Value Chain Framework Essay Example | Topics and Well Written Essays - 1250 words

Value Chain Framework - Essay Example The main changes are that at this value chain sophistication level, the company’s reliance on ERP for provision of Value chain support has been reduced and has initiated the utilisation of more BOB solutions for provision of more-advanced functionality. House-sourced technology tends to have been slightly increased within the stage as well. Here, companies develop specific applications for supplementing the core ERP functionality. Within this level, the amount of outsourced technology reduces the typically reduced functionality of some SCM SaaS solutions is deemed to be too functionally light, and on-premises BOBs are preferred. (Dua et al., 2011) Despite investing for growth, companies are aware that the disruption potential at any time does not vanish. Many work towards improving their Value chains’ resiliency for this risk mitigation. The past year brought about disruptions of global-scale Value chain which impacted multiple industries, right from chemicals to semiconductors as well as electronics to automotive. Increase in demand uncertainty as well as much more complex global Value networks reliant on high-risk geographic zones placed added pressures on Value chains’ ability to deliver results that are predictable. The disruptions have even called into question if Value chains have become too lean, requiring an essential approach change. (Shoanen and Joseph, 2004) In stormy times, as well as during the face of increasing risk and complexity, leading companies need more bearable, resilient Value chains which, support profitability and as well drive industry leadership. This necessitates that managers re-evaluate their Value network designs layout to ensure that they are made more resilient to future disasters. It may as well include designing products which, allow more flexibility in manufacturing and value, increasing long-term substitute sources of raw materials and logistics

Website Evaulation of American Cancer Society Research Paper

Website Evaulation of American Cancer Society - Research Paper Example These factors include: authority, information, objectivity, ease of navigation, privacy and security policies (Harmon, J. et al., 2010). Authority is defined by the underlying permissions and operational approval that guide the website. The website is meant to reach out to all stakeholders outlined in the objectives of setting up the website. The website is however subject to communications and internet laws and regulations. The monitoring and regulation is set to ensure that the power and authority jurisdiction of the website is not taken outside the set limits. The website is rich in information about cancer and related health issues. Information that pertains to every activity undertaken by the American Cancer Society is displayed on the home page. Research and development undertakings in relation to cancer are outlined. There are also links to external information of central importance to all parties interested in learning about cancer and related health issues. Objectivity factor of the website is an interesting scenario. The presentation made on the website in relation to the undertakings of the American Cancer Society is primarily based on phenomena observed in the health sector. Emotional and/or personal prejudices do not seem to influence the intended purpose and objective of the website. However, views and opinions at personal level are taken through the website to enhance further development and responsiveness of American Cancer Society to cancer and other health issues. The website’s set up is development in such a way that best suits the user. Navigation from one link to another is clearly outlined. At the lower part of the web page, there are numerous quick links that are specific to the information that will be pulled up when the user clicks on that link. The page is simply developed, with clear

Aldi Is A German Based Discount Retailer Chain Marketing Essay

Aldi Is A German Based Discount Retailer Chain Marketing Essay 1.Introduction: Aldi is a German based discount retailer chain establish in 18 countries. It is Europes largest retailer. Aldi got market in German, Australia, Austria, Great Britain, Belgium, France, Greece, Ireland, Slovenia, Switzerland, Denmark, Hungary, Netherlands, Poland, Portugal, USA etcà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ Aldi is the abbreviation for ALbrecht DIscount. This is a private company , it has started in 1913 by Mrs Albrecht. But after the second World War it has been managed by her sons Theo and Karl. In 1963 Aldi has been divided into two companies (Aldi North and Aldi South), but both of them followed same business model and strategy. Germany is the only country in which both the companies operated. The company specialized by selling staple products , Aldi shop sells approximately 700 grocery and household products. Those are chilled foods, canned and frozen goods, baked goods, meat dairy products, household supplies and a special range of locally bought products which customers shopped for on a regular basis. Enterprise system is a software product designed to integrate computer systems that run all phases of an enterprises operations to facilitate cooperation and coordination of work across the enterprise. The intent is to integrate core business processes (such as sales, accounting, finance, human resources, inventory and manufacturing). Business strategy means a long term plan of action designed to achieve a particular goal or set of goals. It states how business should be conduct to achieve the desired goals. We need to implement Enterprise System software in Aldi to successfully achieve those goals . 2 Main Body: 2.1 How could an Enterprise System support the business strategy of Aldi: 2.(1.1 ) Business Strategy of Aldi : Aldis one of the main business strategy is Top quality at incredibly low prices- guaranted and radical efficiencies without compromising product quality . Aldi selling top quality products but their price is comparatively lower than others because their buyers are expert in their field. They bring fresh fruits and vegetables straightway from farmers. Also, they buy them in big quantity. There is no middleman thats why they do not need to spend extra money. They negotiate with the hand-picked suppliers about substantial discount. There is a big savings .Also, there is no bagging facilities that means customers have to use their own bag or Aldi charges for bags. Moreover, there are staff limitations, three to five employees including cashier and manager at a time in each store. To avoid credit card company fees they refuse to accept credit card payments. They dont have any customer service facilities. By using those above methods they cut cost and provide cheap products. Aldi always careful about their product quality. If they find anything wrong about their product then straightway they give money back to customer by using product recall method. That means Aldi give an important notice to bring back that product or call customer service helpline to get their money back. Currently they got wrong with Gardenline Greenhouse and Conservatory Heater. They got some instance that the product could overheat and present a fire hazard. So, they stop to selling it and give a notice to take money back. Shopping cart retrieve system is another important strategy of Aldi. Aldi product is very cheap. So, we can buy all necessary products by spending few amounts of money. Because of that everybody need a cart to shop at Aldi store .If they get it easily then after shopping customers will leave it anywhere .Also, Aldi have to implement someone to organize them. It will be cost effective for Aldi. So, if customer want to retrieve a cart, they have to spend a coin but they will get it back when return that cart. Because of this strategy all carts are organized nicely and dont need anybody to look-after those. Texas stores open is another strategy of Aldi. Aldi expand their business with Texas. They open their first Texas store on Thursday 18th March 2010.Also, Aldi planned to open about 100 Texas stores by 2010. They open 11 shops in the Dallas-Fort Worth area. 9 more shops open in April and another 7 by May. After that Texas becomes Western most state in those are operates by Aldi. Aldis action loudly says likely they will expand their business in southwest. For instance ,they have developed a line of Hispanic products for their Texas stores. They will serve those products in Arizona and New Mexico because there are large Hispanic populations. Another strategy of Aldi business is   Ã‚  A new promotion campaign will be introduced over the next 4 months to encourage present customers to increase their use of Aldis products by 10%. This is about expand in existing market to maintain existing buyers. Promotional offer is their main tactic to attract customers. Aldi provide leaflet and newsletter to inform this offer. Their promotional offer is acceptable for customers. Offer is like buy one get one free of half price. Also, Thursday and Sunday special price. 2.(1.2) Competitor Analysis: There are some of the biggest competitors in the supermarket industry, those are Coles, IGA and Lidl . Working out competitors objectives gives the business a good idea of their current strategy and suggest what they will do in future. It is useful to know the relative importance that competitors place on profitability, sales volume and market share. This could give managers of the business insight into how competitors may react to their strategies. 2.(1.3) Strategy Formulation: In formulation, I am trying to modify the current strategies in ways to make the organization more successful. We already know about Aldis strategy and its environment, now strategic alternatives can be developed. Strategic alternatives depends on the current strategy of Aldi and the existing status that is experienced. There are several strategic alternatives that Aldi could undertake. First, they should keep improving mix product market. Another alternative is Aldi could consider to diverse their operations, like they can offer credit or debit cards payment. Third strategic option is that Aldi should do nothing to change their operation as it is currently working and complementing the external environment. Aldi has three strategic alternatives that totally complement their existing strategy and the initiatives taken in the market. There are three aspects of strategy formulation. Those are- corporate level strategy, competitive strategy and functional strategy. Corporate Level Strategy: In this aspect of strategy, we are concerned with broad decisions about the total Aldis scope and direction. Basically, we consider what changes should be made in our growth objective and strategy for achieving it, the lines of business we are in, and how these lines of business fit together. It is useful to think of three components of corporate level strategy: a) growth of directional strategy, b) portfolio strategy, c) parenting strategy Competitive Strategy: This involves deciding how Aldi will compete within each line of business (LOB) or strategic business unit (SBU). Functional Strategy: These more localized and shorter-horizon strategies deal with how each functional area and unit will carry out its functional activities to be effective and maximize resource productivity. 2.(1.4) Enterprise System Implementation: Enterprise system will provide real time information, enforce standards, helps to improve business process of the company. Enterprise system deliver as the backbone of an organizations information needs. It helps to improve business process and achieve fast connectivity with any branch, internally or externally data could be shared in real time. By using this software manager can monitor every aspect of the companys operations and performance .They can achieve their goal easily. Enterprise system software must make big changes in Aldis business process . It is enabling to better and faster decision making, reduce information reporting cost, decrease management hand-counts. Davenport point out in his book Mission Critical that, without implementing enterprise system it is impossible to do electronic commerce. If Aldi want to achieve worldwide market they need fast in time communication facilities. They only doing 2pages newsletter nothing else like online ordering or advertisement. They should start e-business, online information, home delivery. Successfully do the electronic business, Customer Relationship Management they need to adopt enterprise system software in their business. By using enterprise system software many organization in the world performed their business process. This system could help Aldi to achieve high levels of operational efficiency and will be able to respond more rapidly, deliver higher quality and improve cost efficiency. Aldi can access to ample data on both the market and internal operations. We can see the competitive difference comes from the analysis, interpretation and action depend on this data. Aldi can gain a strategic advantage by finding patterns and opportunities faster and deeper than competitors. To be a successful organization Aldi has to adopt changing circumstances and able to integrate and process information system. I think enterprise system is able to dramatically decrease transaction and communication costs. Whether the business core strength in efficient supply chain or superior customer service, instant visibility into key business process via service level agreement or performance metrics helps to achieve a competitive advantage in the World market. This software implementation cost is very high but it is important for long term success of the business. There is not any strong Enterprise System in Aldi Group. I think by implementing Enterprise system like CRM( Customer Relationship Management) system they can develop their business. 2.1.(4.1) Customer Relationship Management(CRM): CRM provides integrated functionality for marketing, sales, customer support and call centre requirements. Functions include- Call centre management, Sales force automation, Customer contact point management, Order entry and order tracking, Service management and content management. 2.1.4.(1.1) Call Centre Management: Aldi need to start call centre management system to improve their business strategy. Because consumers are very busy about their personnel life , they dont have any spare time. For that- sometimes customer try to find information about products availability, product quality and price by calling to customer service. Because there are many competitive markets , consumers got many choice. So, there is no point to spend time and extra money for same product. Understanding customer needs allows the organization to design customer-specific levels of service and track profitability at the customer level. They have to understand what is customers looking for. If the call centre management system is not good and all informations are not updated then customers will get wrong information. May be some times customers calling for information but nobody pick up the phone then they will loose the customer. This increase value per customer and customer retention. 2.1.4.(1.2) Sales force automation: Sales force automation (SFA) software is a type of program that automates business tasks such as inventory control, sales processing, and tracking of customer interactions, as well as analyzing sales forecasts and performance. Aldi need this for integration of sales and marketing to improve efficiency. Sometimes customers want to get timely and precise information about orders. When customer see there is delay about product deliver they need to know current situation. There need quick and reliable responses to all inquiries. Aldi have to be able to meet their commitment on time. If customers get any bad experience about commitment they will not come back again. They need frequent contract and follow-through facilities. 2.1.4.(1.3 )Customer contact point management: A contact point is the method a customer uses to communicate with a company. For instance , consider the different ways customer may interact an organization By visiting retail stores customers seek in-person assistance for their need and also discussion with company peoples. Fastest contact point is through the internet. Now-a-days electronic-commerce is most important method for purchasing certain types of products including music. Also, customers can contact with company personnel for companys financial issues. For instance, credit personnel help customer arrange the necessary funds to make a purchase. Aldi have to implement enterprise system to manage customer contact point. They need to start online ordering also, they should start to accept credit card payment. By providing these facilities they can achieve their goal. 2.1.4.(1.4) Order entry and order tracking: This is another method of CRM. When customer go for online shopping they need to open an account, they need authorization for online order and payment. Furthermore, customer can track their order by using their account. To improve Aldi business strategy they should provide order entry and order tracking facilities. Aldi will be able to attract more customer, increase their selling and profit. 2.1.4.(1.5) Service Management and Content Management: This is all about service and collection of procedures used to manage workflow in a collaborative environment. This procedures can be manual or computer based. CRM(Customer Relationship Management) system helps understanding customer needs, Aldi has to design customer-specific levels of service and track profitability at the customer level. This increase value per customer and customer retention. This system integrate sales and marketing to increase efficiency. Customers need timely and precise information about orders, quick and reliable responses to all inquiries, ability to meet scheduled commitments on time. CRM efficiency can be improved by providing current and important information to sales staff. Aldi can reduce sales calls, by sending e-mail, they can reduce communication costs, paper work costs, also integrated system decrease training costs. They can collect customer information by using web based and e-mail based tools. If Aldi start to use something like bonus card or club card, they will get overall idea about customer- which product customers like most, they can offer promotional items. It is easy way to attract customers to Aldi product. Customer Experience management (CEM) will provide autometed customer feedback. Customer can compare Aldi product with other company, easily find comparatively cheapest one. Aldi have to start all forms of trading like- direct, traditional, retail, e-commerce, wholesale, combination. Only then it is possible to make it world largest acceptable company. By using the Enterprise System software Aldi could fulfill their mission. Enterprise System will give information about them Customers will be able to know about Aldis efficiency, low price product, product quality, required product availability. Also, Manager can easily get overall idea about Aldi like- which product selling more, customers demand, which product need to be ordered more. Aldi got overseas business ,so it will be very easy and faster to get information about any branch in the world. They can do employee recruitment ,training, required staff in different Aldi branch, paying salary etcà ¢Ã¢â€š ¬Ã‚ ¦ 2.2 Barriers to implement Enterprise System in Aldi group: It is highly cost effective to implement Enterprise System in Aldi, because their main strategy is cheap price product supply. If they spend a lot of money implement Enterprise System they will not be able to sell product by cheap. The lack of clearly defined CRM strategies and support structures can burn organizations. Contemporary business strategy must realize how to filter the large data warehouses and integrate certain data into marketing and customer service strategy. Aldi have to face core problems to assess their strategy to the system, a number or actors are involved, internal and external staff. Staff need to be well trained to use the system otherwise it will upset customers that had their calls routed to wrong locations and increase call costs.It is not good enough to just plan resources required to run the enterprise, they need to be managed as well. 2.3 How Aldi can overcome from barriers: Aldi have to focus on staff training, order entry and call centre applications to seamlessly coordinate customer information from outside sales staff to inside customer support staff. This narrow focus enables Aldis staff to acclimate to the software quickly without feeling overwhelmed. Attaining goals in stages enable staff to take ownership of the systems and gather momentum for the new systems. They have to implement some specific trained staff to provide these facilities to the customer. 3 Conclusion: Aldi implemented good relationships with suppliers to ensure favorable prices over considerable quantities. With them, the business guarantees long-term commitments with producers which allow producing more in better conditions and cheaper, orders of whole lorries, saving of packaging costs. On the other hand, the consumers have a high power of negotiation because they are the target of several retailers. So they just have the choice to choose the one which suits to their budget. Aldi is Worldwide business company, so if they successfully implement Enterprise System in their business then it will support to establish their business strategy.

The Yellow Wallpaper by Charlotte Perkins Gilman and Lawrence Durrells Zero and Asylum in the Snow :: Wallpaper Asylum gilman Durrell Essays

"The Yellow Wallpaper" by Charlotte Perkins Gilman and Lawrence Durrell's "Zero and Asylum in the Snow" Society is a close-knit unit of individuals who unknowingly conform to an ideal set by them. The ideal that I speak of is not set in stone, but is ever changing, as is society. This changing ideal appears to be threatened by individual thinkers who rebel against social norms and who refuse to support conformity. This rebellion is exemplified in "The Yellow Wallpaper," written by Charlotte Perkins Gilman and in Lawrence Durrell's story, "Zero and Asylum in the Snow." These stories both involve characters that are labelled as sick in relation to the people who 'mesh' well with society. Society, however, has peculiar methods of healing these characters and succeeds only to force them further away from reality and deeper into a conscious dream world. 'Conscious' in the previous line, refers to how one may dream while awake, yet no outsider may become involved in the dream. A dream world is not necessarily a bad place to dwell, and is only perceived as being bad because not everyone can freely enter its walls. Moreover, the walls are unique to each dreamer, therefore, are transparent. This uniqueness is shown in the short stories I am focusing on. For Durrell, the walls were as white as snow, and for Gilman they are covered in crude yellow wallpaper. When reading these stories, it is easy for one to become confused. It is difficult for the reader to understand exactly what is trying to be said, because these stories are so personal. Durrell and Gilman attempt to give some form of insight into their characters minds, but we as readers are restricted by our thoughts. How can we conceive another's dream world? It is possible only through an open mind; one must not think that the author is talking about nonsense, for this way of thinking proves the success society has in grooming our thoughts to fit within its standards. In "Zero and Asylum in the Snow," we are introduced to a character that seems to be rambling to some unknown person about nonsensical illusions of snow, farmyards, Christianity, and five other existing characters. As one progresses through the story, one realizes that the snow Durrell writes of is everywhere. It surrounds the character, which is later revealed to be Durrell himself, and "chimes about [them] and [he] can do nothing, nothing.

Foreigh Currency Risk Test

FOREIGN CURRENCY RISKQ1. Jack is a UK based car exporter who exports luxury cars and has a competitor in Germany; he has recently seen a change in foreign currency that pound ( £) of UK has strengthened against euro (â‚ ¬) of Germany. What is the type of risk does Jack face in his business? (MCQ) Credit Risk Translation Risk Economic Risk Transaction Risk(2 marks) Q2. Yarn Co is multinational business & wants its foreign subsidiary financial statements. They are making exchange losses when the accounting results of its foreign subsidiary are translated into the home currency. Which type of currency risk does Yarn Co face? (MCQ) Netting off Risk Translation Risk Economic Risk Hedging Risk(2 marks) Q3. Saito Co, a USA based fish exporter has competition with Sakkara Co based in Bangladesh. He believes he faces an economic risk in the business. What type of impact does it have on Saito Co? (MCQ) Direct Impact Indirect Impact Political Impact Economic Impact(2 marks) Q4. The current spot rate of UK ( £) to USA ($) is  £3:$1.5. The interest rates per annum are UK 5% & USA 9%. What will be the two-month forward rate (to the nearest two decimal places)? (FIB) £ :$1(2 marks) Q5. The current spot rate of UK ( £) is  £3. The inflation rate per annum of UK is 3% & the expected future six-month spot rate is  £3.06. Calculate the foreign annual inflation rate? (FIB)%(2 marks) Q6. Which of the following statements relates to International Fisher Effect? (MCQ) The exchange rates of countries depending on inflation rates The exchange rates of countries depending on interest rates Prices are same to different customers in an economy Nominal interest rate differentials between countries provide an unbiased predictor of future changes in spot exchange rates.(2 marks) Q7. Which of the following differences will result in an Expectation Theory? (MRQ) The difference in Inflation Rates Difference between Spot & Forward Rates The difference of Interest Rates Difference between Spot & Future Rates(2 marks) Q8. Select the appropriate theory with the following statements. (P&D)Depreciation of forwarding rates will be due to high-interest rates Differences in nominal rates due inflation rates A commodity is priced same in every country The forward rate is a fair predictor of the spot rate in the future EXPECTATION THEORY PURCHASING POWER PARITYTHEORY INTERNATIONAL FISHER EFFECT INTEREST RATE PARITY THEORY(2 marks)Q9. Patio Co. operates in the USA. They will be receiving a payment of  £2,500 from customers in four months' time. Calculate Patio Co.'s receipts in four months' time? Use the following rates. (MCQ)Spot Rate  £1.4/$ –  £1.6/$4 Month Forward Rate  £1.8/$ –  £2.0/$ $1,786 $1,563 $1,389 $1,250(2 marks) Q10. Fray Co is a USA based company ; imports Robots from China. The usual credit period is three months. Fray Co has to pay  ¥60,000. Calculate the loss/gain of the payment on forwarding contract? (MCQ)Spot Rate  ¥1.321/$ –  ¥1.521/$3 Month Forward Rate  ¥1.654/$ –  ¥1.854/$ $7,085 (Loss) $9,144 (Loss) $9,144 (Gain) $7,085 (Gain)(2 marks) Q11. PXG Co, a UK based company has made $3,600 sale to its USA customer on credit. The current  £/$ exchange rate is  £6.4/$12.8. It is expected that UK  £ will strengthen by 15%, by the time USA customer pays. Calculate the receipts in  £? (MCQ)  £244.57  £281.25  £489.13  £562.5(2 marks) Q12. The dollar is quoted at a $0.067 premium for the forward rate. The current exchange rate is $/ ¥ 1.0005 +/- 0.0045. What will a $4,900 payment convert at forwarding rate? (MCQ)  ¥4,876  ¥4,920  ¥5,224  ¥5,274(2 marks) Q13. A UK based company Bib Co will receive a foreign payment of $2,000 in four months' time. The spot rate is $1.1/ £ – $1.4/ £. Calculate the income in four months' time using money market hedging? (MCQ) Borrow DepositDollar ($) 4% 5%Pounds ( £) 3% 2%  £1,414.4  £1,419.4  £1,800  £1,807(2 marks)This information is used for Q14, Q15 ; Q14.A USA based company has to make a payment of  £95,000 in nine months' time. The spot rate is  £2.2/$ –  £2.5/$. Following details are: Borrow DepositDollar ($) 7% 5%Pounds ( £) 5% 3%Q14. Calculate the foreign payment using money market hedging? (MCQ) $37,164 $42,232 $43,816 $44,449(2 marks) Q15. Calculate the foreign payment if the nine-month forward rate is  £2.37/$ –  £2.71/$? (FIB)$ (2 marks) Q16. Calculate the gain/loss for the company for not leading the payment? (MCQ) $4,365 (Gain) $4,365 (Loss) $3,816 (Loss) $3,816 (Gain)(2 marks) Q17. Following statements relate to Forwarding contracts. (HA)An immediate binding contract TRUE FALSEThe forward rate is variable in nature TRUE FALSEThe timing of the contract is unknown TRUE FALSE(2 marks) Q18. A company wants to reduce its transaction risks when conducting business with foreign receivables/payables. Following statements are said by the directors during this years' AGM. Select the appropriate statements to reduce the risk. (MRQ) â€Å"The company should hold back its payments for few months†, this technique is Leading â€Å"The company should continue as normal† â€Å"I have some friends offshore who work in a bank, I may able to arrange a foreign account for the company† said by a director â€Å"The company should deal in the foreign currency only† (2 marks) Q19. Juab Co is a manufacturing company ; has a foreign supplier who supplies raw materials. Recently the supplier has now become a customer as well, who purchases Juab Co.'s finished products and sells in his respective country. Which technique of reducing risk is applicable for Juab Co? (MCQ) Money market contract Leading & Lagging Forward market hedging Matching & Netting(2 marks) Q20. Which of the following statements are true in relation to futures? (MRQ) Currency futures are standard contracts A high premium is paid initially Futures are available in all currencies offered by the bank Future contracts are binding (2 marks) Q21. A company wants to hedge itself from any currency risk. They have decided to hedge themselves using currency futures. They have to make a payment in May of $36,000. The futures have a contract size of $15,000. Which of the following futures will they select? (MCQ) Buy three futures on March Sell two futures of March Buy two futures of June Buy three futures of September(2 marks) Q22. Select the appropriate option in relation to futures. (HA) Transaction cost is lowest ADVANTAGE DISADVANTAGEContracts are limited to some currencies ADVANTAGE DISADVANTAGEThe exact date does not have to be known ADVANTAGE DISADVANTAGE(2 marks) Q23. Picots Co is UK based company which has a lot of foreign customers. It will be receiving a payment from USA based customer of $500,000 in five months. The company has been advised to use derivatives to hedge themselves against any currency risk. If they opt for currency options which of the following are correct? (MCQ) Buying a USA $ call option in the UK Buying a USA $ put option in the UK Buying a UK  £ call option in the USA Buying a UK  £ put option in the USA (2 marks) Q24. Which of the following statements relate to currency options? (MRQ) In future the market becomes favorable and the company will face a loss because it is bound to the contract They are negotiated Cannot be traded in all currencies Easily arranged & Flexible (2 marks) Q25. Which of the following is incorrect for swaps? (MCQ) It is negotiated between two parties having their own spot rate It has a nominal cost It is an over the counter deal It has multiple markets (2 marks) Q26. Which of the following has a refundable cost? (MCQ) Currency Futures Forward Contracts Currency Options Currency Swaps(2 marks)FOREIGN CURRENCY RISK (ANSWERS)Q1. CEconomic risk is the variation in the value of the business due to unexpected changes in exchange rates. This is an indirect impact on Jacks business. Q2. BThey are making exchange losses when the accounting results of its foreign subsidiary are translated into the home currency. This is an indication of Translation Risk. Q3. AIt is a direct impact on Saito Co as the USA being home currency strengthens then foreign competitors Sakkara Co in Bangladesh is able to gain sales at your expense because your fish have become more expensive in the eyes of customers both abroad and at home. Q4.  £3.02Interest rate parity theory = 3 Ãâ€" (1+(9% Ãâ€" 2/12))/(1+(5% Ãâ€"2/12)) =  £3.02 Q5. 7%Purchasing power parity theory = 3 Ãâ€" (1+(x% Ãâ€" 6/12))/(1+(3% Ãâ€"6/12)) =  £3.06X% = 7% Q6. D The exchange rates of countries depending on inflation rates (Purchasing Power Parity Theory) The exchange rates of countries depending on interest rates (Interest Rate Parity Theory) Prices are same to different customers in an economy. The law of one price. (Purchasing Power Parity Theory) Nominal interest rate differentials between countries provide an unbiased predictor of future changes in spot exchange rates. (International Fisher Effect) Q7. When these two will become equal, Expectation Theory arises. Difference between Spot & Forward Rates Difference between Spot & Future Rates Q8.Depreciation of forwarding rates will be due to high-interest ratesINTEREST RATE PARITY THEORYDifferences in nominal rates due to inflation rates INTERNATIONAL FISHER EFFECTA commodity is priced same in every country PURCHASING POWER PARITY THEORY The forward rate is a fair predictor of the spot rate in the future EXPECTATION THEORY Q9. DReceipts =  £2,500 à · 2.0 = $1,250 Q10.Payment (Forward) =  ¥60,000 à · 1.654 = $36,276Payment (Spot) =  ¥60,000 à · 1.321 = $45,420Gain = $9,144 Q11. AFuture Rate = $12.8 Ãâ€" 115% = $14.72Receipts =  £3,600 à · 14.72 = $244.57 Q12. DThe Spot rate = $0.996/ ¥ – $1.005/ ¥ -/+ 0.0045The dollar is at a premium so subtract it as if dollar strengthens then yen will weaken in the forwards market. The new Spot rate = $0.929/ ¥ – $0.938/ ¥ – 0.067Payment = $4,900 à · 0.929 =  ¥5,274 Q13. BBorrow Foreign Currency = $2,000 à · [1 + (4% Ãâ€" 4/12)] = $1,974Convert Foreign to Local = $1,974 à · 1.4 =  £1,410Deposit (Interest) = (1,410 Ãâ€" 2% Ãâ€" 4/12) =  £9.4Total Receipts =  £1,410 +  £9.4 =  £1,419.4 Q14. DDeposit Foreign Currency =  £95,000 à · [1 + (3% Ãâ€" 9/12)] =  £92,910Convert Foreign to Local =  £92,910 à · 2.2 = $42,232Deposit (Interest) = ($42,232 Ãâ€" 7% Ãâ€" 9/12) = $2,217Total Payments = $42,232 + $2,217 = $44,449 Q15. $40,084Payments =  £95,000 à · 2.37 = $40,084 Q16. B Q17. An immediate binding contract TRUE The forward rate is variable in nature FALSEThe timing of the contract is unknown FALSE Q18. â€Å"The company should hold back its payments for few months†, this technique is Lagging (Incorrect) â€Å"The company should continue as normal† This refers the company should take no action (Correct) â€Å"I have some friends offshore who work in a bank, I may able to arrange a foreign account for the company† said by a director. This statement indicates opening a foreign bank account. (Correct) â€Å"The company should deal in the foreign currency only† The company could deal in home currency rather in foreign currency (Incorrect) Q19. DThis technique attempts to match the same foreign currency receipt & payments due at the same time. The netting of the intra debit & credit balances saving transaction cost & reducing risk. Q20. Currency futures are standard contracts, fixed limits specified (True) A high premium is paid initially, this is applicable in options (False) Futures are available in all currencies offered by the bank, Only in few currencies (False) Future contracts are binding, they have to be closed (True) Q21. CThe Futures can be bought or sold only four times a year which are March, June, September & December. Future contracts can be signed relating to a month after the date of receipt. They will buy two futures each of $15,000 and the remaining $6,000 can be hedged using other techniques. (E.g. forward contracts)Q22. Transaction cost is lowest ADVANTAGEContracts are limited to some currenciesDISADVANTAGEThe exact date does not have to be knownADVANTAGE Q23. BPicots Co will want to sell the USA $ when they receive the payment which is why they will use USA $ put (sell) option bought in the UK. Q24. In future the market becomes favorable and the company will face a loss because it is bound to the contract, this statement relates to future contracts They are negotiated, this statement relates to options (Correct) Cannot be traded in all currencies, it is a disadvantage hence this statement relates to options (Correct) Easily arranged & Flexible, this statement relates to swaps Q25. DIt has no markets; it is a tailor-made an agreement between two parties.Q26. A Currency Futures, An initial margin cost which is refundable Forward Contracts, has a transaction cost Currency Options, A non-refundable premium cost Currency Swaps, No initial cost

Barbara Hepworth – presentation

Good morning, I know some you are taking the â€Å"british art† course this year, so I think it could be interesting if I give a brief account of Barbara Hepworthà ¯Ã‚ ¿Ã‚ ½s work and experiences. For those of you who are not taking that subject it may be a way of familiarising yourselves with abstract art coming from Great Britain. Before going straight into the subject, Ià ¯Ã‚ ¿Ã‚ ½d like you to get rid of any prejudices you may have against abstract art and just let yourselves to be carried along by what Ià ¯Ã‚ ¿Ã‚ ½m going to say and show. First of all, I can see in your faces youà ¯Ã‚ ¿Ã‚ ½re thinking â€Å"Whoà ¯Ã‚ ¿Ã‚ ½s that Barbara Hepworth sheà ¯Ã‚ ¿Ã‚ ½s talking about? Well, She is one of the most important abstract scuptors in Britain. What Ià ¯Ã‚ ¿Ã‚ ½m trying to do here this morning is to show you in what way her experiences in life changed her work. As you see this is Barbara Hepworth when she was only two years old. It is relevant the way she perceived nature from her very infancy. In this statement you can see it clearly. She says â€Å"All my early memories are of forms, shapes and textures†, so she identifies nature with sculture. The last line is also remarkable as Barbara Hepworth is establishing a relationship between nature and the sculptor. One of the most important experiences who contributed to change her work is the visit she paid to Italy when she had become a sculptor herself. In this country she found two of her main preocupations: light and the grouping of people. The importance of light in relation to form will always interest her. Her second preocupation emerged in Venice. There, she realized that when people entered Saint Mark square, they walked in a different way and tended to group themselves because of the enormous proportion of the square and the cathedral. These two preocupations, those of light and the grouping of people will change her style. In this slide you can see her with one of her children. Barbara recognizes that with the birth of her first child her work developed notoriously. In her Autobiography, that I recommend you, the artist critizises those who thought a woman cannot be an artist and mother at the same time. What is more, she believes her work changed because of her children been, during several years, more formal, avoiding any trace of naturalism. You can see the resault in this sculpure. If we carry on the course of her life, we can find another turning point in her career when she first met Arp, one of the leaders of dadaism. By seeing his work, Barbara freed herself from many inhibitions and regarded the ralion between form and landscape with new eyes. In the decade of the 30à ¯Ã‚ ¿Ã‚ ½s, abstract art became quite famous in Britain because of Barbara and her husband, Ben Nicholson. They were in contact with some important artists from the continent, such as gabo or Mondrian. Here you can see her with Gabo and his wife. This contact originated new preocupations for Barbara. One of them was the quality of the materials she used in her scuptures. She wanted to do something of a piece of marble, for example, but in order to achieve it she had to discover what the block of marble wanted. In this period she is also interested in the hollowed form as you can see in many of her works. She pierced the scuptures to create a more profound relationship between human beings and nature through sculpture. It is in these years that she analyses the role of the sculptor. She also reflects about her hands. Barbara Hepworth thinks her left hand is her thinking hand while her right hand is the working one. As a result of the threatening of the 2nd world war, many european artists came to England and joined the group of Barbara and Ben Nicholson in St. Ives, establishing the foundations of Constructivism, one of the most important vanguardist movements. During these last years of the decade Barbara Hepworth devoted herself to curved and stringed carvings which symbolised, once again, a sense of identification with nature. After this period her scultures will evoque the idea of enclosure or embrace. In order to achive it she uses several kinds of forms which are: the standing figure, the two figures, that represent the relationship between one human being and another, and the spherical or oval form. Her work will change again in the 40à ¯Ã‚ ¿Ã‚ ½s, a decade she dedicates to monumental and enormous figures made of metal. This is Barbara Hepworth when she was nearly and old lady. In her last years she comes back to the formal style that characterized her work during the decade of the 30à ¯Ã‚ ¿Ã‚ ½s. Unfortunately, she passed away in 1975. She used to drink and smoke a lot, so one day she didnà ¯Ã‚ ¿Ã‚ ½t extinguish the butt of a cigarrete and it a caused a fire that killed her. In conclusion, I can say Barbara Hepworth was one of the most important artists of her time and her success depends a great deal on her experience in life. I hope you take a full advantage of my presentation. Anyway, if youà ¯Ã‚ ¿Ã‚ ½ve got any comments or questions you are welcomed. Thank you very much. * Introduction: Good morning, I know some of you†¦.. Get rid of any prejudices / let yourselves get involved. * Body: First of all: Who is Barbara Hepworth. What Ià ¯Ã‚ ¿Ã‚ ½m trying : in what way her experiences change her work. Slide of her 2 years old : relevant because from her infancy aware of forms. Slide of statement. (last line remarkable). Italy: preoccupations: light and grouping of people. Slides of Venice. Slides of child (2) Her children: developed her work, autobiography she critizises, her work more formal avoiding any trace of naturalism Slide of formal scupture. If we follow the course of her life another turning point: Arp: (leader of dadaism) freed herself from many inhibitions and regarded the relationship bet figure and nature with new eyes. In the decade of the 30à ¯Ã‚ ¿Ã‚ ½s abstract art famous in GB because of her and her husband. Slide of BH and her husband. They were in contact with artists from continent. (Gabo, Mondrian). Slide of her with Gabo. This contact originated new preoccupatiosns: qualitiy of materials, hollowed form. She pierced scultures to create a more profound relation bet human beings and nature. Slide of pierced figure. It is in these years: analyses the role of artist and reflects about her hands. Slides of hands (2). As a result of the threatening of the 2nd w.w. many artist came and joined her group in St Ives. Slides of her studio in St. Ives (2). There they established the foundations of Constructuvism, one of the most imp vanguardist movements. During these last years of the decade, BH devoted herself to the curved and stringed carving, a sense of identifiation with nature. Slide of stringed sculpture. After this period her sculptures will evoque the idea of enclosure or embrace by using several kinds of forms: standing form, two forms and oval or spherical form. Slide of standing figure. Slide of spherical figure. 40à ¯Ã‚ ¿Ã‚ ½s her work changes again: enormous figures made of metal. Slides of enormous figures (3). Slides of her old (2) In her last years she came back to the formal style of the 30à ¯Ã‚ ¿Ã‚ ½s. She passed away in 1975: she used to drink etc. * Conclusion: As a conclusion we can say she was 1 of the + imp artists of her time, and her success depends a great deal on her experience in life. I hope you have taken full advantage of my presentation. If you have any comments or questions you are welcome.

Man in the Mirror Essay

Man in the Mirror Essay Man in the Mirror Essay Man in the Mirror – Michael Jackson Feb 5th 2013 Tori Gonsalves This song has to be my all-time favourite. It tells us that in order to make a change you have to start with yourself, and the rest will follow. In some way everyone can relate to this song. We all have these big dreams and imagine these amazing things, but nothing will ever happen unless you start with yourself, no one else can make those dreams come true, only you. â€Å"Be the change you wish to see in the world- Gandhi.† Man in the Mirror ties in with this course because with Sole we are trying to get more people involved with the community we live in. You have to start with yourself and then get everyone involved, leaving no one out. â€Å"Gotta make a change. For once in my life. Its gonna feel real good. Gonna make a difference. Gonna make it right.† This verse relates so much to the course because we are trying to make a difference in many lives. We are going to be giving back to a community, and no matter what that we will make a change not in lives of those w e help but of our own. It will give us a feeling that we will be unable to explain in words. This song relates to who I am and who I want to become because I want to be able to make a difference in the lives of many. I know that if I want to be the difference that I need to start with myself. I am my biggest competition; the only person that will hold me back from my dreams is I. But I am also my biggest fan. I know that I can do anything I put my mind too as long as I put forth my best

buy custom Organized Gangs essay

buy custom Organized Gangs essay According to the FBI, over one million people in the US belong to organized gangs. When members of different gangs are arrested, convicted for crimes and imprisoned, they meet each other in prison. This means that they can use the common background that they have in criminal activities in order to perpetuate criminal acts within prison cells. Outside prisons, contact with those who are yet to be imprisoned makes it easy for crimes to continue being organized and perpetrated. Within California, Terry Thorton, a spokeswoman for California Department of Corrections, the prisons are today accommodating about 162,000 inmates within the states prisons. Gang population has been estimated to comprise 803 members, 325 inactive member, 900 associates and 1,050 dropouts. In The Influence of Prison Gang Affiliation on Violence and Other Prison Misconduct, Wallace, et al, 2002 used automated The Bureau of Prisons data in order to conduct an empirical research how prison affiliation gangs contribute to various forms of misconduct and violence inside prisons. They found out that specific as well as more generic indicators of gangs were directly connected to instances of violence and various unlawful acts that threatened to destabilize law and order in prisons. Prison gangs represent an extension of a society whose morality has suffered untold erosion. Many people who join these gangs do so in order to survive in a prison society full of animosity, hostility and cruelty. According to Bill Wallace, a Chronicle staff writer, Californias prison system is dominated by 5 major inmate gangs. According to Wallace, the gangs are often organized based on racial affiliations. This brings into sharp focus the survival theory. In this case, those races that are threatened by marginalization find themselves finding for ways through which they can survive. They find solace in prison gangs in the face of harsh life outside and within the confines of prison walls. Even upon completion of their sentences, members of thee gangs maintain close ties with the base that is within the prison. The gangs thrive because their members are able to take advantage of the tensions that already exist among inmates due to ethnic and tribal affiliations. The State Department stated in a 2003 report relating to the genesis of organized prison gangs: as these gangs began to continuously grow in number and acquire leverage, more and more cases of rivalries began to emerge and this resulted in increase of violence in prisons. Nuestra Familia is one of the earliest prison gangs to be formed in Soledad Prison. It was formed in order to protect young inmates held in North California prisons from the Mexican Mafia. The Mexican Mafia, also known as La EME, had been formed as early as w1950s in order to enable prisoners to connect with the outside world and to continue organizing crimes. In November, 2005, Pelican Bay State Prison, considered one of the toughest penitentiaries in California, froze the accounts of some 16 inmates believed to have been laundering money through sale of drugs in the streets, criminal activities and prostitution. Black Guerilla Family is another prison gang, which gang experts say, is largely responsible for racial frictions within California prisons. The gang was founded in 1996 in San Quentin prison. The 1990s saw the memberships of Black Guerilla Family drop dramatically. It is only six years ago that saw recruitment drives for this prison gang increase dramatically. The gang even started hiring from street gangs with a predominantly black population, including The Crips and 415 Kumi Nation. How do gangs maintain control in California prisons? All gangs thrive through connections that they maintain with street gangs. All prison gangs are affiliated to certain street gangs whose members cooperate in matters of mutual interest such as crimes, sale of drugs in the streets and prostitution. These links have become so cohesive that they have attracted the interest of federal prosecutors. Modern communications technology has made it easy for inmates to communicate with the outside world. It takes a simple phone call for the leader of a prison gang to coordinate drug business in the street through the use of connections with gang members who are out of prison. In most cases, these members happen to be former inmates at the said prison from where the activities are being coordinated. In most cases, mobile phones find their way into prisons as contraband. This makes it possible for gang leaders to issue commands even when they are in segregation. Geoffrey et al, 1993, looks at the organizations of California prison gangs within the context of a culture that has developed in prisons over decades that go as far back as the 1950s. Within this context, prison gangs are seen to rely on external subcultures as well as a prison culture that is not easy to find in any other place on earth. Every gang maintains a unique sense of identity by designing symbols and tattoos. Prison population demographics are never constant; they keep changing as new inmates come in and old ones go. This scenario presents even experienced inmates with a difficult situation where they have to keep adapting to a new environment all the time. With prison gangs, the problem of maintaining cohesion is solved. Without solidarity, gangs cannot succeed in making contraband find its way into the prisons. Where cooperation between members of different gangs takes place, it is because there are mutual benefits to be derived. In most cases, this happens when there is need to coordinate efforts aimed at covering up the illegal activities that go on in prison cells. Members of each gang have a particular coded language that they use for communication. They also replace letters with number codes in order to ensure that only a member of their gang can decode the information that is transferred. The codes are changed periodically in order to ensure that they are not cracked by law enforcement agencies. Buy custom Organized Gangs essay

What Does it Cost to Attend Pennsylvania State University-Main Campus?

Pennsylvania State University is a popular choice for Pennsylvania students, as it offers students the flexibility to transfer to the main campus at University Park after starting college at one of the regional campuses. But because of the difference in tuition and fees and the local cost of living, you’ll want to be prepared to know what it would cost to send your student to Penn State’s main campus over one of the regional campuses. We’re going to look at what factors contribute to the cost of attendance at Penn State-University Park, and how you can keep the costs down for your family. You may be surprised to learn that college costs vary from campus to campus of the same institution, but they also vary from student to student at the exact same campus. Although we’re going to go over what the full price of a year of education at Penn State is, you should know that the actual cost of a Penn State education will likely be different for your family. Instead, you’ll want to consider what the net cost for your family will be. Although averages are a good place to start and we will include them, it’s better to consider the specific factors that will reduce your net cost. Very few families pay full price, and this is due to financial aid from: A combination of financial aid from these sources will help you reduce your net cost, and we’ll go over what you can roughly expect from each source below. Although we call it the list price, schools refer to this as the estimated cost of attendance. If you’re wondering why it’s an estimate and not an exact number, it’s because schools tend to average the cost from their current students. Each student has different expenses, from housing to transportation to groceries. Generally, the cost of attendance includes things like tuition and fees, room and board, and other costs of living like transportation, or even laundry expenses. Because Penn State is a public institution, there is a difference in the tuition and fees for in-state students versus out-of-state students. In the 2016-2017 school year, the total price for in-state students was $35,758, while the total price for out-of-state students was $50,240. Most families don’t end up paying list price because they qualify for some kind of financial aid, but there are some families who would likely pay list price at any institution. Wealthy families with household incomes over $175,000 usually end up paying the list price, especially if their student didn’t receive any merit scholarships. We hope that you’re feeling relieved to know that you’re not likely paying the list price, but you may still be wondering what you can expect to pay if your student attends Penn State. For students who qualify for financial aid, the average price for in-state students was $34,167, and the average price for out-of-state students was $48,649. While the averages above are a good starting point for determining your net cost, it’s often more helpful to look at the cost based on household income. Students who come from families with higher need will have a lower average net price, which helps make college more accessible. Estimating your chance of getting into a college is not easy in today’s competitive environment. Thankfully, with our state-of-the-art software and data, we can analyze your academic and extracurricular profile and estimate your chances. Our profile analysis tool can also help you identify the improvement you need to make to enter your dream school. Merit aid is usually offered to students on a need-blind basis, meaning that students of any income level can receive merit aid. Merit aid is generally offered to the top admitted students with exceptional accomplishments. At Penn State, about 15.6% of students who don’t qualify for need-based aid receive some form of merit aid (note that there are some students who receive need-based and merit aid). The average merit aid award for a student without need was $653, which reduces the net cost for in-state students to $35,105 and out-of-state students to $49,587. Although it may not be much, every bit helps, and there are some schools that don’t offer any merit aid. Due to its small average award size, Penn State ranked 807th in a pool of over 1000 schools we analyzed for merit aid generosity. Students have to cover the remaining cost of attendance somehow, and a common way that students do that is to take out loans. At Penn State, about 56% of students have a loan to help cover their annual expenses. The average size of the federal loan per student was $7,838 total across all four years. When choosing a school, you should encourage your student to look at the typical student outcomes as a factor in their decision. Although their individual effort and resourcefulness are more likely to secure their post-college success, it’s still good to know if a school provides a conducive environment to students. At Penn State, around 83% of their students graduate within six years. Ten years out of school, the average main campus grad is making $55,300. Penn State’s University Park campus is located in the State College municipality, which offers a small-town environment with an emphasis on college activities. The cost of living index for State College is 113, which means that it’s about 13% higher than the national average. Overall, it’s pretty affordable to live near University Park. All freshman students are required to live on-campus, but students are allowed to live off-campus starting their sophomore year. Here are the average apartment rents in State College: Although some of the housing options may be cheaper per month, students who live on-campus are required to purchase a meal plan. Many students find that the freedom that off-campus housing provides is worth it, especially because they can easily cook their own meals. Many students choose to work part-time jobs to help cover some of their living expenses. According to the Economic Policy Institute , the minimum wage in Pennsylvania is the same as the federal minimum wage at $7.25, and the average hourly wage is $22.55. Aside from traditional saving methods, one of the best ways that your student can help reduce the net cost to your family is to apply for as many scholarships as they can. Scholarships are a form of gift aid that doesn’t have to be paid back, and they are often merit-based. Here are just a few ways you and your student can start looking for scholarships: If your student will be considered out-of-state at the time of application, you may want to look into what the requirements are for your student to be reclassified as an in-state student after their freshman year. They should speak directly with a financial aid officer at their school to make sure that it doesn’t impact any of their other financial aid, but it could save your family thousands of dollars each year. Although we focused on how to make attending the main campus more affordable, you should also know that your family can save money if your student chooses to attend a regional campus. Many students transfer to the main campus after spending a year or two at the main campus; the regional campuses often have lower tuition rates, and if your family lives in the area, they can save even more by staying at home. With many ways to reduce your family’s net cost, from financial aid to part-time student work, we hope that you have found your student’s dream school to be financially feasible. If you’re looking for personalized guidance about college affordability, we’ve got you covered. As part of our College Applications Program, our Finances tool shows students the ROI of different schools and majors and help students identify scholarships to apply for. On average, our students earn about $83,000 in scholarships. Find out if working with our Financial Aid Tools is right for your family!

The Pluses and Minuses of Online Shopping Essay

The Pluses and Minuses of Online Shopping - Essay Example (Kenney, M. & Curry, J., 1999) But although this newfangled idea has gone this far, research on the subject of e-commerce and Internet marketing remains largely confined to the difficulties encountered by companies going online, including its advantages and disadvantages to them. An important aspect of the phenomenon yet to be fully explored is the sentiment and attitude of consumers toward online shopping. As attempts get underway to create the ultimate e-mall, the question may be asked: Are the consumers willing and ready to accept and patronize such a store in place of the shopping mall This research project will thus give a fresh look at Internet marketing from the perspectives of the consumers. It will seek to identify the advantages and disadvantages the consumers derive from online shopping, with the end in view of determining whether the marketing process helps promote consumer welfare and interests at all, the way the traditional stores do so. 9) In going to the regular stores, one has to contend with the traffic and pollution, spend for the thrift and search for a parking space that is often not there. Do these count as arguments for buying online instead Corporations, both established and new, are turning to the Internet to create new markets and reorganize existing markets. It began in 1990 when the US National Science Foundation approved the use of the Internet for non-academic uses. From only 5 million users in 1993, the figure jumped to 62 million in 1997 and 100 million in 1998. According to Internet provider Uumet Technologies, Internet traffic continues to double every 100 days that this has become "one of the fastest adoption rates any technology has ever experienced." (Yang, S., 2001) Worldwide, there could be 550 million users and a far greater number of .com sites. The latter websites are made up of companies engaged in online retail of all sorts of products and services. E-commerce is transforming the traditional retail industry. For this business sector, e-commerce is eliminating the costs of retail branches, thus lowering the initial entry costs and the fixed costs associated with retail stores. (Kenny, M. &

Commentary on Accounting Ratios Research Paper Example | Topics and Well Written Essays - 1000 words

Commentary on Accounting Ratios - Research Paper Example This means newer businesses will generally have lower ROCE as compared to older businesses due to the depreciated amount of its assets. Additionally, the number of years that both Dairy Crest and its close competitor have been in business is unclear. The revenue of Dairy Crest is up by almost 20% in 2008, resulting in Operating Profit Margin of 6%. This result is on par with its competitor. However, the improvement may have been attributed by the twofold increase in Dairy Crest's other income, of which the breakdown has not been disclosed. Given the equal result, it can be said that the competitor may be new in the market since its ROCE is way lower than that of Dairy Crest. In fact, the company's Gross Margin Profit is down from 4.6% in 2007 to only 3.9% in 2008, whereas its competitor's is 25.7%. Looking at Dairy Crest's consolidated income statement, its operating cost is up by almost 21% while its revenue increased only by about 20%. Also, there may be some differences in the pricing strategy adopted by the two companies, which explains the big gap in the margin. The company's Asset Turnover Ratio is slightly better at 1.8 times in 2008, while its competitor is at 1.9 times. The higher revenue in 2008 means Dairy Crest is utilising its assets more. Assuming its competitor is new in the business, this result shows Dairy Crest is not performing as well as its competitor. It appears that Dairy Crest has better control of its stocks with a drop in its Stock Turnover of 38.6 days in 2008 against 43.1 days in 2007. As food stocks are perishable items, it is advisable not to hold them for too long. Dairy Crest's move to bring its stock holding period down by 10% is wise. While its competitor holds stocks 46 days in 2008, it is unclear if this is due to uncertainty in suppliers, as the high levels seem unnecessary based on industry. The Current Ratio of Dairy Crest in 2008 is 1.4, an improvement from 1.0 in 2007. This shows the company's financial position is healthier. However, its competitor's Current Ratio of 0.8 in 2008 seems risky, as

EBay Usability Testing Evaluation Essay Example | Topics and Well Written Essays - 750 words

EBay Usability Testing Evaluation - Essay Example EBay Corporation offers online marketing for the sale e-commerce of goods and services. Moreover, this corporation offers platforms and online payment solutions to various community of businesses and individuals. The main purpose that usability is so important is because there are numerous websites, which are offering similar services that people will visit if the previous one is not operational. EBay Inc. depends on their web existence in the mandate to accomplish their online objectives. Likewise, a user of eBay website will articulate a judgment about that company, which is strongly associated with the manner at which they view its website. Moreover, operational websites escalate user satisfaction while websites which infringe usability agreements obscure users and cause in a loss of returns for other companies.Through enhancing usability, it is a great manner to motivate users to visit this website in its place of the websites that fit into its competitors. This is frequently a m ethodology that retains customers. High-quality websites are simple to use therefore, attracting users and give a specific site a competitive advantage. Some of individuals who create a usability test prudently create a situation whereby an individual accomplishes a list of responsibilities that a user who is using the services for the first time is likely to understand the functions. Someone else watches and pays attention to the individual who is carrying out the responsibilities while taking minutes.

Analysis of Color Adjustment Movie Review Example | Topics and Well Written Essays - 1000 words - 7

Analysis of Color Adjustment - Movie Review Example Albeit with little variations, they still depict past â€Å"bad† images. The producer also brings to light the continuing identity crisis that continues in American television. He is able to contrast the ideal blacks depicted in sitcoms and sagas with the angrier, harsher ones presented in the news (Riggs et. al. 0:12). In a rather informative and straightforward manner, Marlon draws opinions from producers and stars from notable shows in the history of black television. He occasionally pauses to observe James Baldwin’s literature. Every one of the shows he discusses comes out as a show of both pride and pain. Tim Reid and Diahann Carroll, who were the main actors in popular television series significant in Mr. Riggs’ argument, openly talk about their varied response to â€Å"Amos ‘n’ and Andy†, a television show in which the N.A.A.C.P did say: â€Å"every temperament is either a crook or a clown.†(Riggs et. al. 0:32) As the film progresses, Ms. Carroll opens up about her family being adamant concerning not watching â€Å"Amos ‘n’ Andy.† It is only later that she could see the offensiveness in the show to see its humor (Riggs et. al. 0:25). With the chronological procession of the movie, it depicts Beulah, a jolly black servant who is committed to the white family who employs her. â€Å"That was a maid from Hollywood,† (Riggs et. al. 0:29) Esther, who starred in â€Å"Good Times† quips. In this case, she is referring to the Louse Beavers who was popularly called the grinning actress. She is the one responsible for making Beulah be acceptable to the white viewers. Beulah is black. The film, which debuted at the Anthropology Movie Archives, devoted attention to Nat Cole’s variety show. It signaled the initial non-comedic episodes that that starred black actors, but which was called off due to lack of sponsorship for an entire season.  Ã‚  

Effects of the credit crunch in terms of regeneration and redundancies Literature review

Effects of the credit crunch in terms of regeneration and redundancies - Literature review Example This paper endeavors to understand the appropriate meaning of the term credit crunch, prior discussing initiation and implications of the same in the United Kingdom, specifically in Sunderland. Credit crunch is a situation when lenders stop lending, borrowers fail to borrow, builders cease their activities and buyers are forced to exhibit their inability to buy. In specific manner, credit crunch can be defined as a sudden stoppage in availability of credits as well as loans, causing shortage of liquidity in the market. Since 2008, such a situation has resulted in development of a complex set of issues in various countries that is continuously worsening. According to Erkens, Hung and Matos, the present credit crunch was initiated in 2007 in the United States, when lenders were heavily exposed to mortgages worth billion dollars, which turned into bad debts. The authors further added that the viability of the subprime loans related to mortgage has a significant impact on the global fina ncial system. Consequently, banks and other financial systems were no more interested to lend to borrowers, which created a chain reaction reaching national financial system of various nations. By the end of 2008-09, the housing bubble in the United States (US) busted and resulted in collapse of several prominent banks. Interest rates also increased significantly during this period. According to Parkinson, the trend had followed in the property as well as construction industry, bringing about a drastic impact on regeneration.

Systematic Approach to Higher Education Administration Research Paper

Systematic Approach to Higher Education Administration - Research Paper Example This discussion stresses that  the administration of regional institutions that offer higher education must be approached systematically in order to realize the most desirable results. Further, decentralizing education in the context of establishing regional institutes of higher education largely contributes to regional development. A systematic approach that brings institutes of higher education together with regional stakeholders such as local government, organizations of social development and industries facilitates the alignment of teaching, civic engagement and research with regional development strategies.According to the study findings the process of systems thinking will entail developing models that promote how events are understood and the behavioral patterns that result in such events as well as the underlying structures that are responsible for such behavioral patterns. In that perspective, this paper will explore the viability of developing an international campus in C anada for the University of Wyoming. The focus will be on state and institution governance structure and interrelationships and intra-relationships among the structures that govern the institution. It will further discuss the governance structure for the Canadian campus and the major legal and regulatory issues relevant to the expansion as well as budgetary and policy considerations at the regional, local and institutional levels.

Effects of the credit crunch in terms of regeneration and redundancies Literature review

Effects of the credit crunch in terms of regeneration and redundancies - Literature review Example This paper endeavors to understand the appropriate meaning of the term credit crunch, prior discussing initiation and implications of the same in the United Kingdom, specifically in Sunderland. Credit crunch is a situation when lenders stop lending, borrowers fail to borrow, builders cease their activities and buyers are forced to exhibit their inability to buy. In specific manner, credit crunch can be defined as a sudden stoppage in availability of credits as well as loans, causing shortage of liquidity in the market. Since 2008, such a situation has resulted in development of a complex set of issues in various countries that is continuously worsening. According to Erkens, Hung and Matos, the present credit crunch was initiated in 2007 in the United States, when lenders were heavily exposed to mortgages worth billion dollars, which turned into bad debts. The authors further added that the viability of the subprime loans related to mortgage has a significant impact on the global fina ncial system. Consequently, banks and other financial systems were no more interested to lend to borrowers, which created a chain reaction reaching national financial system of various nations. By the end of 2008-09, the housing bubble in the United States (US) busted and resulted in collapse of several prominent banks. Interest rates also increased significantly during this period. According to Parkinson, the trend had followed in the property as well as construction industry, bringing about a drastic impact on regeneration.

A monopoly from start to finish Essay Example for Free

A monopoly from start to finish Essay During out studies this term we have learned a lot about a Monopolistic way a company is able to maneuver in the business market and I would like to refresh your mind by offering a clear definition. A Monopoly is a situation in which an entity, either an individual or an industry or organization, is the sole supplier of a particular good or service. As such, this supplier has no competition from other suppliers and is able to control the market value of the commodity. Some monopolies are government-enforced or controlled, while others form naturally or through company merger. According to our focus of this paper, we are asking about the long-run competitive equilibrium of the Wonks Company that was earning a normal rate of return and were competing in a monopolistically competitive market structure. One of the questions we must answer regarding this change in business structure is how the company’s shift to a monopoly will benefit the stakeholders involved. One of the stakeholders who may be involved is the government. Monopolies sanctioned by the government are called legal monopolies. These are considered coercive monopolies, meaning that other companies are forbidden by law to compete against them. Governments also maintain some control over monopolies through competition laws, which prevent monopolies from engaging in unscrupulous or anti-competitive practices (http://www. reference. com/motif/Society/advantages-disadvantages-of-monopolies). The second question is how a Monopoly will affect other businesses and after research it is quite obvious from the definition of a monopoly that other companies do not have to worry about competition from other companies in the same market. Consumers are affected by this change because they must either purchase the product or service from the monopoly or do without it. When a company transitions from a monopolistically competitive firm to a monopoly, there will be changes with regard to prices and output from both of these market structures. So, let’s take a closer look at how prices are affected when a firm becomes a monopoly. A common practice among some monopolies is price discrimination, in which the monopolist charges some segments of the population more than others for the same product or service, based on a higher need or a wealthier consumer base. This would usually be called price fixing which is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. When the monopoly is able to prevent buyers from reselling their product, they may be able to price discriminate to accentuate the effects of monopoly power. In my opinion the most important group that is affected by a Monopoly are the consumers. Monopolies can impact consumer prices in two obviously different ways, they can cause prices to drop so low that it forces companies out of business or it an cause prices to skyrocket making it difficult for consumers to purchase a product, neither being a good option for the consumer. If one business is the only provider of a product or service, the consumer is forced to pay whatever the price they demand. This can also lead to the company providing a low quality product or service without fear of losing business (Home, 2009). Since monopolies are the only provider, they can set pretty much any price they choose, regardless of demand, because they know the consumer has no choice. Is this sort of thing fair to consumers? Of course not, but it is how big business is able to stay on top of the market. For example, most people find that Apple products have an outrageous price tag, but I have come to learn that the quality of their products is outstanding and I estimate that Apple will continue to rise in popularity for years to come. It has also come to my attention that because Monopolies try to monitor the price of products they may resort to price discrimination. Price discrimination is sometimes defined as the practice of a firm selling a homogeneous commodity at the same time to different purchasers at different prices . Of course, I believe it is important to understand what and how price discrimination occurs. â€Å"Price discrimination exists when two similar products which have the same marginal cost to produce are sold by a firm at different prices. This sort of practice is highly controversial in terms of its impact on both consumers and rivals† (Price Discrimination, 2006, p. 1). There are many ways to accomplish these sort of conditions because the transactions surely need not be simultaneous; indeed, there is temporal discrimination, such as between Sunday rates and week, day rates, matinee and evening prices, peak rates and off-peak rates, season and off-season prices. To sell different qualities or products with different marginal cost at the same price, or to buy different qualities or factors of different efficiency at the same price, is also discriminatory. Based on all of this useful information we must also answer the question regarding which market structure is more beneficial for Wonks to operate in and will this market structure benefit consumers? In my opinion it is based on the level of quality and service of the products and how much consumers are willing to pay for the products they want to purchase. In a monopolistic competitive market the consumer may choose to purchase a substitute product for a lower price, but only if the consumer values price over value. Of course with a monopoly there may be only a few companies offering a substitute product. If one company’s product becomes too high in price, the consumer will eventually look for another brand that offers similar use. According to economist, the monopolistic competitor’s demand curve is less elastic than a pure competitor and more elastic than a pure monopolist. Monopolistic competitors have excess capacity which means that fewer companies operating at capacity could supply the industry output. It is my opinion that Wonks might operate more beneficially as a Monopoly than at a Monopolistic Competitive firm because they will not have as much competition to deal with and they can corner the market with value and price. Resources: 1. McChesney, F. S. , Shughart II, W. F. , Haddock, D. D. (2004). ON THE INTERNAL CONTRADICTIONS OF THE LAW OF ONE PRICE. Economic Inquiry, 42(4), 706-716. doi:10. 1093/ei/cbh091 2. Mainwaring, L. L. (1977). MONOPOLY POWER, INCOME DISTRIBUTION AND PRICE DETERMINATION. Kyklos, 30(4), 674. 3. https://www. fcsknowledgecenter. com/uploads/2011_Row_Crops_Industry_Perspective. pdf 4. http://academic. udayton. edu/lawrenceulrich/Stakeholder%20Theory. pdf 5. http://www. answers. com/topic/mergers-and-acquisitions 6. http://www. helium. com/items/1405663-what-is-a-monopoly-what-do-monopolies-do-how-is-the-economy-affected-by-monopolies 7. Case, K. E. , Fair, R. C. , and Oster, S. E. (2009) Principles of Microeconomics (9th ed). Upper Saddle River, New Jersey: Pearson Prentice Hall.

Critical Review Determination Of Accounting Standards Accounting Essay

Critical Review Determination Of Accounting Standards Accounting Essay Ross L. Watts and Jerold L. Zimmerman explore factors that motivate companies in lobbying on accounting standards and examine whether their opinion on certain standards are associated with their size. They use data from the companies which submit comments to the FASBs Discussion Memorandum on General Price Level Adjustment. The empirical evidence supports the argument that the firms tend to choose accounting standards which report lower earnings due to political and regulatory considerations. Their findings also confirm that big firms are more likely to be subjected to governmental interference. However, the paper might not be based on strong theoretical foundations. Moreover, some assumptions used in the paper could decrease the external validity of the research. I. Introduction Ross L. Watts and Jerold L. Zimmerman have written a remarkable paper in accounting research which attempt to provide positive theory about factors influencing companies in lobbying on accounting standards. The paper also discuss the question whether the size of the companies affect their opinion on certain standards. This paper is important because it makes contribution to the positive accounting theory development. It might be the first paper which attempt to provide empirical evidence on positive accounting theory about factors influencing management attitude on certain accounting standards. The data and the issues discussed were new in that period. It contributes to a literature that has uncovered empirical regularities in accounting practice (Holthausen and Leftwich, 1983 and Watts and Zimmerman, 1986 as discussed in Watts and Zimmerman, 1990 p 131). The literature has been developing since the publication of this paper in 1978 (Watts and Zimmerman, 1990 p 132). Though, the pape r also brought considerable debate among researchers. This essay intends provide critical review and highlights some important points from the paper by reviewing in four main areas: (i) research paradigm, (ii) theoretical framework, (iii) methodology, and (iv) research findings. The following section discusses about research paradigm used in the paper. The next section explores criticisms on the theoretical framework of the research. Section four reviews the methodology used in the research. Section five examines important finding from this paper. Finally, the last section presents some conclusion about the paper. II. Research Paradigm The researchers discussed an interesting topic in accounting theory. They use positivism paradigm in the research. This paradigm gets many criticisms when it is used in the social science research. According to Collis and Hussey (2009), positivism is criticized based on five main arguments. First, it is impossible to separate people from the social context in which they exist. Second, people cannot be understood without examining the perceptions they have of their own activities. Third, a highly structured research design imposes constrains on the results and may ignore other relevant findings. Fourth, researchers are not subjective, but part of what they observe. They bring their own interests and values to the research. Fifth, capturing complex phenomena in a single measure is misleading(Collis and Hussey, 2009, p. 56). Furthermore, Sterling (1990, p. 98) argued that Instead of trying to determine how to improve the present state of accounting we are told to try to determine the pr esent state of accounting. However, Watts and Zimmerman argued that they adopted the label positive from economics where it was used to distinguish research aimed at explanation and prediction from research whose objective was prescription (Watts and Zimmerman, 1990, p.148). Therefore, the evidence generated from researches using this paradigm will improve the development of accounting theory by providing explanations and predictions for normative research. Moreover, positivism as one of paradigm in research is used for many researches in social science today (Collis and Hussy, 2009). This paradigm is underpinned by the belief that reality is independent of us and the goal is the discovery of theories, based on empirical research (Collis and Hussy, 2009). III. Theoretical Framework The paper starts with the discussion about factors determining management attitudes toward financial accounting standards. The discussion based on two assumptions. First, individuals act to maximize their own utility(Watts and Zimmerman, 1978, p.113). This assumption means that management attitudes on certain accounting standards are based on its interest to maximize its own utility. Second, managements utility is a positive function of the expected compensation in the future periods (or wealth) and a negative function of the dispersion of future compensation (or wealth) (Watts and Zimmerman, 1978, p.114). The expected forms of compensation for management that are used in this research are incentive compensation and share price increase. The discussion then continues with the description of factors affecting management wealth. Those factors are taxes, regulation, political costs, information production costs, and management compensation plans. Each factor gives different impact on the way management chooses accounting standards. The researchers argue that management tend to choose accounting standards which report lower earnings (thereby increasing cashflows, firm value and their welfare) due to tax, political, and regulatory considerations than to choose accounting standard which report higher earnings and, thereby, increase their incentive compensation(Watts and Zimmerman, 1978, p.118). They also argue that this prediction depend on the political pressure on the firms and whether they are regulated or not. Another consideration that management should consider is the cost of information production as a consequence of the implementation of new standards. Based on the combination of factors affecting management wealth, they created two models that describe two possible conditions. The first model depicts the condition when the change in accounting standards will decrease the earnings of the firms and the second model depicts the condition when the earnings are increase. In short, the theory pronounces that there are three possible attitudes of the companies when the change in accounting standards decreases their earnings: submit favorable opinion, submit unfavorable opinion, or do no submit opinion. On the other hand, only two possible attitudes of the companies if the change in accounting standards increases their earnings: submit unfavorable opinion or do no submit opinion. The choice taken by the companies depends on the size of the companies. One of the important points explained in the paper is that the researchers omit some variables in developing the theory. Two of them are described in their paper. First, they realized that, generally, the factors influencing the regulation cost of utility companies is not only net income but also operating earnings. Second, they omit political sensitivity of the firms industry because there is no underlying theory to discuss this factor at that time. The theories used on this research got many criticisms. It needs verification and replication (Holthausen and Leftwitch, 1983 p. 100). The researchers should be able to understand and explained it well before conducting their research (Christenson, 1983 p. 20). Hines (1988 p. 661) suggested clarifying whether their theories were universal or probabilistic, and if the latter, explained on what conceptual grounds they should be held to be so. Therefore, it is better to test the theories first using another hypothesis before analyzing data using the theories (Hines. 1988 p. 661). However, Watts and Zimmerman argue that although the criticisms are relevant, those criticisms placed unreasonable demand on study (Watts and Zimmerman, 1990, p.149). In addition, their theories provide theoretical basis for other researches in accounting. For instance, Milne (2002, p.371) argued the theories provide the stated theoretical basis for a number of social disclosure studies. Moreover, this paper was probably the only paper which predicts corporate lobbying behavior as a function of firm-specific factors' (Holthausen and Leftwitch, 1983 p. 95). Another important point in the paper is that the researchers only focus on shareholders, creditors, and government in explaining some factors influencing management accounting choice. In fact, there are many users of financial statements have not discussed thoroughly in the paper. Those are employee, analyst-adviser, supplier and trade creditor, customer, competitors, and the public. The public includes taxpayers, consumers and other community and special interest groups, such as political parties, consumer and environmental protection societies and regional pressure groups. Each user has different interest on the firms. Therefore, they might influence the accounting choice. For instance, the accounting choice taken by the firm which has a significant impact on increasing its earnings will stimulate employees to ask for bonuses or even increase in their salaries. Conversely, if the accounting choice taken by firm has a significant impact on decreasing its earnings, it will make emplo yees worry about their job security. Then, it might increase employee the turnover in the firm. Finally, it would be interesting if the paper also discuss cultural differences between companies. It could be one important factor influencing management accounting choice. Each firm consists of groups of people who share their culture based on their top managements policies. This culture will also determine the firm accounting choice. The link between accounting value and cultural value (Alexander et all. (2009) discussed research by Gray (1988) based on Hofstede (1984) classification scheme) could be used to analyze the accounting choice of the firm. For instance, some firms might choose a more conservative accounting choice because their cultural characteristic is uncertainty avoidance. It might also explain why some big size companies did not submit their opinion on the discussion memorandum. IV. Methodology The researchers used voluntary disclosure regarding GPLA Statements for some companies that published such disclosure to predict the position of the companies on the new standard. For the others companies, they used the studies from Davidson and Weil (1975) and Davidson, Stickney, and Weil (1976) who develop an adjusting procedure which relies solely on published financial statements and GNP deflators. Furthermore, they also constructed proxy variables based on unadjusted depreciation and net monetary assets. They argue that these proxy variables can serve as a surrogate for the effect of GPLA earnings. One of main the problems is the dependent variable used by the researchers. They divided the responses into two categories, the companies which agree and disagree with the memorandum. This dichotomy does not represent the actual condition since some responses might consist of agreement on certain points in the memorandum but disagreement on other points (Holthausen and Leftwitch, 1983 p. 104). Another problem is the assumption that the companies which did not mention the compensation or reply the questioner assumed no compensation plans. This assumption may lead to the conclusion bias. The next important point is the use of firms size to proxy for political cost. The decision to use this method might be affected by condition at the time the paper was written. During the 1970s, oil companies dominated the largest of the US companies, and they were also subject to much public outrage and political scrutiny during and immediately following the oil crisis of 1973 (Milne, 2002, p.374). However, Hilnes suggested to avoid the use of crude proxies such as the use of firm size to operationalize the concept of political cost' (Hines. 1988 p. 661). Watts and Zimmerman (1990) as discussed by Milne (2002, p.377) finally realized that the size is too noisy as a proxy. Subsequent to their research, empirical studies have tended to use or suggest a wider range of measures to proxy for political costs (Milne, 2002, p.377). They may needs to elaborate the effect of firms stage of growth in accounting choice. The nature of managements solution (including the accounting choice) to each revolutionary period determines whether a company will move forward into its next stage of evolutionary growth (Greiner, 1972). The firm should choose the right solution (including accounting choice) in order to survive. Companies which are in the earlier stage of development will tend to maximize their profit while more mature companies will focus on sustainability issues. The focus on sustainability issues might stimulate companies to respond differently in order to survive in their environment. This argument could be an explanation why companies with different size have different respond to certain standards (Watts and Zimmerman, 1978). In terms of analysis, the focuses of the research on political cost especially on the effect of government intervention might reduce its external validity. The analyses conducted in isolation of other factors are inappropriate because accounting is used for many purposes (Fields et all. 2001, p. 300). The proposition that corporations will do anything to support the decision of accounting procedures that minimize reported earnings might not suitable for the companies with accounting-based debt covenants. The empirical evidence shows that those companies are more likely to choose income-increasing accounting methods (Begley, 1990 p. 138). Another research by Sweeney (1994) on the companies which violated debt covenants found that managers tend to do accounting change to increase the income figure in the years surrounding technical defaults. In summary, the researchers should be careful in using assumptions. They have to realize that their focus on political cost especially on the effect of government intervention might reduce external validity of the research. V. Research Findings Finally, the research provides important findings generated from this research. First, the empirical evidence supports the argument that the firms tend to choose accounting standards which report lower earnings due to political and regulatory considerations. Those firms are the firms that have contact with the government directly through regulation or indirectly through possible government intervention. Their findings also confirm that big firms are more likely to be subjected to governmental interference. The existence of costs generated by government intervention may have more fundamental and important effects on its investment-production decision if the potential costs of government interference become large. Based on this research, McKee et all. (1984. P. 658) then replicate the research using a larger sample. Unfortunately, the results from this research are not satisfactory. The evidences do not support the theories provided by this research. McKee et all. (1984. P. 647) argued that there are some problems regarding the test procedures and its underlying theories. However, the findings generated from this research are now become important consideration in conducting researches in accounting especially regarding earnings management. Research in this topic usually aims to find companies that tend to choose accounting standards which will affect their earnings. Therefore, most of researchers in this topic eliminate companies in regulated industries (utilities and financial companies) from their sample to minimize the effects of political and regulatory considerations (For example: Madhogarhia et all., 2009; Roychowdhury, 2006). Conclusion In summary, this paper is a remarkable paper in accounting research. It gives starting point in the development of positive theory in accounting. It might be the first research that investigates factors influencing management accounting choice. Though, there are some important points need to be improved in this research. The most important point is the improvement in theoretical framework. Based on the discussion on the paper, it could be concluded that accounting choice is a function of internal and external influences. Internal influences comprise some factors such as culture and stages of growth of the companies while external influences comprise changes in tax, regulation, information production cost, and management compensation costs. Combination of those influences affects the attitude of the company to certain changes, including the attitude toward the change of certain accounting standards. Iin order to improve the development of the theory in this topic, Fields et all. (2001, p. 299-300) made three recommendations. First, researchers should give more efforts to investigate the nature of the implications of alternative accounting methods rather than just testing the implications. Then, the research should not focus only to one accounting issue or one goal. Even though the tasks become more complex, they will give a better contribution to the development of theoretical framework in accounting. Finally, the researchers should develop more powerful statistical techniques and improve research design (Fields et all. 2001, p. 300). References: Alexander, D., Anne B., and A. Jorissen (2009) International Financial Reporting and Analysis, Cengage Learning, Hampshire, UK. Begley, J., (1990) Debt Covenant and Accounting Choice, Journal of Accounting and Economics 12, 125-139. Christenson, C., (1983) The methodology of positive accounting, The Accounting Review, Vol.58, N0.1, pp 1-22. Collis. J., and Roger H., (2009) Business Research: A Practical Guide for Undergraduate and Postgraduate Students, Palgrave Macmillan, UK. Fields, T., Lys, T., and Vincent, L., (2001) Empirical Research on Accounting Choice, Journal of Accounting and Economics, Vol. 31, pp. 255-307. Greiner, L. E., (1972) Evolution and Revolution as Organization Grow, Harvard Business Review (July-August): 37 -46. Madhogarhia, P., Ninon K. S., and Theodor K., (2009) Earnings Management Practices Among Growth and Value Firms, Applied Financial Economics, 19, 1767-1778. Hines. R. D. (1988) Poppers methodology of falsificationism and accounting research, The Accounting Review, (October): 657-662. Holthausen. R. W. and R. W. Leftwich. 1983 The economic consequences of accounting choice: Implications of costly contracting and monitoring, Journal of Accounting Economics, (August): 77-117. McKee. A. J., Jr., T. B. Bell, and J. R. Boatsman (1984) Management preferences over accounting standards: A replication and additional tests, The Accounting Review, (October):647-659. Roychowdhury, S. (2006) Earnings Management Through Real Activities Manipulation, Journal of Accounting and Economics 42, 335-370. Sterling, R., (1990), Positive accounting: An assessment, Abacus, Vol.26, pp. 97-135. Sweeney, A. P. (1994), Debt-covenant violations and managers accounting responses, Journal of Accounting and Economics, 17, 281-308. Watts, R. L. and J. L. Zimmerman, (1978), Towards a positive theory of the determination of accounting standards, The Accounting Review, (January): 112-134. Watts, R., Zimmerman, J., (1990), Positive accounting theory: A ten year perspective, The Accounting Review 65, 131-156.