Amazon’s Marketing Strategy Essay

Abstract The purpose of this paper is to evaluate the marketing process of online retailer Amazon.com, Inc. Amazon.com provides a number of retail services as well as web and storage services. The corporate strategy framework, as discussed in Cravens & Piercy’s Strategic Marketing text, will be used to examine the background of the company and define its current position. The corporate framework includes the following: (1) corporate vision (2) corporate objectives toward vision (3) resources (4) business composition and (5) business design. The marketing strategy of the company will be reviewed using Cravens & Piercy’s suggested marketing strategy process. To assess the current marketing problems and opportunities, this paper takes a closer look at the company’s current SWOT analysis, provided by GlobalData. In addition, strategic recommendations will be made for the company’s prolonged growth. Amazon Inc. A company’s market driven strategy â€Å"mandates more effective integration of activities and processes that impact customer value† (Cravens & Piercy, 2009). As well as a consistent market driven strategy, an organization must be creative and innovative in order to compete in the global marketplace. Amazon, Inc. has developed an inventive marketing strategy through the use of the Internet. By becoming pioneers in the e-commerce marketplace, the company has transformed retail. Amazon Inc. should evaluate their corporate and marketing strategies to make use of all available resources. The company has experienced some marketing failures but can still take advantage of existing marketing opportunities. In the 9th Edition of the text Strategic Marketing, Cravens & Piercy write, â€Å"corporate strategies are concerned with how the company can achieve its growth objectives in current or new business areas† (Cravens & Piercy, 2009). When building the framework for a co mpetitive corporate strategy, an organization must first decide the corporate vision. During the summer of 1994, Internet usage showed promising growth. A reported statistic of 2,300% yearly growth encouraged Jeff Bezos, then Senior Vice President for D.E. Shaw & Co., to quit his job and concentrate on a way to gainfully use this information. His long term vision for his company was to revolutionize retail by creating â€Å"the  earth’s biggest online retail store, where everyone could buy anything and everything† (Kargar, 2003). To achieve this goal, Bezos conducted market research that led him to Seattle and directed him to choose selling books online as his main focus. The company was launched in 1995 and by the first quarter of 1996 reported sales revenues of $110 million. The company soon changed from a virtual bookstore into a virtual marketplace by entering new markets that included music, movies, electronics, toys, apparel, grocery and others. Years later in 2006 Amazon.com had become what some called a model of â€Å"the next-generation Internet-based business† (Isckia, 2009). That same year the company introduced their new endeavor, Elastic Compute Cloud (EC2), that offered cheap computing power over the Internet. Many believed Bezos’ unconventional wisdom took the company further away from its core vision. However, a closer examination of Bezos creative mindset reveals more of the organization’s well developed corporate philosophy and structure. Moving beyond book selling, the launch of EC2 and Simple Storage Service (S3) are examples of achievements towards the corporate vision. Amazon has been able to implement objectives in the areas of product quality improvement and new-product targets. Cravens and Piercy note that â€Å"a key strategy issue is matching capabilities to market opportunities† (Cravens & Piercy, 2009). Transforming Amazon.com into more than just a retail operation has given the organization the capability to â€Å"compete in different markets, provide significant valued to end user customers, and create barriers t o competitor duplication† (Cravens & Piercy. 2009). With Bezos’ continuous investments in new technological initiatives, investors were concerned about Amazon’s increasing debt and profitability. Kargar reports, â€Å"the company had a weak balance sheet [and] massive negative operating cash flow† (Kargar, 2004). Throughout the company’s financial history there have been many monetary losses. According to Robert D. Hoff and Heather Green, in 2002, â€Å"the company still carried $2.2 billion in long-term debt† (Business Week, 2002). In International Journal of Cases in Electronic Commerce, Pauline Ratnasingham reports that â€Å"Amazon.com shareholders lost 80% of their value in 2000† (Ratnasingham, 2006). Though sales increase rapidly, losses continue to soar as well. Despite the financial failures, in 2006 Bezos’ still believed that his investments would yield big payoffs in later years and that Amazon.com would be a â€Å"meaningful business†¦one day† (Hoff, 2006). As Amazon.com continued to expand, the company’s strategic business units (SBU) consisted of four key divisions: (1) U.S. Books/Music/DVD/Video (2) U.S. Electronics, Tools, and Kitchen (3) Services and (4) International (Ratnasingham, 2006). This business composition makes it easier to focus on separate specific strategies for each unit. The company’s business model also provides a competitive advantage. Amazon benefits from being able to maintain a virtual store front with distribution centers located in low rent areas. In all, a combination of convenience, speed, reliability, discounted pricing, and a wide selection of merchandise creates a synergistic business design that cannot be easily duplicated. When developing Amazon.com’s corporate structure Bezos clearly understood and defined his business strategy. The organization would now need to design and implement a consistent and integrated marketing strategy. An important aspect of Amazon.com’s marketing strategy is their customer-centric approach. Amazon offers lower prices, free shipping, and customer service available 24/7. Also, the customer experience is enhanced through personalized recommendations and customized web pages. The organization’s strength in customer service has been effective in increasing customer loyalty, website traffic, and repeat purchases. Amazon.com uses various marketing techniques that include online advertising, email campaigns, and their Associates Program. The Associates Program, which allows outside websites the ability to make products available to Amazon customers, has proven to be very successful. In 2001 over 700,000 associates were registered for the program. This marketing tool allowed Amazon.com the ability to â€Å"expand its market beyond its own website and concentrate on its strength of order fulfillment and distribution† (Ratnasingham, 2006). Another key aspect of Amazon.com’s marketing strategy is their established strategic relationships with various traditional retailers. These alliances enhance the value offerings of customers, give the company a competitive advantage, and increase the market share for all companies involved. Some of Amazon’s partnerships include Toys ‘R’ Us for toys and video games, the Gap for clothing and Drugstore.com for pharmacy items. The company also has third party arrangements with Target Corporation, Borders Group, Expedia, and others. Amazon profits by providing customers with a diverse array of products while their allies are able to use the technology, services, and  tools of Amazon.com. A significant detail of any organization’s marketing strategy is creativity and innovation. In her article for The Learning Organization, Verna Allee suggests that â€Å"in order to sustain competitive strength and continue growth Western companies need to build innovation into their cultures and structures as an essential condition for value creation† (Allee & Taug, 2006). In 2008, Amazon.com was listed as number 20 in a list of the world’s 25 most innovative companies (Cravens & Piercy, 2009). The new service offering of the EC2 and S3 digital utilities moves the company into competitive opportunities within the software platform marketplace. Bezos’ innovation strategy for Amazon.com includes these five following rules: 1) Measure everything 2) Keep development teams small 3) Don’t be afraid of weird ideas 4) Open up to outsiders 5) Watch customers, not competitors (Hoff, 2006) Amazon.com’s technological advances and Bezos’ forward-thinking has led the company to create ground-breaking products, such as the Kindle and also compete with top online digital music provider Apple ITunes. By encouraging continued innovation, Amazon can secure their place as leaders in Internet-based businesses. Amazon.com is in a position to gain from the various opportunities they have in the e-commerce marketplace. These opportunities include new trends and technological advances. Amazon competes well and has growth in the digital e-book market thanks to their Kindle product. Amazon can continue to invest in technology to sustain profitability. In general, E-commerce is experiencing growth. Amazon.com is in the position to benefit from this rise. The site currently offers payment security, one-click payments, user-friendly features, and other technologies that new web-based businesses will have to compete with. The company also has the opportunity to expand through strategic alliances and acquisitions. For example, GlobalData reports that Amazon.com acquisition of TouchCo earlier this year, â€Å"is expected to bring about cost reduction in the company’s business† (GlobalData, 2010). Overall, Amazon.com employs strong marketing  strategies. GlobalData reports that the company’s emphasis on marketing can be seen in their increased marketing costs in 2009, in comparison with 2008 and 2007 (GlobalData, 2010). However, Amazon.com is faced with some marketing problems. Because the company has a seasonal nature, more shoppers during the holiday seasons, the number of customers accessing the website at one time could cause system interruptions. This could contribute to fulfillment issues and a delay in deliveries. Also, Amazon.com faces the threat of traditional retail stores like Wal-Mart or Barnes & Nobles who now have an online component. Amazon.com now has to compete with companies who have greater brand recognition and more customers. The partnerships the company has made also pose a problem. For example, in 2004 Toys ‘R’ Us bought a case against the company because Toys ‘R’ Us exclusive items were being sold by competitors through Amazon’s website. Also the company suffered increased costs because of their alliance with Drugstore.com. To offset the problems and threats faced by the company, Amazon can benefit from the following strategic recommendations. First, during the off-season Amazon can do aggressive promotional campaigns to include discounts for students and partnerships with university and college professors to be the exclusive vendor for textbooks and suggested reading materials. Also, Amazon’s fulfillment processes should be evaluated to determine what issues are prevalent during the holiday season. Those issues should be addressed and fulfillment centers should be restructured accordingly. The company should re-evaluate their alliances by doing a cost assessment. By determining which costs are insignificant, expenses can be reduced or eliminated. Through the leadership of Jeff Bezos, Amazon.com continues to be the best and first by thinking outside the box. The company has changed the way consumers shop, the way they read, and the way entrepreneurs run their businesses. Bezos accepts his failures, focuses on what works and continues to support new ideas and hopeful initiatives. An evaluation of their marketing and corporate strategies to assess their failures can allow them the ability to make appropriate use of their opportunities. References Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York: McGraw-Hill. Hoff, R.D. (2006). Jeff Bezos’ risky bet. BusinessWeek, 52-58. Retrieved December 14 from ABI/INFORM Global. Hoff, R.D., & Green, H. (2002). How amazon cleared that hurdle: to earn a profit, it cut costsand started growing again. BusinessWeek, (3768), 60-61 Retrieved December 14 from ABI/INFORM Global. Hoff, R.D., Neuborne E., & Green, H. (1998 December). Amazon.com: the wild world of e-commerce: by pioneering – and damn near perfecting – the art of selling online, amazon is redefining retailing. BusinessWeek (3608), 106 Isckia, T. (2009). Amazon’s evolving ecosystem: a cyber-bookstore and application service provider. Canadian Journal of Administrative Sciences, 26(4), 332-343. Retrieved December 17 from ABI/INFORM Global. Kargar, J. (2004). Amazon.com in 2003. Journal of the International Academy for CaseStudies, 10(1), 33-52. Retrieved December 11, 2010 from ABI/INFORM Global. Ratnasingham, P. (2006). A swot analysis for b2c e-commerce: the case of amazon.com. International Journal of Cases in Electro nic Commerce, 2(1), 1-22, Retrieved December11, from ABI/INFORM Global.

Competitive advantage in the airline industry Essay

The airline industry has grown tremendously over the last few years. In the past, there were very few airlines operating across the world. However, today there is a great development in the industry. The growth of the airline market has led to a lot of competition amongst the stakeholders. The development of an effective strategy is believed to be the only solution to overcome this competition. The success of any airline currently is dependent on the suitability of the adopted strategy. A good example is the Emirates Airline which has recorded the highest growth rate over the other airlines in the world. The growth of Emirates Airline has caught the concern of the other competitors in the airline industry. The secret behind the success is linked with the form of strategies it has employed over past few years. For example, Emirates Airline has the best marketing strategy that has led to strong brand awareness worldwide. The organization has continued to market itself by offering cheap air ticket to its customers. The use of corporate social responsibility has also been attributed to its success. The airline has been concerned with sponsorship of many sports activities and other activities which concern the society as a means of marketing itself to the potential customers. The leadership mechanism and its services to its client are very important for its success. Emirate Airline would not succeed without the right leadership. Strong managerial skill is very important for the success of any organization. This is because for an organization to make fulfill its objectives, it has to rely on its employees. If an organization can retain employees, that organization can attain competitive advantage over its rivals in the industry. The staffs at Emirate airline are very influential, therefore attracting more customers. The management is responsible for formulating policies that are going to guide the organization to achieve its mission and vision. The management is responsible for managing the human resources together with other resources of the organization to ensure optimal utilization of scarce resources. The human capital is very important for the success of any organization. Therefore, they must be treated very well and with the dignity they deserve. Resource should be utilized efficiently to avoid wastage. The leadership factor can be seen as the contributing to the success of Emirate Airline. The reason to the Emirates success has been the continuity of its management team. The top management of the company is a group of the most talented executive with a proven track record in their respective fields of expertise. Under the leadership of the current chief executive; Emirates Airline has grown from a regional to an international market, which started with leasing aircraft that operated in only three destinations. Today, Emirates is an international airline with a fleet of more than 100 aircrafts with destinations all over the world. In addition, it has the fastest, growing intercontinental carrier (Ahmed, 2012). The marketing strategy is another contributing factor to the success of this airline. For example on their website there is a picture of famous footballer Cristiano waiting to board, implying that means the airline is the best choice for celebrities. This is another way which enables the airline to gain competitive advantage. Different people are swayed differently by such advert. It is worth noting that such adverts sway people’s believes, making it possible for the airline to acquire more customers. Its competitors have been worried by the latest growth being witnessed. The marketing plan of the organization is very important for the future business of the entity. This plan is responsible for selling out the company products and services. If the strategy is effective, it will lead to an influx of more customers day by day. The marketing plan used by Emirates Airline is very comprehensive to ensure that the market is captured well. The first strategy is to analyze the working environment. The analyses would help the organization to understand the external and internal factors that influence the activities of the entity. The external factors are the factors outside the organization. Therefore, the organization does not have control over them. Internal factors, on the other hand are those factors within the organization that it can control. The location of the airline provides it with some unique feature. Emirates Airline has its operations in Dubai city. The culture of the people at that city influences the functioning of the airline. The city has a large population providing the airline with a lot of passengers and cargo services. The culture of Dubai city is open which makes it easy to connect to different parts of the world. As a marketing strategy it is important to understand the culture where the business is operating. Before the commencement of any air travel, negotiation agreement has to be signed between different countries. There are rules and regulation which govern the aviation facility and the operation of the airline. Emirate Airline enjoys unprotected market. The implementation of open sky policy has helped the airline to increase business and change into a carrier. This is one of the factors which have helped it to be much competitive over the other airlines in the airline industry. When the rules and regulation in the industry are favorable, it promotes growth and sustainability. Emirates Airline has been able to take full advantage of functioning in the international market, therefore, connection to more destinations. The economic strategy is another aspect that helps the organization to be more competitive in the market. The economic condition has a great impact in the airline industry. For instance, the growth of the Emirate Airline has taken place in Dubai, a town widely known for its economic viability. The airline has chosen a strong and powerful economy, therefore being able to compete fairly with other airlines in the industry (Saxena & Gupta, 2012). At times, it faces economic challenges which lead to a reduced number of passengers. During these times Emirates Airline has to alter its economic strategy to cope with economic crisis. Proper policy will help cut down cost to avoid wastage. A low cost strategy will help the airline to compete with other rival airline. There has been great advancement in technology, which has resulted to success in the airline industry. There is a great need to embrace technology to cut down cost and reduce time wastage. The Emirates Airline has full knowledge about technology and has invested heavily on it. This strategy has helped them improve on their service to customers. The airline understood that a proper utilization of technology would help them gain a competitive advantage over the other airline through provision of best services to the passengers (Desai et.al., 2012) The reputation of an organization plays a great role in determining its market share. For an organization to gain a competitive advantage its brand image is very important. The differentiation strategy of an organization aim at the ability of the airline to provide the best services and valuable product that is relatively rare to find in the other rival airlines. The best customer services, proper utilization of technology, creation of unique products and exceptional features are the main sources of competitive advantage for an airline. Emirates Airline has worked hard to ensure that its reputation in the market is always above the other airlines. The organization values their customers very much. It has received numerous awards for being the best in customer service. The staffs and the customers maintain a very healthy relationship, which lead to the satisfaction of their clients (Cole, 2013). The identification of a market niche is another strategy of maintaining a competitive advantage. This strategy allows an organization to concentrate on a particular part of the market. When an entity concentrates on a particular market segment, it expects maximum return from that segment, and does it best to satisfy the demands of the participants in the market. The method applied here is the low cost strategy, which means that the organization incurs the list cost while generating more revenue. If the airline concentrates on a specific market gap it will be able to minimize on the cost incurred when operations are diversified (Roy, 2012). For example, Emirates Airline has concentrated its operation airlifting of customers and cargo services. The activity has helped the Airline to concentrate on service delivery to the customers. In addition, the airline has been able to reduce fare charges, making them cheaper than those of other airlines in the industry. The lowest fare for air tra nsport has enabled the airline to win the loyalty of customers, thus strengthening its brand image. Despite high competition in the airline industry Emirates Airline has continued to maintain the lowest price for a number of years (Barbajee, 2013). For an organization to be competitive in the industry it has to formulate the competitive strategies. The development in technology, economic growth and globalization are some of the reasons why many airlines have been coming up in the recent past. When competition is increasing day by day, it becomes important for the airline to use a mix of strategies so that it can face competition. The Emirates Airline is now a known brand. For a company to remain competitive it keeps on changing its strategies in order to keep up to the competition in the airline industry (Startton, 2012). If a company has shown consistency is service delivery following factors which are known with certainty, the company can be said to have a competitive advantage. The positioning of any organization in the market is determined by its customers. The customers to the Emirates Airline are the passengers who use the airline for travelling. The customers have test for different services which are offered by the organization. The information received from the customers is very important for the company future. Proper use of the information obtained from customers can lead to improved services (Squalli, 2014). An organization which values customer information is likely to succeed in its operation. The service delivery to the clients plays a crucial role in building the reputation of the company in the industry. Emirates Airline has been awarded for being the best in customer services over the years (O’Connell, 2011). It is true that for any organization to succeed in its operation; sustainable strategies are very important. The strategy adopted should give the organization more benefits than any other organization in the same industry. The airline industry has a lot of competition all over the world. Investment in infrastructure development can help to reduce competition in a number of ways. Providing the staff with all the required facilities will increase motivation hence they will work hard towards the achievement of the organization’s goals. When the staff is motivated enough, they will be able to serve passengers well. Excellence in delivery of services has a great influence on the priorities of consumers or the passengers (Heracleous & Wirtz, 2012). Emirate Airline has gained a lot of publicity across the world. The company has been able to gain a large portion of the market because of the strategies it has formulated in the past few years. The significant size of the company has also contributed to the competitive advantage of the airline. The company has succeeded in attracting royal customers. Therefore, it has been able to earn profit for many consecutive years. The company is dominated by wealthy shareholders; hence it has gained a competitive edge over its competitors thus emerged as a model firm CITATION Joc12 l 1033 (Wirtz, 2012). From the discussion, it can be noted that for an organization to succeed in a particular industry, it is important position itself in the industry. Proper utilization of distinct qualities can make a company gain a competitive advantage over other organizations. Apart from the strategies formulated by the organization, other management strategies adopted by the organization play a great part in the development of the organization. The strategies which have been formulated and implemented by Emirates Airline have assisted the company to succeed in a competitive market and maintain the top position in the airline industry. The leadership style and the strategies which the company has adopted for many years have enabled the organization to maintain its position despite economic challenges. The adoption of corporate strategy by Emirate Airline has proved to be a solution for the company in the times of economic recession. Every market has its own challenges that affect market players. Th erefore, organizations should prepare in advance for the unforeseen challenges. This strategy is aimed to help the company to stand in every situation. The strategy Emirates Airline has adopted in the past has proved to be the biggest milestone for the organization. References Ahmed, N. (2013). Is Age 60 A Turning Point In Medical Health? Aviation, Space, and Environmental Medicine, 84(4). Banerjee, A. (2013). Emirates airlines-An exploratory study. ZENITH International Journal of Business Economics & Management Research, 3(5), 133-141. Desai, Shohab Sikandar, C. M. Siddique, and Zahi Yaseen. â€Å"Segmentation of Airline Market in the GCC Region: Profiling Business Customers Using Low Cost and Full Service Carriers.† International Conference on Technology and Business Management March. Vol. 24. 2014. BIBLIOGRAPHY Loizos Heracleous, Jochen Wirtz. (2012). Airlines: Achieving Sustainable. Warwick: University of Warwick,. Wirtz, J. (2012). Sustainable Competitive Advantage In Singapore Airlines. Journal of Applied Behavioral Science, 23. Source document

The gender pay gap in the uk and why it still exists Essay

The gender pay gap in the uk and why it still exists - Essay Example Workplace segregation remains prevalent as high concentrations of female employees are associated with relatively low rates of pay. And higher levels of part-time working are associated with lower rates of pay, even after other factors have been taken into account. Women’s employment is highly concentrated in female-dominated occupations which are often the lowest paid. Women are still under-represented in the higher paid jobs within occupations. Qualified women are characteristically denied top level jobs in corporate offices but instead of terming it what it is, sexism and discrimination, this form of unequal treatment is referred to as the ‘glass ceiling’ effect. Women do indeed have to perform twice as well as a man to retain the same pay and position at similar occupational arenas. This discussion will examine barriers to equality in the workplace, the reasons for this cultural phenomenon, evidence to support this claim and some possible solutions. Women must struggle to cope with discrimination in the workplace as is evidenced by occupational segregation. This terminology refers to the reality that women tend to work in different sectors of the economy and occupy different employment standings than men within the same occupational group. Government statistics reveal that women are highly concentrated in certain jobs as 60 per cent of working women are employed in just 10 per cent of available occupations (â€Å"What is the pay gap?†, 2006). While about one-half of workers are in sex-dominated employment, women are engaged in a narrower scope of occupations than men. There are seven times more male-dominated non-agricultural jobs than female. ‘Sex-dominated’ occupations are defined as when workers of one sex constitute more than 80 per cent of the labour force (Anker, 1998). In the UK, women constitute just 30 per cent of managers, 25 per cent of executives and 10 per

A Comparison of Linear and Daily Undulating Periodized Programs with Research Paper

A Comparison of Linear and Daily Undulating Periodized Programs with Equated Volume and Intensity for Strength - Research Paper Example The plants were selected based on traditional medicinal usage and application in alternative medicine. They are Artemisia absinthium, Psidium guajava, Melissa officinalis, and Costus speciosus. As part of the study, methanol bark and leaf extracts were obtained from the plants in different concentrations and exposed to various cancer cell lines for 24 hours. The growth of the cancer cell lines was measured against increasing varying concentrations of the plant extracts to determine the effect of extracts on the growth of the human cancer cells. Cancer is one of the leading causes of death in the United States. This year, the number of new infections is expected to increase despite intensified efforts to prevent and manage the disease. One of the new approaches adopted in cancer prevention and management is the use of natural products. Natural products have been used for centuries to treat various illnesses, and they efficacy has been proven in studies examining the lifestyles of native tribes in the United States, Africa, and Latin America. Currently, natural medicines are used in treating around 87 percent of all known human diseases; these include cancer, bacterial and fungal infections, and immunological defects. It is also estimated that roughly a quarter of all prescription medicines in the world are sourced from plants and over three thousand plant species have anti-carcinogenic properties. This paper, therefore, contributes to the development of this research area by examining the cytotoxic impacts of the aforementi oned plants on the growth of human cancer cells. Artemisia absinthium, Psidium guajava, Melissa officinalis, and Costus speciosus have all been analyzed and used for traditional and contemporary medicinal purposes. They have proven their admirable antiparasitic, anti-carcinogenic, antibacterial, and antimicrobial qualities, hence justifying the need for more research on their antitumor attributes. Studies have shown

Risk management and insurance Essay Example | Topics and Well Written Essays - 500 words

Risk management and insurance - Essay Example an insurance agent, one is charged with the responsibility of contacting potential clients, selling different types of insurance, and explaining policies to customers (U.S. Bureau of Labor Statistics, n.d.). While the job can be greatly rewarding, it also has a lot of challenges especially for beginners. The insurance agent may have to walk the streets soliciting customers. The hustle involved in trying to convince potential albeit disinterested customers to buy an insurance policy seems too much for me especially considering that I am not as social as the job may demand. I especially do not like to engage complete strangers walking along the streets. Dealing with people unknown to me is especially stressful since they may hurl obscenities at me without any considerable provocation. In many cases, insurance companies place no requirement for working as an insurance agent. In any case, the insurance agents do not need much to be licensed to start working – passing a state administered licensing exam and taking a short course on insurance suffices to join the trade. While some may prefer to work with college graduates, this requirement is more often than not overlooked in a bid to find the right candidates for the job. In order to work as an agent, one may take economics and business courses (Career Planning.about.com, n.d.). This is not the case when dealing with insurance attorneys. Every organization wants to work with a competent insurance attorney which means that the candidate has to be well trained at college or university level at the least, law being a major component in his/her training. According to the requirements instituted by companies seeking insurance attorneys, it is beyond doubt that the candidate is better placed to earn much more than the insurance agent who may be earning on commission basis. According to the U.S. Bureau of Labor Statistics (n.d.), the median annual wage for agents stands at about 46,770 USD which is significantly lower

An entrepreneurial viewpoint Essay Example | Topics and Well Written Essays - 1500 words - 1

An entrepreneurial viewpoint - Essay Example Discerning the module has taught me that there are certain traits that any successful entrepreneur needs to be endowed with. A careful scrutiny of my own personality against these entrepreneurial traits has confirmed to me what I have and areas that I need to improve on to call myself a happy and successful entrepreneur. My entrepreneurial spirit is hemmed in by several personality traits that the module has helped me identify about myself and most immediately is confidence. Like Michael Bloomberg puts it: â€Å"Don’t be afraid to assert yourself, have the confidence in your capabilities, never letting the bastards drag you down.† I believe that confidence comes in handy for startup success. I have the confidence to take the risks, and to lead teams in creating a vision and to confidently sell the product to investors and customers (Straut, 2008). The other trait is optimism, Bill Gates has made fortunes as an entrepreneur because he looked at what was ahead of him with optimism; and that is how I always look at things that are ahead of me. I have learnt from the module that an entrepreneur should be optimistic about a product, their teams and their future. A study done by Baron (2004) found out that entrepreneurs perceive risks as being smaller than they are in actual sense, and also smaller than many people would ordinarily perceive them to be. It is with such optimism that I look at the future that though things may look obscured at the beginning, soon they will clear up, all it takes is to hang on and be positive. Passion has taught me that anyone can succeed in anything they set out to do, as long as their endeavor is anchored on unlimited and incredible enthusiasm. I am very passionate about everything I believe in and speaking about the importance of passion in entrepreneurship, Baron (2004, pp. 230) wrote, â€Å"Passion is a key cog in the wheel of determination, it is both contagious and palpable, many consumers, businesses and investors will be swayed by an entrepreneur who exhibits great passion.† Going with passion is self-efficacy. Nolan Bushnell was quoted saying that â€Å"many people have great ideas, but it’s only a few of them who decide to do something about those ideas now; a true entrepreneur is the one who is a doer, rather than a dreamer† (Choo, 2004). The last characteristic that wraps up my entrepreneurial spirit is persistence. I made a promise to myself that I was going to be successful in anything that I put my all into. There is no amount of money, or any amount of labor neither any number of hours would deter me from giving the very best that is in me. The module is clear that a successful entrepreneur is one who is will overcome and persevere despite the many hurdles, setbacks or failures (Osborne, 1995). Entrepreneurs are able to learn from their failures to make improvements on themselves, their team and their products. I have an entrepreneurial mentality as opposed to an employee mentality and so it would more fulfilling for me to work in an entrepreneurial organization as an entrepreneurial manager as opposed to working in a conveniently structured organization with convenient management approaches. This is inspired by the fact that I have a vision to chart and create my own path, as opposed to that employee mentality

Literary theory (Althusser) Answering discussion questions Assignment

Literary theory (Althusser) Answering discussion questions - Assignment Example Indeed, in Reading Capital, he points out that the retrospection of the past is not ideology, but serves, in his words, â€Å"the legitimate epistemological primacy of the present over the past.† This served as one of the sources of his criticism of the French communist party, as a criticism of ideology on epistemological grounds will always sit uncomfortably with those emotionally invested in a given ideology. His criticism in the same work of â€Å"subjective and arbitrary ideologies† on Marxist grounds suggests that discourse within ideology was not his aim. Similarly, there is the question of â€Å"complete† ideology. In Althusserian criticism, no ideology is ever complete, and any attempt by an ideology to fully control or dominate a text will only end up exposing the limitations of that ideology. One classic example is Frank Capra’s classic â€Å"message† film It’s A Wonderful Life, in which George Bailey triumphs over the machinations of the evil Mr. Potter, except insofar as he doesn’t. The film ends with Potter still fully in control of Bedford Falls, having suffered not so much as a moment’s inconvenience while George was wrestling with suicide.

Supply Chain Essay Example | Topics and Well Written Essays - 2000 words

Supply Chain - Essay Example The last part of the report analyzes how the use of e-commerce in supply chains has enhanced the value and business operations for both the companies. Dell Computers Dell was incorporated in 1994 by Michael Dell while he was a student at University of Texas, Austin. From its very first initiatives, direct selling model was adopted. In the beginning PC’s were sold over the phone and they were customized according to customers’ specifications. Dell’s strategic choices and ways of realizing those choices have played an effective role in story Dell’s success. The supply chain management of the company is the key element in its successful business model. The core element of the company’s business model is its direct sales model, referred as ‘direct mode’, with the build to order strategy. Business Model and Supply Chain The differentiated model of dell help it creates a niche in the distribution channel and eliminates the entire mid channel members to arrive at cost leadership position in the industry. The basic principle of Resource based view is that the competitive advantage for any particular organization completely depends upon the resources which are available at any company’s disposal. ... The above figure shows hot the direct model of Dell was different from the indirect distribution channel of the rest of industry. In its direct sale model, the intermediary steps that add cost and time are eliminated, and the company is directly able to link with its customers. Dell directly sells to all its customers, regardless of a home-PC to world’s largest corporations. The direct relationship with individual customer creates a great source of competitive advantage for Dell. This creates a valuable information about the end customers, and thus Dell knows who are the end users of their product, what they have purchased from the company, what are their future preferences, a fact that allows the company to stay closer to their customers by offering add-on products and services. Build in order and Integration with suppliers Thus, a computer is build after the customer places and order, then just-in-time production and lean manufacturing takes place. This means when an order i s placed, its configuration details reaches the manufacturing department and the assembly begins, and once the PC is configured it is shipped by a 3PL to the corresponding customer. The choice of JIT and build to order has several advantages for the company. Firstly, the level of inventories remains very low, leading to faster responses to demand changes and low inventory costs. For instance, if a new microprocessor comes into the market, the company can immediately place an order with its suppliers, as the company need not get rid of the excess inventory. Also, in case of Dell, customers pay in advance. That means the customer pay for the order prior to when the company pays its suppliers for the products, thus giving Dell the opportunity of operating on

Global Warming Essay Example for Free

Global Warming Essay One of the biggest problems facing the world today is global warming. Many scientists believe that our production of carbon dioxide and other greenhouse gases is having a heating effect on the atmosphere, and this could be very dangerous for human life. This essay will examine the problem of global warming and suggest some ways of solving the problem. Many problems could result from global warming. One of the biggest problems is rising sea level. This could result in the flooding of low lying coastal areas and cities, such as Egypt, the Netherlands, and Bangladesh. Some countries might even disappear completely! Another problem caused by global warming is changes in weather patterns. Many areas of the world are experiencing increased hurricanes, floods, and other unusual weather. A third problem associated with global warming is the effect on animals. Fish populations could be affected, while some insects which spread disease might become more common. There are several things we can do to solve the problem of global warming. One solution is to stop producing C02. We can do this by switching from oil, coal and gas to renewable energy. Another solution is to plant more trees. Trees absorb carbon dioxide and produce oxygen, which is not a greenhouse gas. A third solution is to use less energy and to recycle more products. Generating electricity is one of the main sources of carbon dioxide. If we use less electricity, we will produce less C02. In conclusion, if we make small changes now in the way we live, we can avoid huge changes in the future. Scientists, governments and individuals must work together to overcome this threat.

Adidas Marketing Plan Essay Example for Free

Adidas Marketing Plan Essay The acquisition of Adidas by French financier Robert Louis-Dreyfus in 1993 has been the beginning of a big brand name; Adidas has expanded its product line and absorbed other sports-gear makers. It closed a $3. 8 billion acquisition of competitor Reebok International Ltd. Adidas planned maintain the Reebok line and promote it globally along side with the Adidas brand. Adidas during 2006 made a decision to purchase Reebok and though they purchase another shoe company business did not flourish. Adidas had to deal with the fact that the company they acquired was not doing well in the market and a new marketing promotion plan needed to take place to reinvigorate the consumer’s purchase of the product. Adidas has to strengthen there brand and the idea was to build the brand name with sponsorship during the 2008 Beijing Olympics. The sponsorship opportunity in Beijing was a springboard to gain a larger share of the worlds fastest-growing major market and become the marketing leader in China during 2008. The marketing strategy was a blend of action photography and computer graphics. The series was released in phases during the Beijing 2008 Olympic Games. â€Å"Together in 2008, Impossible is Nothing† is an integrated marketing campaign. Through a combination of TV, print, outdoor, PR, digital, point-of-sale and road shows across the country of China, the campaign provides various platforms enabling consumers to get closer to the athletes and the Olympic Games. The Beijing Olympics is fast approaching and this early, most companies who want to place their ads and endorsements in this monumental event are trying strategically to place themselves and capture a piece of the market. For Adidas, there is a battle at hand and that of which is to give rival company Nike a run for their money. Nike is a known brand in China and surely they have the obvious advantage. Adidas reportedly shelled out 70 million Euros to be an official Olympic sponsor. Adidas gear was also all over Olympians, great for television, the company clothed 27 out of 28 teams. But aside from shoes and uniforms, Adidas was not particularly visible in Olympic venues. It had no special presence on the Olympic Green, but its beautiful flagship store in Sanlitun near the Workers Stadium and Workers Gymnasium saw lots of foot traffic. Its Olympic ad campaign, though beautifully designed and fitting in concept â€Å"Together in 2008, Impossible is Nothing†, came up short in the personnel categories. That campaign had four primary faces, in sports that are very popular in Chinadiver Hu Jia, footballer Zheng Zhi, basketball player Sui Feifei and a few womens volleyball players. Hu pulled out due to injury, Zheng and the mens football team had an embarrassing performance and Sui Feifei was only sixth in scoring on Team China. The womens volleyball team played strong in a very tough field, but in the end only came through with the minimum result acceptable to the hometown fans, a bronze medal. After the Olympics the sales of sports apparel went up in China, sales of premium sportswear in China have rocketed from almost zero a little more than a decade ago to $350 million for Nike and $300 million for Adidas last year and sector was worth $3 billion in total last year and is expected to grow 20 percent in 2009. 09.

Foreign Exchange Risk Management Analysis

Foreign Exchange Risk Management Analysis Chapter 1 Introduction This chapter will introduce the reader to the subject at hand and why the chosen research area is of interest and relevance for further development. Finally, the chapter includes a problem discussion, which in turn ends up in the research purpose of the thesis. 1.1 Background of the Study The deepening of globalization process has led to an increase in foreign exchange transactions in international financial markets. This has determined a higher volatility of exchange rates, and, implicitly, an increased foreign exchange risk. There are many types of risks, but only few of them can bring losses as large as foreign exchange risk. In these conditions, the development of new modern and effective methods for managing foreign exchange risk becomes a great necessity for the players in international financial activity. Foreign exchange risk management is crucial for companies frequently trading in the international market. Empirical research shows that profits of multinational companies are affected by volatile floating foreign exchange rates. Nevertheless, small firms trading exclusively on their domestic markets also become increasingly exposed to foreign currency fluctuations. Actually, small firms depend on the volatility of the main currencies because many of them out-source their production to foreign countries. This means that they incur costs in a foreign currency (wages, taxes, material, etc.) and they also need to manage this exposure. Other small firms are exposed indirectly given that their strategic position can be affected by volatile FX rates. By definition, all entrepreneurial activities incur risks, and coping with risk has therefore always been an important managerial function. In recent years, however, risk management has received increasing attention in both corporate practice and the literature. This is particularly true for the management of financial risks, i.e. the management of foreign exchange risk, interest rate risk and other financial market risks. A major reason for this is the development of markets for derivative financial instruments. Forward contracts, futures, options, swaps and other, more complex financial instruments today allow firms to transfer risks to other economic agents who are better able, or more willing, to bear them. In 1971, the Bretton Woods system of administering fixed foreign exchange rates was abolished in favour of market-determination of foreign exchange rates; a regime of fluctuating exchange rates was introduced. Besides market-determined fluctuations, there was a lot of volatility in other markets around the world owing to increased inflation and the oil shock. Corporates struggled to cope with the uncertainty in profits, cash flows and future costs. It was then that financial derivatives foreign currency, interest rate, and commodity derivatives emerged as means of managing risks facing corporations. The interest in the potential vulnerability of multinational firms to foreign exchange rate risk is heightened by the wide currency fluctuations experienced during the last few decades and this issue has engendered a considerable amount of research (Muller, A., Verschoor, W.F.C. 2006). In India, exchange rates were deregulated and were allowed to be determined by markets in 1993. The economic liberalization of the early nineties facilitated the introduction of derivatives based on interest rates and foreign exchange. However derivative use is still a highly regulated area due to the partial convertibility of the rupee. Currently forwards, swaps and options are available in India and the use of foreign currency derivatives is permitted for hedging purposes only (Giddy et.al. 1992). 1.2 Problem Statement Transaction exposure to foreign exchange risk results from the effect of (unanticipated) changes in the spot exchange rate on the base currency value of foreign currency cash flows (contractual payables and receivables). Financial hedging of transaction exposure is implemented by taking an opposite position (to the spot position) on a currency derivate (such as forwards, futures and options) or by using money market hedging. In some cases, however, financial hedging may not be possible or it may be too expensive. For example, forwards, futures, and options may not be available for some currencies or for long maturities, and it may not be possible to obtain credit lines in certain currencies (which precludes money market hedging). This observation is particularly valid for countries where financial markets are rudimentary. If a firm facing (transaction) exposure to foreign exchange risk cannot indulge in financial hedging, it may resort to the operational hedging techniques of risk sharing and currency collars, which can be implemented by using customised hedge contracts embedded in the underlying trade contracts. Under a risk sharing arrangement, the benefits accruing to one party of a transaction as a result of a favourable change in the exchange rate (which is necessarily an unfavourable change for the other party) are shared by the two parties. A currency collar, on the other hand, is used to set a minimum value for the base currency value of cash flows at the expense of setting a maximum value. Thus, it involves a trade-off between potential loss and potential gain. The unpredictability of forex market may erode or even eliminate the profit margin built into an international sale at the time the sale was carried out, when selling on terms of weeks and even months. Foreign exchange rate keeps on fluctuating and they depend upon the market forces of demand and supply (Platt, G. 2007). Hedging refers to managing risk to an extent that makes it bearable. In international trade and dealings foreign exchange play an important role. Fluctuations in the foreign exchange rate can have significant impact on business decisions and outcomes. Many international trade and business dealings are shelved or become unworthy due to significant exchange rate risk embedded in them. Historically, the foremost instrument used for exchange rate risk management is the forward contract. Forward contracts are customized agreements between two parties to fix the exchange rate for a future transaction. This simple arrangement would easily eliminate exchange rate risk, but it has some shortcomings, particularly getting a counter party who would agree to fix the future rate for the amount and time period in question may not be easy. In India many businesses are not even aware that some banks do provide forward rate arrangements as a service to their customers. By entering into a forward rate agreement with a bank, the businessman simply transfers the risk to the bank, which will now have to bear this risk. Of course the bank in turn may have to do some kind of arrangement to manage this risk. Forward contracts are somewhat less familiar, probably because there exists no formal trading facilities, building or even regulating body. 1.3 Research Objectives and Questions There is a need to identify, quantify, and evaluate a firms risk exposure and to choose appropriate procurement strategies. The general objective of this study is to incorporate procurement and marketing decisions into a single hedging model, considering risk factors typically faced by firms in the textiles and garment industry. There are several reasons to explain why foreign risk management has gained in popularity over the last decades. The most important reason lies in the increased volatility of exchange rates, interest rates, and commodity prices, causing firms cash flows to become more uncertain. Secondly, firms tend to focus more on their core business, which makes them less diversified. As a consequence, the volatility of firms cash flows may increase. A third reason for the growing importance of foreign risk management can be found in the globalization of business activities, in which competition has increased and profit margins have declined. A final explanation we offer is the growing number of opportunities to manage risks. Based on the problem discussion our research objectives are formulated as follows: To review and critically analyse the practices adopt by the Indian exporters to hedge the forex risk. To evaluate the impact of foreign exchange risk on exporters and exports of a country like India To critically compile the issues faced by the Indian exporters in hedging foreign exchange risk. Based on the above stated research objectives the following research questions have been developed: RQ 1: How the export company determines foreign exchange risk? RQ 2: Which level the company can actively manage foreign exchange risk? RQ 3: How it can hedge the forex risk? RQ 4: What techniques are preferred by company in its forex risk management? 1.4 Relevance of Research Currently there is a scarcity of research papers about currency exposure management in companies in emerging markets. Theoretical studies like that of Copeland and Copeland (1999) are usually supported by the findings from developed countries (the USA, Canada, the UK). Therefore, the application of such studies might be complicated in developing markets. Researchers that analyze the foreign exposure management in companies often use large samples and questionnaires to evaluate the derivate use, and are successful in describing countries with well-developed markets. For emerging markets like India such quantitative approaches are extremely rare. Most often the situation with currency exposure management and application of derivatives by non-financial institutions is reflected in the newspapers. Yet, these articles are not academic papers and serve only as descriptions of the situation. Therefore, this study will be distinctive in several areas. First, it concentrates on India and will contribute to the increase in the number of academic studies about emerging markets. Second, it will contribute to the business community , as it will analyze the application of derivatives by exporting companies for hedging currency exposure and reveal the causes higher or lower popularity of derivatives. Third, it will apply the theoretical model which was developed based on the practice in developed countries, and test if the results from model application match the empirical findings in reality in India. 1.5 Outline of the Study This dissertation consists of five chapters (see Figure 1.1). In chapter one, a relative broad description is given in the beginning, providing the reader with a background and discussion of issues related to the problem area. This discussion lands in a specific research problem, which has been broken down into research questions. Chapter two gives a presentation of theories relevant for the research problem. Continuously, a description and justification of the methodological approaches chosen in this thesis is given in Chapter three. In chapter four the received empirical data is presented and contains an analysis of the collected data against the theory. Finally, conclusions and implications are presented in chapter five. Literature Review This chapter reviews the literature theory of foreign exchange risk management include the concepts of foreign exchange risks, its characteristics by different types, and hedge theory of foreign exchange risks. 2.1 Foreign exchange risk Whenever a company is running overseas business, the company is exposed to different categories of risk including commercial risk, financial risk, country risk and foreign exchange risk (Oxelheim 1984). Country Risk Foreign Exchange Risk Financial Risk Commercial Risk Figure2.1 The company risk Source: Oxelheim 1984, p14 Foreign exchange risk is commonly defined as the additional variability experienced by a multinational corporation in its worldwide consolidated earnings that results from unexpected currency fluctuations. It is generally understood that this considerable earnings variability can be eliminated-partially or fully-at a cost, the cost of Foreign Exchange Risk Management. (Jacques, 1981). According to Shapiro (2006), foreign exchange rate exposure can be defined as a measure of the potential changes in a firms profitability, net cash flow and market value because of a change in exchange rates. 2.2 The existing classifications of foreign exchange risks In the recent literature of foreign exchange exposure management, the types of exposures are usually summarized and simplified into three categories, translation, transaction, and economic ( Cowdell, 1993; Girnblatt and Titamn, 1998; Eitman et. al.,1998 and Shapiro, 2006). It is conventionally stated that the exposure to currency risk is categorized into three factors; seen below in figure 2.2. Figure 2.2 Types of currency risk exposure Source: Eun et al.,2007 Transaction Exposure The transaction exposure concept concentrates on contractual commitments which involve the actual conversion of currencies. A firms transaction exposure thus consists of its foreign currency accounts receivables and payables, its longer-term foreign currency investments and debt, as well as those of its foreign currency cash positions which are to be exchanged into other currencies. Until these positions are settled, their home currency value may be impaired by unfavorable parity changes. There exist four possibilities by which transaction exposure may arise (Eiteman 2007): When prices are stated in foreign currencies and the firm decides to purchase or sell goods or services. When borrowing or lending funds while contractual agreements on repayment are to be make in a foreign currency. When becoming a party to an unimplemented foreign exchange forward contract. When incurring liabilities or acquiring assets which are denominated in foreign currencies. The total transaction exposure consists of quotation exposure, backlog exposure and billing exposure, see figure 2.3: Figure 2.3 The life span of a transaction exposure Source: Eiteman et al., 2007 2.2.2 Economic Exposure The economic exposure, also called the operating exposure, measures any change in the present value of a company resulting from changes in future operating cash flows caused by unexpected changes in currency exchange rates. The analysis of economic exposure assesses the result of changing exchange rates on a companys own operations over coming months and years and on its competitive position in comparison with other companies. By measuring the effects on future cash flows related to economic exposure, the goal is to identify strategic moves or operating techniques that a company might wish to adopt in order to enhance its value in the face of unexpected exchange rate changes (Eiteman et al., 2007). Loderer and Pichler (2002) assert that firms often manage economic exposure by lending and borrowing in foreign currencies. He cites the following reasons for not hedging economic exposure: firms are unable to measure the size and the currency of future expected cash flows with much confidence, firms already hedge transaction exposure, firms consider that in the long term currency fluctuations offset each others. Surprisingly, the cost of hedging economic exposure is not an obstacle. 2.2.3 Translation exposure By consolidating its financial statements, a parent company with foreign operations must translate the assets and liabilities of its foreign subsidiaries, which are stated in a foreign currency, into the reporting currency of the parent firm. Basically, foreign subsidiaries must restate their local currency into the main reporting currency so the foreign values can be added to the parents reporting currency denominated balance sheet and income statement. The translation is usually used for measuring a subsidiarys performance(McInnes, 1971), providing accurate information for decision makers and investors (Ross, 1992; Bartov, 1995), and for both internal and external users (Sercu and Uppal, 1995). The common reason for translation from a foreign currency into the home currency is to meet the requirements of accounting regulations of home countries. External Hedging Methods As it is shown, the exposure to currency risk may involve current business transactions, future business transactions as well as financial statement translations. However, as there are factors or risk, so are there strategies for dealing with them. For companies, there are a number of external methods to use for the management of currency risk, namely the use of financial derivatives. The name derivative arises from the fact that the value of these instruments is derived from an underlying asset like a stock or a currency. By using these instruments it is possible to reduce the risks associated with the management of corporate cash flow, a method known as hedging. Financial market hedging instruments include (Butler, 2004): Fig 2.4: External Hedging Techniques 2.3.1 Foreign Exchange Forwards A foreign exchange forward is an agreement to buy or sell one currency at a certain future date for a certain price with a specific amount. It is the most common instrument used to hedge currency risk. The predetermined exchange rate is the forward exchange rate. The amount of the transaction, the transaction date, and the exchange rate are all determined in advance where the exchange rate is fixed on the day of the contract but the actual exchange takes place on a pre-determined date in the future. In major currencies, forward contracts can be available daily with maturities of up to 30, 90 or 180 days (Bodie Marcus 2008). A survey by Belk and Glaum (1990) indicates that the most common method used to hedge exchange rate risk is the forward contract. An empirical study of Pramborg (2002), also demonstrates that firms can be fully hedged with forward contracts. 2.3.2 Currency Futures In principle, a futures contract can be arranged for any product or commodity, including financial instruments and currencies. A currency futures contract is a commitment to deliver a specific amount of a specified currency at a specified date for an agreed price incorporated in the contract. The futures perform a similar function to a forward contract, but it has some major differences. Fig 2.5 Currency Futures The specific characteristics of currency futures include (Pike et.al., 1992): They are marketable instruments traded on organized futures markets. Futures can be completed (liquidated) before the contracted date, whereas a forward contract has to run to maturity. They are relatively inflexible, being available for only a limited range of currencies and for standardized maturity dates. The dealings occur in standard lot sizes, or contracts. They require a down-payment of margin of about 5 percent of the contract value, whereas forward contracts involve a single payment at maturity. Futures are usually cheaper than forwards contracts, requiring a small commission payment rather than a buy / sell spread. Table 2.1 provides a clearer summary of the major differences between forward and futures contracts. Table 2.1: Major Differences between Forward and Futures Contracts Forward Contracts Futures Contracts Customized contracts in terms of size and delivery dates Standardized contracts in terms of size and delivery dates Private contracts between two parties Standardized contracts between a customer and a clearing house Difficult to reverse a contract Contract may be freely traded on the market Profit and loss on a position is realized only on the delivery date All contracts are marked to market- the profit and loss are realized immediately. No explicit collateral, but standard bank relationship necessary Collateral (margins) must be maintained to reflect price movements Delivery or final cash settlement usually takes place. Contract is usually closed out prior to Maturity Source: Hull (2006), Moffett et al (2006) and Solnik and McLeavey (2004). 2.3.3 Currency options A foreign exchange option which is different from currency forward contracts and currency futures is to give the holder of the contract the right to buy or sell a certain amount of a certain currency at a predetermined price (also called strike or exercise price) until or on a specified date, but he is not obliged to do so. The seller of a currency option has obligation to perform the contract. The right to buy is a call; the right to sell, a put. There is option premium needed to pay by those who obtain such a right. The holder of a call option can benefit from a price increases (profit is the difference between the market price and the strike price plus the premium), while can choose not to excise when the price decreases (locked in loss of the option premium). Vice versa is for the holder of a put option. For the advantages of simplicity, flexibility, lower cost than the forward, and the predicted maximum losswhich is the premium, the currency option has become increasing popular as a hedging devise to protect firms against the exchange movements. Whenever there is uncertainty in the size of cash flows and the timing of cash flows, currency option contracts would be superior to traditional hedging instruments such as forward contracts and futures contracts. Grant and Marshall (1997) examined the extent of derivative use and the reasons for their use by carried out surveys in 250 large UK companies, found that a widespread use of both forwards and options(respectively 96% and 59%). The pointed that comparing to the primary reasons for the use of forwards were company policy, commercial reasons and risk aversion, a good understanding of instrument, and price were prominent while the primary reasons to use option for company management. 2.3.4 Currency Swaps Currency swaps are a hedging instrument for which two parties agree to swap a debt denominated in one currency for that in another currency. For example, an agreement between two firms to swap their debts of which one is denominated in Euro and that in US dollar (Leger and Fortin, 1994). In order to explain the use of currency of swaps, a Japanese firm that has exports to Australia is given as an example. The Japanese firm wants to protect its Australian-dollar receivables by using currency swap to match inflows in one currency with outflows in a foreign currency (natural hedging). Assuming the Japanese firm is not well recognized in the US financial markets, it may obtain funds from a domestic bank to swap with another firm that has dollar-denominated debt. This process is carried out by the swap dealers (usually banks) as an intermediary. The common objective of this type of transaction is that firms want to alter various future currency cash flows in its schedules into a particular currency for which its future revenues will be generated (Eiteman et.al 1998). The preference of particular currency is caused by several factors, such as, capital market segmentation, differences in regulation governing investment by institutional investors and asymmetry in the tax treatment of interest income and capital gains/losses (Jacque 1996). Although there are other types of swaps involving foreign currencies, such as, foreign currency forward swaps, plain vanilla, and a three-way back-to-back currency swap, they are designated primarily for hedging interest rate exposure. 2.4 Internal hedging methods For the reason that external hedging techniques with derivatives to manage foreign exchange exposure are often costly, many multinational firms would rather turn to consider using internal hedging devices such as Michael (2006): Currency matching, which involves pairing suitably a multinational firms foreign currency inflows and outflows with respect to amount and timing Currency netting, which involves the consolidated settlement of receivables, payables and debt among the subsidiaries of a multinational firm Invoicing in domestic currency, which reduces transaction risk primarily related to exports and imports. 2.5 Fundamental Philosophy behind Hedging We have presented that authors embrace hedging as insurance, and hedging as a value-enhancing tool. We believe the common view of hedging can be summarized as follows: Hedging is one of the three most fundamental reasons for the existence of the financial market, alongside speculative and arbitrage activities (JÃ ¼ttner, 2000). The hedging industry is evolving just like the rest of the business world. In fact, there is no definite set of tools or technique that can define hedging. As the world changes, new hedging mechanisms are derived; and as time passes, these mechanisms are refined and evolve into something new that can be better applied to the contemporary commercial marketplace (Batten et al, 1993; Faff and Chan, 1998; Alster, 2003;). Hedging is not a way of making money, but to assist management in better managing corporate revenue through reducing the corporate exposure to volatility in the foreign currency markets (Nguyen and Faff, 2002, 2003a; Anac and Gozen, 2003; Alster, 2003; De Roon et al., 2003; and Dinwoodie and Morris 2003). When used prudently, hedging can be effective insurance as well as a value-enhancing exercise for corporations. Effective hedging programs have been proven to allow corporations to minimize or transfer their foreign currency exposure. The diminished exposure to foreign currency fluctuations allows more stable and predictable cash-flows, notably in terms of revenue. As a result, firms are then capable of making more comprehensive financial plans, including more reliable estimations on tax, income after tax and dividends payable to shareholders. It is believed that a dividend payout is often of significant appeal to long-term, current or prospective shareholders (Nguyen and Faff, 2002, 2003b; Alster, 2003; Anac and Gozen, 2003; De Roon et al., 2003; and Dinwoodie and Morris, 2003). The three main questions surrounding hedging: when, what and how to hedge are shown in Figure 2.2 below as a decision tree. How to Hedge? Hedge Ratio 10% 50% 100% OR Any Ratio between 0.1%-99.9% What to Hedge? When to Hedge? Financial Tools Forward Futures Options Swap Hedge Under Currency Risk Exposure Non-Financial Tools Leading Lagging Fully participating market movements No Hedge Fig 2.7 Generic Hedging Decision Tree The question to hedge or not to hedge is a complex and controversial one in financial risk management. Natural hedges carry no explicit out of pocket cost and intrinsically form a better offset to economic exposures and so generally are preferred to synthetic hedges. Synthetic hedging can be likened to insurance, where the company incurs an explicit cost to reduce the risk or volatility inherent in its business results. The cost must be weighed against the risk-reducing benefits of the transactions, taking into account their precision and effectiveness. The real drivers of any hedging decision are 1) what is the risk tolerance of the company; and 2) what cost is acceptable for entering into transactions to reduce or eliminate the risk. Foreign currency-denominated activities engaged by Indian Exporters Expected payments of foreign exchange from trade Expected receipts of foreign exchange from trade Liabilities Assets Debt Debt Equity Net trade foreign exchange exposure (before derivates) Net balance sheet foreign exchange exposure (before derivatives) Foreign exchange Derivatives Net foreign exchange exposure (after derivatives) Fig 2.8: Decision to Hedge Foreign Currency Exposures Some managers feel strongly that hedging either should always be done or never done, and their approaches vary tremendously. Indeed, there is an academic perspective that hedging is never appropriate since risks like FX exposure represent diversifiable risks from the shareholder perspective, and thus, the cost is wasted effort for shareholders. Some managers share this view, but most multinational businesses of significant size engage in some financial hedging transactions. Major arguments for and against hedging are displayed in Table 2.2 Table 2.2: Theoretical Arguments on Hedging For Against Managing earnings volatility for FX risk can reduce a firms potential cost of financial distress. PPP and CIP imply compensating levels of FX rates and prices. Firms in financial distress face higher contracting costs with customers, suppliers, and employees. FX rates even out over time. Firms that hedge and reduce their earnings volatility pay less taxes over the long run if tax rates increase the income levels. With transactions costs, hedging is a losing bet on average. Managing FX risk and smoothing earnings volatility has a positive effect on stock price and shareholder value. Shareholders can diversify their own portfolios to compensate for FX risk.

The Life and Times of Claude McKay Essay -- essays research papers

The life and Writings of Claude McKay Introduction Every literary period can be defined by a group of writers. For the Harlem Renaissance, which was an extraordinary eruption of creativity among Black Americans in all fields of art, Claude McKay was the leader. Claude McKay was a major asset to the Harlem Renaissance with his contributions of such great pieces of writings such as â€Å"If We Must Die† and â€Å"The Lynching.† McKay wrote in many different styles. His work which vary from â€Å"dialect verse celebrating peasant life in Jamaica, to militant poems challenging white authority in the United States, to philosophically ambitious novels about the effort of blacks to cope in western society† (â€Å"Claude McKay† 1375) displays the depth of this great writer. The main ideals of this poet were to raise social issues and to inspire his people. McKay used his writing as an outlet for his feelings of distrust toward those who he believed oppressed his people. In many ways McKay’s writing aff ected his life, but in even more ways McKay’s life affected his writing. The writings of Claude McKay were constantly changing throughout his life and caused him to be the most dynamic poet of the Harlem Renaissance. Biography Claude McKay was born in Sunny Ville Jamaica on September 15 in 1880 to Thomas Francis and Ann Elizabeth McKay (Ali 201). McKay grew up in a relatively prosperous family and had British schooling in the predominantly black small town of Sunny Ville. It was in his British schooling that McKay learned about traditional forms of writing such as sonnets. However, McKay learned an alternative education from his father who gave him his strong sense of African pride. Claude McKay’s father told him about his ancestry and Claude McKay’s grandfather’s life as a slave (Masiello 244). From these lessons and his strong black surroundings, McKay received African traditions as well as an â€Å"appreciation for the purity of black hood† (Ali 201). Also from McKay’s agnostic brother, who tutored him, McKay gained his freethinking attitude (â€Å"Claude McKay† 1375). McKay soon gained a distrust of white people when he moved to Kingston, at the age of nineteen. In 1911, upon reaching Kingston, McKay experienced bigotry and racism unlike anything he had encountered in Sunny Ville. McKay got a job as a constable but soon grew tired of it due to his feeling that ... ...nd his people, even if he was poorly received. He did not write for monetary gains, he wrote to inspire and celebrate the grandeur of his people. His style changed black modern poetry. He is a poet, a novelist, an essayist and most of all a revolutionary. He served as the prototype of the poet for the Harlem Renaissance. Work Cited Ali, Schavi Mali. â€Å"Claude McKay.† Afro-American Writers from the Harlem Renaissance to 1940. vol. 52. Ed.:Trudier Harris. Detroit: Gale Research Inc, 1987. 201-212. â€Å"Claude McKay.† BLACK LITERATURE CRITISISM, Ed. Draper, James. Detroit: Gale Research Inc, 1992. 1375-1385. Hathaway, Heather. African American Literature. Ed.:Andrews, William. New York: Oxford University, 1997. 489-490. Martin, Tony. African Fundamentalism. Massachusetts: Majority Press, 1991. 8-9, 69-70, 84-87. Masiello, Dianne. â€Å"Claude McKay.† AFRICAN AMERICAN WRITERS. New York: Macmillan Publishing Company, 1991. 244-246. Maxwell, William. â€Å"McKay on If We Must Die." Claude McKay. 1999 http://www.english.uiuc.edu/maps/poets/m_r/mckay/mustdie.htm (10 March 2002). ---. â€Å"McKay Chronology.† Claude McKay. 1999 http://www.english.uiuc.edu/maps/poets/m_r/mckay/mustdie.htm (10 March 2002).

Charles Babbage :: essays research papers

Charles Babbage Charles Babbage may have spent his life in vain, trying to make a machine considered by most of his friends to be ridiculous. 150 years ago, Babbage drew hundreds of drawings projecting the fundamentals on which today's computers are founded. But the technology was not there to meet his dreams. He was born on December 26, 1791, in Totnes, Devonshire, England. As a child he was always interested about the mechanics of everything and in the supernatural. He reportedly once tried to prove the existence of the devil by making a circle in his own blood on the floor and reciting the Lord's Prayer backward. In college, he formed a ghost club dedicated to verifying the existence of the supernatural. When in Trinity College in Cambridge, Charles carried out childish pranks and rebelled because of the boredom he felt from knowing more than his instructors. Despite this, however, he was on his way to understanding the advanced theories of mathematics and even formed an Analytical Society to present and discuss original papers on mathematics and to interest people in translating the works of several foreign mathematicians into English. His studies also led him to a critical study of logarithmic tables and was constantly reporting errors in them. During this analysis, it occurred to him that all these tables could be calculated by machinery. He was convinced that it was possible to construct a machine that would be able to compute by successive differences and to even print out the results. (He conceived of this 50 years before type-setting machines or typewriters were invented.) In 1814, the age of 23, Charles married 22-year-old Georgina Whitmore. Georgina would have eight children in thirteen years, of which only three sons would survive to maturity. Babbage really took no interest in raising his children. After Georgina died at the age of 35, his mother took over the upbringing. In 1816, Babbage had his first taste of failure when his application for the professorship of mathematics at East India College in Haileybury was rejected due to political reasons, as was his application, three years later, for the chair of mathematics at the University of Edinburgh. Fortunately, his elder brother supported his family while Babbage continued his work on calculating machines. At the age of 30, Babbage was ready to announce to the Royal Astronomical Society that he had embarked on the construction of a table-calculating machine. His paper, "Observations on the Application of Machinery to the Computation of Mathematical Tables" was widely acclaimed and consequently, Babbage was presented with the first gold medal awarded by the Astronomical Society.

The Affirmative Action Plan

The following Affirmative Action Plan is a response by Company XYZ to a growing concern for providing equal opportunity to all prospective and current employees. XYZ is a industry leader and therefore has the express responsibility to set an example for affirmative action. In addition to a commitment to complying with all state and federal laws, XYZ is also firmly committed to a diverse workplace environment, and a workplace free of any manifestation of discrimination. XYZ is therefore dedicated to making appropriate changes to our policies and procedures wherever necessary, in order to comply with the law and to comply with our company mission. This Affirmative Action Plan is an expression of such willingness to make changes. The proposals contained herein pertain specifically to the following changes. First, we propose equal opportunities for men and women concerning maternity and paternity leaves of absence. We also want to reassure all employees that their jobs remain secure during their leaves of absence. Second, we have been increasingly aware of a lack of diversity at the upper management levels of our corporation. XYZ proposes to increase workplace diversity at this crucial level of the company by ensuring equal opportunities for promotions by women, minorities, and people with disabilities. Third, XYZ remains firmly committed to equalizing salaries, compensation rates, and benefits for all employees and XYZ will not tolerate discrepancies between the salaries of workers in the same position. This Affirmative Action Plan will not only defend our commitment to equal opportunity but will also outline the steps we propose to remedy the current situation and to increase diversity at XYZ. With regards to maternity and paternity leave, we assure all female employees that maternity leave will consist of a paid leave of absence for the duration of between twenty and thirty weeks. The leave of absence does not have to be taken in consecutive days and may be broken up into segments. Due to widespread concern, XYZ is expanding company policy to include male workers for eligibility for paternity leave. It is our belief that fathers should participate fully in every stage of their child's development and therefore XYZ wishes to facilitate this process. Any male employee who seeks paternity leave will be granted a leave of absence equal in length and equal in compensation with their female counterparts. The lack of diversity evident at upper management levels of XYZ is a growing concern among all employees. XYZ has managed to retain a diverse workforce at every other level of our operation except for upper-level management and therefore we realize the necessity for change as well as the possibility to implement change. This Affirmative Action Plan in part proposes that promotions be made with conscientious attention paid to recruiting management staff who are as of now underrepresented. Under-representation will be defined according to the workforce population as a whole, and secondarily, according to the demographics of our community. We believe that equal representation at upper management levels is of the utmost importance because of the significance of the decisions made at that level. Finally, XYZ ensures all employees that equal pay for equal work remains a top priority. While XYZ does comply with state and federal regulations regarding equal pay for equal work, we feel that far more can be done to balance out the discrepancies between compensation and benefit rates for male and female employees. Gender in particular remains a major factor determining pay rates. Again, upper-level management is the sector most affected by unequal compensation rates. This Affirmative Action Plan sets forth a guideline for easing XYZ into a salary-equity program that will result in a steady increase of pay for underpaid employees without discrimination against employees who are already earning the target salaries.

Knights Tale Compare And Contrast Movie And Book Essay

The book and the movie have some similarities, where they use swords to fight, but the movie used more lances for jousting. Comparing both the book and the movie to our real lives, our lives don ¡Ã‚ ¦t have too much in common. In our lives we don ¡Ã‚ ¦t carry around swords, and wear armor, or compete in games with lances. Our competitions usually consist of our bare hands and feet, to fight. In a way we do have a type of sport that is almost similar to sword fighting, which is called  ¡Ã‚ §Fencing. ¡Ã‚ ¨ This is where the rules are almost similar but you fight in different motions. We also have games that use guns also, but they also hurt a lot, this game is called  ¡Ã‚ §paint ball. ¡Ã‚ ¨ Where you try to hunt down your opponent and shoot him before he shoots you with his paint balls. The time periods are different, since the book and the movie are told in the medieval times. While ours is present twentieth century time. We drive cars, ride bikes, or some even ride the buses. In the movie and the book they had mostly rode horses, or walked. In which some cases some people still do walk now to get to certain places. The old ways are also the new ways in religion. Since we still believe in the Christian ways, like they did back in the medieval times, but mainly the English people believe in this. They way they had lived in the medieval times, was that they lived mostly in hard concrete houses, or brick houses. They would use lanterns for their lights, or torches, sometimes even to stay warm they would build a small fire. Now we just build our houses out of wood, but there are still some that are made out of concrete and bricks. The majority of houses are built out of wood, and run on electricity, to heat the house, or to cool it down with the air conditioning. The only time that we light lanterns or fires are when we go out camping, so we bring fire wood, and other equipment ¡Ã‚ ¦s to cook with, such as a small gas stove.

Amanda and Laura in Scene Essay

The second scene of Tennessee Williams’ play The Glass Menagerie is mainly about the relationship between Amanda and her daughter Laura. Williams uses every way possible to give the audience an idea of this relationship, from body language, stage directions and language, to the set, clothes and props. Throughout the play, Williams uses images set against screens to accentuate the mood, or theme, of the upcoming scene. The image presented at the start of this scene is â€Å"blue roses†, this being the nickname Laura was given at school by a boy she was fond of – â€Å"When I had that attack of pleurosis – he asked me what was the matter when I came back. I said pleurosis – he thought that I said Blue Roses!† Ironically, blue roses is more than just a name for Laura – she is portrayed as a rose, pure, innocent and delicate, and the adjective blue gives the impression of coldness, which could be linked to Laura’s sad and lonely state. Laura’s mental and physical state is central to Amanda and Laura’s relationship, as it is through this that difficulties arise (although it is quite likely that Amanda would always be a rather demanding mother). Laura is crippled – we are given the impression that it isn’t particularly serious, but conversely, nothing to be brushed lightly aside either. Amanda’s inability to accept this fact creates a tension between not only Amanda and her daughter, but Tom as well – who feels he has to protect Laura from her mother’s â€Å"ambitions† for her. It is important to realise that Amanda does know her daughter is crippled, but just cannot accept the fact that this disability could have a very real negative effect on her daughter’s life. At the end of Scene 2, Amanda sums up her feelings towards Laura’s problem when she says â€Å"Nonsense! Laura, I’ve told you never, never to use that word. Why, you’re not crippled, you just have a little defect – hardly noticeable even!† Here we can see that Amanda is convincing herself that all she is really doing is being supportive to her daughter, trying to make Laura feel better – but in reality, she is unable to face the fact that her daughter isn’t as physically attractive as Amanda was at the same age. This all comes down to one of the underlying themes of the play – a mother trying to live her life once more through her daughter – and Amanda must eventually come to realise that Laura is a completely different person. An important part of this scene is that, through the screenplay between Amanda and Laura, we see that these two characters are very different – there is a total contrast between mother and daughter. This is a common trick of playwrights, although usually the main characters aren’t contrasted quite so obviously – in Shakespeare’s Romeo and Juliet, the characters Benvolio and Tybalt were contrasted excellently, one a natural peacemaker and the other a warmonger. Here, Amanda is dramatic, determined, dominant and self-assured – on the outside at least – whilst Laura is shy, quiet, insecure and nervous. Laura seems afraid to become involved in real-life situations, and is much more at home with her glass menagerie and music. Amanda appears to lead a busy life, which some might think she is happy with – but she is actually living a shadow of her former existence. She came from a rich and successful family, and now lives in a â€Å"vast hive-like cellular living unit† as Williams describes her building. She is constantly living in the past and referring to her suitors, tangled up in the biggest mistake – as she sees it – that she ever made, which was to marry Tom and Laura’s father. With little left of her former â€Å"glory†, Amanda is desperate for her daughter to make the right choice this time, to escape the trap she found herself in. This is why she refuses to accept that her daughter has a defect, she sees Laura as her last chance at success. This is perhaps best shown in the passage beginning â€Å"So what are we going to do with the rest of our lives?† Throughout this passage, Amanda refers to â€Å"we† instead of you – here she really is showing her true colours, that she can only live her life fully if Laura is successful.

Innocence Theme in Catcher in the Rye

Innocence Themes in literary works are recurring, unifying subjects or ideas, motifs that allow us to understand more deeply the characters and their world. In The Catcher in the Rye, the major themes reflect the values and motivations of the characters. Some of these themes are outlined in the following sections. As its title indicates, the dominating theme of The Catcher in the Rye is the protection of innocence, especially of children. For most of the book, Holden sees this as a primary virtue. It is very closely related to his struggle against growing up.Holden's enemy is the adult world and the cruelty and artificiality that it entails. The people he admires all represent or protect innocence. He thinks of Jane Gallagher, for example, not as a maturing young woman but as the girl with whom he used to play checkers. He goes out of his way to tell us that he and Jane had no sexual relationship. Quite sweetly, they usually just held hands. Holden comforted Jane when she was distres sed, and it bothers him that Jane may have been subjected to sexual advances from her drunken stepfather or from her date, Holden's roommate, Stradlater.Holden's secret goal is to be â€Å"the catcher in the rye. † In this metaphor, he envisions a field of rye standing by a dangerous cliff. Children play in the field with joy and abandon. If they should come too close to the edge of the cliff, however, Holden is there to catch them. His attitude seems to shift near the end of the novel when he realizes that Phoebe and other children must be allowed to â€Å"grab for the gold ring,† to choose their own risks and take them, even though their attempts may be dangerous.

18th Century Spanish America and Race

18th Century Spanish America and Race Assess the role of the State of Spanish America in the formation of ideas about human differences prior to the 18th century. The formation of ideas about human difference has been contingent upon both fluid and persistent socio-political, historical and economic forces since globalisation arguably began with the age of discovery in the 1400’s, arguably spear-headed by the Spanish empire. This is perhaps most perceptible in the key signifiers of human social distinction. Concepts such as ‘race’ and ‘ethnicity’ appear to be static, objective human categorisations; yet, when subjected to a process of historical and geo-political scrutiny, each proves to be a subjective and poignant signifier, even a product of a process of social and historical construction and part of the production of knowledge. [1] The historical phenomenon of the Spanish State serves as an exemplar to demonstrate a convergence of ideological paradigms which shaped notions of human difference, underscoring this central contention that ideas of human difference are generated within a specific historical milieu, often involving the confrontation of two or more ethno-cultural groups. It is crucial to acknowledge that Spain’s dominance of Africa from the 15 th century and parallel conquest of Latin America was enacted with the conscious and unconscious appropriation of Eurocentric ideals which emphasised European supremacy and assumed European cultural, theological and economic superiority over Amerindians. The seeds of such national superiority have been traced to Biblical delineations of difference, [2] with its demarcation of blessed and cursed progeny, reinforced historically by medieval theological thought which associated blackness with the devil and sin, while whiteness was aligned with purity and righteousness. The widely accepted European medieval theory of ‘monogenism’, derived from the Biblical teaching of a common ancestry and fam ily tree concept of origins, gave impetus to the Spanish State’s self identity. [3] This widely accepted view within medieval Europe has been largely discredited in more recent centuries, dismissing the notion of a common human genesis. [4] The Iberian Peninsula had left a potent legacy and precedent at the conclusion of the medieval period, with Spain’s stark delineation and unyielding destruction of human difference. The pronounced ethnic diversity on the peninsula in the form of Jewish and Muslim migrants from throughout Europe, the Middle East and Northern Africa, exacted a Spanish definition which underlined difference rather than similarity, and in fixating upon difference, brought the reflex action of the decimation of such diversity, through a systematic, historic and prolonged practice of massacre, segregation, conversion, inquisition and expulsion. [5] Such unenlightened, barbaric and medieval practices, one may argue, left their mark on the Spanish psyche, readily appropriated by the American Spanish state, as it imported and imposed its imperialistic, paternalistic and sanctimonious practices, upon a rich diversity of Amerindian ethnic societies. This precursor to the Spanish American state illuminates the historical consciousness of the earlier Spanish rule in Europe, revealing the cultural hegemonic assumptions and practices the Spanish state appropriated from its 14 th and 15 th century European roots. [6] The early 20 th century pejorative branding of pre-eighteenth century Spain as the ‘black legend’ evokes â€Å"Spain’s colonial brutality in the Americas during the sixteenth and seventeenth centuries.† [7] Ironically, Spain drew condemnation from other European nations for such action, deemed to be an ignorant, superstitious and fanatical nation, incapable of entering modernity. [8] Spain’s European condemners had been equally culpable in sub-Saharan Africa, in stimulating the African sl ave trade. By casting Spain as the antithetical demon, England, France and northern Europe masked their own international sins in the process. This brief observation illustrates one process that shaped human ideas about human difference, namely, intra-cultural ignorance and an insular societal gaze which repeatedly reinforced the values, practices and beliefs of Spain’s own cultural epicentre, and in the process, defined other ethnicities by their differences and their otherness. Moreover, the Spanish American state constructed a false social hierarchy based upon religious assumptions which condemned humans living a more unencumbered and simple existence initially beyond the grasp of modern commerce and technological innovation.

Transportation Security Administration Research Paper

Transportation Security Administration - Research Paper Example The agency’s duties and responsibilities have necessitated the need to bring together various employees prior to the specific activity integral to all the activities that the agency undertakes. These are: Transportation Security Officers and Inspectors, National Explosives Detection Canine teams, Federal Air Marshals and VIPR teams (Balog, 2007). Airport inspector turnover is a persistent problem that the TSA has had to deal with. Year in year out, inspector turnover has affected performance and discharge of security measures in many airports of the US. There has been an observed persistent pattern of screeners’ turnover, resulting in delayed screening procedures in many US airports. This problem alongside that of selecting and training TSA inspectors can be addressed from the point of view of a criminal justice administrator. In addressing this issue in this perspective, TSA airport inspector turnover can be reduced in a number of ways, among them: Tracing the root cau se of the problem Managing the turnover experienced in the TSA is a positive move by the management in the recent past. However, in addressing this problem, it is fundamental to trace the path from which this problem emerged. The system outlays a clear form of activity coordination between and among all the departments under the TSA. Inspector turnover is not just an issue that emerged out of the blues. The activities, duty and responsibility discharge by these inspectors must have been challenged at some point, resulting in this problem. It is ascertained that the TSA inspector turnover is the highest compared to other security agencies in the US (Steve, 2010). Once the root cause of the problem has been identified, then other prospects in regard to reducing this turnover can be pursued. Policy formulation and implementation Employment and work policies that are currently in place have not fully met employee welfare. This is evidenced by the consistent efforts to improve salaries a nd work duties of TSA employees, especially the inspectors (Welch, 2010). The turnover has been accelerated by lack of employee-work functionality and operation management systems. These systems should be designed and put in place to oversee employer-employee conduct in the line of duty and responsibility. Putting these systems in place would ensure that instead of inspector turnover being persistent; the arising issues that result in the turnover are addressed, thus reducing turnover numbers through the set system. Policies that are tailored towards aiding this process should be well formulated and implemented for the benefit of all stakeholders in the public transport sector, TSA included. Monitoring of the TSA’s office Many TSA inspectors have termed the TSA office as ineffective and inefficient. They claim that at various instances the office fails to give proper information about specific duties and responsibilities of the inspectors. Once hired, the inspectors have foun d the terms, requirements, duties and responsibilities to not meet their expectations. As a result, many inspectors have quit their jobs. On the same note, terms of employment are not clear, making some employees to go long as part-timers before they are permanently employed. Even on part-time employment basis, shifts of work keep varying, making these part-timers fixed to this job with no opportunity to do