Empirical Investigation of Structural Breaks †MyAssignmenthelp

Question: Disacuss about the Empirical Investigation of Structural Breaks. Answer: Introduction: IMF effectiveness is dependent on whether the players see it as impartial and competent. According to the article, IMF is like a referee officiating a football match where it depends if the players see it as impartial and competent (Eun and Resnick, 2014). The effectiveness of this institution are limited by failure to meet its challenges. As an advisor, the institutions impartiality is called into question because it doesnt always know what to advise. According to the article, there are four challenges that pose a threat to the legitimacy of the IMF and thus the institutions capacity to execute its main functions (Kirton, 2009). Organizing surveillance through which the institution monitors policies made by its member countries both financial and economic policies is the first unmet challenge. This highlights possible risks to advises that are needed on policy adjustments. The funds original mandate was to focus on engaging in ruthless truth telling that would make exchange rates to be stable. However, the surveillance moved from the main focus of exchange rates issues to virtually everything and anything with implications for financial and economic stability (Levi, 2016). There is no longer the blunt truth telling as envisaged and this can be clearly shown because the fund did not warn the U.S of the subprime crisis , the Greek debt crisis or the global financial crisis. On the three events, the IMF batted 0 to 3 showed that it has no capacity to highlight risks to stability. The second unmet challenge is the conditionality that IMF gives its loans out with. This is the commitment that governments makes in terms of policy in order to receive assistance (Imf., 2016). The disagreements comes in when questions of the number of commitments and what kind of commitments that the IMF asks from the governments. This is because in some of the commitments , the IMF infringes on the sovereignty of the member country and so according to the article, the member countries do not view the IMF institution as an institution that is out here trying to promote the welfare of the individual member states (Hartley, 2011). If the IMF and the member country have similar objectives , why are there conditions set in the first place. The third unmet challenge is that there is disagreement about the role of IMF in sovereign debt management. This challenge is created by the absence of a legal framework that is needed to resolve debt crises , also contributing to this challenge is the existence of multiple stakeholders and transaction costs that are significant. Confusion is brought about when we consider the form that involvement should take (O'brien, 2017). IMF should provide liquidity assistance when the debt that a member country holds is sustainable but private investors are not able to provide coordination in the provision of liquidity required and they only facilitate to debt restructure when the burden of debt is unsustainable. Deep questions arises when statements about whether debt sustainability concept is meaningful and whether the IMF is able to determine a member states sustainable debt. In reflecting on this uncertainties, the institution has continued to lend to its member states and put off the restructuring decision. This model allows investors to create a moral hazard and cut their losses. This is because restructuring disrupts the economy and is also costly for the country. The fourth unmet challenge according to the article is impartiality problem by the fund which is an issue raise due to governance problems (Grath, 2005). When members have disproportionate voice which enables some member states to sway decision making and make decisions that are in line with their national interest, this is seen as if the institution is not partial. Some of the decision made by some member states that have a lot of influence are at odds with both the interest of the stability of the IMF and its membership. Also, some members are inadequately represented and they see the decisions made by the funds as neglecting their interests. Consequently, the two sides are reluctant to give IMF the autonomy in choosing tactics and designing programs. The failure by the IMF to meet the four challenges causes its impartiality and competence to be questions by those who criticize its modus operandi (Bodie and Merton, 2001). The funds inability to solve these challenges leads members to question its legitimacy according to the article. Legitimacy determines if the governments and their constituencies will to bend to its authority and accept its recommendations. According to political theorists, legitimacy has two sources. The publics assessment about the performance of the Fund is referred to as output legitimacy. If the funds advice brings in good results, then the agents would be willing to acknowledge its authority. Second, input legitimacy refers to the process through which power is exercised and decisions are reached. The first three challenges , that is , surveillance, conditionality relevance and the utility of the funds approach to debt problems can be solved through output legitimacy (Costa, 2006). On the other hand, the fourth challenge which is the funds failure to adopt a system of governance raises questions about its input legitimacy. The legitimacy problem will have to be solved so that the fund can be effective in its mandate. Today, there are several theories that explain the formation of the exchange rate and the nature of its dynamics. So, one of the most famous theories is the theory of purchasing power parity (or ability) (Power Purchasing Parity). According to this doctrine, the rates of any two currencies must be adjusted one to one according to the change in the price levels in these two countries. A simple example gives an idea of the action of PPP theory and International Fishers effect Summing up, it can be pointed out that the currency purchasing power parity doctrine can be a good tool for forecasting the exchange rate provided there are significant differences in the price levels of the countries being compared (Shapiro, 2014). The accuracy of the exchange rate forecast is a derivative of the accuracy of the forecast of price levels in the two countries, and therefore the time range of applying the principles of PPP is measured from one to five years. The forecast rate for a period of less than one year is not justified for the inability to get rid of many random factors in the main trend of the development of the phenomenon. This is the presence of a lag between price changes and adjustments to this exchange rate, and intra-annual seasonal and conjunctural fluctuations. Forecasts for more than five years can have a significant error. The PPP theory has rather limited forecasting possibilities, gives an idea of the prerequisites for long-term behavior of exchange rates, but can not explain the run-up of rates for short periods. The key to understanding the behavior of the exchange rate in the short term is consideration currencies that form the exchange rate from the position of the asset market and the theory of demand for assets (Manzur, 2008). The modern approach to the asset market stresses that, for short periods (less than a year), the decision to own domestic or foreign assets (that is, cash in national or foreign currency) will play a much greater role in determining the exchange rate than the demand for export or import goods. Those. export-import flows are considered as secondary exchange rate factors. According to the theory of demand for assets, the most important factor that affects the demand for domestic (national) and foreign money (t his time we consider the non-cash form of cash) is the expected return on these assets relative to each other friend The expected income for the deposit of a certain currency in the transfer to foreign currency consists of the interest rate of this currency and its expected price (+) or depreciation (-). When, for example, Americans or foreigners expect that the income on dollar deposits will be higher than the income on deposits in euros, then the demand for dollar deposits will be higher and, accordingly, the lower one for deposits in euros This will encourage investors to convert funds into current assets. Nevertheless, at the end of the investment period, they may incur exchange rate losses e changes in the exchange rate, which, with a surplus, will block the interest income. To prevent such losses, investors must enter into fixed-term contracts, i. agreements with the redemption of currency, at the rate of "spot" plus the interest earned on the invested assets. These agreements from interest arbitrage is a connecting link between the difference in interest rates of the national money markets of the two countries and the forward rates of the respective currencies (Madura, 2012). This link acts as the basis of the theory of interest parity. To understand the mechanism of the action of this theory, one should consider its formalized form. Purchasing power parity is an economic theory that states that people in a given country should be able to buy services and goods at a price that is similar to people from another country. The theory states that once the exchange rate difference is accounted for, then all the prices of goods and services would be the same. The ability of purchasing power is illustrated by real per capita spending. The basis for calculating PPP used by organizations such as UNDP is Gross National Product (GNP) (Olekalns, 2001). Since GNP cannot be compared directly, an International Comparison Project (ICP) is formed which aims to "adjust" the real GDP rate, so it can be compared. For this purpose is determined a number of commodities as a package for the basis of comparison internationally. The resulting number, to reflect the standard benefits, is then "adjusted" again with the Atkinson formula. This adjustment is deemed necessary, as a $ 500 increase for a country that already has a GNP of US $ 500 0 will have a different benefit from the same increase for a new country with a GNI of US $ 1000. On the other hand, the international Fishers effect theory states that a change that is expected in the exchange rate between currencies of two currencies is roughly equivalent to the difference between their nominal interest rates(Holmes, 2002). Using the interest rate difference to explain the occurrence of changes in foreign exchange rates. IFE theory is closely related to theory of PPP because interest rates are often correlated closely with the rate of inflation, therefore it can be concluded that the difference in interest rates which occurs between several countries can be caused by the difference in the rate of inflation. On the theory of Interest Rate Parity and Power Parity Purchasing, the theory allows us to estimate the future of the exchange rate expected. Interest Rate Parity is related to risk-free interest rate while Purchasing Power Parity theory of exchange rate is related to an inflation rate. Putting them together basically tells us that interest rates are risk-free related to the rate of inflation (Valsamakis, Vivian and Du Toit, 2010). This brings us to the International Fisher Effect, The international Fisher effect states that the real interest rate is the same across countries. Real interest in risk-free rate minus the inflation rate. Real interest rates are generally used more often compared with the nominal interest rate to measure currency exchange rate movements. The nominal interest rate is not an accurate measuring tool, because it still contains inflation element inside. International Fisher Impacts Impact The relationship between the difference between the two countries' interest rates and the expected change in exchange rates under IFE is as follows: first, the actual return for investors is the interest rate offered on the securities market term deposit money banking short, where the investor's actual return depends on the foreign interest rate if and the change of the foreign exchange. According to IFE, the effective return of foreign investment should, on average, be an effective return on investment domestic, therefore, IFE states that estimates of investment in local money market investments: Where r is an effective return on foreign deposits and i is the deposit interest rate of the country of origin. Then it can determine as evidenced above, the IFE theory states that when interest if, e will be positive because of the relatively small foreign interest rate reflecting the relatively low estimated foreign inflation, in other words, foreign currency will appreciate when foreign interest rates are smaller compared to origin interest rate. A financial derivative is an agreement between two parties where the payments conditions are also agreed by the two parties. Derivatives are from underlying assets such as contracts, swaps or even stocks. Some of the conditions include purchasing the asset at the price and at the date which the underlying asset achieves that price(Valsamakis, Vivian and Du Toit, 2010).. A common derivative is a call option that gives the buyer the option but not the obligation to buy the stock at a certain date and at a certain price. The PPP and IFE theories make derivatives unnecessary because of the inflation factor. As we know, the two theories factor in inflation of underlying assets but derivatives are meant to protect the buyer from purchasing the underlying asset with inflation factored in. Advantages of derivatives Transactions of derivatives take place in future therefore giving a chance to individuals and traders to execute all sorts of strategies in the futures and options Therefore, if the individual want to short some stock for a long time they can do it in this market. There is benefit of leverage in this market because people can transact huge transactions with small amounts hence trading with derivatives requires a less amount of money. Derivatives are a great risk management tool with a lot of benefit to the user. There are several criticisms that associated with these theories. The purchasing power parity theory does not factor in the tarrifs and the demand for derivatives can be different. Also another criticism of this theory is the differing taxes in different regions. Evaluate the differing ways in which derivatives can protect against the failings of IFE and PPP. As speculators take a market risk position, speculation is a spare part that makes futures and options markets(derivative market) work well and efficiently w. A speculator in futures trading is one goal, which is profit (profit) from its success in anticipating price movements. The time horizon of the speculator is very different from the hedger, commercial users, and other professional users, therefore tends to act as a bridge between large market users and other market users, with different time horizons. So speculation is a major component because the speculator improves market liquidity, and also increases market efficiency. A speculator in futures trading is with one goal, which is to profit from its success in anticipating price movements. Inflation and interest rates challenges are overcome by these speculation. Hedging is a strategy created to reduce the occurrence of unexpected business risks which includes inflation, in addition to the possibility of profit from the investment. Differential interest rates Differential interest rates between the two countries predict future changes in spot exchange rates. In the financial risk hedge, there are factors that cause exchange rate changes (Manzur, 2008). Knowledge of this will help in forecasting the direction of currency movement. These factors include differential inflation, monetary policy, trade balance, the balance of payments, international monetary reserve, national budget, and deferential interest rate, and associated currency behavior, unofficial exchange rate, forward exchange quotes. Not all hedges are financial instruments. For example, a producer who exports to another country can hedge the currency exchange risk by calculating his production costs in the currency he wants (Taylor, 2013). The following ways that derivatives can protect from the failings of IFE and PPP theories. References Bodie, Z. and Merton, R. (2001).Finance. Upper Saddle River, NJ: Prentice Hall. Costa, C. (2006).Introducing finance. Chichester: John Wiley. Eun, C. and Resnick, B. (2014).International finance. New York: McGraw-Hill. Grath, A. (2005).International trade finance. London: Nordia Publishing for the Institute of Export. Hartley, W. (2011).International finance. [Place of publication not identified]: Bibliolife. Holmes, A. (2002). Risk Management. Chichester: Capstone Pub. Imf. (2016).Forecasting at the imf. [Place of publication not identified]: Intl Monetary Fund. Kirton, J. (2009).International finance. Aldershot: Ashgate. Levi, M. (2016).International finance. London [u.a.]: Routledge. Madura, J. (2012).International financial management. Mason, Ohio: South-Western, Cengage Learning. Manzur, M. (2008).Purchasing power parity. Cheltenham (Reino Unido): Edward Elgar. O'brien, T. (2017).Applied International Finance. [S.L.]: Business Expert Press. Olekalns, N. (2001).An empirical investigation of structural breaks in the ex ante Fisher effect. Melbourne, Victoria. Shapiro, A. (2014).Multinational financial management. Hoboken (NJ): J. Wiley. Taylor, M. (2013).Purchasing Power Parity and Real Exchange Rates. Hoboken: Taylor and Francis. Valsamakis, A., Vivian, R. and Du Toit, G. (2010).Risk management. Sandton: Heinemann.

Educatinal Views And Ideas Essays - Philippine Culture,

Educatinal Views And Ideas INTRODUCTION Philippines, republic in the western Pacific Ocean, made up of the Philippine Islands and forming in physical geography a part of the Malay Archipelago. Situated about 1210 km (about 750 mi.) east of the coast of Vietnam, the Philippines is separated from Taiwan on the north by the Bashi Channel. The republic is bounded on the east by the Philippine Sea, on the south by the Celebes Sea, and on the west by the South China Sea. The country comprises about 7100 islands, of which only about 460 are more than 2.6 sq. km (more than 1 sq. mi.) in area. Eleven islands have an area of more than 2590 sq. km (more than 1000 sq. mi.) each and contain the bulk of the population. These islands are Luzon, Mindanao, Samar, Negros, Palawan, Panay, Mindoro, Leyte, Cebu, Bohol, and Masbate. The total area of the Philippines is about 300,000 sq. km (about 115,830 sq. mi.). Manila is the capital and largest city of the Philippines. This geographical condition of the Philippines made it very accessible and very easy to penetrate by foreign people. THE FILIPINO CHARACTER It may be said that the Filipinos are intelligent, with retentive memory, quick perception, and talents for art and science. They also are gentle, friend] y, and cheerful people, noted for their courtesy and hospitality. Filipinos are famous not only for their warm hospitality, but also for their close family ties. The parents work hard and sacrifice much for their children; in return, the children love and respect them and take good care of them in their old age. Filipinos owing to their beautiful country are passionately romantic. They are ardent in love, as they are fierce in battle. They are born poets, musicians and artists. Filipinos are a liberty-loving and brave people. They valiantly resisted the Spanish, American and Japanese invaders of their native land. They rank among the bravest people of the world. Filipino courage has been proven in the Battle of Mactan (1521), in the Battle of Tirad Pass (1899), in the battle of Bataan, Corregidor, Bessang Pass during World War II, and in many other battlefields. Gratitude is another sterling trait of the Filipinos. They are grateful to those who have granted them favors of who are good to them. Their high sense of gratitude is expressed in the phrase Utang na loob (debt of honor). Filipinos are cooperative. They value the virtue of helping each other and other people. They cherish the ancestral trait of bayanihan, which means cooperation. In rural areas, when a man is building, repairing or transferring a house to another place, the neighbors come to help him. Foreign writers assert that the Filipinos are indolent. In reality they work hard in the face of very adverse conditions. They work on the farms from sunrise to sunset, though not from noon to 3 p.m. due to the scorching heat. They work hard in the sugarcane and pineapple plantations in Hawaii, the fruit orchards of California, the fish canneries of Alaska, and in the oil wells of Saudi Arabia, Kuwait, and other Arab countries of the Middle East. Finally, the Filipinos are noted for their durability and resiliency. Through the ages they have met all kinds of calamities--revolts, revolutions, wars, earthquakes, volcanic eruptions, typhoons and epidemics. Unlike the Polynesians of Oceania and the Indians of North Central and South Americas, they did not vanish by contact with the white race. They can assimilate any civilization and thrive in any climate. Against the adversities of life or nature, they merely bend, but never break. They possess the formidable durability of the narra tree and the resiliency of the bamboo. BODY TEXT FILIPINO HISTORY, CULTURE AND HERITAGE EMERGENCE OF THE FILIPINO PEOPLE: Philippine history has often been described as an amalgam of regional developments and outside influences. Excavations in archeological sites have proven that during prehistoric times, the native Negritos came in contact with Malays and Indonesians who left their ancestral home in Southeast Asia by crossing the seas in their sailboats (balangay), and settled the Philippine archipelago. Inter-racial marriages took place among them and out of these racial mixtures emerged the Filipino people. The early Filipino Malay ancestors brought with them their culture--food and drinks, community life, government and

Keynesian Economics essays

Keynesian Economics essays John Maynard Keynes is uncertainly one the most important figures in the history of modern economics. The son of the Cambridge economist and logician John Neville Keynes, John Maynard Keynes was born in Cambridge, England on June 5, 1883. Keynes was educated in Britains most elite institutions, Eton and then King's College Cambridge. In 1906, he entered the British civil service for a little while and worked in the Indian Treasury as a junior clerk. However, unsatisfied with the work he returned in 1908 to teach economics in Cambridge. In India he learned the demands of government service. In 1911 he became the editor of the Economic Journal, a position he would hold almost until the end of his life. During this time Keynes wrote his first economic book first book on Indian currency which was directly related to his experience at the India office. From 1914 to 1918, Keynes was called to the UK Treasury to aid with the financing of the British war economy. He excelled at his job and the authority he gained earned him a position with the British delegation to the Versailles Peace Conference in 1918. Keynes was dismayed at the unfair nature of the peace settlement, and was particularly opposed to the overwhelming consequences of the heavy "reparations" payments forced on Germany. In 1919 he resigned from the conference and in respond to the treaty he published his Economic Consequences of the Peace disapproving the Treaty of Versailles After returning to Cambridge in 1921, Keynes published his Treatise on Probability, where he took apart the classical theory of probability and started what now known as the "logical-relationist" theory of probability. Throughout the 1920s, Keynes remained active in public policy debates, guided mainly through his many articles in the Nation and Atheneum. He also wrote two famous pieces in condemnation of laissez-faire economic policy. In 1925 he married the R ...

Methodology for a sociology class Essay Example | Topics and Well Written Essays - 250 words

Methodology for a sociology class - Essay Example Immediately we looked the Mission District which works with a large number of the Latino, Chicano, Central and South American immigrant population. We also looked at the Dolores Street Community Services Center. This center works to provide many homeless people with affordable housing and helps empower some of its low-income residents living in San Francisco. We met Marlon Mendieta, the Housing Program Director of Dolores Street Community Service Center. She gave us a short summary on her center. She explained to us the steps they are taking in order to help underprivileged people in their community. She also provided us with information on how they are trying to create a healthy community where everybody has equal rights regardless of income, immigration or health status. After we spoke with Mrs. Mendieta we went to the womens building where we interviewed Yeni Solis, the Reception Coordinator. She explained the centers mission statement to us and told us that their goal is to empower women and girls in the society by providing them with services and programs to become more self-sufficient. The last stop for our team was The Mission Cultural Center Latino where we met Christina who was originally from Argentina . She told us about her unique experience with the center. She has been taking dancing classes and she told us how she is happy about being more involved with community. All of these centers gave us a more defining picture on the immigrants life in an urban community and a centers role in helping them adjust to life in America. Our group chose to not just browse the internet but to go to these centers and interview the staff and the immigrants. We wanted to have a genuine experience and to see exactly how the immigrants are living and adjusting to life in the Unites

Organization and Organizational Change Assignment

Organization and Organizational Change - Assignment Example With time constraint, management must maximize its time to alleviating the most pressing problems or issues. By identifying the actual performances, management can focus more time on the poor performances. After the poor performances are resolved, management can focus on improving the poor performance activities. Next, the author rightfully observes change management can allocate time to increasing performance outputs. Finally, management can use the remaining time to increase the average-rated activities. Resolving the above average performances, management can now use any possible time to ensuring retention of the best rated performances. Dean Anderson emphasized â€Å"different factors contribute to the change management process† (Anderson 31). The author correctly states that several factors are used in the formulation of the change management decisions. One of the factors is the competitors. When the competitor reduces its selling prices, the other competitors are persuaded to reduce their selling prices. Further, another factor is technology. When the author rightfully insists some competitors introduce new product technologies, all competitors are persuaded to acquire similar or even better product technology. For example, one company offers online booking services to its current and future customers. To retain customers, competitors are persuaded to implement similar online booking or marketing services. Furthermore, the author correctly insists changes in government statutes contribute to responsive change management strategies. For example, some governments require companies to reduce their factory smoke stack emissions. Consequently, management must comply. New government policies may require factory facilities to stop including all ozone layer damaging ingredients in the production process. Professor Robert Paton (51) emphasized â€Å"Companies must do their best to alleviate any resistance.† Some employees dislike learning

Marks and Spencer: Structure and Culture

Marks and Spencer: Structure and Culture 1. INTRODUCTION Marks Spencer is British institution. Opened in 1884, the company emerged as a major retailer of clothes, food, household items and financial services. By 1997, Marks Spencer was an international company with sales of over  £8 billion and very high net profit margins. However, the group experienced a shocking reversal in fortune at the turn of the 21st Century when its main customer base, women aged between 35 and 55 began to stop shopping at their stores. This posed a very serious threat to the companys survival and Marks Spencer thought hard and long about how to rectify the situation. It did so by introducing bold new moves changing its corporate culture and by strengthening existing systems and processes. By doing so, the company was able to regain its loyal customers and grow once again. Yet, the last few years have been challenging as the company was badly affected by the global economic crisis. This report outlines the changing structure and culture at Marks Spencers. It provides a comparison of the contributions of the key business functions to the organizational change. It also identifies the key stakeholders of the organization and the key issues of managing them. Finally, a SWOT analysis is done for Marks Spencer along with an assessment of its long term future prospects. 2. CHANGING CORPORATE CULTURE AND ORGANIZATIONAL STRUCTURE All organizations have their own cultures, which consist of the values and beliefs shared by its members which determine to a considerable degree how managers respond to problems and opportunities. But corporate culture can become static and excessively bureaucratic over time, even among successful organizations (Huff et al, 2009). An organizational culture is powerful because it automatically shapes the way members see their world. Any culture is deeply rooted in beliefs and values that members have internalized. When beliefs and values are held without challenge for a long period of time, they are even less likely to be questioned (Robbins and Judge, 2007). The norms rarely change to accommodate those who deviate from them. Inertia sets in and employees become stuck in a rut. Employees become resistant to change and are unwilling to do things differently because they involve inconvenience and uncertainty. This could ultimately destroy the company. Like most successful organizations, Marks Spencer was a victim of its own success. Its corporate culture because inflexible, rigid and resistant to change because it was felt that since the company was successful, there was no need to change. Deeply entrenched was a sense of employee entitlement regarding remuneration and working hours. However, when it became clear that the old culture was unable to cope with changing demands of the marketplace, the top management decided on a major revamp. As a result, employees became less resistant to change and began to embrace new ways of doing things. Employees were willing to work for longer hours if it meant better pay and they were less resistant to the fact that they might lose their jobs if the company performed poorly. They were also sent for learning and education programs to equip them with new skills sets so that they were better able to cope with changes in the working environment. All these efforts contributed to the change in corporate culture which is now more dynamic and flexible. A number of major changes were also made to the organizational structure. The formal chain of command was flattened to a certain extent and in doing so the company became more agile and responsive to changes in customer demand and taste. The regional management structure was simplified to delegate more responsibility to individual store managers to give them more autonomy. 3. CONTRIBUTIONS OF KEY BUSINESS FUNCTIONS TO ORGANIZATIONAL CHANGES 3.1 Finance The finance function plays a critical role at Marks Spencer in cutting costs and eliminating unnecessary expenditure. The entire value chain was examined to determine where and how costs could be trimmed. As a result, the company was able to reduce costs, provide better prices to the customers and improve its overall profitability. Ultimately, it is the shareholders who stand to gain the most from the initiatives made in terms of maximization of shareholder wealth. 3.2 Marketing To attract new customers and retain existing customers at Marks Spencer, the marketing function critically examined the cause of declining sales. The main cause negative customer perception of its main customer base women aged between 35 and 55 that the clothes sold at Marks Spencer were unfashionable and even dowdy. Therefore, the marketing function decided to split up the long-cherished St Michaels brand into a number of categories to cater for different customer needs. Consequently, the company launched three new product categories for women (www.marksandspencer.com, 2011). The first, the Perfect and Classic ranges were for basic purposes, for example jeans, sweaters and plain shirts. The second range, Autograph is for the more fashionable woman of a larger demographic group. The final range, per una, is targeted at the younger woman of ages 25 to 35 and is of average dress size. By segmenting its products for different markets, the company was able to regain most of the sales it lost. Different marketing campaigns are held for each range and this makes the companys products appear more attractive to customers. 3.3 Operations A number of critical changes were made to the companys operations. For one, the supply chain was made leaner and in doing so, the company made substantial savings. Fewer suppliers were used and this facilitated transparency and response time. The lead time was reduced and the company placed a greater emphasis on timeliness and quality. These contribute to leaner operations which lead to higher profits. 3.4 Human Resource This function is critical to the successful implementation of a strategy. The HRM function at Marks Spencer played an important role in changing employee mindset and modifying the corporate culture to be more attuned to the changes that need to occur (Hitt et al, 2004). As a result, employees were more receptive to change and aware of the sacrifices they need to make. 4. KEY STAKEHOLDERS The key stakeholders of Marks Spencer are shareholders, management, employees and customers. The following diagram shows their relative importance and power: Power of Stakeholders Meet Their Needs Key Player B, C A D Least Important Show Consideration Interest Key: A Shareholders B Management C Customers D Employees 5. MANAGING KEY STAKEHOLDERS Shareholders would like to maximize their wealth. Share maximization is through share price appreciation and dividends (Aaker, 1996). Therefore, satisfying this group would require increasing profits and the company profile. Management is concerned about maintaining control over operations. Their goals are sometimes similar to that of shareholders but in some cases they differ (Daniels et al, 2007). Hence, there is the agency problem. The employees at Marks Spencer are most concerned about job security and work conditions. Ideally, they would like jobs that pay well and have good hours. However, this may be incompatible with the goal of wealth maximization of shareholders as employee benefits will erode profits. Similarly, if employees are unionized, they may cause problems to management and reduce its influence. Hence, management must strike a balance between making employees and shareholders happy. Customers are concerned about satisfying their needs and wants. Managing them effectively would require Marks Spencer to improve its product offering to make satisfied customers who make repeat purchases. 6. SWOT ANALYSIS 6.1 (S)trengths Excellent control system for suppliers, inventory and layout of stores. Very high quality products Efficient and modern production techniques Good understanding of its core customer base. 6.2 (W)eaknesses Generic clothing that is often perceived as unfashionable An image of being boring 6.3 (O)pportunities Global expansion Utilizing more overseas suppliers to achieve cost advantage Maximize use of existing technology to obtain competitive advantage 6.4 (T)hreats Competition with premium quality clothing manufacturers Competition with discount stores Economic downturn 7. FUTURE PROSPECTS Marks Spencer is facing a very difficult time. After its successful business turnaround, it is once again facing problems due to the recession. Indeed the next few years may be a very difficult time for the company. Not only is it facing competition from high end retailers but discount stores as well. Meanwhile, the middle class is shrinking and if the company does not take bold steps, it may collapse. To succeed, the company must grow its market share by penetrating new markets or new product lines. 8. CONCLUSION Marks Spencer is a company with a long history of success. To overcome its current difficulties, it must draw on its strengths, overcome its weaknesses and revamp its strategy to stay relevant and competitive.

Biometrics :: Science Technology Essays

Biometrics For most people when first hearing the word biometrics, they have an instant reaction to tune out. Just because the term sounds complicated and somewhat boring does not mean that the information behind the term is incredibly interesting and fun! When first discussing the term with others, I too thought it would be a typical boring computer topic. It was not until I began to research the topic, that I saw computers to be intriguing. One of my favorite aspects of the topic is what it initially reminds me of. I could not help but think of spy and other technical movies that show biometrics being used. The term biometrics, refers to the automated methods of categorizing a person, based on their behavioral, and physiological characteristics. What people may not know about biometric systems, is that the basis alone is from natures oldest way of identification. By determining these characteristics in an authentication inquiry, this information can then be saved in reference, for identification to determine if the user can be granted access to any private or secured location. This particular method of recognition is preferred to those such as, passwords, or pin numbers. Although these methods are still commonly used, with biometrics we are able to make sure the person being identified is physically present, and elements the hassle of remembering several passwords. These physiological techniques could include fingerprints, retinal scanning, voice patterning, facial recognitions, DNA analysis along with hand and finger geometry. Biometrics is such a rapidly improving technology, that has been previously used for years in forensics, such as identification, and prison security. While the behavioral techniques include handwriting and voice recognition, gait, and keystroke dynamics. By having these special techniques replacing pins, we are able to feel secure about unauthorized used of ATM’s cellular phones, desktop PC’s, and other personal securities. In addition to these currently password protected areas, biometrics can also replaces keys for automobiles, such as key-less entry. Trust in these areas of secured access, is essential to a happy and healthy environment. Even though there are several ways of detecting identity, the most popular has been the facial recognition and fingerprint matching. These techniques are expected to be added in aid for homeland security identification, at places such as airports, along with helping in reliable travel documents, and preventing ID theft. Along with th e important need for reliable homeland security, biometrics are important in areas such as financial transactions, retail sales, investing, electronic banking, law enforcement, and health and social services.