The Importance of Literature in Education free essay sample

Admittedly, based on findings approached in this study, the occidental Europe, at the time of Goethe, bitterly suffered from the absence of a remedial philosophy to make up for the ethical disadvantages befell upon the Europeans then. The researcher accordingly asserts that Goethe intelligently took Hafez’s oriental and Islamic tenets and values and had them frankly and furtively included in his mystical and transcendental expectations in poetry. He efficiently worked them out as a healing remedy for the losses and damages incurred upon the fellow-Europeans due to some utilitarian wars almost ravaged the whole continent. On the whole, exponent gurus such as Hafez and Goethe are undeniably privileged to be the inevitable product of some historical, cultural and social exigencies. They themselves have been indispensably trapped into such a narrow shave to eventually emerge in the scene as a couple of unforeseen sublimes consecutively matching up each other in every true sense of the word and practice. We will write a custom essay sample on The Importance of Literature in Education or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Never was the saying â€Å"great men think alike† more aptly rendered applicable than it is of the immortal Hafez of Persia (Iran) and Goethe, the multi-dimensional genius of Germany. Hafez was born about the year A. H. 720/C. E. 13201 in the city of Shiraz the capital of Pars (from which the name of Persia itself is derived) at a distance of about 38 miles (about 57 Kilometers) from the ancient Achaemenian Capital, Perspolis (Takht-e-Jamshid). He then lived there all his life of above 70 years till his death about the year A. H. 792/ C. E. 1390. Goethe, on the other hand, was born in 1749 (28th August) at Frankfurt-am-Main and died in 1832 (22nd March) at Weimar, formerly in East Germany. Although there is a time gap- distance of about four and quarter centuries between the two, there is a remarkable likeness of thinking amongst them. Further, the circumstances of their life-spans are also notably similar. For instance: 1- Both Hafez and Goethe lived during periods of great political turmoil and disturbance. About half a century earlier Shiraz, and for that matter, the whole of Iran 1 The abbreviation C. E. stands for the Christian Era Baroudy: A Consecutive Study of Hafez and Goethe 214 Nebula4. 3 September 2007 ad seen the devastations of the Mongol invasions, and their wars of consolidation. Even the local dynasty (the Injus) had indulged in much fratricidal wars, and his patron Shah Shuja to whom he has made references in his poetry, was himself the product of much intrigue, crime and bloodshed. Then the vicinity of Shiraz was infested by bands of ferocious and heartless robbers who presented a great problem of law and order to the local rulers. To crown, above all, hardly had Shah Shuja settled down to a peaceful life when the country had to face the ravages of the invasions of the world conqueror, Timure-Lang. Goethe, in this respect, was far more fortunate than his ‘twin’ Hafez, whose began when he was about 45 (in 1364 A. D. ), and ended nearly twenty years later when his patron Shah Shuja was deterred by the expanding empire of Timur (early 1380s). Based on poems and anecdotal accounts during Shah Shuja’s reign, Hafez served as a teacher at the local madrasa, to provide a modest living for himself, and some additional revenue from the panegyric in his oeuvre. Thus, similar to Goethe, he enjoyed a reasonably stable pattern of occupation. Hafez and Goethe both enjoyed considerable international reputation in their own lifetime, and the privilege with which he was sought after by rulers as far abroad as Baghdad and India. Equally tumultuous were the conditions in Europe during Goethe’s age and the boundaries of the countries were constantly changing. There had been wars of the Polish succession, the Restoration of large territories to the Turkish Sultan, the bloody consequences of the claims of the stubborn Maria Theresa which dragged on till seven years in Europe (1756-63): Russian troops invaded East Prussia; and Hanover (North Germany) was attacked and occupied by France. In the mean time, the storm of the French Revolution was brewing and although it brought ideas of liberty, equality, and fraternity amongst educated classes in Germany, but it brought it also tiding of untold horror, across their border and of slaughter; guillotine and bloodshed in France, which tended to propagate anarchical ideas in the rest of Europe and which seemed to present serious problems of law and order. Force let loose in consequence of the French Revolution culminated in another force which enveloped the whole of Europe in the shape of Napoleonic Wars. It has been observed that great epochs in literature, so rare in their occurrence, have had a peculiar relationship to periods of extra ordinary political commotion. Both Hafez and Goethe were not only inheritors of sublime literary tradition but themselves became the culminating points in their respective literary achievements unsurpassed by Baroudy: A Consecutive Study of Hafez and Goethe 215 Nebula4. 3, September 2007 posterity. Hafez as preceded by the luminous stars of the unmitigated glory in the galaxy of the Persian sky like, Anwary, Sa’adi, Attar, Sanai, and the towering personality of Rumi. Moreover, the atmosphere of Shiraz in which he was born and bred was itself permeated with literary genius. Western scholars, during the enlightenment phase, endeavored to impartially view east to prove that the world of east is no longer a world of war and bloodshed, violence and invasion, and anti-Christian or anti-European. On the contrary, they invited their audiences to review their position and discern east as a world of beauties, narratives, expectations as well as wonders (Schimmel, 1990). In the same vein, Goethe who was a sublime close to the versatile and fertile genius of Renaissance Period lived and moved in a highly intellectual atmosphere. His direct constant with classical culture during his Italian sojourn of 1786 deeply influenced him. A part expression f this can be seen in the shaping of his plays ‘Iphigenic auf Tauris’ (1793) and ‘Ttorquato Tasso’ (1790) and the poems ‘Romische Elegian’ (published in 1793). His friendship and correspondence with the poet Schiller sharpened his aesthetic theories, heightened further by his sensitive mind so amenable to female beauty. In addition, far more important, was his receptivity to foreign literature including the English poet Shakespeare and many Iranian poets out of whom the great Hafez of Shiraz cast a peculiar spell on him and resulted in the production of the immortal ‘West-Ostlicher Divan. Moreover the influence of Jean Jacques Rousseau, Edward Young and James McPherson were also profound influence over him. But the chief impetus came from the oracular utterances of Johann George Hamann (1770-88)2, the â€Å"Magus in Norden† wherein he observed that the basic varieties of existence are to be apprehended through faith and the experience of senses and pointed out the value of primitive poetry. Poetry, he declared, was the mother tongue of the human race and not product of learning and precept. Similarly, Johann Gottfried Herder (1744-1803)3 who 2 Hamann had a profound influence on the German ‘Storm and Stress’ movement ,and on other contemporaries such as Herder and Jacobi; he impressed Hegel and Goethe (who called him the brightest head of his time) and was a major influence on Kierkegaard. His influence continued on twentieth century German thinkers ,particularly those interested in language. His popularity has increased dramatically in the last few decades amongst philosophers, theologians, and German studies scholars around the world. (Stanford Encyclopedia of Philosophy) German philosopher, critic, and clergyman, b. East Prussia. Herder was an enormously influential literary critic and a leader in the Sturm und Drang movement. After an impoverished childhood ,he studied theology at Konigsberg and came under the influence of Kant. During an appointment at Riga, Herder gained attention with his Fragmente uber die neuere deutsche Literatur ]fragments concerning current German literature (1767). In 1776 he became court preacher at Weimar through the influence of Goethe, whose work was reatly affected by Herders ideas, particularly by his Uber den Ursprung der Sprache] on the origin of language] (1772). In this treatise Herder held that language and poetry are spontaneous necessities of human nature, rather than supernatural endowments. At Weimar, Herder became the leading theorist of German romanticism and a contributor to the most brilliant court of the era. There he produced his anthology of foreign folk songs ,Stimmen der Volker (79–1778) and a lso made some of the earliest studies of comparative philology, comparative religion, and mythology. His vast work Ideen zur Philosophie Baroudy: A Consecutive Study of Hafez and Goethe 216 Nebula4. 3, September 2007 regarded, and no thinker before him, the idea of historical evolution, likewise interested Goethe in foreign literature including that of the East. Thus, Goethe’s intelligence, so free, insatiable and unconfined, set the ideal for comparative study and he predicted a Welt-literature in which all nations have a voice. 3- Both Hafez and Goethe deeply impressed the powerful conquerors of their times. Thus, Hafez impressed Timur-e Lang while Goethe impressed Napoleon.

Analytical Essay on Frankenstein Perceptions of the Character

Analytical Essay on Frankenstein Perceptions of the Character In 1818, Mary Shelleys Frankenstein was published and since then, it has become a tale that lives on in everybody. Beginning in the 1900s, comic books, movies, jokes, television shows, cartoons, and even cereal has been made because of Frankenstein. Since the very first film was made, in 1910 by Thomas Edison, several other movies have been created about this legend. In this essay, I will examine a few of the many popular films made and I will compare and contrast them to Mary Shelleys 1831 edition of Frankenstein. In the 19th century, there have been roughly 400 films that use the characters of Frankenstein and/or his monster(Carter 354). The first film adaptation consists of four scenes on one reel and is only a 16 minute silent film(Carter 355). Produced by Thomas Edison and Directed by Searle Dawley, the film has a very interesting scene. On Victor and Elizabeths wedding night the monster goes into the brides room where Elizabeth faints at the sight of him. The monster is seen looking into the mirror but the image gradually fades away. Victor is so overpowered by his love of Elizabeth that the monster cannot exist. Victor comes in and looks into the same mirror, but instead of seeing himself, he sees the reflection of the monster. As Victor focuses on the good in him, the reflection gradually changes back into Victor. The film ends with the embrace of Victor and Elizabeth, both relieved that the forces of evil have been conquered. Thomas Edison seen Shelleys novel as the forces between good and evil. Like most movies, the good guys always prevail. She did not have a typical, forces of goodness win, Victor and Elizabeth live happily ever after, ending. The only people that survive in her novel are Walton and the monster. Mary Shelley obviously was not trying to show us that the good outweighs the bad in every situation. In 1931, Universal Pictures presented us with not only Dracula but also Frankenstein. Director, James Whale, based this film on Mary Shelleys Frankenstein but it does not follow it very well. He makes us feel sympathy for the monster as Shelleys novel does also. Shelley has the monster strangle his victims after he realizes that he cannot live normally in society and wants to get revenge on Victor. He knows exactly what he is doing. In Whales film, he hangs Fritz, the hunchback assistant that taunts him with fire, and he strangles the Doctor after he tries killing him. He is only killing out of self-defense. Then, he drowns Maria in the pond only to see if she would float like the flowers did. She did not. It is odd though that in the book he actually saves a drowning girl and strangles everyone else, and in the movie he breaks peoples neck, hangs them, and drowns them. James Whale decides to keep Walton out of the film but he adds a Dr. Waldman. Walton/Waldman, sounds a lot alike. He also has Victor as the friend and Henry as the mad scientist that creates the monster. Boris Karloff plays the monster in Frankenstein. In the opening credits of the film, he is uncredited as the monster (Young). In the beginning credits titled The Players the monster is listed fourth, with a question mark after its name. Then, in the end credits where the cast list is prefaced by Ð £a good cast is worth repeating (Frankenstein), the monster is listed fourth with Boris Karloffs name following. Why does Whale decide to do this? This is the series that really launched Karloffs acting career (Young). Like the monster, no one really gave him any credit. That was until he played the gruesome monster in Frankenstein. So, at the beginning they do not include him as an actor. Then, they question his ability with a question mark, and finally, they give him credit at the end. In 1935, Whale makes a sequel to Frankenstein, and names it the Bride of Frankenstein. At the end of Frankenstein, Henry Frankenstein ends up burning the windmill with the monster in it, but in the sequel they tell it differently. It starts out with Mary Shelley, Percy Shelley, and Lord Byron discussing the novel Shelley wrote. Mary Shelley says, The publishers did not see that my purpose was to write a moral lesson: the punishment that befell on mortal men who dared to emilate god (Bride of Frankenstein). James Whale tries to put Mary Shelley into this movie as much as he can. He even gives the Frankenstein family a servant names Mary in the movie. The thirst for knowledge was definitely a major theme in Shelleys novel, and in Kennith Branaghs 1997 film, Mary Shelleys Frankenstein, he makes it very evident. Unlike Whale, Branagh decides to keep Walton in the movie. At the beginning, Walton is portrayed as a man who is so set on getting what he wants. He does not care if he risks everyones lives on the ship as long as he proceeds north with his accomplishments (Branagh). Only after Victor tells him his story does he decide to turn around and go home. Branagh is faithful to Shelleys novel more so than the other movies but still goes off track a lot. He has Victors mother die giving birth to her child. This is very ironic since Mary Shelleys own mother dies giving birth to her. That very same day Elizabeth is introduced into the plotline. Branagh noticed Victors obsession with replacing his mother with Elizabeth in Shelleys novel. He does it again when, like the novel, he has a dream that he is kissing Elizabeth but instead holds the corpse of his mother (Zakharieva 421). In Mary Shelleys Frankenstein, Victor does not attempt to make a creature for the monster, but for himself. He makes a creature out of Justine and Elizabeth both of whom love Frankenstein and are desired by the creature (Zakharieva 429). She must choose between them but she does not. Instead she kills herself so she does not have to choose at all. So, not only was Victor acting as god by creating her without a woman, but the creature he created was too by taking her own life, and deciding her own fate. In Whales the Bride of Frankenstein, the bride is terrified by the monster and chooses Henry Frankenstein before he burns the place down. This brings up Elizabeth Youngs argument about the gender triangle between two rivalrous men and one woman. Young argues that Whales film Characteristically invokes its third (female) term only in the interests of the original rivalry and works finally to get rid of the woman (Young). To simplify it she says that Elizabeth is Henry Frankensteins bride. But, Dr. Praetorious triumphantly names the female monster as the Bride of Frankenstein (Bride of Frankenstein). So, there are now two brides of Frankenstein. Also, actress Elsa Lanchester, plays both Mary Shelley at the beginning with Lord Byron and Percy Shelley, and she plays the bride. Here, she is not two women, but only one. So, Mary Shelley, Elsa Lanchester, Elizabeth Frankenstein, and the monsters mate are all Mrs. Frankenstein (Young). Young argues that the role of women therefore is not interchangeable in Bride of Frankenstein, but it is no one at all. The Mad Scientist theme is apparent in James Whales film. Henry Frankenstein is determined to create a human being. In the book Victor is so dedicated to his work that he does not tell a single soul about his experiments except for Walton, and that is only so he will continue in hunting the monster down and killing it. In the movies though, directors have given him assistants such as Fritz in the 1931, Frankenstein, and Igor in the 1974, Young Frankenstein. Shelley does not let Victor tell anyone, and no one even knows where he is half the time. In Kenneth Branaghs film, Victor does not meet Henry until he is away at school. Most of the time Henry knows everything that Victor is doing. Elizabeth actually travels to where Victor is and sees his laboratory that he is working in. She tells him that he cannot stay there, and Victor says that he has to. Elizabeth says, Even if it means you will die? and Victor says Yes (Branagh). Victor chooses death over his own life and better yet, over the monster not being created. In 1974 Mel Brooks directs the movie Young Frankenstein. He believes that scientists will never give up their attempts at bigger and better things and will always strive to do better than the last (Woodridge). Brooks has a young brain surgeon, Dr. Frederick Frankenstein, inherit his grandfathers castle, which just happens to be Victor Frankenstein. He meets up with his assistant Igor, and together they create a human being after Frederick finds Victors diary in the castle. Mel Brooks really is not that far off the mark on scientists though. They kind of have to be like that in order to achieve everything they have so far. No one knows the exact risks that come with experimenting and in order to live life better we have to experiment. If we want to find a cure for cancer a few rats might have to die first and thousands of humans will die of cancer until some scientist out there finds a cure. Hundreds of astronauts had to risk their lives and crash their aircrafts before we finally bui lt one that would make it to the moon. Granted, this stuff has nothing to do with creating humans, but scientists are already trying to clone people. How does this make them any different from Victor Frankenstein? In the book titled Frankensteins Footsteps, author Jon Turney stresses that from its very first appearance in the 1818, Frankenstein, or the Modern Prometheus, it has taken on a life beyond the original book by being constantly retold in a variety of ways (Carter354). Frankenstein has been made into comedies such as the 1948, Abbott and Costello Meet Frankenstein, and Al Adamsons 1971, Dracula vs. Frankenstein. Some directors have gone completely off track of the novel and created films like, Frankenstein: The College Years, Frankenweenie, and Frankenstein Island. In fact, Frankenstein is not even recognized as the last name of Victor anymore. The name Frankenstein is given to the monster now. No matter how many movies are created and how many translators try to translate Mary Shelleys classic novel, only one person holds the truth and that person has been dead for a very long time now. Im sure she is rolling in her grave now laughing at all the ways people have interpreted her book.

The Industrial Revolution in Late 19th Century Essay

The Industrial Revolution in Late 19th Century - Essay Example National Labour Unions were formed to respond to the manner in which people were being evacuated from their farms and an increase in industries led to a misunderstanding between labor and capital.Conversely, there was a rise of numerous challenges that led the state to implement some policies. Social Darwinism took center stage and it was survival of the fittest. The authority of wealthy business firms such as Rockefellers had a great influence on how the government made its policies. The rich had influence in the running of the government because their argument was that they contributed a lot to state revenue as compared to the poor. At first, markets were free, but soon it got complicated because well-established companies stamped authority on markets to the extent that small ones were being phased out. After an extensive investigation on the â€Å"robber barons,† the Sherman antitrust act was passed which focused on implementation of free trade. Though the act was poorly do cumented, it regulated the activities of worker's unions instead of countering monopolies practiced by the well-established firms. The act faced serious criticism and civil unrest until it was later amended to serve its intended purpose (Barney, 2007).The current economic prosperity and agricultural stability are as a result of a long journey the country has undergone to reach such heights. Much credit has been given to Abraham Lincoln who created the basis of the current democratic stability of the nation.

Discuss the relationships of the daughters to their fathers in Slyvia Essay

Discuss the relationships of the daughters to their fathers in Slyvia Plath's Daddy and Sharon Olds' The Chute - Essay Example ted by Sylvia Plath as expressed in her poem â€Å"Daddy† and Sharon Olds as seen in her poem â€Å"The Chute† struggle instead to communicate the complicated love/hate emotions they had for their fathers to very different effect. Plath’s â€Å"Daddy† is written in first person as a letter to her father, who has been dead for 20 years. Although it is not clear who the dominating figure of verse 1 has been, his identity and the concept that this is a letter emerges in the second verse, â€Å"Daddy, I have had to kill you, / You died before I had time† (6-7). The story that emerges in the subsequent lines is of a woman who has lived in fear and awe of her father for as long as she can remember. The fear is evident in her metaphor of him as â€Å"Marble-heavy, a bag full of God, / Ghastly statue with one gray toe / Big as a Frisco seal† (8-10). Later, she compares her fear of her father to the fear the Jews felt for the Nazis, seeing herself as being shipped off to the concentration camps and describing her father’s appearance in terms of the perfect Aryan. â€Å"But no less a devil for that, no not / Any less the black man who / Bit my pretty red heart in two† (54-56). Finally, her description of the man she married as the model of her father indicates his deep cruelty because he has a â€Å"love of the rack and the screw† (66). She ends the poem by indicating her father has been an evil vampire, sucking her life dry and finally buried with a stake in his heart to the delight of the villagers. Her beginning and end of the poem, each expressed in terms of anger and fear, leave no doubt that her fear outweighed any other emotions she had of her father. However, Plath also provides plenty of clues that her love for her father was almost as strong as her fear of him. Although she is writing against him, defying her fear of him, she seems almost breathless as she allows the thoughts of the poem to be interrupted by line breaks and allows one thought to blend almost

Sociology Essay Example | Topics and Well Written Essays - 1500 words - 12

Sociology - Essay Example This globalization process has been strongly debated in the media, political and social circles for the past several years. If one includes colonialism as an ancestor of the process, one could say the debate has raged for generations. The International Monetary Fund defines globalization as â€Å"a historical process† involving â€Å"the increasing integration of economies around the world, particularly through trade and financial flows† (International Monetary Staff 2002). Globalization is typically considered a necessary and unavoidable process leading to future world economic development. However, many have criticized the process because it tends to exacerbate present inequalities that exist within and between nations, threatens the employment and living standards of individuals in all countries and prevents the natural social progress with which each of these countries have been engaged. It seems clear that even though the process is unlikely to change or to reverse , very few people are likely to benefit from the process called globalization. The ways in which many organizations conduct business have changed dramatically under the concept of globalization. It is the survival strategy of the marketplace to continuously strive to increase efficiency within the workplace by producing the greatest quantity of products with the least expenditure of resources. As globalization continues, this is also changing the way in which companies conduct business, such as through the concept of the value-added chain. â€Å"In its most basic form, a value-added chain is ‘the process by which technology is combined with material and labor inputs, and the processed inputs are assembled, marketed, and distributed† (Gereffi, Humphrey & Sturgeon, 2005). By outsourcing many activities and production processes to less developed countries and marketing to more developed countries, many corporations have also

Analysis of the Housing Market in the UK

Analysis of the Housing Market in the UK Introduction For most people in the UK, as in other countries, the purchase of a house is the single largest expenditure they ever make. In contrast with other purchases, a house is not only something that provides highly desirable services – convenient and independent housing – but it is also the single largest element of household wealth. For homeowners, this asset motive for buying a house is becoming increasingly important. As a store of value, houses are increasingly becoming both a critical component in households’ long term financial planning as well as a basis for raising consumption. Just like possessing a portfolio of valuable stocks and bonds, owning a house whose market price amounts to greater wealth. It follows, then, that a change in the market value of a house will change the owner’s wealth, and, consequently, the owner’s consumption expenditure. While the housing market in the U.K. has experienced several dramatic phases in the past three decades[1], its behavior in the last decade or so is not only without precedence but it is also a reflection of a fundamental transformation in the economy’s financial system. Whether being labeled as the product of ‘irrational exuberance’[2] or being described as a ‘bubble’, housing market developments have spawned a wide body of thinking that is increasingly taking on a nervous tone – especially among economists. A quick survey of the macroeconomic literature related to the housing market reveals that the period from the late 1990’s to around 2004 saw a confluence of several phenomena that seem to be related via a series of strong theoretical linkages. Key among these are historically high levels of home-ownership and housing wealth, an extreme housing-price boom, a generously liberal credit regime, unanticipated levels of borrowing, the lowest interest rates in generations, massive consumption expenditures/dangerously low savings rates, general economic prosperity, and, a rising trend in bankruptcies and house possessions. The objective of this project is to highlight the linkage between housing wealth and consumption expenditures with special focus on the events of the last decade. Given the nature of macroeconomic linkages, it turns out that in order to study this relationship in the context of UK, it is necessary to tell an economic tale that incorporates all of the phenomena mentioned above. While there are rather straightforward theoretical reasons as to how and why the national housing wealth affects aggregate consumption, the historical and institutional realities of the financial industry, the changing consumer behavior with respect to credit, the evolving demography etc. have played an important role in shaping this relationship in the UK. Over two-thirds of UK households owned their home and it is typcially their biggest investment they make. At the aggregate level, housing wealth is now greater than the size of their financial holdings[3]) and it is distributed in a considerably more equitable manner across socioeconomic and demographic segments as compared to the latter. Such investments bring reasonable returns over the long term, and in the last five years house price appreciation has more than doubled the value of the stock. It follows, then, that changes in housing wealth have the potential, in theory, to have sizeable effects on consumption, GDP, unemployment etc. The theoretical mechanism by which changes in housing wealth are transmitted into consumer demand, called the ‘wealth effect’ (discussed in detail later in the paper), is of critical importance to the economy because its impulses also affect an array of other macroeconomic variables and processes. Clearly, the ability to draw on this major store of purchasing power has serious implications for the financial health and prosperity of homeowners and, hence, the economy. With respect to access to the ‘frozen’ housing equity, the UK experience has been uniquely successful as compared to those of almost all other OECD countries. A series of policy moves to deregulate and ‘liberalize’ lending practices resulted in democratizing the credit market such that loan products once provided to the privileged, became common-place. Households that had faced credit barriers could now affordably borrow large amounts thus unleashing the power of the wealth effect. Therefore, the ways in which UK households obtain and dispose off the equity is of particular interest to this study.[4] This paper is organized as follows: the next section lays out the key issues involved in this study; the third section discusses the theoretical and analytical matters concerning the wealth effect in the context of the recent UK housing boom; the fourth section surveys the empirical research in this area; the fifth section presents the empirical work done for the study, including a description of the findings from regression analysis using Microfit; and the last section offers some conclusions from the work. (There are graphs and figures associated with the text and they are appended at the end.) A Review of the Peculiar Issues and Macroeconomics of the UK Housing Market Nature of the boom With focus on the 1995-2004 period, this section lays out the key issues involved in understanding of the structure and strength of the relationship between housing wealth and consumption. At the outset it is necessary to have an overview of developments in UK’s housing market during the pertinent period to highlight the generation of housing wealth, the manner in which it is accessed in the form of equity, and channels of disbursement of the equity. The UK housing market became truly energized in the mid-to-late 1990’s, beginning with a property boom in the London area and then gradually spreading to virtually every region. Homeownership levels reached historic levels and so did the share of ‘buy-to-let’ residential investments in the country’s portfolio. Using data published by Halifax-Bank of Scotland, Graph 1 provides the salient market metrics: the price boom accelerated to push the price of the typical house from around  £61,000 in 1995 to over  £161,000 by 2004 – an increase of over 160%; not only was the speed and tenacity of housing prices unprecedented, the annualized percentage growth rate seem to rise with the level of prices. Far from being a localized phenomenon, this housing boom covered the entire UK, as Graph 2 demonstrates. While, the origin of the boom was in Greater London and the Southeast in the mid 1990’s, it quickly enveloped East Anglia and the Southwest. However, by 2001 the boom entered its most vigorous phase as it spread to the peripheral regions with prices almost doubling in a five-year period. Since most of the home purchases are financed through mortgages, the two variables that shape housing demand decisions are the interest rate and property prices. As it turned out, with historically low nominal lending rates (see discussion later), the home prices was the chief determinant behind purchases. The feeding frenzy that was the housing market pumped prices to such a level that placed typical accommodations out of reach of most would-be buyers. The Affordability Index, calculated as the ratio of housing prices to household disposable income, rose from 3.09 in 1995 to 5.45 in 2004. It is useful to note that higher aggregate housing wealth can be a product of a rise in housing prices and/or a growth in the stock of housing. As is displayed in Graph 3, the early 1980’s saw housing wealth grow due to a steady rise in prices while in the late 1980’s and early 1990’s we see stability in it despite declining prices. There was rising home ownership during all three intervals; in the early 1980’s it was engendered by the privatization of some public housing [5, p. 12] while the late 1980’s and early 1990’s it was due to stimulated demand spurred by declining prices and interest rates. With housing prices rising at around 20% per annum, vast slices of society saw the value of their homes reach unseen levels as the market injected equity. This store of equity was virtually a battery filled with purchasing power that was steadily getting charged by the market and that could be tapped into, if needed, to finance purchases. Halifax (2005) reports on it website that at the end of 2005, UK’s housing wealth reached a historic peak at  £3,408 billion which amounts to triple the figure in 1995 with the last five years seeing a 60% increase. As Graph 3 illustrates, since the mid-1990’s the unprecedented spurt in housing wealth can be attributed mainly to rising prices. Clearly, an index of housing prices is an excellent proxy for housing wealth. [5] What generated the price boom? As compared to the preceding 15 years, the last decade saw the housing market subjected to a variety of macroeconomic and financial forces. Following Her Majesty’s Treasury (2003) and Farlow (2004), one can identify demand- and supply-side factors responsible for shaping the current housing market. On the demand side, the key market forces were: According to Her Majesty’s Treasury (2003) the early 1980’s saw a sustained campaign of liberalization of the credit market that led to increased competition among banks and non-traditional lenders, rampant development of new credit products, and enhanced capacity of banks to create liquidity; all of which made obtaining housing loans easier and a more egalitarian process by lowering transaction costs. [6] Low and declining interest rates pushed down the cost of mortgage credit thereby stimulating housing demand; Macroeconomic prosperity with higher disposable income and lowered unemployment rates allowed for more purchasing power; Expectations of continuous expansion and future employment created an optimism among households Despite an ageing population, members of typical home-buying age-cohort (especially baby-boomers) saw their households grow, thus creating a greater demand for family housing; And lastly, the explosion in ‘buy-to-let’ purchases led to a massive speculative demand fueled by expectations of sustained housing price increases. On the supply side, the major market forces according to Farlow (2004) and Her Majesty’s Treasury (2003)were: a low price-elasticity of supply due to a combination of policy regulations, regional scarcity of land, and lags in obtaining licence/local approval; Scarcity of existing housing available for purchase i.e. low vacancy rate; Rising costs of construction, especially due to labour shortage and rising prices of materials. When a strong level of demand and a limited and inelastic housing supply are combined, one can see why prices have risen so quickly. Housing wealth vs. Financial Wealth To understand the rising significance of the recently acquired housing wealth, it is interesting to compare it with the ownership of financial assets in UK. Housing remains UK’s greatest asset with the total of shares, bonds, and cash amounting to  £1.6 trillion. In the past, financial assets pensions and holdings of shares, bonds, and bank accounts accounted for bulk of the nation’s wealth. However, recent history has created housing as the asset that is held more widely and equitably – across geographic regions, age cohorts, and income groups – than financial wealth. Pensions were clearly concentrated among the older age groups and the bulk of other financial assets were held largely by a small opulent minority. Data provided by National Statistics (www.statistics.gov.uk) and Her Majesty’s Treasury (2004) describe UK’s home ownership as widespread across all income and age categories with older segments having a larger rate. Whereas shares and bonds are owned largely by people in higher income groups – for obvious reasons – the housing boom has proved to be a moderating or equalizing force as all homeowners have benefited from rising property values.[7] The English Longitudinal Study of Ageing (2002) provides some supporting evidence in this respect. The study finds that because of the relatively even distribution of recent gains, housing wealth has become more important than non-pension financial wealth, especially in the 50+ age group. The following table shows that not only is the typical size of housing wealth ownership greater than net financial wealth (non-pension), but that it is far less concentrated across society as reflected by the lower inter-quartile ratio and lower Gini coefficient. Table 1. Net Housing Wealth approx. Net Financial Wealth – approx. Mean  £73,000  £44,000 Median  £52,000  £12,000 Inter-quartile ratio 5.14 69.3 Gini Coefficient 0.575 0.761 Source: English Longitudinal Study of Ageing (2002), IFS. The data shown in Graph 4 reveals though financial wealth had dominated all through the 1990’s, the rapid growth of housing wealth since the mid 1990’s coupled with the stock market bust has again placed the two neck and neck. Even with parity in value, the prominence that housing wealth commands in the national balance sheet is the consequence of its relatively equitable distribution and the fact that in spite of recent volatility in housing prices, it is historically far more reliable as an investment than the market value of corporate shares – the dominant component of financial assets. With growth in house prices outstripping the growth in mortgage debt, mortgage equity has increased from  £700 billion in 1995 to  £2.4 trillion at the end of 2005 – a 250% increase. In real terms, the last five years have seen the value of housing stock rise by over 60%. Thanks to housing values rising faster than mortgage debt in each of the last ten years, UK homeowners now have a greater financial buffer for leaner times. Ten years ago, the typical home was worth 2.8 times as much as the typical mortgage; at the end of 2005, this ratio had increased to 3.5, underlining the fact that the country has more equity than a decade ago. Tapping into housing wealth A survey of related literature from Bridges et al (2004), Davey (2001), Farlow (2004), Nickell (2004), and Salt and Macdonald (2004) reveals a variety of ways in households can access the equity stored in the residences. The manner in which a particular household harvests equity depends on the circumstances under which the action is taken. Table 2 below has categorized the possible scenarios. The table explains that households that continue to occupy their home can draw equity by re-mortgaging, i.e. borrow by treating their property as collateral. Households who move could access equity either by over-mortgaging the new home, or by buying a cheaper house in the new location, or by selling their house move to a rental unit (thereby liquidating their asset and obtaining the entire stock of equity). The last possibility covers cases where the owner id deceased or leaves the country, leading to the final sale of the house and the release of 100% of the equity. Table 2. Category of Homeowners Method of Extracting Equity Houseowners retaining possession Re-mortgaging: by taking out additional mortgage(s), borrowers could access equity up to a maximum percentage of value Houseowners that move Down-grading: these households move to a cheaper home, thereby harvesting the equity that equals the difference between the value of sale and the portion of mortgage that was owed Over-mortgaging: these households move to a new residence but manage to obtain a mortgage loan that exceeds the value of the new purchase. This typically occurs in regional markets where there is strong expectations of continuous property-value appreciation Final sale with return to rental: some households sell their houses in order to move to a rental property ostensibly due to either lack of affordability (those with diminished earnings) or convenience (mostly the elderly and the infirm) Households in which the owner(s) are deceased Final sale: when the owners dies, the property is sold with the receipts being used for purposes other than purchase of a house Having harvested the equity, how a given household’s chooses to allocate it across possible uses depends on a range of socio-economic and demographic factors like income level, family size, amount and composition of wealth, age(s) of the members, their geographical location, and even their ethnicity. The following section provides a detailed discussion of the conversion of equity into a specific one use – consumption. Housing wealth and the consumption function: Theory, Analysis, and UK Evidence In this section we begin with outlining the macroeconomic theory behind the consumption function with special reference to the wealth effect. The aim is to both explain the causal relationships behind the various ways in changes in the housing market can impact consumption as well as to identify the factors and circumstances under which the wealth effect might be weakened. The issues in this discussion are with explicit reference to the specific case of the UK. The original Keynesian consumption function was presented as: C = a + bYd(1) Where C denotes real consumption, ‘a’ is the autonomous consumption expenditures, ‘b’ is the parameter symbolizing the marginal propensity to consume (hereafter, mpc) that was postulated as being a constant fraction, and Yd the real disposable income. Shifts in the consumption function are considered as being caused by ‘shocks’ or changes in variables other than Yd. Given the historical period when Keynes first conceived this relationship, it is not surprising that income was the chief driver of consumer spending. Presumably, because wealth was highly concentrated within the aristocracy and credit was a privilege for the few, Keynes decided to lump all non-income influences on consumption into the autonomous term. Over time, with growing sophistication of macroeconomic theory and of market-based economies in general, the consumption function came to be recognized as the following general formulation: C = Æ’(Yd, Real Interest Rate, Price Level, Wealth, Expectations)(2) This explicitly recognized the influence of, among other variables, wealth on consumption decisions, i.e. the wealth effect. However, the formulation stuck with the original assumption of the mpc being constant. That, after all, was acceptable because Keynes’s thinking was anchored in short run considerations and the assumption of unchanging consumers’ sensitivity to income changes was consistent with the model. However, empirical testing of the formulation revealed that not only did the mpc vary with the length of time over which the estimation was conducted (it increased with time), but that its value tended to approach one. This certainly cast a cloud over the consumption function’s relevance and reliability in terms of explaining behaviour.[8] With new thinking about consumption expenditures and about the time-horizon over which a household’s economic decisions were made, two new theories emerged. The Life Cycle Hypothesis (LCH)[9] and the Permanent Income Hypothesis (PIH)[10] both began from the fundamentally un-Keynesian assumption that households make decisions based on their assessment of not only the present but also the anticipated or likely future circumstances. In addition, both also held that rational spending and hence saving decisions necessarily involved long term planning – plausibly for rainy days, growth in family size, and old age. According to Miller (1996) and Gordon (2003), the LCH assumes that permanent incomes are determined over the entire lifetime of the consumer, with allowance for a transitory element that depends on the consumer’s professional status. While the lifetime-oriented income could rise or fall in response to changes in productivity and unexpected events, consumption is smoothed and maintained at an even keel with dissaving (or borrowing) making up any shortfall in spending power. Similarly, in boom periods households save and accumulate purchasing power as wealth for future use. The long term level of income is assumed to follow a smooth path. Clearly, wealth plays a critical part in this model as the household accumulates savings in periods when smoothed consumption is below income. Similarly, as needed, wealth is accessed or made liquid for spending when planned consumption exceeds earnings.[11] The theoretical significance of the LCH – which forms the basis of much of the empirical research reviewed – is easy to see because the way it explicitly incorporates the wealth effect into the household’s lifetime decision horizon with respect consumption, it makes it convenient to model housing wealth. Like the stylized household in the model that begins income-earning phase of her life with modest income and some debt (incurred because of current consumption expenditures exceeding lifetime income), the typical new homeowner is relatively young with a mortgage debt that is several times her annual income and little in terms of savings. Over time, in the absence of tumultuous booms, population and income growth in the economy lead to a steady rise in property values and mortgage equity accumulates. With growing needs for durables, the homeowner then has the possibility of ‘cashing in’ some of the stored housing wealth when current income and savings prove inadequate, much in the same way as the theoretical consumer enters a life-phase during which dissaving takes place. The key idea here is that just like the accumulated housing equity is part of purchasing power for the lifetime, the consumption decision also cannot be inconsistent with a long term budgetary process. This model also suggests that there are periods (or life phases) in the household’s lifetime when wealth is accumulated and when it is used up in the form of consumption. This clearly defines when and under what circumstances mortgage equity is spent. For a young family that continues to occupy a house, the prime motivation is to accumulate equity and harvest it for emergencies or for planned increases in spending that are in balance with expected lifetime earnings which presumably are adjusted for the debt service associated with the additional mortgage. This scenario is consistent with, say, a home improvement project that allows for a larger or growing family or with purchase of durables for a similar purpose. For older homeowners who are approaching retirement or are actually retired, withdrawing equity is consistent with their position in the ‘life-cycle’. Since the income stream is either expected to end or has ended, spending decisions warrant the use of sa vings and/or mortgage equity withdrawals (MEW). Critical to this model is how it treats the rapidly accumulated wealth gains due to a market-driven housing price boom like UK just experienced. Analyzing the housing wealth effect in the context of the LCH, Bridges et al (2004) liken the rise in housing wealth to raising the household’s lifetime budget constraint. Assuming easy access to credit, they identify two pertinent theoretical relationships: one between housing price increases and the lifetime incomes of the wealthier households and the other between housing wealth and the newly acquired debt obligations of the re-mortgaging households. In theory, then, higher housing prices generate wealth effects depending on whether or not the price change is interpreted as permanent or temporary. If households perceive the gains to be permanent or unlikely to be reversed by a sudden housing bust (like what the UK witnessed in the 1980’s and early 1990’s), then it amounts a rise in lifetime income and higher consumpti on expenditures induced by it are ‘allowed.’ On the other hand if the price (and wealth) increases are due to random market activity and will most likely be followed by a decline, then the realized buildup of mortgage equity ought to be regarded as a temporary development and no serious consumption outlays need be planned to spend it. LCH holds that households that are pleasantly surprised by equity gains and choose to borrow against it for extravagance or pleasure spending are fully aware of the future debt-service implications and have made the necessary budgetary calculations that reveal that these actions related to the wealth-effect are compatible with their lifetime income. Curiously, O’Sullivan and Hogan (2003) report that Ireland also experienced a housing boom (though not as extreme as the one in UK), but that there were no signs of a wealth effect. This was presumably because Irish consumers did not put much faith in the housing market’s longevit y and construing the recent price gains as transitory, let the accumulated equity stay ‘frozen.’ However, it is possible that there were indeed impulses related to a housing wealth effect but simultaneously counteracting forces offset it, resulting in generally unchanged aggregate consumption.[12] The above discussion opens up three related and important issues: (i) the process by which accumulated housing wealth translates into consumption expenditure, i.e. the anatomy of the wealth effect in the housing context, (ii) the implications of multiple possible uses of MEW for the strength of the wealth effect, and (iii) other macroeconomic factors that can offset the wealth effect or perhaps prevent it from materializing. Anatomy of the Housing Wealth Effect There are two channels through which homeowners are able to raise their consumption via the wealth effect. As explained above, one way for homeowners to convert their housing wealth is by harvesting mortgage equity MEW. Table 2 outlined the variety of ways in which households obtain equity. Benito and Power (2004), Bridges et al (2004), and Davey (2001) provide insight into how MEW has become a major source of consumer financing in the UK. Graph 5 clearly shows the close relationship between housing prices and MEW[13]. Throughout the last three decades, except for the 2003-2004 interval, UK’s homeowners have reacted to the housing market’s wealth rewards. As Davey (2001) explains, MEW was relatively unimportant in the 1970’s but rose sharply in the following decade. In the early 1980’s despite a recession, MEW climbed because the period coincided with the privatization of public housing. The first half of 1990’s, however, saw a steep decline in hou seholds use of withdrawn equity.In fact there was a brief period when there was a net injection of equity into the housing stock. It could be argued that this was a reflection of a rational economic behaviour on the part of homeowners’ as they assessed a downward trend in housing prices as being detrimental to their long term finances. With a declining value of their housing wealth, UK’s homeowners cut back on withdrawals. Since the mid-1990’s price boom, that downward trend in MEW was quickly reversed. This period saw MEW grow faster than housing prices hinting at the possibility of a overly optimistic body of borrowers who expected housing prices and equity accumulation to continue rising at an ever increasing rate. Since at least part of the MEW is withdrawn by homeowners re-mortgaging their houses (see Table 2), this translates into loans secured by their properties. Halifax – BOS (2005) offer compelling evidence in this respect. They report that in 2 004, total gross lending secured by dwellings was an astronomical  £291 billion – 4% more than the previous year. The figure that was a mere  £57 billion in 1995, doubled by 1999 and with growth rates sometimes exceeding 35% had risen to five times that level in 2004. This monumental withdrawal can be interpreted as a major windfall for the homeowners who suddenly found themselves swimming in an ocean of purchasing power made available by the housing market. The other channel through which housing wealth engenders greater purchasing power in the hands of homeowners is comparatively subtle mechanism. Bridges et al (2004) discuss in great detail, how even without using their property s collateral, homeowners have gained access to ever rising amounts of unsecured credit. The rising value of housing wealth was interpreted by banks and other lenders as indicative of greater borrowing ability, i.e. greater creditworthiness. Naturally, this perception of the lenders was shaped, in part, by expectations of continuous a housing boom. A side implication of this phenomenon is that homeownership in the UK had become a screening device or filter for lenders’ decisions about whom to consider for loans. It follows that this would place renters at a disadvantage with respect to access to credit. Several studies, including Bridges at al (2004) have cited evidence of homeowners being supplied credit on terms far more favorable than those offered to non-owners. It can be reasonably expected that a large portion of the unsecured borrowing was directed toward consumption. Critical to both these channels is the issue of the ease with homeowners are able to obtain credit in lieu of their housing wealth. The mere existence of mortgage equity must be complemented with an efficient system to gain access to it for the wealth effect to take place. Benito (2004), Bridges et al (2004), and Her Majesty’s Treasury (2003) all stress that the liberalization of UK’s financial system that began in 1979 (see footnote 6 in Sec. 2) has been instrumental in creating a credit market that has facilitated the historic levels of MEW. With rising competition among banks and building societies and tremendous product innovation, the lending industry has created a series of affordable and accessible ways in which homeowners can obtain credit. All three studies portray the boom in housing prices and MEW in the UK as unique as compared to all other OECD economies. The coincidence of rising housing prices created huge reserves of withdrawable mortgage equity and supply-side changes in the form of lower restrictions on lending practices and other financial reform is responsible for the explosion in MEW sin

Wanting to be Beautiful Essay -- Magazines Media Self Image Essays

Wanting to be Beautiful How do women’s magazines influence how women think, look, and feel? What is so special about these magazines to get some women to center their lives around them? Personally, I didn’t really understand why any women would listen to anything a magazine says until I opened one up. While I was waiting in line at a department store, I picked up and flipped through a Cosmopolitan magazine, and found a story that caught my attention. The story was about the loss of a father, and for that reason I purchased the magazine. Although I do know there are many other women who have dealt with the loss of their father, I wanted to see if they felt the same way I did, how they were dealing with it every day, and how their lives have changed. Of course, after getting the magazine home I started flipping through it more and found many other interesting stories to read like â€Å"How to Make Sex Hotter† or â€Å"Get a Life You Really Love,† but what I really notic ed was diets, beauty, sex, and more sex. In â€Å"Help or Hindrance? Women’s Magazines Offers Readers Little but Fear, Failure,† Mary Kay Blakely states, â€Å"the current purge of serious issues means [a woman] must proceed without information.† It’s hard to imagine how much women’s magazines can influence someone, and for some women these magazines are like a bible; whatever it says, goes whether it’s on hair, make-up, or fashion, women do what these magazines say. However, when it comes to the important issues, magazines do not provide any type of support whereas with a bible anyone can turn to it for guidance or spiritual support, but sadly for women who read women’s magazines end up suffering the consequences. Being thin seems to be in style every ye... ...ply relating to the stories—but for other women it’s just entertainment. Blakely states, â€Å"instead of encouraging women to grow beyond childish myths and adapt to the changes of life, women’s magazines have readers running in place, exhausted.† Today we live in a world that is filled with silicone, plastic, and chemicals all of which women use to stay, look, and feel young and beautiful where they are able to be amongst the younger generation, knowing they look as young as they do. The world of women’s magazines has created women that truly don’t exist; young girls grew up wanting to look like a Barbie doll, and older women end up being one, plastic. It’s a shame what lengths some women go through to become this perfect creature instead of embracing the beauty that sits within them. Being happy with yourself is loving yourself, and loving yourself is being beautiful!

Project Management Integration Framework

Financial risk management can be defined as the definitive sourcing of practical guidance on market management and credit risk. It can be subdivided into two parts, which are, the macro and the micro risk management. There are a number of differences between the two risk management approaches. For example, in macro risk management, there is application of technology to alleviate financial risks or losses. This procedure can be done by focusing on the risk management of a firm – an approach which is unmistakable but takes a lot of time.The major tool used in this undertaking is the use of ‘stress test’ upon portfolios which analyzes the joint force of the wider set of risks in meaningful ways. This process provides more information about the risk and provides an opportunity for diligent analysis (Dash, 2004). Even though the risk usually has been notified to the management, the total risk that is inbuilt into the system is not discarded. The concentration on the fi nancial system thus changes the risk profile in the industry. The risk profile becomes unpredictable and can thus cause serious effects in the business economy.On the other hand, while executing macro risk management, one requires shifting from the notion that the stability of a system is a consequence of the accuracy of individual components. Modern risk managers thus focus on the development of the tools to evaluate the possibility of credit deals which may result in the collapse of the firm. The transmission of risks within a firm may thus result in distress with its associates. Through this strategy, the risk managers can scrutinize how negative financial shocks, such as capital outflows, can negatively magnify a sector’s risk.This approach helps them to design and alleviate the risk by adjusting the chief fiscal surplus so as to relieve the shocks. Managers thus have the opportunity to grade their policies. To take precaution on macro risk management, the management shou ld therefore involve the staff who are always involved in the testing of the continuity plans and who are aware of the plans. In addition, this technique helps managers to examine other firms’ strategies which have been proven successful.Managers will also analyze others’ methods which they can successfully adapt into their circumstances. Conversely, in micro risk management, one starts by providing a general background of financial risk management which illustrates how the risk arose in the firm. This information explores the key concepts used in past risk management and provides a way to curb its reappearance. One thus discovers the main concepts used in risk management and can thus articulate them through well-known financial disasters of the past.One can also devise ways to avoid the risks. This technique allows managers the opportunity to devise the methods to be used to manage the market risk and how to forward it, spot it, and other mechanisms of identifying the risk. This provides a detailed analysis of the models used in pricing the risks and how each model can be used to determine and control risk. After this, the financial risk management will round up the scrutiny and the lessons on the risk management portfolio which gives a firm a clear understanding of the risk and its management.Through this, one can automate audits and susceptible management throughout the running of the firm. Subsequently, the collected automates accessed are then used to control all assets in the firm followed by their testing to identify the most vulnerable risks which may reappear in the firm. This activity provides the most effective way to detect and curb a micro risk at its initial appearance. Reference Dash, J. W. (2004). Quantitative finance and risk management: A physicist's approach. Toh Tuck Link, Singapore: World Scientific. Project Management Integration Framework There are three main components that must be fulfilled by a project for it to be truly successful; it must be completed within the set budget, schedule and deliver the expected outcome and quality. If one of these components is not met, even if the project is completed, then the project cannot be said to be successful. Project failure is common and may result from various reasons; one of these reasons is that, the project may actually be impossible. Take for example the failure of the Apollo program, which was American spaceship that landed the first man in moon.This project ran well from the year 1969 up to 1975. Apollo 13 failure of oxygen tank and the Apollo 204 tragedy, which led to loss of lives shows that the mission could no longer be safe as planned. Furthermore, the objectives of the project were impossible to be achieved since the main goal was to find out if human beings could survive in the moon and live comfortably or even in any other planet apart from earth. Incompeten t management is another common reason that may lead to project failure. A good example is the disappearing warehouse project for a Software company in the nation.The warehouse varnished not only from the physical view but in watchful eyes of a retailer who was well known in the system of automated distribution. Software glitch somehow had erased the existence of the warehouse and thus goods destined to that warehouse were diverted to other routes where as the goods in that warehouse for a certain time languished. Employees at that missing warehouse kept quiet in that time since they were receiving their pay. As the software glitch was noticed, the warehouse was then sold off and the senior management requested the employees to be quiet on the episode.This led to the failure of that software project. Finally over-constrained is another reason that leads to their failure. Football clubs are good examples. Wenger, the Arsenal club manger had a plan to make the club to continue performi ng well and win all the trophies. This continued for some time but failed. This football club traces its failure at that period due to over-constrains in the management as well as in the players. This club since then has not been able to win trophies despite its continuous shines in the frequent years before.

Outsourcing Seats to Turkey

Outsourcing Seats to Turkey Introduction The purpose of this paper is to analyze the influence of outsourcing on VDL Group’s supply chain strategy and processes. In addition, a plan to outsource CAD conversion services to Outsource2india will be presented.Advertising We will write a custom coursework sample on Outsourcing Seats to Turkey specifically for you for only $16.05 $11/page Learn More Outsourcing refers to the process of â€Å"contracting with a third-party service provider for the management and completion of a certain amount of work, for a specified length of time, cost, and level of services† (Oshri, Kotlarsky Willcocks 2009, p. 4). The main objective of outsourcing is to enable companies to improve their competitiveness through cost reduction, economies of scale, and flexibility in production (Varadarajan 2008, pp. 1165-1172). VDL is a manufacturing company that was founded in the Netherlands in 1953. The company is organized into four divisions namely, subc ontracting, car assembly, bus/ coach, and finished products (VDL 2014). The subcontracting division specializes in mechatronic systems, manufacturing plastics, and surface treatment. The car assembly division produces cars on behalf of other companies. The bus and coach division produces coaches and buses. The finished product division produces several products, which include car suspension systems, heating systems, and production automation systems (VDL 2014). Overall, the group consists of 81 operating companies that specialize in the production of specific products. The group has operations in 18 countries where it employs over 9,100 employees. In 2012, the company realized 1,756 million Euros in revenues (VDL 2014). Impact of Outsourcing VDL has outsourced production of the seats for its cars and buses to a Turkish company referred to as Brusa Seating. Brusa Seating specializes in the design, development, and production of seats, which it sells to original manufacturers of comme rcial vehicles (Brusa 2014). Outsourcing has had the following impacts on VDL. First, outsourcing has enabled the company to adjust the scale and scope of its production capability at a low cost. Given the high competition in the automobile industry, manufacturing companies have had to adopt lean production technologies in order to reduce operating costs. One of the strategies being used by VDL is to produce cars and buses on demand. This means that the company has to adjust its production capacity frequently in order to satisfy existing demand without holding unnecessary inventory or stock of completed buses/ cars. When the demand for buses is high, the company simply increases its order for new seats. This leads to cost savings since the company does not have to invest in new production systems or inventory to produce more seats (Williamson 2008, pp. 5-14). Conversely, when demand for buses is declining, the company orders for fewer seats. As a result, it avoids operating at exces s capacity, thereby eliminating the costs associated with warehousing and laying off staff during low demand seasons.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Second, outsourcing enables VDL to concentrate on its core activities, which include assembling cars and manufacturing buses. Undoubtedly, companies cannot pursue excellence in all activities in their value chain due to resource limitations (Liu Nagurney 2011, pp. 539-549). Thus, companies focus on their core competence in order to achieve a competitive advantage. In this context, core refers to the activities that are performed internally, contribute directly to the bottom line, and determine the future of the company. VDL’s core competence is in assembling cars and buses on behalf of third parties. Thus, it outsources the manufacture of car parts such as seats to third party producers where the manufact ure of car parts is a core competence. Outsourcing enables companies to focus on activities that add value to their customers (Tayauova 2012, pp. 188-195). At VDL, the value adding activities include product development, research, and provision of technical support to customers. By focusing on these activities, the company has been able to improve the quality of its products, thereby increasing sales, customer satisfaction, and market share. Finally, outsourcing enables VDL to achieve cost advantages through economies of scale. Economies of scale refer to a cost advantage that a company achieves through increased production of a given product (Belcourt 2006, pp. 269-279). Specifically, the fixed cost per unit reduces as the number of units produced rises. Outsourcing enables VDL to achieve economies of scale in several ways. To begin with, it enables the company to increase its production capacity without incurring the fixed costs associated with hiring new employees and holding lar ge inventories. Outsourcing also enables the company to improve its efficiency by purchasing seats at a favorable price. In particular, Brusa Seating has to supply the seats to VDL at a competitive price in order to maintain the outsourcing contract. Economies of scale enable VDL to reduce the average cost of producing its buses and cars, thereby improving its profit margins. Moreover, low production costs enable VDL to price its products competitively, thereby overcoming competition in the market. Risks and Benefits Benefits First, VDL benefits from access to the capabilities and the expertise of Brusa Seating. The automotive industry is capital intensive and thrives on the application of advanced technologies to achieve product and process innovation. This requires investments in modern production systems and the best talent (Gabriela Clark 2006, pp. 250-253).Advertising We will write a custom coursework sample on Outsourcing Seats to Turkey specifically for you for onl y $16.05 $11/page Learn More The automotive industry in the Netherland is underdeveloped due to its high concentration. As a result, access to talent and advanced production technologies is limited. By contrast, Turkey’s automotive industry consists of numerous large producers who have decades of experience. Thus, outsourcing enables VDL to access advanced technologies and expertise through Brusa Seating (Weidenbaum 2005, pp. 311-315). Second, the company benefits from low labor costs by outsourcing to Brusa Seating. Turkey is â€Å"an emergent market in the new millennium expected to attract the interest of global companies in their attempt to obtain competitive advantages† (Aktas et al. 2011, pp. 833-852). One of the main advantages of Turkey is low labor cost. In 2013, the average hourly labor cost in the Netherlands was $34.75, whereas in Turkey the cost was $5 (World Bank 2014). Low labor costs enable Brusa Seating to produce seats for VDL at a low cost. As a result, VDL’s overall cost of producing buses and cars will reduce in the long-run (Quelin Duhamel 2003, pp. 647-661). Third, VDL has achieved a competitive advantage in the market through outsourcing. The company has achieved a differentiation advantage by contracting Brusa Seating to manufacture its seats. As a specialized seat producer, Brusa Seating focuses on conducting research and development to produce seats that meet the specific needs of its customers. Through product innovation, Brusa Seating has been able to supply VDL with seats that offer more comfort and flexibility than those provided by other companies. Differentiation will enable VDL’s buses to penetrate the market easily. Risks First, outsourcing to a Turkish company exposes VDL to the risk of language barriers. The official language in Turkey is Turkish. Over 90% of Turkey’s population speaks Turkish. By contrast, Dutch is the official language in the Netherlands and it is used b y over 90% of the population. Only 0.06% of the Netherland’s population can speak Turkish and Arabic. This means that communication is likely to be a problem since the employees of VDL and Brusa Seating are not likely to speak the same language. Undoubtedly, language barriers cause serious challenges such as misunderstandings among business partners. This can lead to costly mistakes such as poor product development and ineffective coordination of supply chain activities (Foogooa 2008, pp. 858-864).Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Second, VDL and Brusa Seating have different levels of skills, expertise, and technical infrastructure. These differences limit the ability of the two companies to collaborate through joint research and development activities. As a strategic partner, VDL has to involve Brusa Seating in its product development initiatives to meet its product quality objectives. However, collaboration during product development will be very difficult if the employees from the two companies have different levels of expertise and skills (Trott 2006, pp. 672-681). For instance, VDL’s employees may not understand the procedures that their counterparts at Brusa Seating use to manufacture seats. Lack of special skills in key areas such as management of people, contracts, and processes will limit VDL’s ability to maintain control over the quality of the seats produced by Brusa Seating (Rottman Lacity 2006, pp. 56-63). Finally, cultural differences between the two companies and their countries of origin can limit their ability work as partners. Culture is an important aspect of every business since it determines the way people think, make decisions, communicate, coordinate, and resolve conflicts. The Netherlands and Turkey have very different cultures. Turkey has a high-context culture in which individuals value reputation, politeness, and tradition rather than clarity. The Netherlands, on the other hand, has a low-context culture where people value individualism and achievement. Given these differences, employees from the two companies are likely to have different expectations about the outsourcing partnership (Barthelemy Geyer 2001, pp. 195-202). The resulting communication gaps or misunderstandings can lead to conflicts that will eventually lead to failure. Outsourcing CAD Conversion Services to Outsource2india Developing and executing an effective outsourcing plan involves following five key steps, which are summarized in figure 1. Based on this framework, VDL should consider the following plan to outsource CAD conversion services to Outsource2india Ltd. Figure 1: Framework for Outsourcing Needs Assessment CAD conversion is the process of transforming hardcopy designs into a computer aided design format to facilitate improved storage, accuracy, and easy modification. As a manufacturer, VDL requires effective CAD conversion services to improve the quality of its services. CAD conversion is a vital process that requires advanced expertise, resources, and a dedicated team of professionals. Thus, VDL will require a significant amount of financial capital and expertise to run its own CAD conversion department. This is likely to shift the focus of the company away from its core activity of assembling cars and buses (Mclvor 2008, pp. 24-34). Since CAD conversion is not a core activity, VDL can outsource tasks such as CAD digitization, conversion to MicroStation, conversion of JPG to DWG, and conversion to AutoCAD to Outsource2india (Mclvor 2008, pp. 24-34). By outsourcing these tasks to an experienced third-party, VDL will benefit from time efficiency, quality work, and better utilization of its resources (Kobelsky Robinson 2010, 105-119). In addition, the company will save the costs associated with hiring and training CAD conversion staff and the cost of operating a CAD department. Proposal and Contracting Outsource2india has core competence in providing CAD conversion services to global firms. The company has a flexible capacity to handle any scope of CAD conversion work (Outsource2india 2014). Its capability is characterized by access to high-end technologies and infrastructure, as well as, the use of the latest software. Additionally, the company has in-built redundancy, which will facilitate quick capacity adjustments in response to an increase in demand (Outsource2india 2014). Outsource2india will provide high quality CAD conversion services due to its ability to access a highly skilled workforce. As a specialist in CAD conversion services, Outsource2india has invested in employees with technical skills and expertise in various aspects of computer aided design. As a result, it will provide custom CAD conversion solutions to suit each project’s requirements. Outsource2india provides time zone benefits since the company operates 24 hours, seven days a week. Thus, VDL will benefit from quick turnaround time (Samsudin, Hasim Fuzi 2013, pp. 1-8). Moreover, VDL will save up to 50% of its operating costs due to the low labor costs in India (Outsource2india 2014). Thus, the proposal to contract Outsource2india will enable VDL to enjoy both differentiation and cost advantages (Jensen 2011, pp. 311-326). Communication and Change Management At this stage, Outsource2india will collaborate with VDL to articulate the issues associated with outsourcing CAD conversion services. The communication vehicles that will be used include VDL Group’s newsletters and meetings. The communication activities wil l be used to identify the affected stakeholders and the basis of relationship between Outsource2india and VDL (Tate Ellram 2009, pp. 256-268). In addition, the benefits of outsourcing will be explained to the affected stakeholders to motivate them to support the anticipated changes in organizational design that will occur due to outsourcing CAD conversion services (Oshri, Kotlarsky Willcocks 2009, pp. 94-112). Transition Management This stage will involve establishing the transition governance system to align the objectives and strategies of VDL to Outsource2india’s delivery system (Mani, Barua Whinston 2006, pp. 15-28). The change control process will be implemented to address emerging risks (Oshri, Kotlarsky Willcocks 2009, pp. 94-112). In addition, the timeline for completing the work and the expected deliverables will be clarified at the transition stage. Training programs will be implemented to facilitate knowledge transfer from Outsource2india to VDL. Moreover, rela tionship management initiatives will focus on promoting effective coordination of supply chain activities between Outsource2india and VDL (Oshri, Kotlarsky Willcocks 2009, pp. 94-112). Service Stabilization The transition team will be in charge of the service stabilization stage to ensure that the expected deliverables are achieved. Outsource2india will focus on delivering the CAD conversion services as required by VDL. The relationship governance structure will be used to resolve any issues that might arise during the provision of the outsourced services (Dolgui Proth 2013, pp. 6769-6777). Recommendations According to the agency theory, outsourcing contracts are likely to face significant challenges if the vendor and the client have different goals. Outsourcing is likely to fail if the client is not able to measure the vendor’s output (Ryan Delgado-Sanchez 2009, pp. 52-71). Moreover, opportunistic vendors will always take advantage of the loopholes in the outsourcing cont ract to fulfill their goals at the expense of their clients. In order to avoid these challenges, VDL should use an outcome-based contract where the vendors are paid according to their achievements. This will shift the risks associated with the contract to the vendor, thereby encouraging high productivity (Logan 2000, pp. 27-30). VDL should control vendors’ opportunistic behaviors by increasing its involvement in the production of the outsourced services. Additionally, it should hire a qualified independent consultant to audit the vendors to enhance achievement of the desired quality standards. Second, VDL should visit Brusa Seating’s premises in Turkey to inspect the adequacy of its production capacity and to identify the challenges that the company is likely to face in producing seats. This will enable VDL to identify the risks that are likely to reduce the effectiveness of its outsourcing contract with Brusa Seating in order to take timely actions (Kroes Ghosh 2009, pp. 124-143). Finally, VDL should invest in IT and communication techniques to improve its supply chain system. This involves integrating its supply chain system with those of its outsourcing partners to facilitate effective exchange of information and coordination of activities. Integration can be achieved through technologies such as cloud computing and business-to-business e-commerce platforms. Furthermore, VDL should train its employees on various languages to overcome communication challenges. This will facilitate effective communication between the company and its outsourcing partners who are based in various countries. References Aktas, E, Agaran, B, Ulengin, F Onsel, S 2011, The Use of Outsourcing Logistics: The Case of Turkey, Transportation Research Part C, vol. 19 no. 1, pp. 833-852. Barthelemy, J Geyer, D 2001, IT Outsourcing: Evidence from France and Germany, European Management, vol. 19 no. 2, pp. 195-202. Belcourt, M 2006, Outsourcing: The Benefits and the Risks, H uman Resources Management Review, vol. 16 no. 1, pp. 269-279. Brusa 2014, About Brusa, brusaseating.eu/. Dolgui, A Proth, J 2013, Outsourcing: Definitions and Analysis, International Journal of Product Research, vol. 51 no. 23, pp. 6769-6777. Foogooa, R 2008, IS Outsourcing: A Strategic Perspective, Business Process Management Journal, vol. 14 no. 6, pp. 858-864. Gabriela, K Clark, D 2006, Outsourcing to China: Risks and Benefits, Computer Law and Security Report, vol. 22 no. 2, pp. 250-253. Jensen, P 2012, A Passage to India: A Dual Case Study of Activities, Processes and Resources in Offshore Outsourcing of Advanced Services, Journal of World Business, vol. 47 no. 1, pp. 311-326. Kobelsky, K Robinson, M 2009, The Impact of Outsourcing on Information Technology Spending, International Journal of Accounting Information systems, vol. 11, no. 1, pp. 105-119. Kroes, J Ghosh, S 2009, Outsourcing Congruence with Competitive Priorities: Impact on Supply Chain and Firm Performance, Jou rnal of Operations Management, 28 no. 1, pp. 124-143. Liu, Z Nagurney, A 2011, Supply Chain Outsourcing Under Exchange Rate Risk and Competition, Omega, vol. 39 no. 1, pp. 539-549. Logan, M 2000, Using Agency Theory to Design Successful Outsourcing relationships, International Journal of Logistics Management, vol. 11 no. 2, pp. 21-31. Mani, D, Barua, A Whinston, A 2006, Successful Governing Business Process Outsourcing Relationships, MIS Quarterly Executive, vol. 5 no. 1, pp. 15-29. Mclvor, R 2008, What is the Right Outsourcing Strategy for Your Process? European Management Journal, vol. 26 no. 2, pp. 24-34. Oshri, I, Kotlarsky, J Willcocks, L 2009, The Handbook of Global Outsourcing and Offshoring, Palgrave Macmillan, Landon. Outsource2india 2014, Why Outsource2india, https://www.outsource2india.com/. Quelin, B Duamel, F 2003, Bringing Together Strategic Outsourcing and Corporate Strategy: Outsourcing Motives and Risks, European Management Journal, vol. 21 no. 5, pp. 647-661. R ottman, J Lacity, M 2006, Proven Practices for Effective Offshoring IT Work, MIT Sloan Management Review, vol. 47 no. 3, pp. 56-63. Ryan, B Delgado-Sanchez, A 2009, Outsourcing relationships: A Case of Accounting Surveillance, Journal of Accounting and Organizational Change, vol. 6 no. 1, pp. 52-71. Samsudin, N, Hasim, R Fuzi, S 2013, Electronic Government Outsourcing Issues in Malaysia, Journal of Outsourcing and Organizational Information on Management, vol. 20 no. 3, pp. 1-8. Trott, A 2006, Innovation Risks of Strategic Outsourcing, Technovation, vol. 26 no. 1, pp. 672-681. Tate, W Ellram, L 2009, Offshore Outsourcing: A Managerial Framework, Journal of Business and Industrial Marketing, vol. 23 no. 4, pp. 256-268. Tayauova, G 2012, Advantages and Disadvantages of Outsourcing: Analysis of Outsourcing Practices of Kazakhstan Banks, Procedia Social and Behavioral Sciences, vol. 41 no. 1, pp. 188-195. Varadarajan, R 2008, Outsourcing: Think More Expansively, Journal of Business Research, vol. 62 no. 2, pp. 1165-1172. VDL 2014, Profile, https://www.vdlgroep.com/nl. Weidenbaum, M 2005, Outsourcing: Pros and Cons, Business Horizon, vol. 48 no. 1, pp. 311-315. Williamson, O 2008, Outsourcing: Transaction Cost Economics and Supply Chain Management, Journal of Supply Chain Management, vol. 44 no. 2, pp. 5-14. World Bank 2014, Data Bank, worldbank.org/.

newjackBelly of the beast essays

newjackBelly of the beast essays In The Belly Of The Beast by Jack Henry Abbott and Newjack by Ted Conover Jack Henry Abbott's book, In The Belly Of The Beast is as autobiographical account of the authors lifelong experiences in penal institutions while serving time for numerous petty crimes as a child to murder in later years. He offers a wide array of attacks on various American institutions in society while trying to defend his position as victim of societys pitfalls. The self-educated author encapsulates the reader by presenting stories, through letters, of the horrific reality of prison life. Although considered psychopathic, his rendition lends an enormous amount of insight and allows us to feel a need to reform a prison system that may not deserve the name of correctional facility. The book offers everything from tormenting accounts of his time in "the Hole" to foundations of political philosophies of Kant and Marx. In a time when crime literature was surging, it is somewhat difficult to determine the authors initial intent to engage his readers in somewhat of a public awareness notice. After all, his life of crime began while a teen and his adult rendition of a perfect knife stabbing does not lend acceptance to being seen as an American outlaw saint. Originally a protg of Norman Mailer, Abbotts letters were seen as being written by the elite of the prison population with an intellectual vision of a diseased society. He gives the reader an analysis how prison is designed to gut and corrupt the timid, and break or brutalized the weak. Abbott makes claim that his loss of constitutional rights in a society unjust led him to surrender to an unspoken prison constitution for the rest of his life. While Jack Henry Abbott can submit to being an authority on the reality of incarceration, we have a desire to review an opposition account on what it is like to be on the other side of the ...

Ethics Theories Table Essay Example | Topics and Well Written Essays - 500 words

Ethics Theories Table - Essay Example An employee entrusted with funds by his or her corporation is dutybound to account for these funds and remit the balance, if any. Even though this honesty may deprive him of certain material comforts, i.e., the extra money if unremitted could have bought him or her a new car, duty-based ethics prescribes that he or she should return the money. The classic goal-based theory is utilitarianism. Jeremy Bentham presented one of the earliest fully developed systems of utilitarianism. Two features of his theory are noteworty. First, Bentham proposed that we tally the consequences of each action we perform and thereby determine on a case by case basis whether an action is morally right or wrong. This aspect of Bentham's theory is known as act-utilitiarianism. Second, Bentham also proposed that we tally the pleasure and pain which results from our actions. For Bentham, pleasure and pain are the only consequences that matter in determining whether our conduct is moral. This aspect of Bentham's theory is known as hedonistic utilitarianism. An employee should strive to get a promotion at all costs as this will benefit him, even at the expense of co-employees and even if there would be a violation of a moral duty in the process. For example, the moral duty to give credit where credit is due after a successful project. The most influe

Budget Essay Example | Topics and Well Written Essays - 500 words - 3

Budget - Essay Example A soft earmark denotes a courteous request, which does not specify the amount of money, but steers funds to identified organizations. Lawmakers are in a capacity to request for funds to be allocated to a certain organization or project without the legal binding presented by hard earmarks (Mikesell, 2014). In my opinion, soft earmarks are more effective for lawmakers. Notably, with soft earmarks, lawmakers do not need to specify the amount of money and do not need to identify the sponsor. Therefore, through the use of respectful suggestion, a lawmaker can transfer funds to a favored organization without having to be accountable for the spending. Hard earmarks are highly criticized and compel lawmakers to account for the spending (p. 145). Soft earmarks do not add to the total spending because they do not involve the allocation of additional funds to any department. On the contrary, soft earmarks make requests of how a specific portion of the existing budget can be spent. The fact that they only represent a small percentage of the government’s outlets on an annual basis serves to emphasize that they do not count in the total spending (p. 146). In my opinion, the control of earmarks is an important public issue because it concerns federal funds. Notably, earmarked funds determine projects in a state that will receive funding. Since lawmakers have only been earmarking funds for their preferred organizations, some deserving projects have been left out. Therefore, it is of critical importance for earmarks to be placed under the control before lawmakers use them to promote personal interests. Earmarks have been used by lawmakers in an effort to deliver â€Å"goodies† to districts or states. Usually, a district deserves pork if it offered support to a lawmaker. Therefore, lawmakers rely on soft earmarks in delivering pork to their states. The fact that they do not need to disclose the purpose of spending in soft