Original Writing Essay

As she lay there silently on her back, staring deeply into the intricate yet excruciatingly dull pattern on the textured ceiling- as if it were a piece of fine, overpriced artwork, she let her thought processes wander over exhausted terrain. She thought of life, of death, of love, of hate, of god†¦ and everything along the way. What was it all for? She began to scribble a few notes down on a piece of paper in front of her. Her mind began to flutter from one feeling to the next. â€Å"I’m reading all the time of hate and anger and frustration. I’m hearing nothing but the pain of others. I see the agony of all around me. And I have felt it, breathed it, been engulfed by it. I understand the need to vent, to get it all out. But I realise now that I can no longer accept it. Blood is on the minds of millions of innocent children, searching for an answer to this emptiness that harbours our death wish. We hold, in our hand, the power to steal†¦ but nothing is taken without payment. Give and take, live and let live. No harm done, no penalty. Even the most gentle of beings get judged by the monster. This is no dragon, no giant; this is a group, a society, a network. This monster is sacrificing the happiness of the innocent for suicide. This monster is killing off what may be our last chance. Children beaten down and left to bleed and to cry, they are screaming but no one cares, no one sees them. They are irrelevant, theses children are†¦ they are the children of you and yours and people you know. They are outcasts these children are. They are banned from beliefs of any sort of rebellion or belief in other gods. But these children need no god. These children worship themselves. They are good and are portrayed as evil, yet they are shunned and thrown away. Put on display for window shoppers to point and stare and mock. These children are not different, they are not unique. The children are minions banned together to have their freedom. They are slaves to the system. Their innocence is overlooked but ignorant bystanders and administrators. These children are against everything, against god, against the devil, against you, against me. They refuse to worship the nine inch nails of your so called â€Å"Christ†. You will never win! The children will persevere. The children will run free. You will die someday. They will to. They know that in the end we are all alone and you’ve spent your lives convinced that there is always someone looking out for you and your heretic children. These children know better than you. These children know fate. They know yours and you can sense it. They can smell the fear in your shattered voice. They can smell failure. The innocent children have a blood lust and a hit list†¦ I guess this means you will die. Too bad we couldn’t save you from the innocent children†¦ they killed us too. We are locked inside our minds and we are rotting here now† ‘Everything dies’ she thought, but she still hadn’t figured out how to truly live yet. Would her life come to an end before she even knew the answers to all of her questions? It seemed meaningless. Everything seemed that way lately. Her life had become a painful cycle of the same boring events, day after everlasting day. Her friends had begun to slowly detach themselves from her, and it made her question herself. She’d been gone for so long when she moved away, and her world felt wonderful when she had returned to her home, and the people she had taken advantage of before. They’d all seemed glad to see her, and she’d never felt so important. She fell back into her circle of friends and remembered all that she had walked away from. She was happy again, and that was good. One day, it was like the world had shifted suddenly and everything changed. People stopped talking to her. They no longer came by at all odd hours of the night bearing gifts and happy drug-induced smiles. Distancing them. Maybe they all finally came to the conclusion that they hadn’t been missing much after all. People tend to romanticize things to a definite fault, and when they realize they’ve set themselves up for disappointment, they don’t always realize that they themselves are not the only ones being affected by their great epiphany. They sometimes forget the person in the middle of it all, maybe even unintentionally, but without even thinking twice†¦ She asked herself what she possibly could have done to turn them away so suddenly. Was it just her character in general? Were some mindless beings getting rushes of power by spreading dirty lies about her as their new form of narrow-minded offence? Were they sick of her already? The fact that she found herself with so few people left to talk to wasn’t what bothered her. It was the fact that she was entirely oblivious to the cause of all of this landfill that made her question herself over and over again. The more she thought about it, the wider the possibility grew that they had never really enjoyed her company in the first place; it was all a terrible charade. She hated that she could be that person that people associated themselves with for mere lack of anything at all better to do. Was she that person that they all talked about in her absence, like she had seen them do to others in times passed? Did they avoid her when they saw her in the streets? Were they all ‘two-faced’ after all? Again, her reasoning began to shift. She wanted no part in any kind of comradeship with a person too shallow to tell her to ‘go away’ in person. She felt, she knew she was better off by herself. Somehow she felt more at ease in her own company anymore. She’d learned a lot about people in the years prior, and it sickened her to think about what humanity has come down to, how meaningless people have become. She honestly didn’t mind not having friends. Of course friends are wonderful to have, but she had found that she became more herself everyday she spent alone, and she liked that. She had come to the abrupt realization long ago that people really aren’t worth much anymore; definitely not worth wasting your days trying to change or analyze, or even hold a civil open conversation with, for that matter. And again, it all comes back around to the irrelevance of everything. Why had she just wasted her time thinking about these people that she doesn’t even like to surround herself with anymore? Since she’d returned, everything had changed so dramatically. Her friends were not the same people they had been three years ago, and they never would be again. She knew she could do nothing, and had accepted this fact, but it lingered painfully in the back of the bedlam of a mind she possessed. She wished for simpler times. She began to let her mind jump to other things. She’d tired herself of pondering anything even remotely related her connections with other people, and had come to the conclusion that she was indifferent on the matter. She really couldn’t bring herself to care much anymore. If someone desired to speak with her, they’d approach her, and she would listen, but making any sort of an effort to please another person seemed ridiculous to her – Meaningless. The past three hours had been meaningless, and so were the thoughts she had spent that time thinking. And now, so were the people that had provoked these very thoughts.

Mgc1 Study Guide

Strategic Management (Chapters 4 & 9) 1. Identify elements of the external environment and internal resources of the firm to analyze before formulating a strategy. a. External Environment: Industry and market analysis (industry profile, growth, and forces), Competitor analysis, Political and Regulatory analysis, Social analysis, Human Resources analysis, Macroeconomics analysis, and Technological analysis. Also forecasting future trends b. Internal Resources: Financial analysis, marketing audit, operations analysis, other internal resources analysis (such as research and development, management information systems, engineering and purchasing. ), human resources assessment. 2. Define core competencies and explain how they provide the foundation for business strategy. a. Core Competencies: A unique skill and/ or knowledge an organization possesses that gives it an edge over competitors. A core competence is something a company does especially well relative to its competitors. b. Think of core competencies as the roots of competitiveness and products as the fruits. c. It can provide a sustainable advantage if it is valuable, rare, difficult to imitate, and well organized. 3. Summarize the types of choices available for corporate strategy. a. Concentric i. focuses on a single business competing in a single industry. b. Vertical Integration i. involves expanding the domain of the organization into supply channels or to distributors. Vertical integration generally is used to eliminate uncertain-ties and reduce costs associated with suppliers or distributors. . Concentric Diversification i. involves moving into new businesses that are related to the company’s original core business. ii. Often companies such as Marriott pursue a strategy of concentric diversification to take advantage of their strengths in one business to gain advantage in another. Because the businesses are related, the products, markets, technologies, or capabilities used in one business can be transferred to another. Success in a concentric diversification strategy requires adequate manage-ment and other resources for operating more than one business. d. Conglomerate Diversification i. a corporate strategy that involves expansion into unrelated businesses. For example, General Electric Corporation has diversified from its original base in electrical and home appliance products to such wide- ranging industries as health, finance, insurance, truck and air transportation, and even media, with its ownership of NBC. Typically, companies pursue a conglomerate diversification strategy to minimize risks due to market fluctuations in one industry. 4. Discuss how companies can achieve competitive advantage through business strategy. . Two different business strategies generally lead to gaining a competitive advantage: Low Cost Strategies and Differentiation Strategies b. Low Cost Strategy: Businesses using a low- cost strategy attempt to be efficient and offer a standard, no- frills product. (i. e. Walmart and Southwest Airlines). To succeed, an organization using this strategy generally must be the cost leader in its industry or market segmen t. However, even a cost leader must offer a product that is acceptable to customers compared with competitors’ products. c. Differentiation Strategy: With a differentiation strategy, a company attempts to be unique in its industry or market segment along some dimensions that customers value. This unique or differentiated position within the industry often is based on high product quality, excellent marketing and distribution, or superior service. (i. e. Nordstrom’s commitment to quality and customer service). The most competitive strategy is one that competitors are unwilling or unable to imitate. 5. Describe the keys to effective strategy implementation. a. Step 1: Define strategic tasks. Articulate in simple language what a particular business must do to create or sustain a competitive advantage. Define strategic tasks to help employees understand how they contribute to the organization, including redefining relationships among the parts of the organization. b. Step 2: Assess organization capabilities. Evaluate the organization’s ability to implement the strategic tasks. A task force typically interviews employees and managers to identify specific issues that help or hinder effective implementation. Then the results are summarized for top management. In the course of your career, you will likely be asked to participate in a task force. c. Step 3: Develop an implementation agenda. Management decides how it will change its own activities and procedures; how critical interdependencies will be managed; what skills and individuals are needed in key roles; and what structures, measures, information, and rewards might ultimately support the needed behavior. A philosophy statement, communicated in terms of value, is the outcome of this process. d. Step 4: Create an implementation plan. The top management team, the employee task force, and others develop the implementation plan. The top management team then monitors progress. The employee task force continues its work by providing feedback about how others in the organization are responding to the changes. e. *Strategy must be supported by structure, technology, human resources, rewards, information sys-tems, culture, leadership, and so on. Ultimately, the success of a plan depends on how well employees at low levels are able and willing to implement it. Participative management is one of the more popular approaches executives use to gain employees’ input and ensure their commitment to strategy implementation. . The 6 Barriers to Strategy Implementation (or Silent Killers) a. Top- down or laissez-faire senior management style: With the top team and lower levels, the CEO/ general manager creates a partnership built around the development of a compelling business direction, the creation of an enabling organizational context, and the delegation of authority to clearly accountable individuals and teams. b . Unclear strategy and conflicting priorities: The top team, as a group, develops a statement of strategy, and priorities that members are willing to stand behind are developed. c. An ineffective senior management team: The top team, as a group, is involved in all steps in the change process so that its effectiveness is tested and developed. d. Poor vertical communication: An honest, fact- based dialogue is established with lower levels about the new strategy and the barriers to implementing it. e. Poor coordination across functions, businesses, or borders: A set of businesswide initiatives and new organizational roles and responsibilities are defined that require â€Å" the right people to work together on the right things in the right way† to implement the strategy. f. Inadequate down- the-line leadership skills and development: Lower- level managers develop skills through newly created opportunities to lead change and drive key business initiatives. They are supported with just- in-time coaching, training, and targeted recruitment. Those who still are not able to make the grade must be replaced. 7. What are the steps in the strategic planning process? Why should companies engage in strategic planning? a. Step 1: Establishment of mission, vision, and goals b. Step 2: Analysis of external opportunities and threats c. Step 3: Analysis of internal strengths and weaknesses d. Step 4: SWOT Analysis and Strategy Formulation e. Step 5: Strategy Implementation f. Step 6: Strategic Control 8. What are the components of a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis? a. SWOT analysis: A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. b. Strengths and weaknesses refer to internal resources. i. For example, an organization’s strengths might include skilled management, positive cash flow, and well- known and highly regarded brands. Weaknesses might be lack of spare production capacity and the absence of reliable suppliers. . Opportunities and threats arise in the macroenvironment and competitive environment. i. Examples of opportunities are a new technology that could make the supply chain more efficient and a market niche that is currently underserved. Threats might include the possibility that competitors will enter the underserved niche once it has been shown to be profitable. 9. What is the difference between strategic vision, strategic intent, strategic objectives, and strategic mission? a. Strategic vision: The long- term direction and strategic intent of a company. b. Strategic Intent: The direction a company intends to go c. Strategic Objectives: d. Strategic Mission: The mission is a clear and concise expression of the basic purpose of the organization. It describes what the organization does, who it does it for, its basic good or service, and its values. 10. What is the value chain concept? a. A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step. b. A value chain describes the way in which value is added to various areas of an organization. Porter’s value chain model categorizes an organization into five primary and four support activities. Primary activities include inbound logistics, operations, outbound logistics, sales and marketing, and service. Support activities are company infrastructure, technology development, human resource management, and procurement. c. According to Porter’s model, you can achieve competitive advantage by reducing costs or restructuring one or all primary activites to gain a cost advantage. 11. What is the purpose of the value chain analysis? a. Managers can add customer value and build competitive advantage by paying close attention to their organization’s value chain— not only each step in it, but the way each step interacts with the others. 2. Describe Porter's Five Forces model. a. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. i. Force 1: Rivalry 1. DEGREE OF RIVALRY a. -Exit barriers b. -Industry concentration c. -Fixed costs/Value added d. -Industry growth e. -Intermittent overcapacity f. -Product differences g. -Switching costs h. -Brand identity i. -Diversity of rivals j. -Corporate stakes ii. Force 2: Threats of New Entrants & Barriers to Entry: It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be nominal. In reality, however, industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. These are barriers to entry. 1. Absolute cost advantages 2. Proprietary learning curve 3. Access to inputs 4. Government policy 5. Economies of scale 6. Capital requirements 7. Brand identity 8. Switching costs 9. Access to distribution 10. Expected retaliation 11. Proprietary products iii. Force 3: Buyer Power: The power of buyers is the impact that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monopsony – a market in which there are many suppliers and one buyer. 1. Bargaining leverage 2. Buyer volume 3. Buyer information 4. Brand identity 5. Price sensitivity 6. Threat of backward integration 7. Product differentiation 8. Buyer concentration vs. industry 9. Substitutes available 10. Buyers' incentives iv. Force 4: Threat of Substitutes: The competition engendered by a Threat of Substitute comes from products outside the industry. The price of aluminum beverage cans is constrained by the price of glass bottles, steel cans, and plastic containers. These containers are substitutes, yet they are not rivals in the aluminum can industry. 1. -Switching costs 2. -Buyer inclination to 3. substitute 4. -Price-performance 5. trade-off of substitutes v. Force 5: Supplier Power 1. Supplier concentration 2. Importance of volume to supplier 3. Differentiation of inputs . Impact of inputs on cost or differentiation 5. Switching costs of firms in the industry 6. Presence of substitute inputs 7. Threat of forward integration 8. Cost relative to total purchases in industry 13. How does Porter's Five Forces model influence strategic planning? 14. Discuss why it is critical for organizations to be responsive. a. Responsiv eness is the quickness, agility, and ability to adapt to changing demands. b. Businesses today must be responsive because of the fast-changing business environment. 15. Describe the qualities of an organic organization structure. . The organic structure stands in stark contrast to the mechanistic organization. It is much less rigid and, in fact, emphasizes flexibility. The organic structure can be described as follows: 1. Jobholders have broader responsibilities that change as the need arises. 2. Communication occurs through advice and information rather than through orders and instructions. 3. Decision making and influence are more decentralized and informal. 4. Expertise is highly valued. 5. Jobholders rely more heavily on judgment than on rules. 6. Obedience to authority is less important than commitment to the organization’s goals. 7. Employees depend more on one another and relate more informally and personally. b. People in organic organizations work more as teammates than as subordinates who take orders from the boss, thus breaking away from the traditional bureaucratic form. The more responsive a firm is, the more responsive it will be to changing competitive demands and market realities. 16. Identify strategies and dynamic organizational concepts that can improve an organization's responsiveness. a. New and emerging organizational concepts and forms include core competencies, strategic alliances, learning organizations, and high-involvement organizations. b. Participative management is becoming increasingly popular as a way to create a competitive advantage. c. High-involvement organization: high- involvement organization, top management ensures that there is a consensus about the direction in which the business is heading. The leader seeks input from his or her top management team and from lower levels of the company. Task forces, study groups, and other techniques are used to foster participation in decisions that affect the entire organization. 17. Explain how a firm can be both big and small. a. Historically, large organizations have had important advantages over small organizations. Today, small size has advantages, including the ability to act quickly, respond to customer demands, and serve small niches. The ideal firm today combines the advantages of both. It creates many small, flexible units, while the corporate levels add value by taking advantage of its size and power. 18. Summarize how firms organize to meet customer requirements. a. By using Customer Relationship Management (A multifaceted process focusing on creating two- way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns. ) b. By continually changing in order to connect with customers, even without waiting for customers to make the first move. c. Research and development focus on innovation and new products. Inbound logistics receive and store raw materials and distribute them to operations. Operations transform the raw materials into final product. Outbound logistics warehouse the product and handle its distribution. Marketing and sales identify customer requirements and get customers to purchase the product. Service offers customer support, such as repair, after the item has been bought. d. Utilizing Total Quality Management e. Firms have embraced principles of continuous improvement and total quality management to respond to customer needs. Baldrige criteria and ISO 9001 standards help firms organize to meet better quality specifications. Extending these, reengineering efforts are directed at completely overhauling processes to provide world-class customer service. Total Quality Management (Chapters 5 & 9) 1. Define total quality management. a. An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high- quality goods and services. 2. Discuss Deming's 14 points of quality. a. Deming’s â€Å" 14 points† of quality emphasized a holistic approach to management that demands intimate understanding of the process— the delicate interaction of materials, machines, and people that deter-mines productivity, quality, and competitive advantage: 1. Create constancy of purpose— strive for long- term improvement rather than short- term profit. 2. Adopt the new philosophy— don’t tolerate delays and mistakes. 3. Cease dependence on mass inspection— build quality into the process on the front end. 4. End the practice of awarding business on price tag alone— build long- term relationships. . Improve constantly and forever the system of production and service— at each stage. 6. Institute training and retraining— continually update methods and thinking. 7. Institute leadership— provide the resources needed for effectiveness. 8. Drive out fear— people m ust believe it is safe to report problems or ask for help. 9. Break down barriers among departments— promote teamwork. 10. Eliminate slogans, exhortations, and arbitrary targets— supply methods, not buzzwords. 11. Eliminate numerical quotas— they are contrary to the idea of continuous improvement. 12. Remove barriers to pride in workmanship— allow autonomy and spontaneity. 3. Institute a vigorous program of education and retraining— people are assets, not commodities. 14. Take action to accomplish the transformation— provide a structure that enables quality. 3. Discuss Six Sigma. a. One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects, in an approach called Six Sigma Quality. b. The product defects analyzed may include anything that results in customer dissatisfaction— for example, late delivery, wrong shipment, or poor customer servi ce, as well as problems with the product itself. When the defect has been identified, managers then engage the organization in a determined, com-prehensive effort to eliminate its causes and reduce it to the lowest practicable level. At Six Sigma, a product or process is defect- free 99. 99966 percent of the time— less than 3. 4 defects or mistakes per million. Reaching that goal almost always requires managers to restructure their internal processes and relationships with suppliers and customers in fundamental ways. 4. Identify ways that firms organize around different types of technology. . Small batch: Technologies that produce goods and services in low volume. b. Large Batch: Technologies that produce goods and services in high volume. c. Continuous Process: A process that is highly automated and has a continuous production flow. 5. Define reengineering. How is reengineering important to an organization's success? a. The principal idea of reengineering is to revolutionize key organizational systems and processes to answe r the question: â€Å" If you were the customer, how would you like us to operate? The answer to this question forms a vision for how the organization should run, and then decisions are made and actions are taken to make the organization operate like the vision. b. Reengineering is not about making minor organizational changes here and there. It is about completely overhauling the operation, in revolutionary ways, to achieve the greatest possible benefits to the customer and to the organization. 6. What are the benefits of implementing a total quality management system? a. Total quality management (TQM) is different from the old concept of quality because its focus is on serving customers, identifying the causes of quality problems, and building quality into the production process. b. When it is properly implemented, this style of management can lead to decreased costs related to corrective or preventative maintenance, better overall performance, and an increased number of happy and loyal customers 7. What is continuous improvement? a. Continuous improvement, called kaizen by the Japanese, requires that the company continually strive to be better through learning and problem solving. Because we can never achieve perfection, we must always evaluate our performance and take measures to improve it. 8. What are the steps for building a quality management system? a. 1. Customer focus — learning and addressing customer needs and expectations. 2. Leadership — establishing a vision and goals, establishing trust, and providing employees with the resources and inspiration to meet goals. 3. Involvement of people — establishing an environment in which employees understand their contribution, engage in problem solving, and acquire and share knowledge. 4. Process approach — defining the tasks needed to successfully carry out each process and assigning responsibility for them. 5. System approach to management — putting processes together into efficient systems that work together effectively. 6. Continual improvement — teaching people how to identify areas for improvement and rewarding them for making improvements. 7. Factual approach to decision making — gathering accurate performance data, sharing the data with employees, and using the data to make decisions. 8. Mutually beneficial supplier relationships — working in a cooperative way with suppliers. . What is the difference between quality assurance and quality control? a. Quality control is the set of activities performed to ensure that the products or services meet the requirements as defined during the earlier process for assurance of quality. These activities are done during the manufacturing process and once the product is manufactured. b. Qual ity guarantee or assurance is the set of procedures developed and activities done before the product or service is manufactured or delivered to assure of good quality to the customers. This is a proactive approach. 10. What is a quality audit? When is it used? Entrepreneurial Perspective (Chapter 7) 1. Summarize how to assess opportunities to start new companies. a. You should always be on the lookout for new ideas, monitoring the current business environment and other indicators of opportunity. Franchising offers an interesting opportunity, and the potential of the Internet is being tapped (after entrepreneurs learned some tough lessons from the dot- bomb era). Trial and error and preparation play important roles. Assessing the business concept on the basis of how innovative and risky it is, combined with your personal interests and tendencies, will also help you make good choices. Ideas should be carefully assessed via opportunity analysis and a thorough business plan. 2. Identify common causes of success and failure. a. New ventures are inherently risky. The economic environment plays an important role in the success or failure of the business, and the entrepreneur should anticipate and be prepared to adapt in the face of changing economic conditions. How you handle a variety of common management challenges also can mean the difference between success and failure, as can the effectiveness of your planning and your ability to mobilize nonfi-nancial resources, including other people who can help. 3. Discuss common management challenges. a. When new businesses fail, the causes often can be traced to some common challenges that entrepreneurs face and must manage well. You might not enjoy the entrepreneurial process. Survival— including getting started and fending off competitors— is difficult. Growth creates new challenges, including reluctance to delegate work to others. Funds are put to improper use, and financial controls may be inadequate. Many entrepreneurs fail to plan well for succession. When needing or wanting new funds, initial public offerings provide an option, but they represent an important and difficult decision that must be considered carefully. 4. Explain how to increase your chances of success, including good business planning. a. The business plan helps you think through your idea thoroughly and determine its viability. It also convinces ( or fails to con-vince) others to participate. The plan describes the venture and its future, provides financial projections, and includes plans for marketing, manufacturing, and other business functions. The plan should describe the people involved in the venture, a full assess-ment of the opportunity (including customers and competitors), the environmental context (including regulatory and economic issues), and the risk (including future risks and how you intend to deal with them). Successful entrepreneurs also understand how to develop social apital, which enhances legitimacy and helps develop a network of others including customers, talented people, partners, and boards. 5. How does an organization cultivate entrepreneurship within the organization (intrapreneurship)? a. Intrapreneurs work within established companies to develop new goods or services that allow the corporation to reap the benefits of innovation. To facilitate intrapraneurship, organizations use skunkworks— special project teams designated to develop a new product— and allow bootlegging— informal efforts beyond formal job assignments in which employees pursue their own pet projects. Organizations should select projects carefully, have an ongoing portfolio of projects, and fund them appropriately. Ultimately, a true entrepreneurial orientation in a company comes from encouraging independent action, innovativeness, risk taking, proactive behavior, and competitive aggressiveness. 6. What role does entrepreneurship play within an organization? 7. Should organizations encourage an entrepreneurial spirit within their organization? Why or why not? 8. What is the relationship between innovation and entrepreneurship? a. Entrepreneurship is the pursuit of lucrative opportunities by enterprising individuals. . Entrepreneurship is inherently about innovation— creating a new venture where one didn’t exist before. 9. What are the common characteristics of an entrepreneur? a. 1. Commitment and determination: Successful entrepreneurs are decisive, tenacious, disciplined, willing to sacrifice, and able to immerse themselves in their enterprises. 2. Leadership: They are self- starters, team builders, superior learners, and teachers. Communicating a vision for the future of the company— an essential component of leadership that you’ll learn more about in Chapter 12— has a direct impact on venture growth. 7 3. Opportunity obsession: They have an intimate knowledge of customers’ needs, are market driven, and are obsessed with value creation and enhancement. 4. Tolerance of risk, ambiguity, and uncertainty: They are calculated risk takers and risk managers, tolerant of stress, and able to resolve problems. 5. Creativity, self- reliance, and ability to adapt: They are open- minded, restless with the status quo, able to learn quickly, highly adaptable, creative, skilled at conceptualizing, and attentive to details. . Motivation to excel: They have a clear results orientation, set high but realistic goals, have a strong drive to achieve, know their own weaknesses and strengths, and focus on what can be done rather than on the reasons things can’t be done. 10. Do the financing issues that new businesses face differ from those faced by a well-established business? How? Conflict and Change (Chapters 14, 16, 7 18) 1. Identify ways to manage conflict. a. Managing lateral relationships well can prevent some conflict. But conflict arises because of the sheer number of contacts, ambiguities, goal differences, competition for scarce resources, and different perspectives and time horizons. Depending on the situation, five basic interpersonal approaches to managing con-flict can be used: avoidance, accommodation, compromise, com-petition, and collaboration. Superordinate goals offer a focus on higher- level organizational goals that can help generate a collaborative relationship. Techniques for managing conflict between other parties include acting as a mediator and managing virtual conflict. 2. Identify different conflict styles. a. Avoidance, accommodation, compromise, competing, collaboration 3. Discuss the role of a mediator. a. A Mediator is a â€Å" third party† intervening to help settle a conflict between other people. Third- party intervention, done well, can improve working relationships and help the parties improve their own conflict- management, communication, and problem- solving skills. 4. Explain the difference between avoidance, accommodation, compromise, competing, and collaboration as conflict styles. a. Avoidance: A reaction to conflict that involves ignoring the problem by doing nothing at all, or deemphasizing the disagreement. . Accommodation: A style of dealing with conflict involving cooperation on behalf of the other party but not being assertive about one’s own interests. c. Compromise: A style of dealing with conflict involving moderate attention to both parties’ concerns. d. Competing: A style of dealing with conflict involving strong focus on one’s own goal s and little or no concern for the other person’s goals. e. Collaboration: A style of dealing with conflict emphasizing both cooperation and assertiveness to maximize both parties’ satisfaction. 5. Describe four types of control systems. a. Bureaucratic Control: Bureaucratic control is the use of rules, regulations, and formal authority to guide performance. It includes such items as budgets, statistical reports, and performance appraisals to regulate behavior and results. b. Market Control: Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources ( services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the basis of profit and loss. . Clan Control: Clan control, unlike the first two types, does not assume that the interests of the organization and individuals naturally diverge. Instead, clan control is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them. When members of an organization have common values and goals— and trust one anotherâ₠¬â€ formal controls may be less necessary. d. Dynamic Control: 6. What types of control systems have you seen in operation in your organization (or one you know well)? 7. What is functional conflict? Describe the conflict process. 8. What are some conflict-resolution techniques that can be employed in an organization? 9. What is the controlling function within an organization? 10. What are the steps in the control process? 1. Setting performance standards. 2. Measuring performance. 3. Comparing performance against the standards and determining deviations. 4. Taking action to correct problems and reinforce successes. 11. What are the stages of change within an organization? a. Unfreezing: breaking from the old ways of doing things b. Moving: instituting the change c. Refreezing: reinforcing and supporting the new ways 12. What strategies can mangers use to overcome resistance to their change initiatives? a. Understand why people often resist change (inertia, timing, surprise, peer pressure/ self interest, misunderstanding, different assessments, management tactics) b. Force- field analysis: involves identifying the specific forces that prevent people from changing and the specific forces that will drive people toward change. c. Education and Communication: Management should educate people about upcoming changes before they occur. It should communicate not only the nature of the change but its logic. d. Participation and Involvement: change requires reflection and dialogue. It is important to listen to the people who are affected by the change. They should be involved in the change’s design and implementation. e. Facilitation and Support: Facilitation involves training and other resources people need to carry out the change and perform their jobs under the new circumstances. This step often includes decentralizing authority and empowering people, that is, giving them the power to make the decisions and changes needed to improve their performance. . Negotiation and Rewards: When necessary and appropriate, management can offer concrete incentives for cooperation with the change. Perhaps job enrichment is acceptable only with a higher wage rate, or a work rule change is resisted until manage-ment agrees to a concession on some other rule ( say, regarding taking breaks). g. Manipulation and cooptation: One form of manipulation is cooptation, which involves giving a resisting individual a desirable role in the change process. The leader of a resisting group often is coopted. For example, management might invite a union leader to be a member of an executive committee or ask a key member of an outside organization to join the company’s board of directors. As a person becomes involved in the change, he or she may become less resistant to the actions of the coopting group or organization. h. Explicit and implicit coercion: Some managers apply punishment or the threat of punishment to those who resist change. With this approach, managers use force to make people comply with their wishes. Human Resource Mgmt & Diversity (Chapters 10 & 11) 1. How do companies use human resource management to gain a competitive advantage? a. To succeed, companies must align their human resources to their strategies. Effective planning is necessary to make certain that the right number and type of employees are available to implement a company’s strategic plan. It is clear that hiring the most competent people is a very involved process. Companies that compete on cost, quality, service, and so on also should use their staffing, training, appraisal, and reward systems to elicit and reinforce the kinds of behaviors that underlie their strategies. 2. Give reasons companies recruit both internally and externally for new hires. a. Some companies prefer to recruit internally to make certain that employees are familiar with organizational policies and values. In other instances, companies prefer to recruit externally, such as through employee referrals, job boards, newspaper advertising, and campus visits, to find individuals with new ideas and fresh perspectives. External recruiting is also necessary to fill positions when the organization is growing or needs skills that do not exist among its current employees. 3. Identify various methods for selecting new employees. . There are myriad selection techniques from which to choose. Interviews and reference checks are the most common. Per-sonality tests and cognitive ability tests measure an individual’s aptitude and potential to do well on the job. Other selection techniques include assessment centers and integrity tests. Background and reference checks verify that the informati on supplied by employees is accurate. Regardless of the approach used, any test should be able to demonstrate reliability ( consistency across time and different interview situations) and validity ( accuracy in predicting job performance). In addition, selection methods must comply with equal opportunity laws, which are intended to ensure that companies do not discriminate in any employment practices. 4. Evaluate the importance of spending money and time on training and development. a. People cannot depend on a set of skills for all of their working lives. In today’s changing, competitive world, old skills quickly become obsolete, and new ones become essential for success. Refreshing or updating an individual’s skills requires a great deal of continuous training, designed with easurable goals and methods that will achieve those goals. Companies understand that gaining a competitive edge in quality of service depends on having the most talented, flexible workers in the industry. 5. Explain alternative selections for those who appraise an employee's performance. a. Many companies are using multiple sources of appraisal because different people see different sides of an employee’s performance. Typical ly, a superior is expected to evaluate an employee, but peers and team members are often well positioned to see aspects of performance that a superior misses. Even an employ-ee’s subordinates are being asked more often today to give their input to get yet another perspective on the evaluation. Particularly in companies concerned about quality, internal and external customers also are surveyed. Finally, employees should evaluate their own performance, if only to get them thinking about their own performance, as well as to engage them in the appraisal process. 6. Describe the fundamental aspects of a reward system a. Reward systems include pay and benefits. Pay systems have three basic components: pay level, pay structure, and individual pay determination. To achieve an advantage over competitors, executives may want to pay a generally higher wage to their company’s employees, but this decision must be weighed against the need to control costs ( pay- level decisions often are tied to strategic concerns such as these). To achieve internal equity ( paying people what they are worth relative to their peers within the company), managers must look at the pay structure, making certain that pay differentials are based on knowledge, effort, responsibility, working conditions, seniority, and so on. Individual pay determination is often based on merit or the dif-ferent contributions of individuals. In these cases, it is important to make certain that men and women receive equal pay for equal work, and managers may wish to base pay decisions on the idea of comparable worth ( equal pay for an equal contribution). Also, the Occupational Safety and Health Act requires that employees have a safe and healthy work environment. 7. Summarize how unions and labor laws influence human resources management. a. Labor relations involve the interactions between workers and management. One mechanism by which this relationship is con-ducted is unions. Unions seek to present a collective voice for workers, to make their needs and wishes known to manage-ment. Unions negotiate agreements with management regard-ing a range of issues such as wages, hours, working conditions, job security, and health care. One important tool that unions can use is the grievance procedure established through collective bargaining. This mechanism gives employees a way to seek redress for wrongful action on the part of management. In this way, unions make certain that the rights of all employees are protected. Labor laws seek to protect the rights of both employees and managers so that their relationship can be pro-ductive and agreeable. 8. Describe how changes in the U. S. workforce make diversity a critical organizational and managerial issue. a. The labor force is getting older and more racially and ethnically diverse, with a higher proportion of women. And while the absolute number of workers is increasing, the growth in jobs is outpacing the numerical growth of workers. In addition, the jobs that are being created frequently require higher skills than the typical worker can provide; thus, we are seeing a growing skills gap. To be competitive, organizations can no longer take the traditional approach of depending on white males to form the core of the workforce. Today, managers must look broadly to make use of talent wherever it can be found. As the labor market changes, organizations that can recruit, develop, motivate, and retain a diverse workforce will have a competitive advantage. 9. Distinguish between affirmative action and managing diversity. a. Affirmative action is designed to correct past exclusion of women and minorities from U. S. organizations. But despite the accomplishments of affirmative action, it has not eliminated bar-riers that prevent individuals from reaching their full potential. Managing diversity goes beyond hiring people who are different from the norm and seeks to support, nurture, and use employee differences to the organization’s advantage. 10. Identify challenges associated with managing a diverse workforce. a. The challenges for managers created by a diverse workforce include decreased group cohesiveness, communication problems, mistrust and tension, and stereotyping. These challenges can be turned into advantages by means of training and effective management. 11. Define monolithic, pluralistic, and multicultural organizations. a. Monolithic: An organization that has a low degree of structural integration— employing few women, minorities, or other groups that differ from the majority— and thus has a highly homogeneous employee population.. b. Pluralistic: Pluralistic organizations have a relatively diverse employee population and try to involve various types of employ-ees ( e. g. , engaging in affirmative action and avoiding discrimination). Conflict is greatest in a pluralistic organization. c. Multicultural: Multicultural organizations not only have diversity but value it, and they fully integrate men and women of various racial and ethnic groups, as well as people with different types of expertise. 12. List steps managers and their organizations can take to cultivate diversity. a. To be successful, organizational efforts to manage diversity must have top management support and commitment. Organizations should first undertake a thorough assessment of their cultures, policies, and practices, as well as the demographics of their labor pools and customer bases. Only after this diagnosis has been completed is a company in position to initiate programs designed to attract, develop, motivate, and retain a diverse workforce. 13. What is strategic human resource planning, and how does it benefit an organization? 14. What legal considerations must organizations consider when hiring employees? 15. What is the job characteristics model (JCM)? a. Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction. The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc. ). 16. Why are certain types of diversity protected by law? What are they? a. Female, minorities, immigrants, disabled people. 17. What are some barriers to cross-cultural communication in an organization? a. isunderstandings, inac-curacies, inefficiencies, and slowness. Speed is lost when not all group members are fluent in the same language or when additional time is required to explain things. Sometimes diversity may decrease communication, as when white male managers feel less comfortable giving feedback to women or minorities, for fear of how criticism may be received. The result may be employees who do n ot have a clear idea of what they need to do to improve their performance. 18. When are organizations required to modify their workplace in order to accommodate the needs of an individual employee? a. When the employee is unable to accomplish his job without reasonable accommodation. 19. What is an effective diversity training program? a. A program that has 1. Position training in your broad diversity strategy. 2. Do a thorough needs analysis. 3. Distinguish between education and training. 4. Use a participative design process. 5. Test the program thoroughly before rollout. 6. Incorporate training programs into the core training curriculum. CHAPTER 10 QUIZ QUESTIONS 20. Conducting demand forcasts is the most difficult part of HR planning. 21. Job analysis provides job descriptions and job specifications. 2. Which of these is the most popular selection tool? – Interviews 23. The behavioral description interview explores what candidates have actually done in the past. 24. Which of these is a managerial performance test in which candidates participate in a variety of exercises and situations? –Assessment center 25. The degree to which a selection test predicts or correl ates with job performance is called validity. 26. While laying off 160 employees in a cost cutting move, Peel and Seal, Inc. is also helping these laid-off employees regain employment elsewhere. This is referred to as outplacement. 27. Development involves teaching managers and professional employees broader skills needed for their present and future jobs. 28. The law that prohibits gender based pay discrimination between two jobs substantially similar in skill, effort, responsibility, and working conditions is Equal Pay Act. 29. MBO is one approach to results appraisals. 30. The decision that prices different jobs within the organization is pay structure 31. Internal factors affecting the wage mix include compensation policy of organization. 32. Individual incentive plans are the most common type of incentive plan. 33. The use of a neutral third party to resolve abor dispute is called arbitration. CHAPTER 11 QUIZ QUESTIONS 1. What percent of women currently make up the workforce? -46% 2. Rosalie reached the level of regional manager at Bike Tools Etc. nine years ago. Three of her counterparts have been promoted to vice president level. Although Rosalie has more experience and better performance numbers, she has no t been promoted. As a matter of fact, white males occupy all senior positions at Bike Tools Etc. Rosalie appears to have hit the glass ceiling. 3. William was denied promotion because he rejected the sexual advances from his boss, Reba. This appears to be a case of _____ harassment. Quid Pro Quo 4. Minorities and immigrants hold approximately _____ jobs in the United States. –1 out of every 4 5. All of the following statements are true except: African American workforce is growing the fastest in the United States followed by Asian and Hispanic workforces / by 2020, most of California's entry-level workers will be Hispanic / the younger Americans are, the more likely they are to be persons of color / three in ten college enrollees are people of color / foreign-born workers make up more than 15 percent of the U. S. civilian labor force 6. _____ are the largest unemployed minority in the United States. People with disabilities 7. The most common negative effect of diversity is c ommunication problems. 8. A(n)____ is an organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds. –pluralistic organization Organizational Structure (Chapters 8, 9 , 15, & 17) 1. Explain how differentiation and integration influence an organization's structure. a. Differentiation means that organizations have many parts. Specialization means that various individuals and units throughout the organization perform different tasks. The assignment of tasks to different people or groups often is referred to as the division of labor. But the specialized tasks in an organization cannot all be performed independently of one another. Coordination links the various tasks in order to achieve the organization’s overall mission. An organization with many different specialized tasks and work units is highly differentiated; the more differentiated the organization is, the more integration or coordination is required. 2. Summarize how authority operates. a. Authority is the legitimate right to make decisions and tell other people what to do. Authority is exercised throughout the hierarchy, as bosses have the authority to give orders to subordinates. Through the day- to- day operation of authority, the organization proceeds toward achieving its goals. Owners or stockholders have ultimate authority. 3. Define the roles of the board of directors and the chief executive officer. a. Boards of directors report to stockholders. The board of directors controls or advises management, considers the firm’s legal and other interests, and protects stockholders’ rights. The chief executive officer reports to the board and is accountable for the organization’s performance. 4. Discuss how span of control affects structure and managerial effectiveness. a. Span of control is the number of people who report directly to a manager. Narrow spans create tall organizations, and wide spans create flat ones. No single span of control is always appropriate; the optimal span is determined by characteristics of the work, the subordinates, the manager, and the organization. 5. Explain how to delegate effectively. a. Delegation— the assignment of tasks and responsibilities— has many potential advantages for the manager, the subordinate, and the organization. But to be effective, the process must be managed carefully. The manager should define the goal, select the person, solicit opinions, provide resources, schedule checkpoints, and discuss progress periodically. 6. Distinguish between centralized and decentralized organizations. a. In centralized organizations, most important decisions are made by top managers. In decentralized organizations, many decisions are delegated to lower levels. 7. Summarize ways organizations can be structured. a. Organizations can be structured on the basis of function, division ( product, customers, or geographic), matrix, and network. Each form has advantages and disadvantages. 8. Identify the unique challenges of the matrix organization. a. The matrix is a complex structure with a dual authority structure. A well- managed matrix enables organizations to adapt to change. But it can also create confusion and interpersonal dif-ficulties. People in all positions in the matrix— top executives, product and function managers, and two- boss managers— must acquire unique survival skills. 9. Describe important integrative mechanisms. a. Managers can coordinate interdependent units through standardization, plans, and mutual adjustment. Standardization occurs when routines and standard operating procedures are put in place. They typically are accompanied by formalized rules. Coordination by plan is more flexible and allows more freedom in how tasks are carried out but keeps interdependent units focused on schedules and joint goals. Mutual adjustment involves feedback and discussions among related parties to accommodate each other’s needs. It is at once the most flexible and simple to administer, but it is time- consuming. 10. What is the difference between forward vertical integration and backward vertical integration? a. Forward Vertical Integration b. Backward Vertical Integration: 11. What are the benefits and challenges of a matrix organization structure? . Benefits: i. Decision-making is decentralized to a level where information is processed properly and relevant knowledge is applied. †¢ Extensive communications networks help process large amounts of information. †¢ With decisions delegated to appropriate levels, higher management levels are not overloaded with operational decisio ns. †¢ Resource utilization is efficient because key resources are shared across several important programs or products at the same time. †¢ Employees learn the collaborative skills needed to function in an environment characterized by frequent meetings and more informal interactions. Dual career ladders are elaborated as more career options become available on both sides of the organization. b. Challenges: i. Confusion can arise because people do not have a single superior to whom they feel primary responsibility. †¢ The design encourages managers who share subordinates to jockey for power. †¢ The mistaken belief can arise that matrix management is the same thing as group decision-making— in other words, everyone must be consulted for every decision. †¢ Too much democracy can lead to not enough action.

Concept of Present Value

WHY IS THE CONCEPT OF PRESENT VALUE SO IMPORTANT FOR CORPORATE FINANCE? The importance of concept of present value to the world of corporate finance is that present value calculations are widely used in business and economics to provide a means to compare cash flows at different times. Present Value’s definition and simplistic formula used for normal purchases, the concept’s importance to corporate finance and why present value is the very first topic taught in finance classes explain that present value is an essential knowledgeable tool to ensure we make the best decisions with our money. However, first, What Does Present Value – PV Mean? Present value is â€Å"the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they are earnings or obligations. † Through the definition itself, an importance to corporate finance is explained as well as why professors begin a finance course with a basis explanation in the time value of money – discounting and investment risk included. In more detail, capital investment decisions are long-term corporate finance decisions relating to fixed assets and capital structure. Decisions are made with several criteria to consider, and where corporate management seeks to maximize value in the firm by the correctly calculated net present value when valued using an appropriate discount rate. It would be beneficial on a personal level for the following reasons; â€Å"Learning how to use a financial calculator to make present value calculations can help you decide whether you should accept a cash rebate, 0% financing on the purchase of a car or to pay points on a mortgage. Present value could often the first topic taught in any finance class, due to the fact that knowledge of this formula can be used for basic financial planning that will lead to larger level strategy – making the best company investment decisions. Now, on to the fun stuff that is so anxiously taught in class – the problems and formulas. 2a. $500 i f invested for five years at a 4% interest rate: FV = 500 (1 + . 04)^1) = 500 (1. 04) = $520. 00 FV = 520 (1 + . 04)^2) = 520 (1. 0816) = $540. 80 FV = 540. 80 (1 + . 04)^3) = 540. 80 (1. 124864) = $562. 43 FV = 562. 43(1 + . 04)^4) = 562. 43(1. 169859) = $584. 3 FV = 584. 93(1 + . 04)^5) = 584. 93 (1. 216653) = $608. 33 End of Year12345 Principal$500. 00$520. 00$540. 80$562. 43$584. 93 Interest$20. 00$20. 80$21. 63$22. 50$23. 40 Total$520. 00$540. 80$562. 43$584. 93$608. 33 2b. $150 if invested for three years at a 9% interest rate: FV = 150 (1 + . 09)^1) = 150 (1. 09) = $163. 50 FV = 163. 50(1 + . 09)^2) = 163. 50(1. 1881) = $178. 22 FV = 178. 22 (1 + . 09)^3) = 178. 22 (1. 295029) = $194. 25 End of Year123 Principal$150. 00$163. 50$178. 22 Interest$13. 50$14. 72$16. 04 Total$163. 50$178. 22$194. 25 2c. $9100 if invested for seven years at a 3% interest rate: FV = 9100 (1 + . 03)^1) = 9100 (1. 03) = $9373 FV = 9373 (1 + . 03)^2) = 9373 (1. 0609) = $9654. 19 FV = 9654. 19 (1 + . 03)^3) = 9654. 19 (1. 092727) = $9943. 82 FV = 9943. 82 (1 + . 03)^4) = 9943. 82 (1. 12550881) = $10242. 13 FV = 10242. 13 (1 + . 03)^5) = 10242. 13 (1. 15927407) = $10549. 39 FV = 10549. 39 (1 + . 03)^6) = 10549. 39(1. 1940523) = $10865. 88 FV = 10865. 88(1 + . 03)^7) = 10865. 88 (1. 22987387) = $11191. 85 End of Year1234567 Principal$9,100. 00$9,373. 00$9,654. 19$9,943. 82$10,242. 13$10,549. 39$10,865. 88 Interest$273. 00$281. 19$289. 63$298. 31$307. 26$316. 48$325. 8 Total$9,373. 00$9,654. 19$9,943. 82$10,242. 13$10,549. 39$10,865. 88$11,191. 85 2d. $1000 if invested for ten years at a 0. 5% interest rate: FV = 1000 (1 + . 005)^1) = 1000 (1. 005) = $1005 FV = 1005 (1 + . 005)^2) = 1005 (1. 010025) = $1010. 03 FV = 1010. 03 (1 + . 005)^3) = 1010. 03 (1. 01507513) = $1015. 08 FV = 1015. 08 (1 + . 005)^4) = 1015. 08 (1. 020150501) = $1020. 15 FV = 1020. 15 (1 + . 0 05)^5) = 1020. 15 (1. 02525125) = $1025. 25 FV = 1025. 25 (1 + . 005)^6) = 1025. 25(1. 03037751) = $1030. 38 FV = 1030. 38(1 + . 005)^7) = 1030. 38 (1. 0355294) = $1035. 53 FV = 1035. 53 (1 + . 05)^8) = 1035. 53 (1. 040707) = $1040. 71 FV = 1040. 71 (1 + . 005)^9) = 1040. 71(1. 0459106) = $1045. 91 FV = 1045. 91(1 + . 005)^10) = 1045. 91 (1. 0511401) = $1051. 14 End of Year12345 Principal$1,000. 00$1,005. 00$1,010. 03$1,015. 08$1,020. 15 Interest$5. 00$5. 02$5. 05$5. 08$5. 10 Total$1,005. 00$1,010. 03$1,015. 08$1,020. 15$1,025. 25 End of Year678910 Principal$1,025. 25$1,030. 38$1,035. 53$1,040. 71$1,045. 91 Interest$5. 13$5. 15$5. 18$5. 20$5. 23 Total$1,030. 38$1,035. 53$1,040. 71$1,045. 91$1,051. 14 Present Value – 3a. $7700 to be received three years from now with a 5% interest rate PV = 7700 / (1 + . 05) ^ 3 = 7700 / (1. 157625) = $6651. 55 3b. $1500 to be received five years from now with a 7% interest rate PV = 1500 / (1 + . 07) ^ 5 = 1500 / (1. 4025517) = $1069. 48 3c. $7200 to received two years from now with an 11% interest rate PV = 7200 / (1 + . 11) ^ 2 = 7200 / (1. 2321) = $ 5843. 68 3d. $ 680,000 to be received eight years from now with a 9% interest rate. PV = 680000 / (1 + . 09) ^ 8 = 680000 / (1. 9925626) = $341269. 07 Time Value of Money – Annuities 4. Present Value – Annuity / Suppose you are to receive an annuity of $3000 every year for 3 years @ 3% interest rate. PV = PVAF(r,n)*CF PVAF(r,n) = 1/r – 1/[r*(1+r)^n] (33. 33 – 30. 50472 = 2. 828611) PV = 2. 828611*3000 PV = $ 8485. 83 5. Future Value – Annuity / Suppose you receive a payment of $5000 every year for 3 years, depositing into a bank that pays 2% interest. FV = CF * FVAF (r,n) FVAF(r,n) = 1/r – 1/[r*(1+r)^n] (50 – 47. 11612 = 2. 883883) FV = 5000 * 2. 883883 FV = $14419. 42 REFERENCES Anonymous (2010). Investopedia. com. Present Value. Retrieved on 5 Apr 2010 @ http://www. investopedia. com/terms/p/presentvalue. asp 2 Megginson, William (2008). Corporate Finance. Stamford: Thomson Learning. P. 86. Anonymous (2010). Investopedia. com. Explaining Present Value-PV. Retrieved on 5 Apr 2010 @ http://www. investopedia. com/terms/p/presentvalue. asp 4 Anonymous (n. d). FinanceProfessor. com. Future Value. Retrieved on 3 Apr 2010 from http://www. financeprofessor. com/fiancnenotes/introductoryfin/presentvalue. htm 5 Anonymous (n. d). FinanceProfessor. com. P resent Value. Retrieved on 3 Apr 2010 from http://www. financeprofessor. com/fiancnenotes/introductoryfin/presentvalue. htm 6 Anonymous (2008). The Time Value of Money. Retrieved on 4 Apr 2010 from http://www. econedlink. org/lessons/index. cfm? lesson=EM37

Project management office (PMO) Thesis Example | Topics and Well Written Essays - 750 words

Project management office (PMO) - Thesis Example There is convincing evidence, largely in the form of case studies, that suggest the implementation of a project management office can be rather labor intensive and difficult to set up, yet not much research has specifically address the specific challenges that are involved in this process. In addition, little is known about organizations can specifically overcome each of these challenges and begin to realize the benefits of incorporating such an office into their existing project management structure. In an effort to better address this concept and existing gap in research related to this field, a Delphi study was commissioned in order to identify the unique challenges related to implementing a project management office for the express purpose of better managing Information Technology related projects. This study also served the purpose of ranking these challenges in terms of their order of importance so that managers can better understand how the design of the project management off ice itself can benefit the entire Information Technology team. It was also beneficial to uncover and discus the various ways that some organizations have overcome these potential challenges. Doing so enables everyone involved in the process to better understand the particular role and function of the project management office, the metrics involved, and the tools and resources required to facilitate and effective PMO within the organization as a whole. The recently published Standish CHAOS Report revealed that 68% of software projects do not currently meet their own internal targets related to time, cost, or scope (2009). In fact, it was revealed that only about 32% of the projects examined were actually completed on time and within budget. This illustrates the reality that such projects did not often deliver the measurable benefits to the business and affiliated stakeholders that is required, which further alludes to the need for

Ecological Desing a strategie for a business pratice Dissertation

Ecological Desing a strategie for a business pratice - Dissertation Example Therefore it is but natural that the present product apart from displaying its host of unique features would also project the ecological design aspect of the product as an USP. Development of an eco design through research and subsequently incorporating the same in a business operation is the challenge faced by most companies. This general factors influencing eco design, the areas of change where eco design is applicable, the methods adopted by companies in introducing products and the manner in which an eco design is integrated with business operations form a part of this dissertation. Contents 1. Abstract 2 2. Contents 3 3. List of Illustrations 4 4. Introduction 5 5. Chapter 1-Factors Influencing Eco design adoption 6 6. Chapter 2- Applicability of Eco-design 8 7. Chapter 3- The Basic Methods and systems developed 10 by companies to produce Eco-Designed Products. 8. Chapter 4- Different Eco-Design Strategies adopted by 14 Business organizations as form of marketing Strategy 9. Cha pter 5- Effectiveness of Ecological design- a survey 15 10. Chapter 6- Analysis of an Eco Design manual 18 11. Chapter 7- Examples of Eco-Design adopted by Multinational Companies and Smaller Organizations 22 12. Conclusion 25 List of Illustrations 1. Fig 1- A holistic design foe eco-design focused tools. 7 2. Fig 2- The role of eco-design 8 3. Fig 3- Checklist for eco design in advanced estimation company 11 4. Fig 4- Levels of environment product innovation 13 5. Fig 5- Energy consumption growth index compared to GDP 23 6. Fig 6- Importance in buying green as perceived by customers worldwide 25 Introduction Eco-Design is the design and development of products that are both environment friendly and economically viable. The word derives its origins from the concept of a synergy between design, economy and ecology. (Miriam Borchardt, Leonel A.C.Poltosi, Miguel A Sellito and Gianfraco M.Pereira, 2009) A design which is able to satisfy all three requirements in an effective manner is s aid to be a successful eco-designed product. With the world globalising at a fast rate there has been a rapid increase in the both the demand and consumption of goods. New players emerging and competing in the global market, has put a severe strain on the available natural resources and the idea of creating a environment friendly product has been relegated to the background. The three basic issues that an eco-design addresses are (1) Reduce the consumption of non-renewable resources (Fuller Buckminster, 2002) (2) Manage the existing renewable resources more effectively (3) Design products that are environment friendly and do not pollute the environment in any manner. (Eco-Design: European State of the Art, 2007) Chapter 1 Forces Influencing Eco-Design Adoption The forces influencing Eco-Design adoption by companies are categorized into external factors and internal factors. The external factors are as follows (1) The new age customer is getting more information regarding the dangers of environment pollution. He is thus getting more informed regarding the choices he can make while selecting a product. Thus he is able to demand products that are safe and environment friendly which leads to a direct pressure on companies to come up with innovative and eco-friendly solutions to their products.( Murphy J et al, 2007) (2) A government that is sensitive to the concerns of the environment shall bring out laws, stipulations and guidelines within which a product needs to function. Adherence to

Strategic Compensation Assignment Example | Topics and Well Written Essays - 500 words

Strategic Compensation - Assignment Example Person-focused pay is advantageous since it controls costs and motivates employees’ productivity. Employees should be rewarded according to their productivity and not according to amount of their salaries. The factors that an employee need to have in order to be entitled for rewards are work output quality, work output quantity, work safety records, work attendance, and monthly sales. The company in the case study need to implement the following four types of employees’ incentive plans. Management rewards plan that awards managers when they exceed or meet the sales, production, or profit objectives. Piecework plans that reward employees for every unity produced. Behavioral incentive plan that award employees for accomplishing specific behavior such as safety records and good attendance. Person-focused pay plans will be of broad significant not only to the employees but also towards the organization’s productions.This is because the plans will motivate employees’ productivity as well as controlling costs that the company incurs (Gregory, 2009). Therefore, the management should not use the roles of Jane and the shift leader to determine whether they should be entitled for overtime but factors such as work output quality, work output quantity, work safety records, work attendance, and monthly sales. Job evaluation is defined as an objective and systematic process that organizations use to compared all jobs performed by employees to determine the worth or value of each job category. The focus of job evaluation is to evaluate the job and not the workers who undertake the job (Robinson, Wahlstrom & Mecham, 2004). The criteria used for job evaluation include factors like skills needed, education qualification, job responsibilities and working conditions. Moreover, there are four main methods that managers use to evaluate jobs in their organizations. Job ranking-This method of job evaluation involves ranking all jobs done in an organization in an order of

Sir Richard Branson, Chairman, Virgin Group, Ltd. Case Study

Sir Richard Branson, Chairman, Virgin Group, Ltd. - Case Study Example It is the leadership policies that facilities to identify the capabilities of each and every leader’s leadership style. The leadership styles are mainly adopted in order to meet the goals and the objectives of the organization. The basic leadership styles that a leader might follow are autocratic, bureaucratic, laissez-faire and democratic (Sage Publication, 2012). It has been evident from the case study that Sir Richard Branson is one of the most effective and prominent leaders. Out of the various leadership styles that have been demonstrated above in terms of authentic leadership style, expert power as well as referent power, Sir Richard Branson seems to be practicing laissez-faire leadership style. He believes in doing things in an innovative way so that the customers can be fascinated with the brand. He believes in working with people whom he knows and can trust. Sir Richard Branson values his employees and thus involves them in the process of decision making. He believes in autonomy of choice for the employees thereby leaving them alone so that the employees are capable of doing what they want to do. It has been quite apparent from the case study that Sir Richard Branson possesses innate leadership qualities. He has been found to make use of natural capabilities as well as skills. He believes in the fact that the employees need to be valued and their opinions need to be sought in order to make the company grow bigger. It is a well known fact that the authentic leaders learn from their mistakes and their failures that occurred in the past. Whenever Sir Richard Branson experiences any sort of setbacks, he always picks himself up and tries again. He prepares himself to have another attempt at certain unfulfilled aspects with the knowledge or learning that he has gathered from the failures in the past. Authentic leaders tend to gain encouragement from their own lives (University of Technology Sydney, 2012). He has been quite motivated by his mother who revealed the fact that one must not look back in regret but must move to the next thing. It can be mentioned that an authentic leader is someone who is not afraid of confessing his/her faults. He/she therefore makes an attempt in order to overcome his/her drawbacks. From the case study, it has been recognized that Sir Richard Branson also practices expert as well as referent powers. Sir Richard Branson seems to possess the necessary skills as well as knowledge which can be utilized by someone else (Martin, 1978). He has the capability to impact others’ behavior because of the recognized competencies, specialized knowledge as well as talents. It has been apparent that Sir Richard Branson possesses the power of holding the capability to manage other persons’ feelings related to personal recognition (Nwlink, 2012). According to Sir Richard Branson, the correct pecking order in an organization is employees first, customers next and shareholders at the end. This perception demonstrates how much importance his company places on the employees. It can be mentioned that Sir Richard Branson’s leadership style has been quite effective for Virgin Group Limited. He has been capable of taking the company to great heights and to be recognized as among the most famous brands in the world. Most of

Summarize an article from the Wall Street Journal Essay - 1

Summarize an article from the Wall Street Journal - Essay Example Torrens and other Proponents of Equity-based crowd funding deem it as a blessing in times of deepening economic crises. Since businesses themselves are not in a position to increase employment, they can provide a bigger growth potential through investment opportunities. Supporter of the notion believe that such opportunities should only be provided through online outlets as it is extremely cost-effective. It would also make the investment market more open to millions of investors (Torrens & Slavinsky, 2012). This method further enables businesses to secure and reach out to a greater client base, who are naturally motivated to help the business succeed. On the other hand, opponents of this idea believe that legalization would only cause ill-informed clients to lose their money on failing companies. It will pose a higher risk and will subsequently influence the purchasing power of people as individuals lose money due to their bad decisions. There are high chances that it will further lead to a downward spiral of recession. Moreover, there are greater chances of foul play and fraud companies may surface that may further cause the general population to incur heavy losses. It will also significantly impact legitimate businesses, as investors are fooled into investing for fraudulent companies. Therefore, businesses should take the merits of alternate investment methods in to account. (Torrens & Slavinsky, 2012) It is quite ostensible that though, equity based crowd funding may have several pros, but they can only be enjoyed if the businesses give the crowd massive returns on their investments. Businesses can obtain huge number of clients, who had initially supported the company through their investments. However, from the people’s perspective, investing in equity differs from investing in stocks that can be liquefied whenever the client wants. Equity is illiquid and as a result, there is no clear way out of this

Obligation Assessment Essay Example | Topics and Well Written Essays - 3500 words

Obligation Assessment - Essay Example The case is having a history which is stated below. Plaintiffs one and two were married during 1986 and wished to buy a weekend house which they were ready to procure if no excessive repairs were required. They had seen the house Nutford Farm House, Blandford, Dorset. Both the plaintiffs were happy with the house and wished to buy it. Mrs. Marrow conducted the survey on it and sent her report stating that there is no requirement for much repairs and stated some defects were seen in that house. The plaintiffs were willing to buy a house at a cost up to  £170,000, but were not ready to spend any more for repair. Depending and trusting the report forwarded by Mrs. Morrow, the couple decided to buy Nutford Farm House. The asking cost for the house was set at  £175,000, as there was another client ready to buy it offering a price of  £177,500 and the couple bought the property. The situation changed after entering for living in that house. The hide out stated as â€Å"overall dwell ing house to be sound, stable and in good condition† (Stephen, Ralph & Bingham, 1991, p.3) by Mrs. Morrow turned out to be a structure requiring much monetary expense for normal make up. The â€Å"eradication of wood borer in roofing timbers† (Stephen, Ralph & Bingham, 1991, p.3) was actually necessitating â€Å"the roof was due for renewal with felting, rebattening and retiling† (Stephen, Ralph & Bingham, 1991, p.4) and â€Å"minor works of eradicating continued dampness in ground floor walls† (Stephen, Ralph & Bingham, 1991, p.4) was actually shown as â€Å"the first floor timbers needed specialist woodworm treatment and refixing of firring pieces with extensive renewal of floor boarding† (Stephen, Ralph & Bingham, 1991, p.4) also with other works which were not mentioned in Mrs. Morrow’s report of survey. This indicates the fact â€Å"surveyors report negligently failing to disclose defects† (Stephen, Ralph & Bingham, 1991, p.1) whi ch should be trialled under

Countering Terrorism Essay Example | Topics and Well Written Essays - 1750 words

Countering Terrorism - Essay Example Different quotas have used different methods trying to stop terrorism all over the world. In essence, the counter terrorism procedure incorporates both the exposure of potential acts and the reaction to related events (Maras, 2012). Counter terrorism is known to include standard police and domestic intelligence. It has both traditional and modern technology. In terms of traditional methods, there is interception of communication and tracing of persons. On the other hand, the new technology entails the range of military and law enforcement operations (Crenshaw, 2010). It is a common occurrence that terrorism has continued to cause pain and suffering on the lives of people all over the world. In fact, every single day does not go down without the act of terrorism being detected in a particular part of the world, as having affected innocent people who happen to be at the wrong place at the wrong time, this is one of the many unfortunate cases that has raised interest in one of the most renowned international defenders of Human Rights organizations, the United Nations, an agenda that is been discussed currently. According to Hughes, et al 2011, the impact of terrorism on human beings has devastating consequences especially on the right to life, liberty and physical integrity of the victims. Additionally, terrorism destabilizes most governments, undermine the freedom of civil society, tampers with peace and security in the conflict zones, as well as, those surrounding them, and further threatens the social and economic development of nations a factor that is tagged on the impact of enjoying human rights. Governments obligation such as security and protection of individuals, which is a basic human right is not respected as expected (Crenshaw, 2010). In the past years, numerous methods have been used by governments and states towards the curbing of terrorism. However, a high percentage of these measures and methods have continually posed challenges to human rights and the rule of law. In fact, some of these states have engaged in human torture and other ill treatments to counter terrorism disregarding the legal and watchdogs that have been put in place to prevent torture. Maras, 2012 argues that, other states and governments have deported suspected persons of engaging in terrorism to their mother countries where they are subjected to excessive torture, over and above, human rights abuse that is directly associated to violation of international legal obligations. Needless to mention, independence of the judiciary had been ignored and undermined by a substantial number of states and governments while the use of special courts to handle suspected persons of terrorism have seriously impacted the normal running of the general court processing. Some of the developing states and government have used resources that are allocated for social programmes and economic development for the security purposes, a situation that has affected the economic, social a nd cultural rights to many. Principally, combating terrorism has been hugely associated with the use of military, human torture, and the abuse of human rights. Apparently, it is essential that states and government should begin using other methods other than military engagement to stop terrorism all over the world. Crenshaw 2010 asserts that some of these methods include; counter terrorism strategy for

Defining Humanities Essay Example for Free

Defining Humanities Essay Humanities is the study of language, philosophy, communication, environment, history, religion, sociology, arts, culture, education and ethics. The word humanities originally comes from the Latin word, â€Å"humanus. † The word humanus means â€Å"human. † To be â€Å"human† is to possess the qualities and attributes of man. Being human also has the feelings and dispositions proper to man. However, humanities as the study of the different cultural aspects analyzes man’s weaknesses in life and how each can be improved. Culture includes speech, knowledge, beliefs, arts, technologies, ideals, and rules. To be cultured means to be refined and well versed in arts, philosophy, and the languages. It is also to be learned about great men and leaders in the past. Culture should regulate the type of behavior considered appropriate to an individual. Its teaching is essential for one to obtain the proper knowledge in his efforts to achieve the status of being a cultured man. On the other hand, understanding man and his affairs rather than just a body of accepted facts and theories is a purpose for humanities. It has various meanings in different historical periods, but it is only the same. This sums up to remind everyone about humanity. Humanities dealt with philosophy and theology in the 12th, 13th centuries and Renaissance period. This was the study of disciplines among languages, fine arts, music, and philosophy. Recognizing literature defined humanities in the past. There were different types of performing arts such as music, dance, theatre, philosophy, and religion. Humanities supported various categories of literature. Each and every one of these types were study academically. in the early centuries. Humanities is still an ongoing study of today and the future.

Marriage vs Living Together Essay Example for Free

Marriage vs Living Together Essay Marriage vs Living Together Marriage is the legal union of a man and woman as husband and wife. It is also defined as the union between two people that are recognized by cultural or religious tradition. Older generations would feel that living together was disgraceful. The only way that living together was seen as acceptable was to be married. There are several differences between being married and living together such as the status in the government, status in the religious community, and status in each others eyes and each others families eyes. Television writers and producers are slowly making pop culture more diverse, but that does not mean every non-white character on television represents a step forward. Some programs seem not to do anything but pump racial stereotypes into the public eye. From geeky and pathetic Asian characters to a biracial genie who is literally an object in a white lady’s house. Another example would be from the show called , â€Å"Rob Schneider†, This new comedy is about Rob Schneider’s character attempting to connect with his wife’s large Mexican family, most of whom do not like him. It seems as though he’s supposed to be a sort of Archie Bunker character who makes awful stereotypical jokes and then is promptly dismissed by, you know, reality, but in this world the stereotypes seem to be true – the members of Maggie’s family are almost entirely defined by their Mexican-ness, right down to the mute, diminutive grandmother with a shrine to Jesus in her bedroom. We’re all for more Latino characters in primetime, but this is a pretty horrifying way to do It. (Victoria Mcnally, mar. , 2012) Children movies, television shows, and commercials are not immune to the typical racial stereotyping. In our increasingly ever-changing society, children are deeply drawn into television viewing and their consumption of television programming varies by ethnicity. Ethnic portrayal in children’s advertising is an important public policy and self-regulatory topic that may influence children’s self-perception and brand perception. Another show that promotes stereotypical behavior in television programing would be the Glee Club, that s essentially a show about the performing arts and the arts have always had an association (earned or perceived) as being gay friendly. If a guy tells someone that they are a dancer, they will assume he is gay. Glee stereotypically has gay characters. In conclusion, even commercials such as tide have shown racial stereotypical antidotes in them for example have you seen the latest Tide commercial where a â€Å"sassy black woman† is sitting on a bench getting very annoyed with being told she cannot wear white jeans after Labor Day. She actually gets up, starts with the neck swivel and the hand, and says she will do whatever she wants because Tide will keep her jeans white, â€Å"Not white-ish, not eggshell, and not ecru, whatever that is. † But pure white. Just another way of showing that no matter what genre of television programming, stereotyping is a part of it. Mostly due to television trying to appeal to different types of audiences to include ethnicity, sex and age.

Modern Role of Chiefs in Community Development

Modern Role of Chiefs in Community Development THE ROLE OF TRADITIONAL AUTHORITIES IN THE DECENTRALISATION OF POLITICAL POWER. A STUDY OF THE AKUAPEM TRADITIONAL AREA IN THE EASTERN REGION OF GHANA. AN OUTLINE OF A THESIS Introduction Background to the study Traditional governance system, is an age-old method by which the Indigenous people administered their own affairs prior to and after the advent of the Europeans into the region of modern Ghana. This system of governance is led by leaders multifariously referred to in English as chiefs, traditional authorities, tradi ­tional rulers, monarchs, kings, nobles, aristocrats, and natural rulers in a variety of African and other context. Traditional system of governance varies considerably among the different peoples that occupied the region of modern Ghana. While some groups developed very complex hierarchical structures, others had simple kin-based structure. Several definitions of traditional societies rely on the distinction between pre-colonial colonial and post-colonial times. For example, the International Labour Organization (ILO) Convention no. 169 states that: â€Å"A people are considered indigenous either because they are descendants of those who lived in the area before colonization; or because they have maintained their own social, economic, cultural and political institutions since colonization and the establishment of new states. And according to the Martinà ©z Cobo Report to the UN Sub-Commission on the Prevention of Discrimination of Minorities (1986), indigenous peoples may be identified as follows: â€Å"Indigenous communities, peoples and nations are those which, having a historical continuity with pre-invasion and pre-colonial societies that developed on their territories, consider themselves distinct from other sectors of the societies now prevailing in those territories, or parts of them. They form at present non-dominant sectors of society and are determined to preserve, develop and transmit to future generations their ancestral territories, and their ethnic identity, as the basis of their continued existence as peoples, in accordance with their own cultural patterns, social institutions and legal systems.† The office of traditional Authorities has been transformed as it has performed various functions back from the pre-colonial era through the colonial period to the present. Before the colonial period, traditional rulers had considerable influence and exercised considerable sovereignty within their areas of jurisdiction with their authority in both spiritual and secular matters. During the colonial period, they became virtual sub-agents of the colonial government in the areas of local government and judicial matters. In this period, various legislations and statutes enacted by the colonial authority prescribed the traditional ruler’s political role. Decentralization is basically described as the practice of the administration in a state by which considerable autonomy is given to sub-political governmental bodies at the local level to take decisions and implement programmes and policies. In Ghana it is also known as the local government system or the district assembly concept. The idea behind this system is to get the local people to use local resources to develop their localities. The present local government system has three-tier structure comprising the Regional coordinating council, the District assemblies and the Area, Town and Village Councils or Unit committees. Although the local government system in Ghana dates back to the colonial era, precisely 1859 when the first Councilors for James Town, Accra were elected, the current system is only a few years old precisely 1988 when the PNDC L207 was passed. The 1992 fourth republican constitution of Ghana gives credence to the system under chapter 20 with the title Decentralization and Local Government. The local government act 462 of 1993 has replaced the Local government Law 207 0f 1988. The head of the local government institution is the Minister who is charged with the responsibility of overseeing the operations of the institution. Traditional authority also known as the chieftaincy institution has lived on in Ghanaian society and is still a vibrant force in many ways. However Since independence in 1957, there has been little, if any, effective participation of chiefs in decentralization in Ghana. Indeed, the relationship between chiefs and local government units has been ill-defined, even though the history of local government cannot be written without the institution of chieftaincy. Even though some people argue that chieftaincy and modern local government are incompatible, one should not lose sight of the fact that the deep cynicism of some Ghanaians about politicians and their promises have compelled them to find in traditional authorities something that is â€Å"reassuring rather precisely because of its ambivalent position in what has become the disturbing discourse of failing modernity† (Rathbone, 2000: 164). Traditional Authorities in some time past were involved in local government functions like local development under the Native Authority System during the colonial days. Similarly, during the post-colonial period, the role of traditional Authorities in local governance and development has not been questioned The Ghanaian Constitution recognizes and protects the office of traditional Authority, thus creating a parallel system of governance. In fact, the Constitution forbids the Parliament from making laws that interfere with the chieftaincy institution. Statement of the problem. The office of the traditional Authority has evolved right from the pre colonial period through the colonial era to the establishment of party politics within the region of modern Ghana. Indeed, in Ghana, the institution dates back several centuries and remains the prime custodian of Ghanaian culture. The institution is much revered and held in awe since it provides a renewed sense of belonging as well as being a Powerful agent of social cohesion and harmony. Traditional Authorities are expected to play Lead role in fighting for social, economic and political development of their people and perform arbitration and representational roles as well as have the potential to facilitate accountability to their people. Perhaps these roles have been summarized by the Asantehene, Otumfuo Osei Tutu II (2002). our predecessors engaged in inter-tribal wars, fighting for conquest over territories and people. Today, the war should be vigorous and intensive against dehumanization, poverty, marginalization, ignorance and disease†¦ Chieftaincy must be used to propel economic development through proper lands administration, through facilitating investments in our communities, and through codification and customs and traditions making it impossible for imposters to get enstooled and creating unnecessary situations for litigation. However modern democratic dispensations has restricted the role Traditional Authorities to acting Custodians of tradition and culture as well as the embodiment of the spirit of the ancestors and a link between them and the living Community. Ironically, democratic governance in Ghana, in all ramifications, draws its strength from the traditional governance structure and it is fair to say that national politics would not be this tolerant were it not for the effective and impartial handling of the people by Traditional Authorities, particularly when one considers the stabilizing role they play during national and local elections. Bothtraditionalists and modernistsoften see traditional authority and elected political leaders competing for power in the community. The struggle between the two for political power and legitimacy is seen as a zero-sum game. This is because whatever powers a traditional Authority wrenches from the state is considered as a loss for state leadership. Far from being in competition with elected leaders for the public’s regard, traditional leaders and elected leaders are seen by the public as two sides of the same coin. Popular evaluations of both traditional and elected leaders depend on the leader’s leadership skills. An individual’s level of modernization plays a much smaller role in shaping perceptions of traditional authority. There has been the lack of empirical evidence concerning popular perceptions of how traditional leaders support elected leaders in a democratic system of governance. There is the question as to how much space traditional Authorities should be given within the context of modern democratic decentralization in Ghana. This is because since independence Traditional Authorities have lost virtually all the formal governmental, Judicial and other roles they played before, during and after colonial rule. Nevertheless their status and autonomy is guaranteed under the 1992 constitution of Ghana. Yet not all politicians in Ghanaian society see it as legitimate or are prepared to allow it to work. Even where the legitimacy of traditional leaders is not challenged, their mode of selection and the way they carry out their functions often generate deep concerns. Therefore there are no simple solutions to the question of how to define the role of Traditional Authorities in the decentralisation of pow er in the Ghanaian political systems. Individual local context is important. With many modern and highly educated individuals now occupying positions as traditional leaders in Ghana, it should be possible for the national government to work with these traditional leaders for the development of the country. Significance of the Study The study will provide useful information on the modern role of chiefs in community development. Chieftaincy no doubt is one of the most enduring traditional institutions in Ghana, which has displayed remarkable resilience from pre-colonial through colonial to postcolonial times. Nowadays, chiefs are under pressure to achieve good governance in their traditional areas. They are challenged to integrate tradition and modernity, a process about which there is considerable debate. Also the study will help to identify the role of traditional leaders in the decentralisation of power and demonstrate their active participation in the political development of their communities. Finally study will also add to the knowledge base on the role of traditional Authorities in an increasingly globalised world where the accent is on democracy, human rights, health delivery, and human development and discover if Traditional rulers have really outlived their usefulness. Their ability to come to terms with these challenges will provide an indication of their relevance. Purpose of the study/ Objectives The main objective of the study will be to examine the role of Traditional Authorities in the local governance process in the Decentralisation of power. A study of the Akuapem Traditional area of the Eastern region of Ghana. The specific objectives will include the following. To reveal and analyze the political role of traditional leaders in the decentralisation of Power in democratic Ghana to achieve good governance. To discover the extent of which elected or appointed governments officials allow themselves to be closely linked with the traditional leaders in the political development of the community. To find out the involvement and recognition of traditional Authority in the political process of Ghana’s young democracy in the local area. To discover the relevance of the role of Traditional authorities in the decentralisation of power and how the government can support them without pushing them to oblivion. Access and make recommendations on how Traditional Authority can be incorporated into the formal local government system Research Questions The following research questions will inform the study. What are the roles of traditional Authorities in the decentralisation of power in attaining good governance and political stability? To what extent do elected or appointed governments officials allow themselves to be closely linked with the traditional leaders in the political development of the community. How relevant is the role of traditional Authorities in the decentralisation of power. What kind of institutional framework will help to promote the integration of Traditional Authority into the formal district assembly structure? REVIEW OF RELATED LITERATURE Introduction This chapter examines theories, perspectives, conceptions and models on development, endogenous development, good governance, traditional authorities and local governance. It ends with a discussion of the synergy model of traditional authorities and formal government that will be suitable for the study. Relevant literature will be reviewed. Decentralization is defined as â€Å"any act in which a central government formally cedes powers to actors and institutions at lower levels in a political-administrative and territorial hierarchy† (Ribot 2001: v., citing Mawhood 1983 and Smith 1985). Three main types of decentralisation are commonly identified: †¢ administrative decentralisation or deconcentration i.e. the re-location of branches of the central state to local areas, entailing a transfer of powers to locally-based officials who remain part of, and upwardly accountable to, central government ministries and agencies; †¢ Fiscal decentralisation i.e. the transfer of fiscal resources and revenue-generating powers, inclusive of authority over budgets and financial decisions, to either deconcentrated officials and/or central government appointees or to elected politicians;1 †¢ Political decentralisation or democratic decentralisation or devolution (of power) i.e. the transfer of powers and resources to sub-national authorities which are â€Å"(a) largely or wholly independent of the central government and (b) democratically elected† (Manor 1995: 81-2).2 METHODOLOGY This section will discuss the research design and the methods that will be adopted for collecting and analyzing data. It will also deal with the research design, validation and reliability instrumentation, population, sample and sampling procedures or techniques to be used for the research. Research Design For the approach of the study, a case study will be used as the research design type. According to Babbie (2007:298) a case study is â€Å"the in-depth examination of a single instance of some social phenomenon, such as a village, a family, or juvenile gang†. Also in Wisker (2008:210), Robson (1993:52) opines that a case study is â€Å"a strategy for doing research that involves empirical investigation of a particular contemporary phenomenon in its real life context using multiple sources of evidence†. From the two definitions, common features that can be identified are that a case study focuses on a single instance or a particular phenomenon and the in-depth and empirical study of such a phenomenon. The study will also employ the use of descriptive, explorative and cross sectional survey as well as the use of multiple sources of evidence to conduct the study. Population The targeted population will be natives and residents in the Akuapem Traditional area. Sample The sample will be made up of 200 people. The target population will be the of heads of households, traditional authorities and local government officials which will be put into groups of three. Five communities will be randomly sampled from the Akuapem Traditional area. Sampling Technique As a qualitative research, it will involve techniques such as the use interviews, administration questionnaires, and focused group discussion. The interviews will be transcribed coded and analyzed. In selecting participants for the study the researcher will make use of purposive sampling technique. Instrumentation In conducting the study, the researcher will employ conversational interviews for the collection of data. This conversational style of interview will be appropriate and effective because the respondents will feel free to share their views. The interview section will help the researcher to elicit information from direct person- to – person encounter. The interview will be structured and unstructured. This will help the researcher to learn enough so as to formulate questions for subsequent interviews (Merian,Page 75). Data Collection Procedure and Method A questionnaire and interview guide will be administered. Largely data that will be collected will be presented and analyzed qualitatively. Thesis Structure/Organization of the study This study will be organized into five chapters. Chapter one will be made up of the introductory overview of the whole study. This will include the background to the study, statement of the problem, objectives of the study, research questions and the relevance of the study. Chapter Two will be the review of relevant literature related to the study as well as the theoretical and conceptual issues. Chapter Three will be the research methodology, which will include the description of the study area, target population, sampling procedures, data collection techniques, data analysis and limitations of the study. Chapter Four will present the results of the study. And finally Chapter five will provide the summary of findings, conclusions and recommendations. RESULTS AND FINDINGS PROBLEMS/OPEN QUESTIONS REFERENCES K.A Busia, The Position of the chief in the Modern Political System of Ashanti. London: Frank Cass Co., 1968),p.,15. Boafo-Arthur, K. (2006) â€Å"Chieftaincy in Ghana: Challenges and Prospects in the 21st Century†, in Irene Odotei and Albert Awedoba (eds.) Chieftaincy in Ghana: Culture, Governance and Development (Accra: Sub-Saharan Publishers), pp. 145-168. Ghana, Republic of (1992) Constitution of the Republic of Ghana, 1992 (Ghana Publishing Corporation: Tema). Ghana, Republic of (1994) Local Government (Urban, Zonal and Town Councils and Units Committees, (Establishment) Instrument, 1994 (Ghana Publishing Corporation: Accra) Owusu, M. (1989) â€Å"Rebellion, Revolution, and Tradition: Reinterpreting Coups in Ghana†, Comparative Studies in Society and History, Vol. 31, No. 2 (April): 380-392. Otumfuo Osei Tutu II (2002) Cited in Kojo Yankah, Osei Tutu II: Tradition in Modern Times, West Africa 29th April-5th May 2002, p. 11. Ray, D.I. (2003a) â€Å"Chiefs in Their Millenium Sandals: Traditional Authority in Ghana – Relevance, Challenges and Prospects†, In Wisdom Tettey, Korbla Puplampu and Bruce Berman (eds.) Critical Perspectives on Politics and Socio Economic Development in Ghana (Brill: Leiden), Chapter 10.