Charles Schwab, Company Summary Essay Example | Topics and Well Written Essays - 750 words

Charles Schwab, Company Summary - Essay Example Appendix A shows a graph that illustrates the price movement of the stock during the past year. The stock a year ago was price at $13.86. The price of the firm climbed for six months and then it started a downward spiral to reach the current price of $11.54. The graph that illustrates the movement of the SCHW common stock looks similar to the graph of the normal distribution function. The founder and chairman of the company is Charles Schwab. Walt Bettinger is the chief executive officer (CEO) of the company. The enterprise has 13,200 employees worldwide. The corporate headquarters of the company are located in San Francisco. â€Å"Schwab also operates 302 domestic branch offices in  45 states, one branch in  Puerto Rico and one branch in London. Hong Kong clients are served through a Schwab subsidiary† (Aboutschwab). The quality of the human resources of the firm has been a critical success factor that has helped the company achieved tremendous growth during the past 40 y ears. The mission statement of Charles Schwab is to empower individual investors to take control of their financial lives free form the high costs and conflict of traditional brokerage firms (Blogspot). The financial service industry is a multi-trillion dollar industry. The top three stock exchanges in the United States: NYSE, AMEX, and NASDAQ moved 3899 million shares in 2010 (Plunkett Research). Charles Schwab is a major player in the brokerage industry. The company generated $4.2 billion in revenues in fiscal year 2010. The revenues of the company were 1% higher than in 2009. The firm has a total of 8 million client accounts. The client accounts of Charles Schwab have grown by 14.28% in comparison with 2007. The net income of the firm was $454 million. The net margin of the firm was 10.80%. The net margin is the firm was better than the industry average. The industry standard net margin is 5.8% (Dun & Bradstreet). The earnings per share (EPS) of Charles Schwab in 2010 was $0.38. The EPS is a metric that tends to influence the market price of the common stock. The return on assets (ROA) of the firm was 0.49%. The ROA industry average is 1.7% (Dun & Bradstreet). Return on assets measures how effective a company has been at generating net profits with its assets. The ROA of Charles Schwab in 2010 was 1.2% below the industry average. The return on equity (ROE) metric measures how effective a company has been at generating profits from its equity. The ROE of the company was 7.29%. The industry standard ROE is 12.3% (Dun & Bradstreet). The price earnings ratio (P/E) of the company on December 30, 2010 was 45.13. The P/E ratio is calculated by dividing the market share price by the earnings per share. The price earnings ratio shows whether a stock is relatively cheap or relatively expensive in comparison to its current earnings. There are several competitors that compete directly with Charles Schwab. Five of the top competitors Schwab faces in the marketplace are Merrill Lynch, Scottrade, Morgan Stanley, Ameritrade and ING. One of the things that set apart Charles Schwab from the competition is its brand value. The tremendous brand value of the firm has helped the company maintain high gross margins by charging $29.95 per trade. A lot of online traders receive revenues below $10 a trade. For instance Scottrade charges its customers $7 a trade. Charles Schwab i

Financial audit Essay Example for Free

Financial audit Essay A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively. * Material weakness. A deficiency or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected, on a timely basis. * Significant deficiency. A deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. AU-C Â §265 also claims that the auditor should communicate to management at an appropriate level of responsibility, on a timely basis. in writing, significant deficiencies and material weaknesses that the auditor has communicated or intends to communicate to those charged with governance, unless it would be inappropriate to communicate directly to management in the circumstances. * in writing or orally, other deficiencies in internal control identified during the audit that have not been communicated to management by other parties and that, in the auditors professional judgment, are of sufficient importance to merit managements attention. If other deficiencies in internal control are communicated orally, the auditor should document the communication.

Parole Should Be Abolished Essays -- Argumentative Persuasive Crime Es

Parole Should Be Abolished The procedure known as â€Å"parole† in the criminal justice system has been in practice in the United States since the late 1800’s when it was begun in a reformatory in Elmira, New York. It’s process provides for early conditional release from prison for convicted felons, after part of their prison sentence has been served, and they are found to be eligible for parole based on factors such as: conduct while incarcerated, rehabilitative efforts/progress, type of offense, and remorse for their crime. Its use has been expanded to many states, and today has become the primary way by which offenders are released from prisons and correctional institutions. Unfortunately, parole is not always rewarded to worthy inmates, thus putting society at risk for repeated crimes that often outweigh the benefits of parole, therefore, parole should be abolished and inmates should be made to complete their full sentences. Prison inmates are usually sentenced by the severity of their crimes, as well as their mental intention at the time of the act. For example: a person who commits murder intentionally expects to take the life of another in reckless disregard for human life, and knows that the act itself which he or she has decided to commit, will surely bring about death. However, in the case of manslaughter, which is also the taking of a human life, there is no actual intention to bring about death. The act that lead to someone’s death, is measured by the circumstances that made the person kill such as self-defense, or a crime of passion because the killer was provoked in such a way that a chain of events lead to violence which eventually resulted in peril. Because of the difference in how these crimes are carried out, inmates are sentenced differently; some are sentenced to life in prison, and others are sentenced to several years and will be eligible for parole after serving part of their sentence. In lieu of inmates completing their full sentences, parole tries to achieve releasing inmates early based on the idea that the inmate has been sufficiently punished, and should be given the opportunity to become a law abiding citizen, capable of functioning in our society with adequate supervision. Although parole attempts to carefully screen inmates prior to granting early release, their decisions often do not merit wise choices. As a social worker, I e... ...niors who brought us into this generation. We deserve to be protected as much as any other human race. Our tax dollars spent on housing inmates are a lot cheaper for us to pay when one considers the cost of irreparable pain and suffering, of a victim who falls prey to a parolee who had no intention of reversing his or her former lifestyle and recommitted their life to crime. One cannot put a price tag on scarred lives. It would be worth every penny to keep these criminals behind bars until they have completed their full sentences, if it meant even saving one innocent life, or sparing someone an unforgettable damaging experience. In conclusion, parole serves to benefit the inmate who is seeking his or her freedom, while society seldomly benefits from progress or efforts implemented by parolees in the community. We must understand that parole is a privilege, not a right. We must take into consideration that if almost half of the population that is released on parole returns to pris on; parole is not working and should be abolished. Law abiding citizens have earned their right to freedom, and criminals have earned their right to confinement, and should remain that way, as sentenced.

Grade Privilege

School deal with because the school bans the student for using their cell phones in class. My friend, Tucker, got faced with getting placed in SIS for using his phone in class. I believe that the 8th grade students should be able to use their phones in class. To begin with, the phones provided as a great tool for the students to use in the class room. The students were as cheerful about using their phones as much as owing on a field trip.You can also download educational APS for school. For Instance, there's an app that tells you what you're looking at In the sky at night with Just a push of a button and it calculates all the objects in the sky at real-time including moon phase, planets position, and stars position. It takes the class to places we'll never be. Last week, I asked my Science teacher â€Å"l wonder what the moon looks like up close? † Next thing you know, BOOM there we are right where Neil Armstrong was when he kook the first step on the moon In mankind.What abou t the internet access instead of going to the computer lab and wasting up class time, It saves more time for class and learning. Also. For the slow note takers you can use a recording device. Or you can use the camera on your phone to take a picture of the smart board instead of writing the notes down. You also have to remember about the parents and what they think about this. The Chicago Tribune had an article on August 8, 2012 called â€Å"Are cell phone a must for middle school kids?The parents of an 11 year-old girl said that â€Å"Now she can check her phone between classes If we have to communicate with her. † The top reason parents are buying their pre-teens a cell phone was safety, according to the National Consumer League survey. A Pew study noted that 48 percent of parents use the phone to know where their child's location. If in danger, children can reach the authorities or medical provider. In a push of a button, parents can easily reach kids for reason like ask questions, change plans, or to slimly say hello.My good bud, goes to a school where you can use your phone, he said that it was easy to communicate with his parents when he needed to know how he was going to get home In the afternoon, if he forgot something from home like homework, or even when he's sick. Not to mention, but phones are definitely cheaper than textbook. Not only does it help the students stay organized but it saves the school a lot of money. If I could use a phone I wouldn't have to worry about losing things because the phone would keep me organized.Another convinces is that phone are lightweight and fit right in your pocket. A survey says that a middle school would save more than $10,000 each year for the first 5 years, It's Like money growing on trees, when they allowed students look up things and use for educational reasons from the cell phone instead from the textbook. Also the phones have more updated information. Students can forgot about bringing their textboo ks, so instead of getting in trouble for not bringing your textbook you wouldn't have to worry about it. Just last week, I got a signature becauseI forgot to bring my textbook into Science class, If I could have used my cell phone I and it would be fast and easy. You have to remember that we are the eighth graders! We are the seniors of the school! We want to have some more privileges before we head out to high school. By allowing us to use our phones it would be a win-win situation for not only us students but also the school by saving money to pay for better things like letting the football teams have their own home games at Mossy Creek. Or have for clubs to help the community.

Qualitative Data and Collection Methods

Here are the characteristics of a good qualitative data: 1) naturalistic (derived from actual participation or analysis of a subjective data, 2) â€Å"rich† and â€Å"deep† data (that is, specifics of dynamics of an event or context can be discerned or analyzed), 3) subjective (data should be perceptions of the people in the environment), 4) credible (that is, the data are derived from actual experiences of the people involved – the source of data), and 5) confirmable (that is, the data derived may be collaborated by other subjective sources).There is though an additional characteristic (but not required) of a good qualitative data. In some cases, social scientists attribute a good qualitative data based on its transformability into quantitative data (this is though not necessary). Types of Qualitative Data Collection (Qualitative Methods, 2006: URL cited) There are generally four qualitative data collection methods that are frequently used in the social sciences . Here are as follows: 1) participant observation, 2) direct observation, 3) unstructured interviewing, and 4) case studies.There are though variations in qualitative data collection methods. In anthropology, ethnography is used as the primary mode of qualitative data collection. In a sense, it is case study on a wide range (all aspects of a culture are examined and analyzed). In psychology, psychoanalysis methods of qualitative data collection are used to code and validate a person’s psychological standing or perhaps his/her state of mind. For simplicity’s sake, we shall not tackle on these methods. Participant Observation.This method requires that the researcher become a participant in an event or the place being observed. This approach allows the researcher to know the specifics as well as the intent of an activity or the people involved. Without bias or prejudgment, this method becomes more pronounced when the researcher is accepted as a natural part of the culture , assuming that the observations are natural phenomena. Here, the researcher collects first-hand qualitative data, and hence allows him/her to relate it simultaneously with the event or activity (or culture).Direct Observation. This is a different from the previous method in a number of ways. First, the researcher is not a participant in the context or event. The researcher in this case does not in any way mingle or influence the actions of the participants in a context or event. Doing so would undermine data authenticity as well as validation (see Hawthorne Effect). Second, direct observation is a detached perspective. Technologies replace actual participation as a measuring tool for validation and procurement of good qualitative data (as presented earlier).Third, the researcher is observing sampled situations or groups of people; in no way the researcher is immersed in the activity or event. Lastly, direct observations are usually shorter in scope than participant observation in t erms of data viability as well as practicality. Unstructured Interviewing or In-Depth Interviewing. Here the researcher and the respondent have direct interaction. The researcher usually uses a short guide to his interview questions (unstructured) or core concepts to ask about. The interviewer may ask additional or supporting questions that are relevant or connected to the main problem of the research.This allows the researcher flexibility in structuring his/her qualitative data as well as representative tools like bodily gestures and facial expressions. The protocol however in this type of method is that the interviewer respects the principle of confidentiality. Only information approved by the interviewee can be released to the public or to academic associations. Case Studies. This is the frequently used research method in the social sciences (especially in anthropology and sociology). This involves an intensive and extensive study of an individual on a specific milieu.In a sense, this is a combination of structured interview, participant observation, and direct observation. Using all the methods in one setting allows the researcher to get the whole picture of the problem. It also allows him/her to determine the variables or factors at play without undermining validity. Most of the time, if only one method is utilized, there is a tendency for variables to be neglected or misrepresented. There was a case when voting behavior was concluded to be attributed to the party affiliation of the group being studied (participant observation was the only method used) – note that only one variable was used.When the study was replicated using combinations of methods, party affiliation accounted only 19% of the relations (when the qualitative data was converted to quantitative data). Although this is not to say that a combination of data is more desirable or more academically reliable (this would depend on the context of the research problem), it is often noted that this type of method has all the requirements for procuring good qualitative data. Process for Analyzing Qualitative DataQualitative data analysis is composed of three general processes: 1) noticing things, 2) collecting things, and 3) thinking about things. These three general processes are connected are related with each other. We shall discuss each of the processes below. Noticing Things. This refers to the general observation of an event or context and the manner by which it is coded. It generally means â€Å"making observations, writing field notes, tape recording, interviews, gathering documents, etc. When you do this you are producing a record of the things hat you have noticed†(Seidel, 1998:3). Collecting Things. This process is similar to solving jigsaw puzzles (Seidel, 1998:5). The data coded are assembled or disassembled into groups. In this way, relations can easily be extracted. Thinking About Things. This is generally the theoretical part of the research process . Each part of the â€Å"puzzle† are examined and related to the main problem. After relationships between variables are stated, they are then referred to the main problem (as well as the specific propositions).

FIO Full Assignment Essays

FIO Full Assignment Essays FIO Full Assignment Essay FIO Full Assignment Essay It entered the retail industry in 1975 with flagship brand Padding . In 1991, Home Stores Sad Bad was launched to hold all the companies involved in the Groups retail, wholesale and manufacturing businesses. It was subsequently renamed to the present Padding Holdings a year later. In 1995, Padding Holdings Sad Bad was converted to a public company limited by hares and adopted the name, Padding Holdings Bertha and soon listed on the Second Board of the then Koala Lump Stock Exchange. Today, Padding Group is a leader in the multimillion textile and garment industry in Malaysia. We have nine labels in our family of brands and retail in 330 freestanding stores, franchised outlets and consignment counters in Malaysia and around the world. Our labels proudly carry the Made in Malaysia stamp abroad in Bahrain, Brunet, Cambodia, Egypt, Indonesia, Kuwait, Morocco, Manner, Oman, Pakistan, Philippines, Qatar, Saudi Arabia, Syria, Thailand and United Arab Emirates. Padding address fashion conscious consumers of both genders and all ages through their ten distinct brands: Padding, Seed, Padding Authentic, PDP, P, Vinci, Vinci Accessories, Tizzy, Mike Kids and Brands Outlet. Each of these labels represents a particular fashion philosophy and encompasses a comprehensive range of products that fit into their targeted consumers universe. Padding will maintain and increase its leadership position in Malaysias fashion industry through various strategies. New brands and increased product diversity are key expansion policies. : The company will continue to upgrade the image of its reduces while emphasizing value and quality. Vinci is the companys successful toehold in the lucrative but competitive womens footwear market. There are plans to strengthen its dominant position with improved production lines and increased capacity. In order to have successfully etched its brand names into the consciousness of Malaysian consumers, Padding is moving to turn its various labels into regionally- recognized fashion leaders. B) SOOT Analysis of Padding Holdings Bertha.

Free Essays on Gothic Architecture

Gothic architecture first got its name during the Italian renaissance when the people considered all buildings of the Middle Ages barbaric and associated them with the savage Goths. With the passing of many centuries, Gothic became more clearly associated with the closing era of the medieval age. In time, the separation point would set around the style, which followed, the Romanesque era. The title was later limited to the hardly barbaric architecture of the period between Romanesque and Renaissance. Gothic architecture emerged from Romanesque architecture in the year 1144 AD. A Benedictine abbot called Suger was building a new church outside of Paris. He decided that he wanted something new and impressive. Suger wanted to make the Abby church of St. Denis so tall that it would seem to reach the heavens, and so amazing that everyone would remember it. When people saw this new form of architecture, they were amazed. The Gothic style quickly spread. Towns and cities would not let their churches be outdone by churches elsewhere. They tried to build taller, longer, and more stunning churches than any other. All buildings reflect the society, which produced them, and cannot be understood without some knowledge of that society. The social and political conditions of the Middle Ages had very little comfort or luxury in the domestic living except in the feudal fortress castled of the nobles. The primacy of commerce in towns of this period is best seen in their market place. The church or castle gate had ceased to be a major influence on town planning. Everywhere towns grew outwards from their market squares, from a road junction, or from a swelling in the street. Medieval peasant houses of this early date have left few remains. Their date has left few obivious remains. Their study has been exclusively archaeological. Yet there is plenty evidence, at least among those who had land. Stone in the villages-as in castle, church and town- foun... Free Essays on Gothic Architecture Free Essays on Gothic Architecture Gothic architecture first got its name during the Italian renaissance when the people considered all buildings of the Middle Ages barbaric and associated them with the savage Goths. With the passing of many centuries, Gothic became more clearly associated with the closing era of the medieval age. In time, the separation point would set around the style, which followed, the Romanesque era. The title was later limited to the hardly barbaric architecture of the period between Romanesque and Renaissance. Gothic architecture emerged from Romanesque architecture in the year 1144 AD. A Benedictine abbot called Suger was building a new church outside of Paris. He decided that he wanted something new and impressive. Suger wanted to make the Abby church of St. Denis so tall that it would seem to reach the heavens, and so amazing that everyone would remember it. When people saw this new form of architecture, they were amazed. The Gothic style quickly spread. Towns and cities would not let their churches be outdone by churches elsewhere. They tried to build taller, longer, and more stunning churches than any other. All buildings reflect the society, which produced them, and cannot be understood without some knowledge of that society. The social and political conditions of the Middle Ages had very little comfort or luxury in the domestic living except in the feudal fortress castled of the nobles. The primacy of commerce in towns of this period is best seen in their market place. The church or castle gate had ceased to be a major influence on town planning. Everywhere towns grew outwards from their market squares, from a road junction, or from a swelling in the street. Medieval peasant houses of this early date have left few remains. Their date has left few obivious remains. Their study has been exclusively archaeological. Yet there is plenty evidence, at least among those who had land. Stone in the villages-as in castle, church and town- foun...

Crapulence Doesnt Mean That

Crapulence Doesnt Mean That Crapulence Doesnt Mean That Crapulence Doesnt Mean That By Maeve Maddox A reader called my attention to a sentence in which these words appeared: a cesspool of its own crapulence I turned to my browser and found so many examples of wallowing in their/his/its own crapulence that I conclude that the expression has already become a clichà ©. Apparently a lot of people imagine that crapulence means excrement. Columnist Jonah Goldberg thinks so: Two decades of crapulence by the political class has been prologue to the era of coprophagy that is now upon us. It is crap sandwiches for as far as the eye can see. Actually, crapulence and its related forms crapulent and crapulous, come from a Latin word meaning intoxication. and have to do with drunkenness. crapulence: great intemperance especially in drinking Merriam-Webster crapulence: 1. Sickness or indisposition resulting from excess in drinking or eating; 2. Gross intemperance, esp. in drinking; debauchery. OED crapulous: sick from too much drinking, from L. crapula, from Gk. kraipale hangover, drunken headache, nausea from debauching. The Romans used it for drunkenness itself. English has used it in both senses. Online Etymology Dictionary The vulgarism crap, on the other hand, is used as a noun to mean excrement, and as a verb to mean defecate. Merriam-Webster gives the etymology of crap as: Middle English, from Middle Dutch crap, crappe pork chop, greaves [cracklings], grain in chaff, from crappen to tear or break off The use of crap with excremental associations has been in the language since the 19th century. The Online Etymology Dictionary indicates that crap belongs to a cluster of words generally applied to things cast off or discarded (e.g. weeds growing among corn (1425), residue from renderings (1490s) dregs of beer or ale The OEtyD entry concludes that the word probably comes from the Middle English word crappe, grain that was trodden underfoot in a barn. In case the meaning of coprophagy in the quotation above is not evident from the context, heres the definition from Merriam-Webster: coprophagy: the feeding on or eating of dung or excrement that is normal behavior among many insects, birds, and other animals but in man is a symptom of some forms of insanity Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:Has vs. HadRules for Capitalization in Titles6 Foreign Expressions You Should Know

A Pricing Strategy of Apple, Inc Research Paper

A Pricing Strategy of Apple, Inc - Research Paper Example Some of the software they are marketing includes the Mac OS X Operating System, iTunes media browser, the iWork suite of productivity software, iLife suite of multimedia and creativity, Final Cut Studio suite of professional audio and film-industry software products, Logic Studio suite of music production tools, Safari internet browser and iOS mobile operating system. It is believed that Apple Inc. highly influenced the Computer Industry (John). Â  Apple indeed established a unique and remarkable character and status in the consumer electronics industry. Apple has gained many loyal customers that are truly devoted to the company and to its products and brand, particularly in the United States. According to a news report based from the data in the year 2007, Apple Inc. is one of the high-technology companies with the significant number of loyal customers (Macnn, 2006). In the year 2008, the Fortune magazine, as the most well-liked company in the United States, also acknowledged Apple. Last March 2011, in the eighth annual American Brand Excellence Awards, Apple Inc. was recognized as the best brand that meets the need of small and midsized businesses. (Birmingham Business Journal, 2011) Lastly, on the United Kingdom T3 Awards, Apple won six of the twenty-five awards. Apple’s iPhone was scooped as the Most Anticipated Gadget or 2007, as voted by the Sky News online readers. On the hand, iPod was recognized as the Best Commuter Gadget, Best Music Gadget and Best Gadget of All Time (John).

Marketing strategy 4Ps of luxury brands and mass-market brands Essay

Marketing strategy 4Ps of luxury brands and mass-market brands - Essay Example Hence, we saw businesses catering to a specific group of people sharing similar characteristics than catering to the needs and wants for the general heterogeneous and diverse people. This way their strategies and focus would only be on a specific group, which would consequently lead to effective strategies and results. For instance, Burberry moved up-market and focused only on the first class society. Whereas, Abercrombie & Fitch targeted the middle class people and teenagers. Not only this, but we saw many businesses expanding their size of operations by going across the borders. An appropriate example of this would be Abercrombie & Fitch opening their first shop in Hong Kong in 2012, and extending their operations to the Asian market as well. Now, we are going to go to the next slide which will explicitly compare and contrast the marketing mix of the four companies named: Burberry, Coach, Next, and A&F. As you can see, the first row shows the price comparisons of these companies. The price strategy for Burberry and Coach is to provide the luxurious goods at high prices i.e. expensive and grandiose image. On the other hand, A&F and Nexts price strategy ranges from high to medium prices respectively. The second row deals with the product strategy for each business. We are going to discuss each one by one. First is Burberry. Burberrys product strategy is to provide high quality designer garments, and to diverse in its product portfolio which contains shoes, bags, and fragrances apart from the garments. It is most famous for its trench coats. Second is Coach. Coachs product strategy is similar to the Burberrys except for the fact that it focuses on leather goods such as handbags, wallets, briefcases and luggage. High quality and diversification is the product strategy. Next we have "Next". Its product strategy differs from the first two. It does not aim for high quality "pricy" luxurious goods. Instead,

Knowledge Management Enablers Article Example | Topics and Well Written Essays - 7500 words

Knowledge Management Enablers - Article Example This cost them their exile out of the Garden of Eden and onto a life of suffering. Such is the value of knowledge that in its pursuit, it wields its power to drive people to do things unexpected of them. Nonaka and Takeuchi (1995) make the distinction between two types of knowledge: explicit knowledge and tacit knowledge. Discussions of this concept are abundant in the KM literature (Bollinger and Smith, 2001). Explicit knowledge is defined as structured and codified knowledge. It is formal and systematic and is easily expressed in the production specifications, scientific formulae or computer programs (Nonaka and Konno, 1998), thus it can be easily communicated and shared. Tacit knowledge, in contrast, is unconsciously understood and applied, difficult to articulate, and developed directly from experience, and action (Zack, 1999). Tacit knowledge is highly personal, hard to formalize, difficult to communicate or share with others. The adage that â€Å"Knowledge is Power† has been adhered to by many people as a rule of strategy in achieving personal or professional empowerment and advantage, or as a protective measure against the uncertainties and unstable conditions of life’s situations. ... It is as arbitrary and shallow as its premises imply. So, like money and time, knowledge needs to be managed well so it is used for the best outcomes. Knowledge management has been getting much attention due to its accorded importance in organizations. O’Dell and Grayson (1998) defines it as â€Å"a conscious strategy of getting the right knowledge to the right people at the right time and helping people share and put information into action in ways that strive to improve organizational performance† (p.6) In addition, Nakra (2000) contends, â€Å"Knowledge management refers to the ability to develop, share, deposit, extract, and deliver knowledge such that it may be retrieved and used to make decisions or to support the processes† (p. 54). Magnier-Watanabe and Senoo (2008) defines it as â€Å"the process for acquiring, storing/sharing, diffusing and implementing both tacit and explicit knowledge inside and outside the organization’s boundaries with the pu rpose of achieving corporate objectives in the most efficient manner† (cited in Magnier-Watanabe & Senoo, 2010, p. 216). It should be noted that the common characteristics of knowledge management in the definitions is that it is something that is movable from one person to another for the purpose of achieving organizational goals. However, it is not as simple as it seems as there are several considerations in order for knowledge management to be successful in working for the whole organization and not just for a few individuals. Dissecting Magnier-Watanabe & Senoo’s definition further, the processes involved in knowledge management are likewise described. Knowledge acquisition is gaining new knowledge from whatever source and although knowledge already

Human Relations at Work Essay Example | Topics and Well Written Essays - 1750 words

Human Relations at Work - Essay Example The way the two executives handled the problem had a significant implication in their leadership styles, especially that of Michael Dell. Since the problem originated from his individual personality, it was something that he had to address within himself and communicate to all the people in the company. To admit their own weaknesses before tens of thousands of Dell employees in their pursuit to elevate the level of the company’s overall morale, Dell’s and Rollin’s behaviors made them quality to what had been coined as transformational leaders.A transformational leader, as Stephen Robbins had defined it in his book Organizational Behavior, is â€Å"another type of leader who inspires followers to transcend their own self-interests for the good of the organization, and who is capable of having a profound and extraordinary effect on his or her followers (2005, 343).† By admitting their weaknesses, Dell and Rollins transcended their self-interests in order to address the sagging morale in Dell, Inc, which had caused a turn around within the company.According to an article published by the Capital University of Economics and Business in China on Michael Dell’s transformational leadership, â€Å"as a successful leader, he must have strong self-consciousness. He must know what he doesn’t know and face up his disadvantages. He should learn from mistakes and borrow others talent he needed (CUEB.edu.cn).†In 2003, Dell had announced its most ambitious global target of USD 62 billion by 2006 (Interaction Associates 2005, 1).

Chicano History Essay Example | Topics and Well Written Essays - 750 words

Chicano History - Essay Example The positive significance of the Southwest can be explained by the fact that the present states of Texas, New Mexico, Arizona, California and parts of Nevada, Utah, Colorado, Oklahoma and Kansas were at one time Mexican territory. Mexico inherited this vast territory when it acquired its independence from Spain in 18211. Furthermore, these Southwest Mexicans never acquired a strong link to Mexico. Mexicans in some of these regions, in New Mexico primarily, maintained a strong link with their past and a heritage that they traced to the Southwest and to colonial New Spain. Mainstream society promoted a separate identification of Mexicans, even as they were being incorporated into the Union. The positive impact was that Chicano were the only national groups which kept Spanish language traditions in the U.S. territory. Spanish authorities and officials established written traditions in this land before the first English colonies penetrated this region. Also, they established Spanish as a n official language and provided education on Spanish2. Churches and church schools were also crucial vehicles in preserving Spanish. In the nineteenth century, when Bishop Jean Baptiste Lamy took control of the Catholic Church in New Mexico, he attempted to wrest control away from local Hispanic leaders; nonetheless, he had to allow the use of Spanish in Catholic schools. Also in nineteenth-century New Mexico, schools newly established by Baptist churches taught Spanish along with English so that future ministers could be effective in proselytizing New Mexicans. In California, mission churches ministered in Spanish, offering a continuity lasting from the colonial period until the end of the nineteenth century3. In the process of these territorial severances, many Southwest Mexicans felt insecure that provisions protecting Mexicans would be honored; others were embittered because they felt Mexico had betrayed them. As a consequence, out of the tens of thousands of Mexicans living in the Southwest, about three thousand took advantage of official Mexican attempts to repatriate marooned Mexicans in the newly acquired American territories. The experience of oppression of Mexicans who remained behind in the U.S. was cited regularly by Chicano Movement activists as a basis for charges of historical mistreatment4. In essence, it is true that, because of an Anglo-American unwillingness to accept Mexicans as equals, they often ignored treaty agreements that gave Mexicans all the rights of citizens. But as Anglo domination increased, Spanish was pushed out of areas dominated by Anglos; at times it was vilified and almost always subordinated by them. Immediately after the war with Mexico, for example, most official and economic activity was conducted in English. In the political arena, Mexican Americans promoted bilingualism in the legislatures of New Mexico and California, yet proceedings almost always took place in English. As Spanish-speaking politicians improved their English or lost their power, Spanish was eradicated. The American acquisition threatened identity and ethical unity of the population, their cultural traditions and values. The Mexican population opposed this influence speaking Spanish language at home and preserving their cultural traditions. The break that immigration brought to the mainspring ideal of the Chicano Movement, a claim to the Southwest heritage, presented movimiento ideologies with a

How Can Training And Development Enhance Employee Performance In An Essay

How Can Training And Development Enhance Employee Performance In An Organization - Essay Example It subscribes to the notion that phenomena and knowledge are â€Å"truths† only if they can be confirmed by the human senses, through deduction and induction methods. Express differently, the major distinctions between these types of knowledge claims are: whilst the goal of postpositivism is determinative for the purpose of verifying an a priori theory, constructivism seeks to understand for the purpose of generating theory; whilst postpositivism tends to reduce all data gathered into a single â€Å"truth,† constructivism ascribes varied meaning as warranted, and; whilst postpositivism employs empirical observation and measurement, constructivism uses social and historical construction (Creswell 2003 6). A scrutiny of the present research question reveals that it essentially requires a constructivist approach of learning because it calls for the researcher to seek an understanding of the effect of certain conditions, i.e. training and development, to the quality of work of employees. At this point, no theory is yet established or needs to be proven. The researcher goes into the research with an open, inquiring mind unfettered by any working theory, and seeks only to form a theory during the course or at the end of the research. The research question also calls for the researcher to discuss and probe into the minds of the respondents who will be engaged in the research to understand how such training and development have improved their performance in their respective work. The constructivist inquiry could be conducted best through the employment of the qualitative research approach rather than the quantitative method.  

Chicano History Essay Example | Topics and Well Written Essays - 750 words

Chicano History - Essay Example The positive significance of the Southwest can be explained by the fact that the present states of Texas, New Mexico, Arizona, California and parts of Nevada, Utah, Colorado, Oklahoma and Kansas were at one time Mexican territory. Mexico inherited this vast territory when it acquired its independence from Spain in 18211. Furthermore, these Southwest Mexicans never acquired a strong link to Mexico. Mexicans in some of these regions, in New Mexico primarily, maintained a strong link with their past and a heritage that they traced to the Southwest and to colonial New Spain. Mainstream society promoted a separate identification of Mexicans, even as they were being incorporated into the Union. The positive impact was that Chicano were the only national groups which kept Spanish language traditions in the U.S. territory. Spanish authorities and officials established written traditions in this land before the first English colonies penetrated this region. Also, they established Spanish as a n official language and provided education on Spanish2. Churches and church schools were also crucial vehicles in preserving Spanish. In the nineteenth century, when Bishop Jean Baptiste Lamy took control of the Catholic Church in New Mexico, he attempted to wrest control away from local Hispanic leaders; nonetheless, he had to allow the use of Spanish in Catholic schools. Also in nineteenth-century New Mexico, schools newly established by Baptist churches taught Spanish along with English so that future ministers could be effective in proselytizing New Mexicans. In California, mission churches ministered in Spanish, offering a continuity lasting from the colonial period until the end of the nineteenth century3. In the process of these territorial severances, many Southwest Mexicans felt insecure that provisions protecting Mexicans would be honored; others were embittered because they felt Mexico had betrayed them. As a consequence, out of the tens of thousands of Mexicans living in the Southwest, about three thousand took advantage of official Mexican attempts to repatriate marooned Mexicans in the newly acquired American territories. The experience of oppression of Mexicans who remained behind in the U.S. was cited regularly by Chicano Movement activists as a basis for charges of historical mistreatment4. In essence, it is true that, because of an Anglo-American unwillingness to accept Mexicans as equals, they often ignored treaty agreements that gave Mexicans all the rights of citizens. But as Anglo domination increased, Spanish was pushed out of areas dominated by Anglos; at times it was vilified and almost always subordinated by them. Immediately after the war with Mexico, for example, most official and economic activity was conducted in English. In the political arena, Mexican Americans promoted bilingualism in the legislatures of New Mexico and California, yet proceedings almost always took place in English. As Spanish-speaking politicians improved their English or lost their power, Spanish was eradicated. The American acquisition threatened identity and ethical unity of the population, their cultural traditions and values. The Mexican population opposed this influence speaking Spanish language at home and preserving their cultural traditions. The break that immigration brought to the mainspring ideal of the Chicano Movement, a claim to the Southwest heritage, presented movimiento ideologies with a

How does music influence human nature particularly in the youth Research Paper

How does music influence human nature particularly in the youth - Research Paper Example Psychological treatments are known to help offenders in a number of ways, which include reducing the rate at which they are rearrested. They also help offenders gain self-control and improve their interpersonal skills in solving problems. The treatment also helps them comprehend issues from other people’s point of view, thus avoiding egocentrism. The offenders moral values improve and they embrace critical reasoning. Anger management is a crucial skill learned in this process, and it assists the individuals undergoing through it not to rush into action when they are angry. The anger management is, however, not to make them avoid becoming angry, but rather to help them monitor their reactions. Nevertheless, psychologists argue that although psychological treatment is authorized in sentencing offenders, its effectiveness is debatable. Many argue that the offenders deserve punishment while in prison, and treatment is pointless. This is because they may not change their behaviours , or are unwilling to do so. They may also opt for treatment not because they can change, but to avoid judgement from the society. Criminal behaviour may include sexual offences, manslaughter, and robbery with violence. An offender may be led to such actions by mental illness, poor social integration skills, factors of unemployment, drug or substance abuse, and the lack of intimate relationships. Depression is also another factor that may lead a person to commit an offence (Evans, 1998).

Imperialism Within the Heart of Darkness Essay Example for Free

Imperialism Within the Heart of Darkness Essay A phenomenon, The Heart of Darkness, is a classic novel by Joseph Conrad, who reward individuals with their dark nature. The darkness that the characters face within themselves is the anchor towards the main theme of imperialism. Native Africans, around the early 1900s, were victims of imperialism in the novel. The Europeans saw themselves as prodigies and felt everyone redundant wanted to be like them for they perceived themselves as extraordinary. The Europeans thought so highly of themselves that they wanted to civilize what they perceived the Native Africans to be—savages. Ironically, the process of civilization became imperialism, and the Europeans were the definition of savage while the Native Africans perceived themselves as civilized. Conrad strategically evolved this theme with the narrative of his novel and the various tones and symbols he used revolving around imperialism. These literary strategies and devices led readers to understand the secret of the darkness in the European heart, which was European imperialism. Entering the novel, Conrad has the narrator explain: â€Å"It was difficult to realize that his (the Director of Companies) work was not out there in the luminous estuary, but behind him within the brooding gloom† (Conrad 1). Here, Conrad’s use of pathetic fallacy forewarns his audience from the very beginning that the European companies are working in an unlawful matter (Shmoop.com). The Europeans are vague, and the fact they are working within the dark makes them more malicious. This behaviour leads to having an imperialistic nature because in order to have the desire to take over a race, in this case the Native Africans, one needs to already be in tuned with their dark nature. Conrad includes a second narrator, the protagonist to The Heart of Darkness, who makes a remark to the beautiful sunset over the Thames river in London saying: â€Å"‘And this also,’ said Marlow suddenly, ‘has been one of the dark places of the earth’† (1). For Marlow to reveal a beautiful image of England as being â€Å"one of the dark places of the earth† (1), tells individuals that the Europeans are morally corrupt (Shmoop.com). For the Europeans to do the morally bankrupt task of ‘civilizing’ the Native Africans, whom they acclaimed them to be the morally corrupt, only infers that the Europeans committed an offence to be proven guilty of the false accusation. The offence being imperialism; to be remarked as morally corrupt suggests that they encountered savage-like behaviours against the Native Africans. Therefore, through the narrative at the very beginning of the novel, one can infer that imperialism evolves as the Europeans are justified to have the dark nature to civilize a nation. Conrad sets the tone by casting a â€Å"mournful gloom† (Conrad 1) atop London. â€Å"The air was dark above Gravesend and farther back still seems condensed into a mournful gloom†¦over the biggest, and the greatest, town on earth† (1). This infers that darkness is bestowed on the purity of the â€Å"greatest town on earth† (1). Conrad decides to incorporate a mood-shifter to infer that the Europeans are victims to a form of darkness and that negative events will follow. Since their goal in the novel is to civilize the Native Africans, it is forewarned that they will try to civilize them with dark power leading to imperialism. Another area where Conrad sets a dark, gloomy mood would be when Marlow talks about humans being drawn to their madness hidden within their darkest self. â€Å"The fascination of the abomination—you know. Imagine the growing regrets, the longing to escape, the powerless disgust, the surrender, the hate† (1). Marlow’s words bring out the theme of curiosity; the curiosity of what lies within the darkest areas of an individual. This quote states that humans are fascinated with their abomination because they have not yet experienced it; but once they have, they feel powerless and yearn to escape, but the abomination overtakes them. This certain curiosity of evil and darkness is what reigns over Europe. They are so curious of their own darkness that they themselves get lost within it and become the culprits of imperialism. Thus, through the moods and tones Conrad implants at the very beginning of his novel, he brings forth the coming of events which evolve into the realization of imperialism. Conrad uses symbolism in The Heart of Darkness to heighten the approach towards imperialism. For example, the reader’s encounter with the Accountant of the ivory trading Company in the outer region of Africa. Marlow describes him as an elegant dresser: â€Å"†¦I met a white man, in such an unexpected elegance of get-up that in the first moment I took him for a sort of vision† (16). Here, Marlow enters the beginning of his journey to the heart of Africa, and seeing the Accountant dress beautifully makes him seem like some kind of â€Å"miracle† (16) since their setting at the particular moment is in contrast. The Accountant symbolizes the Company and its excellence, professionalism, and perfection. Despite the blazing heat and his surroundings of poverty, he always dresses well. This is the professionalism of the Company. The fact he immerses himself within his accounting books represents the Company’s excellence and perfection. But although he is a man of perfection, the fact that the sight of suffering Native Africans distracts him and causes mistakes in his work, this symbolizes the room for error in the Company. This is an approach towards imperialism because wrong and unjust actions are seen as ‘errors’ in which the Company is a culprit of. Also, the symbolization of flies and its representation of death heighten the approach to imperialism as well. Ever since the devil is nicknamed, the Lord of the Flies, flies have represented death (Shmoop.com). Flies are seen in parts one and three when slaves, as well as a man named Kurtz, have their life taken away. Since the flies are associated with the devil, this implies that the devil, or the darkness that overcomes Europeans, have a connection with the deaths of human lives. Therefore, Conrad uses different symbols such as the spotless attire of the Accountant and the devil’s flies to inform readers about the imperialistic actions of Europeans. Joseph Conrad uses narrative schemes, sets moods and tones, as well as involves symbolism to approach his major theme of imperialism. He takes readers to the darkness of the human soul, a space which reigns in every single human being. This allows the individuals to take note that they can be greatly influenced by their darkness: creating the ability to carry out unjust behaviours, such as committing imperialistic actions. Therefore, this novel is a great commentary to human error, such as being past culprits of imperialism, and brings awareness to human morality. Works Cited: â€Å"Heart of Darkness. Shmoop. Shmoop University, n.d. Web. 07 Jan. 2013. .

A Whale of a Passion for Psychology :: Graduate Admissions Essays

A Whale of a Passion for Psychology    A beluga whale helped me first realize my true academic passion. I spent my high school summers and weekends volunteering at the New York Aquarium, first in the education department, and later in the training department. It was there, through casual and research-oriented observations of cetaceans, that I began to wonder about animal and human minds. I later had the opportunity to participate in an observational research project, helping to record data on the behaviors of new whale calves and mothers. My informal and formal observations fed my interest in the phylogenetic and ontogenetic bases of cognition and language. As a psychology student at [my school], I had numerous opportunities to research and observe human psychology, both in and out of the classroom. As a sophomore, along with a professor and fellow students in a seminar class, I helped design and run a study on categorization and user's intentions. Later that year we presented our findings at the annual American Psycholog ical Society meeting. In that same year I also assisted a professor in conducting a study on the effects of familiar and unfamiliar music on reading comprehension. I spent the summer following my sophomore year (1997) as a research assistant in the [my school] Psychology Department, funded by a grant from the Howard Hughes Foundation. I collaborated with a professor, a fellow undergraduate student, and a visiting high school student to research, design, and run a study on attitudes towards germs and illness. This included conducting an extensive literature review, specifying research questions, and designing questionnaires that would help us effectively answer our research questions. In addition to strengthening my research abilities, this experience gave me the invaluable opportunity to interact with fellow researchers as a student, a peer, and a mentor. My extracurricular research experience during my sophomore and junior years of college gave me the tools to independently develop and carry out research projects. During my senior year at [my school], I completed a long term library-based research project on the evolution of the human linguistic ability. As a person who tends to look at the big picture when conducting research, this project was the perfect opportunity for me to integrate research from numerous fields and subfields in order to answer a psychologically based question.       Through the study of anthropology, paleoneurology, neuropsychology, linguistics, and psycholinguistics, I explored theories debating the neurological and behavioral bases for language evolution. A Whale of a Passion for Psychology :: Graduate Admissions Essays A Whale of a Passion for Psychology    A beluga whale helped me first realize my true academic passion. I spent my high school summers and weekends volunteering at the New York Aquarium, first in the education department, and later in the training department. It was there, through casual and research-oriented observations of cetaceans, that I began to wonder about animal and human minds. I later had the opportunity to participate in an observational research project, helping to record data on the behaviors of new whale calves and mothers. My informal and formal observations fed my interest in the phylogenetic and ontogenetic bases of cognition and language. As a psychology student at [my school], I had numerous opportunities to research and observe human psychology, both in and out of the classroom. As a sophomore, along with a professor and fellow students in a seminar class, I helped design and run a study on categorization and user's intentions. Later that year we presented our findings at the annual American Psycholog ical Society meeting. In that same year I also assisted a professor in conducting a study on the effects of familiar and unfamiliar music on reading comprehension. I spent the summer following my sophomore year (1997) as a research assistant in the [my school] Psychology Department, funded by a grant from the Howard Hughes Foundation. I collaborated with a professor, a fellow undergraduate student, and a visiting high school student to research, design, and run a study on attitudes towards germs and illness. This included conducting an extensive literature review, specifying research questions, and designing questionnaires that would help us effectively answer our research questions. In addition to strengthening my research abilities, this experience gave me the invaluable opportunity to interact with fellow researchers as a student, a peer, and a mentor. My extracurricular research experience during my sophomore and junior years of college gave me the tools to independently develop and carry out research projects. During my senior year at [my school], I completed a long term library-based research project on the evolution of the human linguistic ability. As a person who tends to look at the big picture when conducting research, this project was the perfect opportunity for me to integrate research from numerous fields and subfields in order to answer a psychologically based question.       Through the study of anthropology, paleoneurology, neuropsychology, linguistics, and psycholinguistics, I explored theories debating the neurological and behavioral bases for language evolution.

Coca-Cola SWOT Analysis :: Business Management swot Analysis

Coca-Cola SWOT Analysis SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT consists of examining the current activities of the organisation- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist. Strengths: Coca-Cola has been a complex part of world culture for a very long time. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995). Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. Weaknesses: Weaknesses for any business need to be both minimised and monitored in order to effectively achieve productivity and efficiency in their business’s activities, Coke is no exception. Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation. Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years. Opportunities: Brand recognition is the significant factor affecting Coke's competitive position.

Discuss the Satire of Pride and Prejudice Essay

The explanation of satire in the Oxford English dictionary is â€Å"using humour or exaggeration to show what is bad about a person or thing†¦Ã¢â‚¬  In Pride and Prejudice this notion is almost played upon, with Jane Austen using satire throughout the novel in different ways. It is an entertaining way of subtly â€Å"poking fun† at a person, or group of people, which they are perhaps unaware of. Pride and Prejudice is a light-hearted novel, which although it picks out particular faults in society which existed then, and as Jane Austen sees them, it is a different type of satire to the type of satire that George Orwell uses in â€Å"animal farm†. Whilst Orwell is poking fun at a political system, Austen is poking fun at the social circles that surround her in everyday life. In my own personal view, both successfully ridicule the groups that they intend to. Both authors play on the faults, and enlarge and exaggerate them. Although Austen uses satire in her novel, it is concealed to all but the intelligent; who see the real purpose and not just the comical factor of it all. Austen uses it lightly, and subtly, it is not blatant. She uses it benignly, and never means to be harsh, and offensive. She shows what she has observed, and picks people’s traits; it is the people around her who are the inspiration for the characters in her novels. Using satire she showed the social snobbery between the classes. She showed how the wealthy upper class abused their rank and class and considered himself or herself higher than anyone else. They used people to gain social status in society, and for example, Mr. Collin’s used to name drop to gain respect from others, when frequently it would backfire on him, and the people would either end up laughing at him or disliking him entirely. Quite often when a person was being rude to them, they would not notice, as it was subtle, this is satire. It is a way of stirring, but it is only ever-affected people if they could interpret it properly. In the text itself, it is very effective. On the surface the novel seems like a complicated love-story, but underneath it shows the true traits of society in the time of Jane Austen. Austen uses characters from the novel to depict the different types of people that there were in those times. In the novel there are several characters that are continually made fun of satirically. The novel starts with a strong statement, â€Å"It is truth universally known that a single man in possession of a good fortune, must be in need of a wife.† This is as if it is set in stone, and believed by a lot of the characters, such as Mrs. Bennet, Lydia and Charlotte Lucas. By saying this, it is showing the woman to be shallow, and only really caring about the material things in life, such as how much money a man has. The more money he has, the more appealing he is to marry. Lady Catherine de Bourgh is another example of a character that has been satirised. She is a lady who comes from the Upper Crust of society, and has a very high opinion of her. She thinks herself to be highly intelligent and superior to everyone else. She overprotects her daughter, and has an immense amount of control over those who are of her acquaintance. Austen shows Lady Catherine’s true character using dialogue. For example, when Lady Catherine goes to visit Lizzie Bennet, and they have an argument, Lady Catherine defends her self by saying; â€Å"Do you know who I am?† You are shown whom she really is when she talks. Her opinion is strong, and she dislikes people talking back at her. In the novel, when Lizzie Bennet was dining with her, she would frequently ask a question, then answer it herself. Austen uses Lady Catherine as an example of a person who has a lot of money, and I high up in the social hierarchy, but lacks manners and tact, and is a general snob. A close acquaintance of Lady Catherine is Mr. Collin’s; who is a cousin of the Bennets. He is the chaplain at Rosings Park, for Lady Catherine. Mr. Collins almost worships Lady Catherine, as she has a lot of money, and he name is well known in society. He is incredibly materialistic, and puts money over personality. He tries to impress people by name dropping, often using Lady Catherine, in hope to gain popularity. He feels that it is important to do this, so that people will be impressed by him, as not only does he know Lady Catherine, he dines with her at least once a week. He is an example of someone who thinks that he has to be accepted in society and does this by varied means. He is a snob, and dislikes people that he feels are below him, although he himself is not highly popular. He has a fine image of himself in his head, and holds a good opinion of himself. You are shown that he is shallow when he asks Lizzie Bennet to marry him, as he claims that he is in love with her, and then when she refuses, he quickly got engaged to Charlotte Lucas, which just proves that he did not love Lizzie, and only asked her, as Lady Catherine said that he should have a wife. He is satirically made fun of most when he proposes to Lizzie Bennet. Austen makes the reader almost pity him, as he embarrasses himself to no end, without really knowing it, and making the reader laugh at him. You can compare Mr. Collins to Mr. Darcy. Mr Darcy is high up in the social hierarchy, as he takes after his father’s name who set such an example, and he sees no reason for him to name drop at all, especially as he is already at the height of society anyway. Mr. Darcy comes across as the type of person who is actually fine with those who are below him, and although he may be â€Å"off† with them, and have formed opinions of them, his mind is not closed, and so there is a chance for it to change. This is shown when he is kind and civil to the Bennets who were not of the same class as him. Mr. Darcy does not seem to enjoy the company of Mr. Collin’s as he is a sycophant, and tries to â€Å"get to know Mr. Darcy† by talking about Lady Catherine, Mr. Darcy’s aunt. He is an example of someone who is a gentleman, and does not abuse his social rank, although it may seems like that to many people who do not know him very well. Mr. Darcy was born into money, and so always knew what it was like, and so does not need to abuse it, when there are other people who were not born into money, and do. For example, they might have got their money from labouring, and then made it big, and disowned their former history, and then mocked the people who were labouring. The Bingley sisters are a perfect example of this. The Bingley sister’s are examples of â€Å"new money†, people who were not born into money, but made their money themselves. Even though this is the case, they like to think that they were born into money, and pretend that they were always in polite society. They abuse their rank in society, and they mock the people who they feel are below them, they think that those who work for their money are of the lower class; this is ironic as they themselves made their money in such a way. The Bingley sister’s are examples of people who have money, and really abuse it by thinking that they are very high up in life, and are rude to those who they think are below them. Mr. Bingley is a true gentlemen, who does not distinguish a person by how much money they have. He is an example to all those who thought that they were better than anyone else were. He treated everyone with respect. This is shown when he falls in love with Jane Bennet, who everyone else thought was far below him, and that Mr. Bingley was far superior to her. He showed everyone else that it did not matter where a person was on the rich list, but what sort of person they were, and that their personality mattered. William Lucas was a vain and boastful man, and boasts a lot about his knighthood, but he isn’t really all that experienced, and it is all just a large faà ¯Ã‚ ¿Ã‚ ½ade that he is hiding behind. He is an example of someone who is really proud, but does not really have a reason to be proud. All of the characters mentioned, and several others in the novel are metaphorically wearing a mask, and pretend to be something that they are not, just so that they can be â€Å"excepted into polite society†. They are all one person, as they are like sheep, and copy each other, so that they can also be excepted easier. For example, when no-one knew of the deeds Wickham had done, everyone liked him, as most people did, but when some people found out what he had done, even if they did not tell anyone, you could tell that everyone else was trying to copy them by not being civil to him. They just used to follow the crowd, and they would get so caught up in what they were trying to be, that they would forget who they really were, and what their real identity was. Austen depicts this using satire in her novel, and makes it known to the reader what it was like in those times. In some ways it also can be reflected on what it still is nowadays, except nowadays there is a sheet over it all, and so you cannot see it that much. All in all I think that the satire is very affective, and I think that Austen uses it to her advantages, and it reflects true fully what the real situation was in those times, and how it was hard to tell whom the real people were. I think that the satire that she uses is really clever, and it makes you think a lot. On the surface it is quite light hearted, but underneath the surface it is much deeper than humour, and it makes you understand that there was a lot of people who were so obsessed with being sociable, that in the end you had to laugh at them. It is hard to understand it fully nowadays, as times have changed, and people have different understandings. The satire could become diluted in such situations, but I think that in this case it does not, and it stays strong. I think this because it just makes the modern world which we live in seem so much more trivial, and it gives you an understanding of what it must have been like to live then. I feel that the satire used in Pride and Prejudice is altogether witty, and clever, never once failing to mean something.

Benefits of Risk Management Essay

1. More effective strategic planning  Effective strategic planning means the objectives set by the companies suit the company’s operations capabilities and the planning helps the company preserve its values and seek improvement. Risk management means coordinates activities to direct and control the organization with regard risks. The coordination between activities helps the company to communicate and understand the business activities as a whole, this will let the company understand the operation capabilities better and enable the company implement realistic strategic plan into organization 2. Better cost control – risk management set a objective acceptance of risk level. Company has a guide to manage risk and control negative consequence. – The cost benefit thinking is addressed by the risk management. In the past , companies think they have unlimited resources. Companies tend to transfer risks by buying insurance. Nowadays, risk management does not think transferring all the risks by insurance is enough as the competitiveness is increasing . Risk management provide more solutions, such as , avoiding risks, loss control, transfer part of risks not only by insurance but also by hedge funds and retain some risks( active retain is advocated). Company can save a lot of money by compare cost and benefit of different ways. – The risks management requires forward thinking. This will help the company to prevent downside risks and its bad consequences; also this will help company to catch opportunities to avoid opportunity cost . – greater trust, openness and transparency can be obtained by the company by applying risk management .Risk management requires company communicate with stakeholders(suppliers ,customers ,government, employees and shareholders) and different levels in the company. This will increase the supply chain efficiency and effectiveness. Also lower financing cost and regulation cost ( carbon tax) would be obtained. 3. Increased knowledge and understanding of your exposure to risks -The risks management requires the companies continual plan and manage its risks. Continual evaluation and monitoring control and environment is required. This process helps the company to learn more about itself as more experiences of dealing with same risks ,also it help the company forward looks its downside risks and capture opportunities. – Communication between different levels are required( risk management culture). 4. More systematic and thorough method of decision making -The risks management manage risks in a decentralized way by a centralized policy. – risk management set process of individual company to manage risks. The process enable company think in a complete way to manage risk. 5. Prevention rather than reaction to risks * The risk management requires the company to manage risks proactively rather than simply only reacting to the risks they face. This principle would help the company predict the risks and implement preventative control to prevent risks. * Risks management impose great emphasis on risks management culture. Each individual in company should pay attention to the risks. The effective communication between employees and management should be obtained. 6. Better preparedness for external review -Risks management aligns accountability to top managers . The managers have more pressure to work hard and act carefully. – The risk management processes greatly require communication with stakeholders and different levels within company. this will greatly improve the company’s understanding of different parties needs, concerns and issues . in this way , company can better meet expectation of external parties

FOSS Research Assignment Essay

FOSS (Free and Open Source Software) had some trouble in 2006 when Microsoft submitted 235 patents that were allegedly violated by FOSS. Microsoft created these patents in order to collect royalties from companies in the â€Å"free world† (companies/people using free software). Eben Moglen of the Free Software Foundation contended that software is a mathematical algorithm and is not patentable. Moglen wrote, â€Å"It’s a tinderbox. As the commercial confrontation between free software and software-that’s-a-product becomes more fierce, patent law’s going to be the terrain on which a big piece of the war’s going to be fought.† FOSS has powerful corporate patrons and allies. So if Microsoft ever tried to sue Linux distributor Red Hat for patent infringement, for instance, OIN might sue Microsoft in retaliation, trying to enjoin distribution of Windows. In the 1970s and 1980s, software companies relied mainly on â€Å"trade secrets† doctrine and copyright law to protect their products. But everything changed in the 1990s. The copyright law was providing less protection to software than companies hoped for and the â€Å"trade secrets† doctrine was becoming unworkable because the secret itself (the source code) had to be revealed to an unlimited number of other people/companies. With the internet, Microsoft applied for 1,411 patents in 2002. By 2004 they submitted 3,780 patents. After that Microsoft had three choices. First they could do nothing and donate the patents to the development community. Second they could start suing other companies that were using their patents. Or third, they could begin licensing its patents to other companies for either royalties or access to their patents, which would be a cross-licensing deal. So they took the third option. Microsoft later made a deal with Novell. They agreed not to sue each other’s customers for patent infringement, which is okay because it’s something that Richard Stallman’s GPL doesn’t address. Novell then agreed to give MS a percentage of all its Linux revenue through 2011. Microsoft decided it would pay Novell $240 million for â€Å"coupons† that could sell to customers, who would then trade in the coupons for subscriptions to Novell’s Linux server software. They also paid a â€Å"balancing payment† for the patent part of the deal. So now all of the FOSS developers are in fear because â€Å"the big boys† aka MS could purchase their version of Linux through a vendor such as Novell while getting protection from lawsuits and letting the â€Å"little guys† to fend for themselves. But without the little guy developers, the future of high-quality FOSS is undetermined. So the Free Software Foundation drafted a new version of the GPL that would prevent anyone else from using the original copy’s loophole that MS exploited. But Moglen had another thought. The fact that MS was selling coupons that people/companies could trade in for Novell subscriptions meant that MS was now a Linux distributer and went against the terms of the GPL, and was in fact in violation themselves. So Moglen wrote that if MS continued to issue these coupons after the new GPL takes effect, it would be waiving its right to bring patent suits against all Linux users. Moglen kept his promise and the new version of the GPL was released that July. Microsoft and Novell proceeded with their deal. But Moglen’s revisions will prevent other companies from making any more deals like the Novell one. Microsoft hoped that the deal with Novell would be a model it could use it to collect royalties with other companies of free software. So the bridge from MS to FOSS failed, but we are now closer than ever to â€Å"patent Armageddon.† The bridge with MS needs to be burned and the patent system needs to be shut down. Moglen says â€Å"The free world says that software is the embodiment of knowledge about technology, which needs to be free in the same way that mathematics is free. Everybody is allowed to know as much of it as he wants, regardless of whether he can pay for it, and everybody can contribute and everybody can share.† Works Cited Article: â€Å"Microsoft takes on the free world† Link: http://money.cnn.com/magazines/fortune/fortune_archive/2007/05/28/100033867/index2.htm

FACEBOOK AND ROMANTIC RELATIONSHIPS Essay Example | Topics and Well Written Essays - 1750 words

FACEBOOK AND ROMANTIC RELATIONSHIPS - Essay Example However, social media sites such as face book have redefined communication among romantically involved persons by encouraging the parties to reveal as much information as possible regarding these relationships. The trend of revealing romantically sensitive information has brought with it some advantages and disadvantages, but in most cases, this trend has led to break up of many promising relationships and broken marriages. This paper will look at the negative effects that exposing romantic relationships in face book has on those relationships. According to Flynn (nd), one of the ways that face book ruins relationships is through the amount of time that one spends in face book and the jealousy that comes with it. An online survey in face book that was conducted among people who were in a relationship asked questions regarding face book and feeling of jealousy such as if they got jealous when their partners added people of the opposite sex. Although the levels of jealousy that an indi vidual feels is thought to be genetic, when an individual is exposed to information regarding his or her romantic partner’s friends and social interactions in face book leads to an environment that leads to jealousy (Marshall, Bejanyan, Di Castro & Lee, 2012). Large amounts of time spent on face book has been positively associated with negative relationships experiences in face book since an individual may be exposed to information about his or her partner that he/she would not have got were it not for face book. This would therefore lead him to increase surveillance on his spouse on face book, which in turn leads him to increase the time he spends on face book creating a vicious cycle of face book use. From another angle, jealousy may come from other people who are not happy with the relationship, this in turn may act as an incentive for the jealous people to look for ways and means by which they can destroy the relationships, though this may not be direct, this serves to de stroy the romantic relationship (Tokunaga, 2011). The information that is discovered in face book, led to individuals creating events and situations that may have or may not have happened. This is confirmed by Muise et al (2009) when he conducted a study on face book users who were in relationships. This study found out that the participants reported feeling that face book setting formed feelings of jealousy and increased fears about the value of relationships that they had. The study found out that the participants who had never before felt any form of jealousy towards their romantic partners started developing feelings of jealousy after surveying them on face book while those who had previous feelings of jealousy got their feelings intensified after looking at their partners face book activity. This can be attributed to the revealing of otherwise unknown information about the spouses via face book. Spending too much time on the internet especially the social sites makes an individ ual to lose touch with reality, which creates distraction from the things that matter. People who spend a lot of time in face book have a tendency to have poor communications skills as they prefer to spend most of their time alone socializing with people in these social sites, this creates a strain in the romantic relationship which may in turn lead to breakdown of the relationship. Face book and other social platform have equally served as platforms through which romantic partners interact. However,

Speaker's response for Sports management class Essay

Speaker's response for Sports management class - Essay Example Although none of the academic books or journals had mentioned anything about the sports managers being the last line of defense in any given sports management team, it remains a fact that managing sports is not an easy task. In line with this, the top management team of any sports-related organization are responsible not only in the search for short-term and long-term sponsors but also communicate how sports activities can benefit the sponsors, the need to constantly increase the sports organization’s sales and profit, finding ways on how to effectively associate the sponsor’s brand to a given sports event, and eventually come up with a reasonable pay and reward schemes that could encourage the players to stay loyal with the team (Crompton a). As compared to the use of traditional ads, Levin, Joiner and Cameron strongly suggest that the process of incorporating the logos or brand name of the sponsor in sports cars or basketball jerseys increases the chances wherein the public consumers could develop a strong positive attitude and increased ability to recall the sponsor’s brand. ... As a significant part of a sports management team, it will always be the duty of the top management officials to inquire, research, and learn more about the grounds for any potential legal issues that they will have to face in the near future or give them the opportunity to legally sue anyone who would illegally take advantage of the sports management organization. For example, the term â€Å"ambushing in sport† is all about pretending or purposely creating a false impression that a corporate brand is one of the official sponsors of a team even though the brand has no legal rights to be an official sponsor (Crompton b). Crompton (b 1) mentioned that â€Å"official sponsors receive littly legal protection from ambusing†. For this reason, the sports manager(s) should take it as a challenge to create useful and effective strategies on how they can counter-act or prevent any third party or a company from violating the sports ethics particularly when it comes to ambushing. P erhaps, the sports manager should investigate on whether or not he or she can make use of the IP rights law to protect the name of the sports team from being illegally used by any party or a company who wish to gain any forms of brand recognition from the sports viewers. Not only did the speaker talked about the proper way of doing business but also the significance of legality of doing business, the importance of public trust in sports, etc. Personally, I find the advice given by the speaker to be very logical and practical when it comes to molding his audiences on how to become an effective sports manager in the future. In general, there is a saying that â€Å"what goes around, comes around†. To become a successful and effective sports manager, the speaker advice

Personel Finance Essay Example | Topics and Well Written Essays - 250 words

Personel Finance - Essay Example In the event that I lose my job and I do not have a source of income, I will adjust my financial lifestyles, budget and the financial plans that I have. The following analysis will look at the specific steps and how my new lifestyle will be like. The loss of job will be characterized by decline in my income; hence difficulties in making my ends meet. The first will be to accept this new situation and discuss it with my important people in my life. I will adjust my budget so that I only spend my money on the basics of the life and only on what I can afford at the current economic status. This means I will adjust from spending on the things that do not bring any value in life at current status. For example I will stop going out or adjust to going out to the places that I can comfortably afford. I will invest the remaining resources to get another source of income such as securing another job or any income generating project. I will stop buying expensive clothes and only buy the basics. On the long term basis, this will affect my expected investments such as building my own

Myth as a Mirror of Conflict and Violence Essay

Myth as a Mirror of Conflict and Violence - Essay Example For the first century and a half of our national existence, our relations with the people of the Middle East were largely beneficent and protective, not withstanding our conflict with the Barbary Pirates in North Africa. But Islamic civilization was on a downward trajectory that could not be arrested. Its social and economic structures, its values, its neglect of education, its lack of scientific curiosity, the indolence of its ruling classes and its inability to produce a single modern state that served its people all guaranteed that, as the West's progress accelerated, the Middle East would fall ever farther behind. The Middle East has itself to blame for its problems. Conflict and violence are common concerns to whether it was the story of Cain Killing Abel, the start of World Wars I and II or the Trojan War and The War of the Spartans. As a result of the influence of myth, these cultures have used violence as a means of resolving conflict. For the myth makes war palatable. It giv es war a logic and sanctity it does not possess. It saves us from peering into the darkest recesses of our own hearts. And this is why we like it. It is why we clamor for myth. The myth is enjoyable, and the press, as is true in every nation that goes to war, is only too happy to oblige. One of the first conflicts known to mankind that resulted to a violent demise was that of Biblical times between two Middle Eastern brothers' Cain and Abel. Cain and Abel were brothers who both developed different attitudes. One brother felt acknowledged more than the other. As a result Cain began to "[grow] hot with anger, and his countenance began to fall which eventually led to him developing a bad heart and cold blooded murder" of his brother Abel (Bias (2006), p. 22). ). In myth "creation is an act of violence" so the myth's perception would have perceived that when Cain and Abel were created they were meant to be created with violent tendencies (Wink, 45). Cain's actions were a result of jealousy and because humans are usually confronted with issues that are out in the open, we sometimes don't want to deal with the issue when confronted with our actions. In Cain's case after killing his brother Abel he became unremorseful and heartless when God confronted him and asked "where i s Abel

Finance - write up a executive summary and recommendation Essay

Finance - write up a executive summary and recommendation - Essay Example These expenses are related to the land bought to expand business in future. The dilemma with the management of the company is what should be done with this land. They have two options; first option is that they can sell off this land for an impressive amount of $235,000 and also save the increasing annual maintenance expenses @3% which is $16,000 at the moment. The second option with the management is to use this land in expanding the existing business by setting up a new spray booth and workshop. This report provides an analysis and evaluation of these two options in hand for FBSR. We have used the capital budgeting tools such as Net present value (NPV), operating cash flow and sensitivity analysis in order to determine the feasibility of the options available at hand. The relevant calculations, with respect to each of the analysis technique used, can be found in the appendices. Our analysis is all depending on John’s assumptions which means our belief is the probability of a ssumption would range from NPV various. Within this analysis of the insurance project of the business, operation cash flow and profitability is the decide the feasibility of business. it’s the company’s choice of whether or not to take the insurance project in the business. Meanwhile, 10% increase or decrease in revenue and wages & maintenance fee of is under concern.

Hounds of Baskerville - Main Events Essay Example for Free

Hounds of Baskerville Main Events Essay Sir Charles Baskerville is found dead in the alley near his home, Baskerville Hall. Sherlock Holmes and Dr. John Watson are asked by a family friend to investigate furthur. * Sir Henry, the new heir to the family inheritance, arrives from Canada to move into Baskerville Hall. However, strange things start happening. He receives a letter telling him to keep away from the moor and two of his boots go missing (a new black one, and an old brown one). They also discover that a mysterious bearded man has been following them in a cab. Watson is asked to travel with Sir Henry to Baskerville Hall for protection. as Holmes cannot accompany him himself at the moment. * Watson meets the Barrymores and Mr. Stapleton near the Grimpen Mire, and learns about a dangerous prisoner (Seldon) that has escaped from Princetown and is currently hiding in the area. Miss Stapleton, Mr. Stapleton’s sister, mistakens Watson for Sir Henry and warns him to go back to London. * Sir Henry falls in love with Miss Stapleton and proposes marriage. Her brother reacts furiously and rudely. Watson later discovers that Miss Stapleton is actually Mr. Stapleton’s wife! * Watson finds out that the escaped criminal is Mrs Barrymore’s brother. * Barrymore reveals that on the night of his death, Sir Charles was going to meet Laura Lyons, in order to help her start a buisness. Laura Lyon explains that she never got to meet Sir Charles. * Watson inspects the huts around the moor and runs into Holmes, who has been investigating undercover. The two of them find Selden’s dead body, dressed in Sir Henry’s clothes. * While dining, Holmes observes that the face/painting of Sir Hugo Baskerville is extremely similar to the face of someone else. Realizing the cuplrit behind all this mayhem, Holmes comes up with a plan. * The group waits outside of the culprit’s home. Sir Henry (unknowingly dining with the culprit) is attacked by a huge hound. Luckily, the hound is shot down, but the culprit is no where to be seen. They look for him the next day, unsuccessfully, as they find him dead.

Theories of Merger and Takeover Waves

Theories of Merger and Takeover Waves Merger Wave The American economy experienced two great takeover waves in the postwar period, first in the 1960s and the second in the 1980s. Both waves had a deep affect on the structure of corporate America. The main trend in the 60s was diversification and conglomeration. In contrast the 1980s takeover reversed the previous process and brought US corporations back to specialization. In this respects, the last thirty years were a roundtrip for corporate America. This paper is an overview of the salient features of the two takeover waves. 1.1 The 1960s Conglomerate Merger Wave The merger wave of the 1960s was the major since the turn of the century (Stigler, 1968). A typical characteristic of the 1960s transaction was a friendly acquisition, frequently for stock, of a smaller private or public firm which was outside the acquiring firms main line of business. During this period unrelated diversification was widespread among the large companies. Rumelt (1974) has reported that the fraction of single business companies in the Fortune 500 decreased from 22.8% in 1959 to 14.8% in 1969. Further, the portion of conglomerates with no dominant businesses increased to 18.7% from 7.3%. There was also a considerable move to diversification among companies that retained their core business. The driving force behind the 1960s wave was high valuations of company stocks and large corporate cash flows. However the management was unwilling to pay out the high cash flows as dividends, and on the other hand able to issue equity at attractive terms therefore, turned their atte ntion to acquisitions (Donaldsoni. 1984).Dividends were considered as a complete waste, and acquisitions as a very attractive way to conserve corporate wealth. There are two sets of arguments used to explain why companies diversify. The first set argues that firms diversify to increase shareholder wealth. A number of authors have discussed different aspects of diversification that can potentially raise shareholder wealth. Williamson (1970), suggest that firms diversify to beat imperfections in external capital markets. Through diversification, managers create internal capital markets, which are less prone to asymmetric information problems. Lewellen (1971), argues that conglomerates can carry on higher levels of debt since corporate diversification reduces earnings variability. if conglomerate firms are more valuable than companies operating in a single industry If the tax shields of debt increase. Shleifer and Vishny (1992), state that conglomerates may have a higher debt capacity since they can sell assets in those industries that suffer the least from liquidity problems in bad states of the world. Finally, Teece (1980) argues that divers ification leads to economics of scale. The second set of arguments states diversification as a product of the agency problems between shareholder and managers. Amihud and Lev (1981) argue that managers follow a diversification strategy to protect the value of their human capital. However, Jensen (1986) suggests that companies diversify to increase the private benefits of managers. Similarly, Shleifer and Vishny (1989) suggest that managers diversify because they are better at managing assets in other industries. Thus, diversifying will make skills more indispensable to the firm. 1.2 The 1980s Merger Wave Form a longer historical perspective, Golbe and White (1988) presented time series evidence of U.S. takeover activity from the late 1800s to the mid-1980s. Their findings have suggested that takeover activity above 2 to 3 percent of GDP is unusual. However, the greatest level of merger activity occurred around 1980s, at roughly 10 percent of GNP. By this measure, takeover activity in the 1980s is historically high. The size of the average target in the 1980s had increased extremely from the modest level of the 60s. By 1989 28%, of Fortune 500 companies were acquired and many transactions, particularly the large ones, were hostile. Further the medium of exchange in takeovers was cash rather than stock, they were characterized by heavy use of leverage. Firms were purchased by other firms by leveraged takeovers by borrowing rather than by issuing new stock or using solely cash on hand. Other firms restructured themselves, borrowing to repurchase their own shares. The 80s was also characterized by latest forms of control changes, which included bustup takeovers. Bustup takeovers involved the sell off of a substantial fraction of the targets assets to other firms. (Bhagat, Shleifer, and Vishny, 1990; Kaplan, 1997). 2 Merger Motives The following sections will explain the motive behind the two merger waves. 2.1 Managerial Motives Agency theory predicts that unless managers are strictly monitored by large block of shareholders they will certainly act out of self-interest. Amihud and Lev (1981) have provided proof that unless closely monitored by large block shareholders managers will attempt to reduce their employment risk through diversification. Lane et al.(1998) in this study have reexamined Amihud and Lev findings about agency theory Using a sample of 309 US firms that diversified between 1962 1970, from the Federal Trade Commission (FTC) Statistical Report on Mergers and Acquisitions (1976). This study falls in the third broad category[1] of agency studies. However this analysis only examines the strategic behaviors of managers when they are not under siege and are also not in a situation, in which their interests are clearly in conflict with those of shareholders. Specifically, firms without large block shareholders are expected to engage in more unrelated acquisitions and show higher levels of diversif ication than firms with large block shareholders (Jensen and Meckling (1976)) Using Multiple Regression, the study found no evidence for the standard agency theory predictions that management controlled firms are linked with strategically lower levels of diversification and lower levels of returns than are firms with large block shareholders. It was found that Ownership structure and diversification are largely independent constructs. Thus, managers may be are worthy of more trust and autonomy than what the agency theorists have prearranged for them. Rather than seeking to restrict managerial discretion through extreme oversight, a more balanced approach by principals is needed. Some safeguards are essential as conflicts of interests between managers and shareholders do arise in certain situations, therefore, the assumption that such conflicts dominate the day-to-day management is not realistic. Matsusaka,(1993) takes a deep look at the astonishingly high pre-merger profit rates of target companies during the conglomerate merger wave. The main goal of the study is to assess how important was managerial discipline as a takeover motive. The analysis uses an extensive data set of 806 manufacturing sector acquisitions that took place in 1968, 1971 and 1974. The sample was collected from New York Stock Exchange listing statements. Sample of 609 observations was taken from 1968, 117 from 1971, and 129 from 1974. The results did not differ in any vital way by year, so observations from the three periods were pooled. Because antitrust enforcement was strict in the late 1960s and early 1970s, it was safely assumed that the sample mergers were not motivated to increase market power Ravenscraft and Scherer (1987). This allowed the investigation to focus on a narrow set of merger motives. Profitability[2] throughout the study was measured as a rate of return on assets. The theory identified two basic characteristics of mergers motivated to discipline target management. First it wsa observed that the target was underperforming its industry and the only reason to discipline the managers was that they were not maximizing profit. It could be because of incompetence that they were pursuing their own objectives. The second, the target company had publicly traded stock and the only posibility to discipline management was by electing an appropriate board of directors. In this situation a takeover was necessary to effect a change as the diffused stock ownership resulted in free-rider problems. Owners can remove bad managers of privately owned firms, as they are closely held. The problem occurs in large publicly traded firms with diffuse ownership. The statistical results revealed that both public and private targets had extremely high profit rates prior to acquisition compared to their size classes and industries. Therefore, takeovers were not motivated to discipline target managers during the conglomerate merger wave. The second finding of the study is that public targets were not as particularly profitable as private targets. It was also found that the largest public targets had the lowest profit rates. A credible interpretation of the evidence is that managerial discipline may have been significant for just a small set of acquisitions that involved large publicly-traded targets. Matsusaka (1993) leaves the bigger question unexplained. Why buyers time and again sought high profit targets during the merger wave. There is a simple clarification, that high quality assets are generally favored to low quality assets, as high quality assets are more expensive. In addition to explaining why firms seek high-profit targets, an asset complementarity theory implies that firms tend to divest their low-profit divisions Palmer and Barber (2001) have determined the factors that led large firms to participate in the1960s wave. The theoretical approach, of the study conceptualizes corporate elites (managers and directors) as actors. However it is assumed that these actors have interests which have arisen from positions held in organizational and institutional environments, and from multidimensional social class structure. Often Acquisitions are deviant and innovative ways by which corporate these elites can increase their status and wealth. Corporate elite diversify to the extent that their place in the class structure provides them with the capacity and interest to augment their wealth and status in this way. The authors have examined how the firms top directors and managers class position influenced its tendency to employ diversification in the 1 960s. More specifically the following arguments on social status[3] have been tested empirically. Firstly, Firms run by top managers who attended an exclusi ve secondary school or whose family was listed in a metropolitan social register were less likely than other firms to complete diversifying acquisitions in the 1960s. Secondly, Firms run by top managers who were Jewish were more likely than other firms to complete diversifying acquisitions in the 1 960s. Thirdly, Firms run by top managers situated in the South or west were more likely than other firms to complete diversifying acquisitions in the 1960s. The study selected a sample of the largest 461 publicly traded U.S. industrial corporations from the Federal Trade Commissions Statistical Report on Mergers and Acquisitions (1976), between January 1, 1963, and December 31, 1968. This particular time period was chosen because as the merger wave took off at the end of 1962 and crested in 1968. The results of the study were found through count and binary regression models. The findings of the study are consistent with that of Zeitlin (1974). According to him top managers capacities and interests are shaped by their social class position. Corporate elite members differ in their social class position. It is this variation that influences the behavior of the firms they command. The results indicate that social club memberships and upper-class background influenced a firms propensity to complete diversifying acquisitions in the 1960s. Network embeddedness and status influenced acquisition likelihood in opposite directions. Corporations that were run by chief executives who were central in social networks but marginal with respect to status were more likely than other firms to complete diversifying acquisitions in the 1960s. Therefore, individuals with high status had small interest in adopting innovation. Corporate elites can inhibit the spread of an innovation when it threatens their interests. As observed by Hayes and Taussig (1967), One must never under estimate the moral suasion that the business and financial communities can bring to bear on those who engage in practices of which they disapprove. In this respect, the analysis provides additional evidence that intraclass conflict shaped corporate behavior during the 1960s merger wave. It seemed that in the 1960s, it was not concentrated ownership but, ownership in the hands of capitalist families that reduced a firms tendency to complete diversifying acquisitions. Further, as predicted by agency theory , concentrated ownership would lower acquisition rates most when in the hands of the CEO or other top managers, as opposed to outsiders, However it was found the reverse to be the case. Overall, there was very little support for any of the agency theory in the 1960s merger wave. Further, the results provided no support for several of the class-theory hypotheses. Firms headquartered in the South or West run or by Jewish CEOs did not have a greater propensity to complete diversifying acquisitions during the 1960s. The process of diversification of American firms reached its height during the merger wave of the late 1960s. Matsusaka(1993)evaluated the 1960s merger wave. In an attempt to do so the author has proposed a number of explanations that drove managers to diversify during the conglomerate merger wave. There are reasons to suspect that managers may have pursued a diversification strategy even when it impaired the shareholder. They may have entered new lines of business to protect their organization-specific human capital or establish themselves. On the other hand, they may have been pursuing size as an end and because of strict antitrust opposition to horizontal and vertical mergers they had to expand by buying into unrelated industries. The study has evaluated whether manager were diversifying for their own advantage or in the interest of shareholders returns .To do so the author inspected the effect of diversification on the value of his firms equity. Thus, if the value of a firm declined upon announcement of an acquisition, then its management was not acting to maximize shareholder wealth. One explanation for conglomeration stated in the study, stems from Managerial-Discipline theory. Firstly, Firms were taken over to discipline or replace their bad managers ie â€Å"Managerial-Discipline. Secondly, Managerial Synergy theory states that the bidder management wanted to work with target management, not replace it. In this case the acquirer management believed that the target management would complement to their skills. Therefore firm that had Managerial-discipline problem were likely to have had low profits, and on the other hand managerial-synergy targets were likely to have had high profits. Another explanation is that buyers were motivated by earnings-per- share (EPS) manipulation. This explanation states that conglomerates have a high price-earnings ratio (P/E). [4] Therefore the bidder management was bootstrapping, by buying firms with low P/Es. Construction of the dataset began with a list of mergers from the sample of 1968, 1971 and 1974 .The sample was identified from the takeovers from New York Stock Exchange listing statements and the results were presented through regression. The announcement-period return to the bidders shareholders was measured through dollar return, [5] .Regression of the dollar-return measure found that the return to a diversification acquisition was significantly positive. On average their shareholders enjoyed an $11.0 million value increase in value when bidders made a diversification acquisition,. This rejects the hypothesis that diversification hurt shareholders and is thus inconsistent with the idea that diversification was driven by managerial objectives. On the other hand, bidders who made related acquisitions cost their shareholders $6.4 million on average. Thus, the hypothesis that the markets reaction was the same to related acquisitions and diversification is rejected, suggesting that there was a market premium to diversification. Using descriptive statistical summaries it was found that both diversifying and horizontal buyers preferred to buy firms that were profitable. For both type of acquisitions the average operating profit was more than 5% in excess of the targets industry average. Therefore fame of high-profit targets argues against the importance of a managerial-discipline motive for both types of acquisition and in favor of a managerial-synergy motive. This is because Managerial-discipline takeovers should have been directed at low-profit firms, whose profitability needed improved. The motive was Managerial-synergy as the targets were takeovers were high- profit firms, this is because synergy-motivated managers were looking for good partners Matsusaka(1993). Another factor linked to the managerial theories is whether or not the targets management was retained.Top management is said to have been retained if it meet the following criteria. Firstly It was reported in the Wall Street Journal that the acquired firms management would continue to operate under the new management. Secondly, it was indicated in the buyers listing statement that the targets management would be retained. Lastly, when the merger took place at least one of the top three executives of the target firm was still managing the firm three years later from when the merger took place. According to the above mentioned definitions, 61.8% of the managers in the sample were retained and only 3.5% of the acquisitions fell in the Replaced category. The main finding is that buyers earned significantly positive announcement-period returns during the conglomerate merger wave when they made diversifying acquisitions. The hypothesis that conglomerates were driven by empire building or some other managerial objective can be rejected because such explanations imply value decreases to unrelated acquisitions. Another explanation of the conglomerate merger wave is that mergers were driven by an accounting trick rather than expected efficiencies. Therefore, investors watched EPS; when the EPS went up they bid up the price of the stock. According to this argument, Conglomerates, tended to buy companies with lower P/E ratios than their own in order to increase their EPS and boost their stock prices. There was no evidence that firms earned positive returns which inflated EPS in this way. The study indicated that early conglomerators earned significantly positive returns simply because they were first. They may have gained some rents to organizational innovation. Possibly the men who built the first conglomerates had a unique talent for diversification, which the market rewarded. Hubbard, Palia (1999), have examined the likelihood that internal capital markets were formed to alleviate the information costs associated with the less well-developed external capital markets of the time; that is, whether they were expected to create value by the external capital markets in the 1960s.In this paper, the authors have inspected a form of cross-subsidization that occurs when a financially unconstrained bidding firm takes over a financially constrained target firm and as a result forms an internal capital market.The study examined whether the external capital markets expected that the formation of internal capital markets in the 1960s were value-maximizing for the bidding firm. However, existing research has argued that internal capital markets can be value-enhancing. As argued by Geneen(1997), the financing and budgeting expertise that a firm possesses is not necessarily related to its degree of diversification. Accordingly, the internal capital market hypothesis for all acquisitions is tested. The study also tests the bootstrapping explanation for conglomeration in the 1960s, which takes place when firms with a high price-earnings ratio (P/E) took over low P/E target firms and fooled the stock market with an increased combined earnings-per-share. In the 1960s, external capital markets were less developed in terms of company-specific information production than in later years. The authors have classified company-specific information into two general categories. Firstly, production information; and secondly, financing and budgeting expertise. However, in this study information-intensive activities were introduced. This was because; it assists the manager to internally allocate capital across divisions of a diversified firm. It was suggested that diversified firms were perceived by the external capital markets to have an informational advantage, because external capital markets were less well developed at that time. Comparing it to the current decade, there was less access by the public to computers, data- bases, analyst reports, and other sources of company-specific information. Not only this there was less large institutional money managers and the market for risky debt was illiquid. The authors selected a sample of 392 acquisitions that occurred during the period from 1961 through 1970. Diversifying acquisitions were defined as those in which the bidder and target do not share any two- digit SIC code Matsusaka(1993), and related acquisitions as those in which they do share a two-digit SIC code. Further the Wall Street Journal was used for announcement date as the event date. Four measures of abnormal returns to the conglomerate bidding firm were calculated. These measures are as follows. Firstly, the usual percentage returns or the cumulative abnormal returns from five days before to five days after the event date. Secondly the percentage returns until date of last revision or the cumulative abnormal returns from five days before to five days after the date of the last revision (Lang et al. (1991)). Thirdly, the dollar returns or the percentage return times the market value of the bidder six days before the announcement (Malatesta(1983); Matsusaka(1993)). Lastly , the investment return defined as the change in the value of the bidder divided by the purchase price (Morck et al. (1990)). Tobins r ratio[6] is used as a proxy for a firms capital market opportunities. The evidence from these measures is mixed. Positive abnormal returns for all four measures were shown for related acquisitions. On the other hand, two of the four measures had shown statically significant positive abnormal returns for diversifying acquisitions in. Not only that diversifying acquisitions do not significantly earn less than related acquisitions in two of the four measures. Thus, evidence suggests, the capital markets believed acquisitions to be generally good for bidder shareholders during the 1960s. More significantly, it was found that when financially unconstrained buyers acquired constrained target firms, highest bidder returns were earned. Further, bidders generally retain target management, signifying that management may have provided company- specific operational information and the bidder on his part also provided capital budgeting expertise. Therefore, external capital markets expected information benefits from the formation of the internal capital markets. The study found no evidence in support of the bootstrapping hypothesis, as the coefficient on the dummy variable[7] was not statistically different from zero. This result is consistent with Matsusaka, (1993), who also finds no evidence for bootstrapping.Therefore, firms merged to form their own internal capital markets as there was a deficiency of well-developed external capital markets in the 1960s. Some firms apparently had an information advantage over the external capital markets and were expected to produce value in an internal capital market. In the 1960s diversified acquisitions were rewarded by financial markets, the informational advantage that acquiring firms appeared to possess was likely to be in the capital budgeting, allocation process and operational aspects of each division. Bidder firms generally retained the target management as it would facilitate them running the operational part of each target firm. The Motives discussed in the above mentioned articles are appealing; however evidence from the stock market suggests that shareholders preferred their firms to diversify. Using a data set from the 60s and early 70s, Matsusaka (1993) reported that, when the company announced an unrelated acquisition, the stock price of the bidder increased on average of $8 million. However, on the announcement of a related acquisition, the bidding firms stock price fell by $4 million. The difference between the two returns is quite significant. Thus it appears that investors fully believed that unrelated acquisitions benefited their firms relative to the alternatives. Thus the managers just did what the stock market told them to do that is to diversify. Evidence from 1980s stock market suggested that shareholders, again, liked what was happening. Shleifer, and Vishny (1992) found that in the 1980s, stock prices of the bidding firms rose when they bought other firms in the same industry, and fell with unrelated diversification. It is clear that the market disapproved unrelated diversification. Therefore it does not astonish that, in light of such market reception, managers stopped diversifying and did what the stock market directed them to do. 2.2 Legal Motives Matsusaka (1996) investigated whether the antitrust enforcement of the 1960s led firms to take on the diversification goal, by preventing them from expanding within their own core industries. If correct, diversification should have occurred more less frequently when small firms merged than when large firms merged since small mergers were less likely to have attracted antitrust attention. Further the author examined the diversification patterns in the United Kingdom, Canada, Germany, and France in the late 1960s and early 1970s, where none of these countries had legal restrictions on horizontal growth similar to those in the Unites States. The US Clayton Antitrust Act was the antitrust legislation in the postwar period (1950 Celler-Kefauver amendment to Section 7). The act, prohibited mergers that would substantially lessen competition, or tend to create a monopoly. This new law was used by the antitrust authorities and the courts to limit the number of mergers between vertically related and firms in the same lines of business. The strictness of the antitrust environment in 1968 is illustrated by the observation that in the earlier 12 years, all antitrust cases that reached the Supreme Court had been resolved in support of the government. The study indicates the following two implications. Firstly, large horizontal mergers were more liable to have been challenged on antitrust grounds than small horizontal mergers. Secondly mergers between unrelated firms were unlikely to have been blocked, regardless of size. Firms diversified in 1960s, since antitrust authorities prevented them from expanding in their home industries. Later when antitrust policy became less rigid in the 1980s, firms expanded horizontally, leading them to refocus on their core business. Stigler (1966) was perhaps the first to present evidence on the antitrust hypothesis, concluding that, the 1950 Merger Act has had a strongly adverse effect on horizontal mergers by large companies. The author selected a sample of 549 mergers (that took place in 1968) from the New York Stock Exchange. Results of the study were reported through Logit regressions .It was found that bidders were as likely to have entered new industries when they made small acquisitions as when they made large acquisitions, and small buyers were as likely to have diversified as large buyers. Further the total number of diversification acquisitions concerning small companies was high.Though, according to the antitrust hypothesis; diversification should have been widespread primarily in large mergers where same industry acquisitions were prohibited by tough antitrust enforcement. Secondly assembled international evidence indicated that diversification took place in many industrialized nations in the 1960s and 1970s, although restrictions against horizontal combinations were unique to the United States. Yet, most other industrialized Western nations[8] experienced diversification merger waves and general movements toward diversification in their largest companies (Chandler (1991)).Thus most of the evidence, is not consistent with the antitrust hypothesis, signifying that other explanations for corporate diversification should be emphasized not the anti trust hypothesis. Scholes and Wolfson (1990) state, that the changes in U.S. tax laws[9] in the 1980s had obvious affect on the desirability of mergers and acquisitions. However such transactions were not only motivated by tax factors but also non tax factors[10]. Tax laws can have number of affects on mergers and acquisitions , which can include the following capital losses, presence of tax-attribute carry forwards such as net operating losses , investment tax credits, and foreign tax credits, among others, that might be cashed in more quickly and more fully by way of a merger; the desire to step up the tax basis of assets for depreciation purposes to their fair market value; the desire to sell assets to permit a change in the depreciation schedule to one that is more highly accelerated. The authors in this study have examined the effect of changes in tax laws passed in 1980s on merger and acquisition activity in the United States. The authors selected the annual values of mergers and acquisitions from 1968 through 1987 in nominal dollars. The data source for nominal values was W. T. Grimm and Company for 1968-85 and Mergers Acquisitions (1987-88, rev. quarterly) for 1986 and 1987. Using time series analysis it was found that the dollar volume of merger activity between 1980-1981 increased from $44.35 billion to $82.62 billion (86%) in nominal terms. The percentage increase was approximately twice as large as the next largest percentage increase in annual merger and acquisition activity over the 1970-86 periods. There was spectacular increase in merger activity that began with the passage of the Economic Recovery Tax Act of 1981, however this was not the only merger wave that occurred in that time frame. Unusual merger activity was also witnessed in the 1960s. The termination of 1960s wave was accompanied by quite a few regulatory events that depressed such transactions. Firstly, the Williams Amendments had en larged the cost and difficulty of effecting tender offers. Secondly the issuance of Accounting Principles Board Opinions 16 and 17, forced many acquiring firms to boost depreciation expense, goodwill amortization and cost of goods sold. Thirdly the Tax Reform Act of 1969, made transferability of tax attributes (net-operating-loss carry forwards) more restrained. Therefore there was a sudden decline in merger activity from the peak in 1968. Relative to the tax benefits when the non tax benefits of the transaction were small, current management were the most efficient purchasers, as they had an advantage along the hidden information dimension. Therefore 1981 act had increased the incidence of cases in which non tax benefits were less than the common tax benefits of mergers and acquisitions. As a result, there was an increase in the number of transactions involving management buyouts. The annual dollar value of unit management buyouts between 1978-80 increased by a factor of 3, and by a factor in excess of 20 for the period 1981-86. The antitrust proposition mentioned above is appealing as one of the most important reason for diversification, during the 60s and 70s, which simply disallowed mergers of firms in the same industry, regardless of the effects of these mergers o Theories of Merger and Takeover Waves Theories of Merger and Takeover Waves Merger Wave The American economy experienced two great takeover waves in the postwar period, first in the 1960s and the second in the 1980s. Both waves had a deep affect on the structure of corporate America. The main trend in the 60s was diversification and conglomeration. In contrast the 1980s takeover reversed the previous process and brought US corporations back to specialization. In this respects, the last thirty years were a roundtrip for corporate America. This paper is an overview of the salient features of the two takeover waves. 1.1 The 1960s Conglomerate Merger Wave The merger wave of the 1960s was the major since the turn of the century (Stigler, 1968). A typical characteristic of the 1960s transaction was a friendly acquisition, frequently for stock, of a smaller private or public firm which was outside the acquiring firms main line of business. During this period unrelated diversification was widespread among the large companies. Rumelt (1974) has reported that the fraction of single business companies in the Fortune 500 decreased from 22.8% in 1959 to 14.8% in 1969. Further, the portion of conglomerates with no dominant businesses increased to 18.7% from 7.3%. There was also a considerable move to diversification among companies that retained their core business. The driving force behind the 1960s wave was high valuations of company stocks and large corporate cash flows. However the management was unwilling to pay out the high cash flows as dividends, and on the other hand able to issue equity at attractive terms therefore, turned their atte ntion to acquisitions (Donaldsoni. 1984).Dividends were considered as a complete waste, and acquisitions as a very attractive way to conserve corporate wealth. There are two sets of arguments used to explain why companies diversify. The first set argues that firms diversify to increase shareholder wealth. A number of authors have discussed different aspects of diversification that can potentially raise shareholder wealth. Williamson (1970), suggest that firms diversify to beat imperfections in external capital markets. Through diversification, managers create internal capital markets, which are less prone to asymmetric information problems. Lewellen (1971), argues that conglomerates can carry on higher levels of debt since corporate diversification reduces earnings variability. if conglomerate firms are more valuable than companies operating in a single industry If the tax shields of debt increase. Shleifer and Vishny (1992), state that conglomerates may have a higher debt capacity since they can sell assets in those industries that suffer the least from liquidity problems in bad states of the world. Finally, Teece (1980) argues that divers ification leads to economics of scale. The second set of arguments states diversification as a product of the agency problems between shareholder and managers. Amihud and Lev (1981) argue that managers follow a diversification strategy to protect the value of their human capital. However, Jensen (1986) suggests that companies diversify to increase the private benefits of managers. Similarly, Shleifer and Vishny (1989) suggest that managers diversify because they are better at managing assets in other industries. Thus, diversifying will make skills more indispensable to the firm. 1.2 The 1980s Merger Wave Form a longer historical perspective, Golbe and White (1988) presented time series evidence of U.S. takeover activity from the late 1800s to the mid-1980s. Their findings have suggested that takeover activity above 2 to 3 percent of GDP is unusual. However, the greatest level of merger activity occurred around 1980s, at roughly 10 percent of GNP. By this measure, takeover activity in the 1980s is historically high. The size of the average target in the 1980s had increased extremely from the modest level of the 60s. By 1989 28%, of Fortune 500 companies were acquired and many transactions, particularly the large ones, were hostile. Further the medium of exchange in takeovers was cash rather than stock, they were characterized by heavy use of leverage. Firms were purchased by other firms by leveraged takeovers by borrowing rather than by issuing new stock or using solely cash on hand. Other firms restructured themselves, borrowing to repurchase their own shares. The 80s was also characterized by latest forms of control changes, which included bustup takeovers. Bustup takeovers involved the sell off of a substantial fraction of the targets assets to other firms. (Bhagat, Shleifer, and Vishny, 1990; Kaplan, 1997). 2 Merger Motives The following sections will explain the motive behind the two merger waves. 2.1 Managerial Motives Agency theory predicts that unless managers are strictly monitored by large block of shareholders they will certainly act out of self-interest. Amihud and Lev (1981) have provided proof that unless closely monitored by large block shareholders managers will attempt to reduce their employment risk through diversification. Lane et al.(1998) in this study have reexamined Amihud and Lev findings about agency theory Using a sample of 309 US firms that diversified between 1962 1970, from the Federal Trade Commission (FTC) Statistical Report on Mergers and Acquisitions (1976). This study falls in the third broad category[1] of agency studies. However this analysis only examines the strategic behaviors of managers when they are not under siege and are also not in a situation, in which their interests are clearly in conflict with those of shareholders. Specifically, firms without large block shareholders are expected to engage in more unrelated acquisitions and show higher levels of diversif ication than firms with large block shareholders (Jensen and Meckling (1976)) Using Multiple Regression, the study found no evidence for the standard agency theory predictions that management controlled firms are linked with strategically lower levels of diversification and lower levels of returns than are firms with large block shareholders. It was found that Ownership structure and diversification are largely independent constructs. Thus, managers may be are worthy of more trust and autonomy than what the agency theorists have prearranged for them. Rather than seeking to restrict managerial discretion through extreme oversight, a more balanced approach by principals is needed. Some safeguards are essential as conflicts of interests between managers and shareholders do arise in certain situations, therefore, the assumption that such conflicts dominate the day-to-day management is not realistic. Matsusaka,(1993) takes a deep look at the astonishingly high pre-merger profit rates of target companies during the conglomerate merger wave. The main goal of the study is to assess how important was managerial discipline as a takeover motive. The analysis uses an extensive data set of 806 manufacturing sector acquisitions that took place in 1968, 1971 and 1974. The sample was collected from New York Stock Exchange listing statements. Sample of 609 observations was taken from 1968, 117 from 1971, and 129 from 1974. The results did not differ in any vital way by year, so observations from the three periods were pooled. Because antitrust enforcement was strict in the late 1960s and early 1970s, it was safely assumed that the sample mergers were not motivated to increase market power Ravenscraft and Scherer (1987). This allowed the investigation to focus on a narrow set of merger motives. Profitability[2] throughout the study was measured as a rate of return on assets. The theory identified two basic characteristics of mergers motivated to discipline target management. First it wsa observed that the target was underperforming its industry and the only reason to discipline the managers was that they were not maximizing profit. It could be because of incompetence that they were pursuing their own objectives. The second, the target company had publicly traded stock and the only posibility to discipline management was by electing an appropriate board of directors. In this situation a takeover was necessary to effect a change as the diffused stock ownership resulted in free-rider problems. Owners can remove bad managers of privately owned firms, as they are closely held. The problem occurs in large publicly traded firms with diffuse ownership. The statistical results revealed that both public and private targets had extremely high profit rates prior to acquisition compared to their size classes and industries. Therefore, takeovers were not motivated to discipline target managers during the conglomerate merger wave. The second finding of the study is that public targets were not as particularly profitable as private targets. It was also found that the largest public targets had the lowest profit rates. A credible interpretation of the evidence is that managerial discipline may have been significant for just a small set of acquisitions that involved large publicly-traded targets. Matsusaka (1993) leaves the bigger question unexplained. Why buyers time and again sought high profit targets during the merger wave. There is a simple clarification, that high quality assets are generally favored to low quality assets, as high quality assets are more expensive. In addition to explaining why firms seek high-profit targets, an asset complementarity theory implies that firms tend to divest their low-profit divisions Palmer and Barber (2001) have determined the factors that led large firms to participate in the1960s wave. The theoretical approach, of the study conceptualizes corporate elites (managers and directors) as actors. However it is assumed that these actors have interests which have arisen from positions held in organizational and institutional environments, and from multidimensional social class structure. Often Acquisitions are deviant and innovative ways by which corporate these elites can increase their status and wealth. Corporate elite diversify to the extent that their place in the class structure provides them with the capacity and interest to augment their wealth and status in this way. The authors have examined how the firms top directors and managers class position influenced its tendency to employ diversification in the 1 960s. More specifically the following arguments on social status[3] have been tested empirically. Firstly, Firms run by top managers who attended an exclusi ve secondary school or whose family was listed in a metropolitan social register were less likely than other firms to complete diversifying acquisitions in the 1960s. Secondly, Firms run by top managers who were Jewish were more likely than other firms to complete diversifying acquisitions in the 1 960s. Thirdly, Firms run by top managers situated in the South or west were more likely than other firms to complete diversifying acquisitions in the 1960s. The study selected a sample of the largest 461 publicly traded U.S. industrial corporations from the Federal Trade Commissions Statistical Report on Mergers and Acquisitions (1976), between January 1, 1963, and December 31, 1968. This particular time period was chosen because as the merger wave took off at the end of 1962 and crested in 1968. The results of the study were found through count and binary regression models. The findings of the study are consistent with that of Zeitlin (1974). According to him top managers capacities and interests are shaped by their social class position. Corporate elite members differ in their social class position. It is this variation that influences the behavior of the firms they command. The results indicate that social club memberships and upper-class background influenced a firms propensity to complete diversifying acquisitions in the 1960s. Network embeddedness and status influenced acquisition likelihood in opposite directions. Corporations that were run by chief executives who were central in social networks but marginal with respect to status were more likely than other firms to complete diversifying acquisitions in the 1960s. Therefore, individuals with high status had small interest in adopting innovation. Corporate elites can inhibit the spread of an innovation when it threatens their interests. As observed by Hayes and Taussig (1967), One must never under estimate the moral suasion that the business and financial communities can bring to bear on those who engage in practices of which they disapprove. In this respect, the analysis provides additional evidence that intraclass conflict shaped corporate behavior during the 1960s merger wave. It seemed that in the 1960s, it was not concentrated ownership but, ownership in the hands of capitalist families that reduced a firms tendency to complete diversifying acquisitions. Further, as predicted by agency theory , concentrated ownership would lower acquisition rates most when in the hands of the CEO or other top managers, as opposed to outsiders, However it was found the reverse to be the case. Overall, there was very little support for any of the agency theory in the 1960s merger wave. Further, the results provided no support for several of the class-theory hypotheses. Firms headquartered in the South or West run or by Jewish CEOs did not have a greater propensity to complete diversifying acquisitions during the 1960s. The process of diversification of American firms reached its height during the merger wave of the late 1960s. Matsusaka(1993)evaluated the 1960s merger wave. In an attempt to do so the author has proposed a number of explanations that drove managers to diversify during the conglomerate merger wave. There are reasons to suspect that managers may have pursued a diversification strategy even when it impaired the shareholder. They may have entered new lines of business to protect their organization-specific human capital or establish themselves. On the other hand, they may have been pursuing size as an end and because of strict antitrust opposition to horizontal and vertical mergers they had to expand by buying into unrelated industries. The study has evaluated whether manager were diversifying for their own advantage or in the interest of shareholders returns .To do so the author inspected the effect of diversification on the value of his firms equity. Thus, if the value of a firm declined upon announcement of an acquisition, then its management was not acting to maximize shareholder wealth. One explanation for conglomeration stated in the study, stems from Managerial-Discipline theory. Firstly, Firms were taken over to discipline or replace their bad managers ie â€Å"Managerial-Discipline. Secondly, Managerial Synergy theory states that the bidder management wanted to work with target management, not replace it. In this case the acquirer management believed that the target management would complement to their skills. Therefore firm that had Managerial-discipline problem were likely to have had low profits, and on the other hand managerial-synergy targets were likely to have had high profits. Another explanation is that buyers were motivated by earnings-per- share (EPS) manipulation. This explanation states that conglomerates have a high price-earnings ratio (P/E). [4] Therefore the bidder management was bootstrapping, by buying firms with low P/Es. Construction of the dataset began with a list of mergers from the sample of 1968, 1971 and 1974 .The sample was identified from the takeovers from New York Stock Exchange listing statements and the results were presented through regression. The announcement-period return to the bidders shareholders was measured through dollar return, [5] .Regression of the dollar-return measure found that the return to a diversification acquisition was significantly positive. On average their shareholders enjoyed an $11.0 million value increase in value when bidders made a diversification acquisition,. This rejects the hypothesis that diversification hurt shareholders and is thus inconsistent with the idea that diversification was driven by managerial objectives. On the other hand, bidders who made related acquisitions cost their shareholders $6.4 million on average. Thus, the hypothesis that the markets reaction was the same to related acquisitions and diversification is rejected, suggesting that there was a market premium to diversification. Using descriptive statistical summaries it was found that both diversifying and horizontal buyers preferred to buy firms that were profitable. For both type of acquisitions the average operating profit was more than 5% in excess of the targets industry average. Therefore fame of high-profit targets argues against the importance of a managerial-discipline motive for both types of acquisition and in favor of a managerial-synergy motive. This is because Managerial-discipline takeovers should have been directed at low-profit firms, whose profitability needed improved. The motive was Managerial-synergy as the targets were takeovers were high- profit firms, this is because synergy-motivated managers were looking for good partners Matsusaka(1993). Another factor linked to the managerial theories is whether or not the targets management was retained.Top management is said to have been retained if it meet the following criteria. Firstly It was reported in the Wall Street Journal that the acquired firms management would continue to operate under the new management. Secondly, it was indicated in the buyers listing statement that the targets management would be retained. Lastly, when the merger took place at least one of the top three executives of the target firm was still managing the firm three years later from when the merger took place. According to the above mentioned definitions, 61.8% of the managers in the sample were retained and only 3.5% of the acquisitions fell in the Replaced category. The main finding is that buyers earned significantly positive announcement-period returns during the conglomerate merger wave when they made diversifying acquisitions. The hypothesis that conglomerates were driven by empire building or some other managerial objective can be rejected because such explanations imply value decreases to unrelated acquisitions. Another explanation of the conglomerate merger wave is that mergers were driven by an accounting trick rather than expected efficiencies. Therefore, investors watched EPS; when the EPS went up they bid up the price of the stock. According to this argument, Conglomerates, tended to buy companies with lower P/E ratios than their own in order to increase their EPS and boost their stock prices. There was no evidence that firms earned positive returns which inflated EPS in this way. The study indicated that early conglomerators earned significantly positive returns simply because they were first. They may have gained some rents to organizational innovation. Possibly the men who built the first conglomerates had a unique talent for diversification, which the market rewarded. Hubbard, Palia (1999), have examined the likelihood that internal capital markets were formed to alleviate the information costs associated with the less well-developed external capital markets of the time; that is, whether they were expected to create value by the external capital markets in the 1960s.In this paper, the authors have inspected a form of cross-subsidization that occurs when a financially unconstrained bidding firm takes over a financially constrained target firm and as a result forms an internal capital market.The study examined whether the external capital markets expected that the formation of internal capital markets in the 1960s were value-maximizing for the bidding firm. However, existing research has argued that internal capital markets can be value-enhancing. As argued by Geneen(1997), the financing and budgeting expertise that a firm possesses is not necessarily related to its degree of diversification. Accordingly, the internal capital market hypothesis for all acquisitions is tested. The study also tests the bootstrapping explanation for conglomeration in the 1960s, which takes place when firms with a high price-earnings ratio (P/E) took over low P/E target firms and fooled the stock market with an increased combined earnings-per-share. In the 1960s, external capital markets were less developed in terms of company-specific information production than in later years. The authors have classified company-specific information into two general categories. Firstly, production information; and secondly, financing and budgeting expertise. However, in this study information-intensive activities were introduced. This was because; it assists the manager to internally allocate capital across divisions of a diversified firm. It was suggested that diversified firms were perceived by the external capital markets to have an informational advantage, because external capital markets were less well developed at that time. Comparing it to the current decade, there was less access by the public to computers, data- bases, analyst reports, and other sources of company-specific information. Not only this there was less large institutional money managers and the market for risky debt was illiquid. The authors selected a sample of 392 acquisitions that occurred during the period from 1961 through 1970. Diversifying acquisitions were defined as those in which the bidder and target do not share any two- digit SIC code Matsusaka(1993), and related acquisitions as those in which they do share a two-digit SIC code. Further the Wall Street Journal was used for announcement date as the event date. Four measures of abnormal returns to the conglomerate bidding firm were calculated. These measures are as follows. Firstly, the usual percentage returns or the cumulative abnormal returns from five days before to five days after the event date. Secondly the percentage returns until date of last revision or the cumulative abnormal returns from five days before to five days after the date of the last revision (Lang et al. (1991)). Thirdly, the dollar returns or the percentage return times the market value of the bidder six days before the announcement (Malatesta(1983); Matsusaka(1993)). Lastly , the investment return defined as the change in the value of the bidder divided by the purchase price (Morck et al. (1990)). Tobins r ratio[6] is used as a proxy for a firms capital market opportunities. The evidence from these measures is mixed. Positive abnormal returns for all four measures were shown for related acquisitions. On the other hand, two of the four measures had shown statically significant positive abnormal returns for diversifying acquisitions in. Not only that diversifying acquisitions do not significantly earn less than related acquisitions in two of the four measures. Thus, evidence suggests, the capital markets believed acquisitions to be generally good for bidder shareholders during the 1960s. More significantly, it was found that when financially unconstrained buyers acquired constrained target firms, highest bidder returns were earned. Further, bidders generally retain target management, signifying that management may have provided company- specific operational information and the bidder on his part also provided capital budgeting expertise. Therefore, external capital markets expected information benefits from the formation of the internal capital markets. The study found no evidence in support of the bootstrapping hypothesis, as the coefficient on the dummy variable[7] was not statistically different from zero. This result is consistent with Matsusaka, (1993), who also finds no evidence for bootstrapping.Therefore, firms merged to form their own internal capital markets as there was a deficiency of well-developed external capital markets in the 1960s. Some firms apparently had an information advantage over the external capital markets and were expected to produce value in an internal capital market. In the 1960s diversified acquisitions were rewarded by financial markets, the informational advantage that acquiring firms appeared to possess was likely to be in the capital budgeting, allocation process and operational aspects of each division. Bidder firms generally retained the target management as it would facilitate them running the operational part of each target firm. The Motives discussed in the above mentioned articles are appealing; however evidence from the stock market suggests that shareholders preferred their firms to diversify. Using a data set from the 60s and early 70s, Matsusaka (1993) reported that, when the company announced an unrelated acquisition, the stock price of the bidder increased on average of $8 million. However, on the announcement of a related acquisition, the bidding firms stock price fell by $4 million. The difference between the two returns is quite significant. Thus it appears that investors fully believed that unrelated acquisitions benefited their firms relative to the alternatives. Thus the managers just did what the stock market told them to do that is to diversify. Evidence from 1980s stock market suggested that shareholders, again, liked what was happening. Shleifer, and Vishny (1992) found that in the 1980s, stock prices of the bidding firms rose when they bought other firms in the same industry, and fell with unrelated diversification. It is clear that the market disapproved unrelated diversification. Therefore it does not astonish that, in light of such market reception, managers stopped diversifying and did what the stock market directed them to do. 2.2 Legal Motives Matsusaka (1996) investigated whether the antitrust enforcement of the 1960s led firms to take on the diversification goal, by preventing them from expanding within their own core industries. If correct, diversification should have occurred more less frequently when small firms merged than when large firms merged since small mergers were less likely to have attracted antitrust attention. Further the author examined the diversification patterns in the United Kingdom, Canada, Germany, and France in the late 1960s and early 1970s, where none of these countries had legal restrictions on horizontal growth similar to those in the Unites States. The US Clayton Antitrust Act was the antitrust legislation in the postwar period (1950 Celler-Kefauver amendment to Section 7). The act, prohibited mergers that would substantially lessen competition, or tend to create a monopoly. This new law was used by the antitrust authorities and the courts to limit the number of mergers between vertically related and firms in the same lines of business. The strictness of the antitrust environment in 1968 is illustrated by the observation that in the earlier 12 years, all antitrust cases that reached the Supreme Court had been resolved in support of the government. The study indicates the following two implications. Firstly, large horizontal mergers were more liable to have been challenged on antitrust grounds than small horizontal mergers. Secondly mergers between unrelated firms were unlikely to have been blocked, regardless of size. Firms diversified in 1960s, since antitrust authorities prevented them from expanding in their home industries. Later when antitrust policy became less rigid in the 1980s, firms expanded horizontally, leading them to refocus on their core business. Stigler (1966) was perhaps the first to present evidence on the antitrust hypothesis, concluding that, the 1950 Merger Act has had a strongly adverse effect on horizontal mergers by large companies. The author selected a sample of 549 mergers (that took place in 1968) from the New York Stock Exchange. Results of the study were reported through Logit regressions .It was found that bidders were as likely to have entered new industries when they made small acquisitions as when they made large acquisitions, and small buyers were as likely to have diversified as large buyers. Further the total number of diversification acquisitions concerning small companies was high.Though, according to the antitrust hypothesis; diversification should have been widespread primarily in large mergers where same industry acquisitions were prohibited by tough antitrust enforcement. Secondly assembled international evidence indicated that diversification took place in many industrialized nations in the 1960s and 1970s, although restrictions against horizontal combinations were unique to the United States. Yet, most other industrialized Western nations[8] experienced diversification merger waves and general movements toward diversification in their largest companies (Chandler (1991)).Thus most of the evidence, is not consistent with the antitrust hypothesis, signifying that other explanations for corporate diversification should be emphasized not the anti trust hypothesis. Scholes and Wolfson (1990) state, that the changes in U.S. tax laws[9] in the 1980s had obvious affect on the desirability of mergers and acquisitions. However such transactions were not only motivated by tax factors but also non tax factors[10]. Tax laws can have number of affects on mergers and acquisitions , which can include the following capital losses, presence of tax-attribute carry forwards such as net operating losses , investment tax credits, and foreign tax credits, among others, that might be cashed in more quickly and more fully by way of a merger; the desire to step up the tax basis of assets for depreciation purposes to their fair market value; the desire to sell assets to permit a change in the depreciation schedule to one that is more highly accelerated. The authors in this study have examined the effect of changes in tax laws passed in 1980s on merger and acquisition activity in the United States. The authors selected the annual values of mergers and acquisitions from 1968 through 1987 in nominal dollars. The data source for nominal values was W. T. Grimm and Company for 1968-85 and Mergers Acquisitions (1987-88, rev. quarterly) for 1986 and 1987. Using time series analysis it was found that the dollar volume of merger activity between 1980-1981 increased from $44.35 billion to $82.62 billion (86%) in nominal terms. The percentage increase was approximately twice as large as the next largest percentage increase in annual merger and acquisition activity over the 1970-86 periods. There was spectacular increase in merger activity that began with the passage of the Economic Recovery Tax Act of 1981, however this was not the only merger wave that occurred in that time frame. Unusual merger activity was also witnessed in the 1960s. The termination of 1960s wave was accompanied by quite a few regulatory events that depressed such transactions. Firstly, the Williams Amendments had en larged the cost and difficulty of effecting tender offers. Secondly the issuance of Accounting Principles Board Opinions 16 and 17, forced many acquiring firms to boost depreciation expense, goodwill amortization and cost of goods sold. Thirdly the Tax Reform Act of 1969, made transferability of tax attributes (net-operating-loss carry forwards) more restrained. Therefore there was a sudden decline in merger activity from the peak in 1968. Relative to the tax benefits when the non tax benefits of the transaction were small, current management were the most efficient purchasers, as they had an advantage along the hidden information dimension. Therefore 1981 act had increased the incidence of cases in which non tax benefits were less than the common tax benefits of mergers and acquisitions. As a result, there was an increase in the number of transactions involving management buyouts. The annual dollar value of unit management buyouts between 1978-80 increased by a factor of 3, and by a factor in excess of 20 for the period 1981-86. The antitrust proposition mentioned above is appealing as one of the most important reason for diversification, during the 60s and 70s, which simply disallowed mergers of firms in the same industry, regardless of the effects of these mergers o