (Federal Trade Commission, undated).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This whole scenario doesn’t apply to airline tickets. Imperfect Information   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In a perfect world or market situation, each consumer should have perfect information about the price of services and goods.   However, information problems are highly ostentatious in complex and opaque markets, where there is infrequent patronage.   Markets with intermediaries or those with a time lag between the time of purchase and the expected benefits are also susceptible to the problem.   The airline industry is also a primary industry for imperfect information due to its complex pricing structures (Lindley, 2007, p. 74).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Imperfect information could harm a customer because it would effectively prevent him from turning to certain potential substitutes (Lande, 2007).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Moreover, some customers might not know of the existence of an option.   Some customers might not even realize that best cost-saving option (Lande, 2007).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In short, as Dominic Lindley writes, the customer may not buy the cheapest or even the most appropriate product or service; may buy a service or product that does not perform as well as planned; or may be unaware of their rights and remedies if something goes wrong (Lindley, 2007, p. 74). Conclusion   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It all boils down to the fact that imperfect information could hinder a customer from making a more informed decision about what he’s purchasing.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Determining the cost of an airline ticket is a complicated task.   With price discrimination, it really just an interplay of demand and the customer’s ability to pay.   Price discrimination allows businesses to optimize their operations for maximum benefits and income on their marginal costs.   Airlines, among other businesses, are in a position to exploit that advantage because they satisfy all conditions needed for price discrimination.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   For consumers and passengers to get the optimum value for their money, they must be vigilant.   They must know their options, and choose accordingly. References    Armstrong, Mark. (2006). Price Discrimination. University College London. Retrieved on 3 April 2008. Brady, Stephen P. and Cunningham, William A . (2001). Exploring predatory pricing in the airline industry. Transportation Journal, 41(1), 5-15.   Retrieved 21 April 2008 from ABI/INFORM Global database. (Document ID: 124411971). Bringing market discipline to pricing. (1998, January). Businessline,1.   21 Retrieved April   2008, from ProQuest Asian Business and Reference database. (Document ID: 25422269). Devlin, Keith. (2002). The crazy math of airline ticket pricing. Retrieved on 3 April 2008. Ellis-Christensen Tricia. What is Price Discrimination? Retrieved on 3 April 2008. Lande, Robert. (2007). Market Power Without A Large Market Share: The Role of Imperfect Information and other â€Å"Consumer Protection† Market Failures. Retrieved on 3 April 2008. Lindley, Dominic. (2007). Imperfect information for consumers. Consumer Policy Review, 17(3), 74-79.   Retrieved 21 April 2008, from ABI/INFORM Global database. (Document ID: 1328552571). Persons, Carl E. (1997). Do You Have an RPA Price Discrimination Claim?   Retrieved on 3 April Riley, Geoff. (2006) Price Discrimination. Eton College.   Retrieved on 3 April 2008. Stavins, Joanna. (1996). Price Discrimination in the Airline Market: The Effect of Market Concentration. Federal Reserve Bank of Boston. Retrieved on 3 April 2008. SOYOUWANNA FIND A CHEAP PLANE TICKET? Retrieved on 3 April 2008. Sahay, Arvind. (2007). How Dynamic Pricing Leads to Higher Profits. MIT Sloan Management Review, 48(4), 53.   Retrieved 21 April 2008, from ABI/INFORM Global database. (Document ID: 1360146151). Turow, Joseph. (2005). Have they got a deal for you. Washington Post. Retrieved on 3 April Wallenberg, Fredrik. (2000). A study of airline pricing.   School of Information Management & Systems, University of California at Berkeley. Retrieved on 3 April 2008. Wooley, Scott. (1998). Mine was cheaper! Forbes.Com. Retrieved on 3 April 2008.