Competitive Advantage: Creating and Sustaining Superior Performance

In 1985, Michael Porter published Competitive Advantage: Creating and Sustaining Superior Performance. In this book, he described how organizations can achieve competitive advantage in their industries. Porter's focus in this book was not on an overall competitive strategy, but on what organizations needed to do on a daily basis to achieve results. As Porter (3) stated, â€Å"My aim is to build a bridge between strategy and implementation. † To create the link between the overall strategy of a firm and how that strategy could be achieved, Porter referred to value. As Porter (3) stated, â€Å"competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it. † This focus on value led to the concept of the value chain, which refers to the internal processes that occur as the organization creates its product or service. Value chain management is not just a process that occurs within an organization. Instead, it is closely linked to the competitive environment. This means that value chain management takes into account the industry in which the organization operates. This is referred to as the industry value chain and describes how the industry overall adds value to the consumer. This is an important point because it means that value chain management does not just refer to the series of processes that occur within the organization. As an example, consider the case of Apple's Ipod. If creating value was only considered in the context of what happens within the organization, the focus might be purely on the manufacturing process. Apple might consider their value chain as a process where raw materials are converted to the product and where the product is distributed to the consumer. In terms of improving the value of their product, they might consider that saving on raw materials, decreasing production time, and improving distribution will help add value. The problem with this approach is that it does not identify the real value that consumers gain from the product. This real value is identified when the MP3 player industry is considered on a broader level. This broader view shows that value is added more by marketing than by manufacturing. Apple's value chain includes the major activities that instill value in the product. Marketing with the aim of gaining consumer support is one of the key ways to add value. It is this aspect that Apple competes against with the other organizations in the market. This illustrates that value chain management is a process of recognizing what activities add value to the organization and then focusing on these activities to gain competitive advantage. The aim is not to improve everything about the organization, but to improve the processes that will allow the organization to gain an advantage on the competition. Porter (39) also identified various generic factors that are part of an organization's value chain. These generic factors are: inbound logistics, operations, outbound logistics, marketing and sales, and service. Porter considered that these five areas add value to a firm. Porter (40) also identified several support factors. These support factors are: infrastructure of the organization, human resource management, technology, and procurement. Porter identified these generic factors as a general guideline for organizations, while noting that the industry's competitive factors determine what factors will comprise the value chain for a specific firm. For example, in the case of Apple's Ipod, sales and marketing would be a key factor and technology would also be a part of the value chain. In the case of an organization manufacturing and selling nails, sales and marketing is not likely to be a large part of the value chain. Instead, operations may be more important, with the aim being to manufacture the nails as cost effectively as possible so as to maximize profits. For any organization, value chain management is used to identify the key factors that add value in the industry and then to determine how to improve those key factors so as to become more competitive. Southwest Airlines is one organization that has successfully used value chain management to improve its performance. Southwest Airlines is recognized as a success in the airline industry not just because it is a successful company, but also because it made positive changes to the industry. It is generally considered as a pioneer. This success is linked, at least partially, to its use of value chain management. Pellet (53) describes Southwest Airlines as a company that found creative ways to make improvements, with these improvements especially related to reducing the downtime of aircraft, improving scheduling, and making maintenance more efficient. At the same time, Southwest Airlines needed to improve cost-effectiveness so it could offer a lower price to its customers, but still maximize profits. Southwest Airlines based its success on identifying the industry value chain. This included noting the key industry factors that determine success. With the key industry factors identified, Southwest Airlines was able to find creative ways of improving on these factors. One of the important points is that Southwest Airlines' strategy did not just involve copying what other airlines were doing. This was achieved because they were not comparing themselves to what others were doing. Instead, they were only focused on how they could improve. This allowed them to identify unique ways of doing things and this is how they managed to gain competitive advantage. Southwest Airlines' successes were enough to get them listed in Fortune magazine's â€Å"Top 100 Companies† list. In the magazine, it is noted that Southwest Airline won the Triple Crown award for Best Airline five times; a fact that shows their success is more than just financial (Moskowitz and Levering 148). Southwest Airline became the best in the industry. Their success shows how effective value chain management leads to competitive advantage. Finally, it is useful to consider how value chain management has changed since it was first introduced by Porter in 1985. One of the major changes is that computer software has become an important tool in the process. Computer software has been developed to identify problems and opportunities for improvement in the value chain. This is largely focused on the manufacturing process, but can also be applied to any process where efficiency is desired. Another significant trend is that the value chain is extended further, both upline and downline. For example, many organizations are considering the internal processes of their suppliers. The idea is that if the supplier improves their value chain, the organization that receives the output of the supplier also benefits. In addition, if the supplier can improve efficiency and reduce costs, the benefits can be passed on to the organization by lowering the price of raw materials. The same applies to considering upline organizations, such as distributors and retailers. This is creating an environment where organizations are demanding more from companies that provide them with any type of service. In turn, many companies are becoming less like suppliers and more like partners. This allows the organization to assist supplier companies, while also ensuring that they benefit from the improvements that suppliers make. This creates an environment where organizations are linked together by either formal or informal partnerships. In some cases, both organizations work together to determine how they can best assist each other. In other cases, organizations have contractual demands on their suppliers. In other cases, a formal partnership is in place. In all of these cases, the same trend is seen, with organizations recognizing that other companies are part of their value chain.

Deepwater Horizon Oil Spill Essay

On April 20, 2010 a catastrophic explosion on the Deepwater Horizon off shore drilling platform caused the largest single release to the environment due to oil drilling. This explosion killed 11 workers and injured 17. This oil spill is very controversial because it can be questioned if this spill could have been prevented and what exactly went wrong. There is much debate on who is to blame, what could have been done to prevent it and who is going to pay for all the damage. Many are not happy with the settlement BP is signing that will keep them from further criminal prosecution if they agree to pay the settlement amount. Paying retribution is fine, but what about the future damaging effects that we have no way of even knowing about now. Who will take care of that? These are some of the basic questions people are asking about this case and my responses. What can this accident teach us? This accident should teach us all that there is a great responsibility taken on when you go into the earth and try to harvest chemical products that have potential for negative effects on human welfare and health. The government needs to be in charge of regulating these activities to preserve the future of our environment. Had you been in charge of granting permit for this, what measures would you have prescribed to prevent or mitigate the impacts of such an accident? Policies need to be in place that ensures that properly trained personnel are on site at all times to ensure the safety of the drilling process. Only experienced personnel could properly react to an emergency and possibly be able to mitigate further damage. Knowledge and experience are required to recognize potential hazards in time and prevent even bigger negative effects. BP engineers were supposedly aware of variations in the pressure prior to the explosion. These engineers probably did not have the authority to request work be stopped so further inspections could be made. Politics involved with the money at stake sometimes lead to dangerous decisions. If someone with the knowledge and authority to make an executive decision was there, this tragedy could possibly have been avoided. If you were in a policy making forum, what national or international policy measures would you recommend for reducing long term risk from off-shore drilling. I think the policies on long term risk from off-shore drilling accidents could be addressed by building some kind of boundary wall to contain the drill site, even if there was not a spill. Just the act of drilling is releasing some form of contamination and if that contamination could be contained before it gets incorporated into the entire different city/ country’s water supply it would be a great benefit to prevent long term effects of oil contamination. International policies need to be in effect that maintain the same standards across the board. If one country has low standards and takes in the contaminated water†¦ they will then be releasing it into the environment and the contamination will still affect neighboring countries/cities that may have stricter standards. If I was involved in any type of policymaking forum, I would try to get policy passed that had strict policies regarding quality control practices regarding the technology being used to drill for the oil and the equipment maintenance. Increased testing of drilling equipment during and between drilling process, not just at the start stage. Sometimes equipment fails during use and quality measures need to be in place to make frequent inspections. What changes would you require in terms of ethical conduct by regulators? Regulators need to not be financially involved with projects the are legislating. This is a huge ethical problem because kickbacks and donations often lead to favorable legislations in favor of the party standing to gain and not for the best interest of the public. To what degree may politics have clouded judgment and influenced decisions that where made? Relaxed government regulation was probably made because the government in efforts to promote business, made acquisitions that were dangerous and costly to the environment in the long run.

Is Company Sponsorship in the University a Boon or Evil Coursework

Is Company Sponsorship in the University a Boon or Evil - Coursework Example When the sponsoring company controls the curriculum in the university, they put into the design the long experience they have gathered from the field of their expertise. They could contribute practical insights relevant to the study needed by the student and is proven to be practical guides. Furthermore, they can give inputs as to what kind of studies and researches are really needed by the industries that could contribute to the sciences. It becomes advantageous to students in the sense that they are assured that the knowledge they are getting comes from the rightful authorities whom they could use as sources of information for their study. In terms of employment, students from this particular university have an edge over other employees because they have practically mastered the skills needed by the industry that designed the program.Let us take the example of McDonald's that will be sponsoring Health Sciences.   McDonald's could probably be interested in the field of Health Scie nce because of its program on nutrition, diet, and fitness. Taking control of the curriculum on Health Science by McDonald would lead to the development of the design of researches for the improvement of Nutrition, diet, and fitness which are part of Health Science study. It is advantageous for students because they are practically putting in efforts and contributing to the wealth of information that could benefit the wellbeing of man.   The partnership assures McDonald's of the continuous research on the field that could be useful in their business in the long run.

British Literature Essay Example | Topics and Well Written Essays - 1250 words

British Literature - Essay Example s misogyny has been the focus of various critics in literature as he exhibited unconcealed and deliberate hatred against women, which can be accounted as one of the reasons for which Eve has been manifested as inferior to Adam and expressed in the following lines when Adam asked God: â€Å"O! why did God, Creator wise! That Peopl’d highest Heaven with spirits masculine, create at last, this Novelty on Earth, this fair defect of Nature? And not fill the world at once with men, as Angels without Feminine? (10: 881-89). These thoughts clearly revealed as if Milton had achieved the patent to hold Eve entirely responsible for the sin of disobeying the order of God. The character of Eve was not that of her own as she was created from a part of the body of Adam. Although, women of today can express their righteous anger and resentment towards the portrayal of Eve, it can be said that the social milieu during the time of Milton was responsible for her character being typified as weak when compared to that of Adam to a certain extent. It is true that Milton’s description of the relationship between Adam and Eve succinctly touches the tones of synchronization; however, the coordination is largely based on inequalities between them. The explanations bear clarified testimonies to Milton’s conception of heterosexual love in his times as he has always preferred to mention the society which was essentially patriarchal in nature although his explanations have also remained nebulous in certain instances. Therefore, the sexism or inequality between Adam and Eve is also revealed in his depiction of Eve and her dual crime towards God and Adam (Corns 71-73). There are various instances in Paradise Lost in which the sexist tendencies of Milton are more blatant and compatible with Bible: â€Å"For a man indeed ought not to cover his head, for as much as he is the glory of God: but the woman is the glory of the man. For the man is not of the woman; but the woman of the man. Neither was

Financial Accounting Standards Essay Example | Topics and Well Written Essays - 1000 words

Financial Accounting Standards - Essay Example The statistics present all this information in the form of numerical data. Thus, the CAFR is created. This essay will discuss the CAFR of Texas and all its major components. The Texas CAFR has a table of contents which divides the report into the three parts mentioned above. The first part is known as the introductory section and includes the letter of transmittal along with the structure of the government in Texas and the officials involved in ensuring its smooth running. The second part of the CAFR includes a number of different components. It begins with the independent auditor's report and continues with the management's discussion and analysis of the report. It also government financial statements which include the net assets and the statement of activities conducted by the state. Also included are the balance sheets, different funds statements which government's funds balance in the net assets and the revenues and expenditure in the governmental balance sheets. These proprietary funds also count the net assets and cash flows. Fiduciary net assets and the changes made to them are included in the financial report. Non-major funds are part of the financial statements of the CAFR. This includes governmental, special revenue, debt service, capital projects, and permanent funds. The balance sheets and revenue, expenditure and changes are also provided for in the fund balances. Non-major enterprise forms a separate aspect of the report. It includes statements of net assets, cash flows and revenues and changes made to the fund net assets for non-major enterprise and educational institutions: colleges and universities. Pension and other employee benefits, trust funds set for private purposes and funds used by agencies are included in the CAFR. The fiduciary net assets are observed along with the changes in these assets. The financial statement ends with a statement of the net activities and assets of the state. The statistical section includes the financial trends which include the net assets and governmental funds and the changes made to them. Also, the revenue is counted which includes the tax collections, retail sales and gross state product. The debt is also covered in the statistics with the outstanding debt and outstanding bond coverage being counted into it. Demographic information like the top ten employers in Texas and employment and unemployment rates are also presented in this statistical report. It ends with the capital assets and their operation in Texas. Thus, these three sections are divided into a variety of components to create the CAFR of Texas (Texas Comptroller of Public Accounts) which helps determine the funds and balance available to this state of America. Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis paper The GASB is the model applied by the General Accepted Accounting Principles used at the federal and state level in the United States. The FASB is also similar to this model because it too has been created to establish General Accounting Principles for the public interest of the country. However, the difference is that while GASB sets standards for financial accounting and reporting at the state and local government level, FASB does the same job for the private sector which includes not-for-profit

The Philosophy of Punishment for Criminals in Regard to Society and Essay

The Philosophy of Punishment for Criminals in Regard to Society and Victim - Essay Example Changes should be instituted that continue to enhance the rights of victims and create a greater sensitivity to their long-term emotional needs. It is a relatively recent development in the history of punishment that the victim of a crime is not central to the issue of resolving the debt created by a criminal act. In the American justice system, a criminal is considered indebted to the greater society, thus excluding the victim as a part of the punishment process. In fact, the concept of victims' rights has only become an issue for the justice system within the last few decades. The design of the justice system was not created with empathy for the victim, or an understanding of the lasting affect that violent crime can have on the life of someone who must cope with the aftermath of such an act. However, the concept of punishment does hold the potential as a deterrent for future crimes, and in this way relates mainly to the needs of a secure society. In an examination of punishment in the United States, and the way in which it relates and affects both the victim and society, it reveals a philosophy that is ineffective at addr essing the core issues that are significant to the long-term goals of society, or in satisfying the needs of the victim. In the evaluation of the ways in which crime a... five prevalent categories of needs for victims that include "retaliation, recognition of victim status, confirmation of societal values, victim security, and societal security" (p.173). The five goals of the victim are directly related to the ways in which the crime has affected the well-being of the individual. The more violent crimes require more than one of these goals in establishing a sense of closure, while less violent crime can require only one or two of these goals. However, these goals that affect the well-being of the victim are often not specifically addressed in the current justice system. While civil lawsuits can create monetary reparation toward the victim, most crimes are difficult to address through this type of litigation. Criminals that are incarcerated usually have no physical resources for restitution, and become a depersonalized entity within the prison system. Victims are left with a sense that their needs have diminished within society and that their circumsta nce has not been properly acknowledged. Historical Perspective Historically speaking, the philosophy of punishment has more often been designed around reparation to the victim of a crime. This is not to suggest that punishment was more merciful or did not have an aspect of cruelty incorporated into it. One example of the harshness of ancient law is from Sumer, which has the earliest surviving written record of law in history. According to Tetlow (2004), "When a woman said something offensive to a man, her teeth were crushed by burnt bricks on which her guilt had been inscribed. The bricks were then hung up in the city gate for all to see" (p.9-10). While the harshness of this sentence is beyond any reasonable standard of conduct for a modern culture, it represents the direct

Air pollution Essay Example | Topics and Well Written Essays - 2500 words

Air pollution - Essay Example From this research it is clear that air pollution has become a major environmental health problem affecting both developed and developing countries throughout the world. The consequence has been that air pollution is causing human health problems as well as damage to vegetation, crops, wildlife, materials, buildings and even the climate. In the U.S., the largest sources of air pollution, in order of importance, are: 1) transportation, mainly automobiles and trucks; 2) electric power plants that bum coal or oil; and 3) industry, for which the major sources include steel mills, metal smelters, oil refineries, and paper mills. The most common air pollution problem resulting from these emission sources is ground-level ozone (O3), According to the United States Environmental Protection Agency (EPA), non-attainment of EPA requirements for O3 is the most common air pollution problem facing large cities in the U.S. It is estimated that, 160 million people in the U.S. lived in areas that are in non-attainment of healthful O3 levels (Organization for Economic Co-operation and Development [OECD]. In the past, efforts to reduce air pollution have consisted primarily of "command and control" programs that involve enforcement of government regulations designed to reduce toxic emissions. Such programs have proven highly effective in reducing industrial, point source pollution and causing auto manufacturers to produce cleaner burning automobiles.... The stratospheric level of the earth's atmosphere lies directly above the troposphere, which extends from sea level to approximately 8-9 miles above the earth's surface. It is in the troposphere that nearly all forms of life on earth reside. Within the stratosphere lies a highly concentrated level of ozone, commonly referred to as the ozone layer. The highest concentrations of O3 within the stratosphere occur between 11-15 miles above the earth's surface. This stratospheric ozone layer is essential to the maintenance of life on earth, protecting the earth's inhabitants from the sun's harmful ultraviolet (UV) radiation (Buchholz 1). Thus, free of human interference, the stratospheric ozone layer is continually maintaining a dynamic equilibrium between ozone production and ozone destruction that maintains the earth's protective ozone layer. While O3 also occurs naturally in very small amounts at ground level in the troposphere, in urban areas throughout the U.S., tropospheric O3 levels are rising to unhealthful levels (Buchholz 1). In affected urban areas, O3 air pollution reaches its highest level between the months of May and September when temperatures are high and sunlight abundant. O3 forms at ground level when volatile organic compounds (VOC's) combine with nitrogen dioxides (NOx) in the presence of heat and light (Buchholz 1). NOx is formed via the burning of fossil fuels at high temperatures, and is the primary precursor to O3, NOx and VOC's, are emitted into the air by motor vehicles, electrical power plants and other industrial plants. Because the O3 molecule is highly reactive, it acts as a powerful oxidant. Consequently, ground-level ozone negatively affects human

Mitt Romney Essay Example | Topics and Well Written Essays - 500 words - 1

Mitt Romney - Essay Example Mitt Romney has good policies but people fail to feel his sentiments in issued that affect ordinary Americans. One of the ways this has come out is by Mitt Romney failing to sound so original in his campaign scripts. When people perceive a leader honest, then he passed the likability test. He presents himself as Obama’s direct contrast as opposed to addressing the immediate concerns of America. Therefore he should explain how to shall fix the American economy while at same time look easy and approachable to all Americans. Romney should just be easy with his personality. He should not seem to try too hard. He should just be passionate about what he believes. The best messages to use should be aimed at addressing the ailing economy. He should clearly demonstrate how the current administration has failed and offer brand new solutions to alleviate the suffering of jobless Americans. This should be done with America in mind not Obama in mind. The campaign message should inform American the demerits of failing to support him and also offer more firm and well worded responses to democrats’ election propaganda. The target audience should be all Americans. Messages should however be customized to different age, social and economic groups depending on the place and the time of the speeches. This is because different groups understand the same message differently. The audience should see the passion and the merit of the issues he addresses. It’s not enough to have sound economic policies for a Mitt to beat Obama. Charisma and ability to speak and move people is equally important. This is because Obama is a gifted orator who sounds convincing with ease. The difference shall be how the message is presented that the attitude that Americans can read from the tone used. The energy in the campaign trail and absolute confidence that people really need what you have got to offer is equally important. The

How sports affects people Essay Example | Topics and Well Written Essays - 1000 words

How sports affects people - Essay Example It also contributes to civilization throughout the globe. For instance, sporting activities have dominated the current society. Thus, the reason people are engaging in the process to benefit themselves. Amongst professional sportspeople, the sporting activities are sources of income, whereas to others it is a pastime activity. According to Woods (127) sport is the common type of leisure activity that cuts across generations. This piece intends to inform the audience on the effects of sports to the masses. Engaging in sports of either kind has had both positive and negative benefits to various individuals. The activity is being associated with a healthy lifestyle; thus, many people in the society are being encouraged to engage in sports. In this case, the sporting activity can be either an indoor or an outdoor activity. Athletics is the most common sporting activity in the globe (Woods 179). Sport is a form of leisure activity enjoyed by the majority in the globe. It is a hobby to many individuals in the society since it propagates the charm to life (Prettyman & Brian 8). Children have benefited a lot from engaging in sporting activities since it is associated with brain development among teenagers and teamwork mentality that begins in childhood through to adulthood. The rating of pastime social activities indicate that people engaging in sports rank higher. Interestingly, sport has become an addiction to some. People are willing to do anything to explore the excitement that comes with sports. Watching sporting activities such as football motivates people with enthusiasm. According Kenney, Jack, Wilmore, David & Jack (1), the excitement that emanates from sports is useful. People learn to develop their personal goals that guide them in their lives. Therefore, it is important to discuss the effects of sports on the society and devise the best strategies of promoting sporting the activities for the benefit of all. Additionally,

Java zone Essay Example | Topics and Well Written Essays - 250 words

Java zone - Essay Example As a consequence, birds, reptiles and other animal species in these forests have increasingly been endangered as almost all forests are gone only to create space for this lucrative plant. It took the intervention of North America to realize that there has been a significant drop in the number of birds in Central America. As per the reports of the researchers, this is attributed to cutting down of tree previously used as coffee shades. As such, this work pertains to biodiversity more than anything else. The information is similar to the context that constitute of biodiversity. This is due to the reality that most farmers in Nicaragua and other Central American nations have been affecting biodiversity through their own action. In biodiversity, people look at the short term benefit of their action, which similar to the java zone farmers who cut down the forest not caring for the long run impacts. Cutting down the trees negatively affects biodiversity, given that they are natural habitats of some other creatures such as birds, and mammals. Is it right to compromise the biodiversity to increase the sales volume of

Participatory Notes - Concept Essay Example for Free

Participatory Notes Concept Essay Participatory notes are issued by FIIs to their unregistered clients who want to invest in the Indian equity market but do not want to meet the disclosure requirements to do so. Thus the modus operandi they opt for is to invest their money with the fund companies (FIIs), who will invest in Indian market on their behalf. The fund company is registered with SEBI in India and issues participatory notes to these investors as a proof of their investment. Participatory notes are instruments used by foreign funds not registered in the country to trade in the domestic market. SEBI’s Concern and rulings regarding these notes: Participatory Notes have always been a bone of contention for SEBI as the identity of the investors is not known. In 2003, there was a boom in the stock market mainly due to a lot of foreign funds. This also led to a lot of volatility in the Indian market because a lot of Investment was done through Participatory Notes. So in 2003, SEBI amended regulations relating to foreign institutional investors to incorporate a new 10 point code of conduct and inserted a clause seeking disclosure of information with regard to participatory notes. The code seeks compliance to good corporate governance standards and SEBI regulations. SEBI has clarified that there is no change in the rules relating to FIIs except for the strengthening of KYC Norms. They have also given a ruling which states that from Now on, The PNs can only be issued to Registered Entities. The actual investing parties must be registered with the regulator of their country of Incorporation. In addition, to facilitate the process of transition, derivative instruments already issued and outstanding against un-regulated entities will not be required to be terminated immediately. It has been decided that the said contracts will be permitted to expire or to be wound down on maturity, or within a period of 5 years, whichever is earlier.

Investment Appraisal Report Example

Investment Appraisal Report Example Re: Investment in Kingfisher Plc Following our conversation earlier, I have prepared a report into Kingfisher Plc to help you with your investment decision. I have split this report into two sections, to help you analyse the company’s financial management practices and also to determine what represents a fair price for the company’s shares. As we discussed earlier, when making any investment it is vital to consider the financial management policies and practices of the company. These include what the company invests in; how these investments perform; how the company raises funds to invest; and how the company treats its profits. As such, the first part of this section will address these four sections in turn, and how these affect the performance of the company. The second section will address the fair value of the shares of the company. This is because, whilst the company may perform well, if the shares are purchased for more than a fair value, based on the company’s ability to earn, they may not provide a good return to an investor. I hope this report will be of interest to you, please let me know if you have any questions about any aspects. Part A)  Financial Management Investments Kingfisher’s primary investment over the past five years has been in tangible assets, such as property, plant and equipment, which have made up over fifty percent of total assets over the past five years. The majority of the remaining assets are composed of goodwill, with small amounts devoted to pension plans, financial derivatives and other intangible assets. This can be seen in the table below: Table of non current asset values for Kingfisher Group Plc (all in  £ millions) Assets 2003 2004 2005 2006 2007 2008 Property, Plant and Equipment 3041 2781 3032 3265 3211 3698 Goodwill 2652 2455 2463 2559 2552 2532 Other Assets 309 146 289 354 380 532 (Source: Kingfisher, 2008) The main trend in the assets of Kingfisher has been a steady rise in the value of property, plant and equipment as well as other assets. The main change in the other assets is a rise in the level of post employment benefits; deferred tax assets; and derivative financial instruments, which were not on the balance sheet in 2003 but have a total value of over  £200 million in 2008. In addition, the drop in all values from 2003 to 2004 is a result of the disposal of the Chartwell Land property portfolio, which resulted in a reduction in the value of all asset classes due to the transfer of goodwill associated with the property sold. From 2004 onwards, the company has engaged in a significant expansion program based on organic growth and the opening of new stores. This has naturally increased the value of the total property, plant and equipment; with a small drop in 2007 where the company disposed of some of its less profitable stores. This balance in assets is largely expected because Kingfisher is a retail group, operating stores such as BQ, Screwfix, Castorama, and Brico Depot. As such, the group’s main source of income comes from sales from these stores; hence these stores are the most valuable asset the group owns. In addition, the company maintains a diverse portfolio of businesses across the UK, France and other countries including the Republic of Ireland, Poland, Italy, Spain, Turkey and China. In order to operate in these countries, the group needs to own assets such as stores, offices, and distribution networks. This further increases the percentage of total assets which will be taken up by property, plant and equipment. With regards to the level of goodwill, this became quite high prior to 2003, but has stayed quite constant over the period of the study. This indicates that a significant proportion of the business’ assets have been purchased for more than their book value. This is possibly how the group has managed to obtain such a large portfolio of businesses, and particularly how it has managed to ensure that all of its businesses are in the top three of the domestic markets. However, over the period of the study, the group has not experienced a significant increase or decrease in the level of goodwill, which implies that it has not significantly expanded its portfolio through acquisitions, and the majority of the increase in the value of the total assets has come through organic growth or purchases at close to book value. This is slightly complicated by the group’s goodwill policy, which makes an assessment of the ability of acquired businesses to generate cash each year, and amort ises the level of goodwill to compensate. As such, it is possible that the group has invested a significant amount in buying new businesses, and the value of the goodwill from these businesses has since fallen. However, the annual reports mention that new stores are being opened, not bought, which implies that the group’s expansion policy is to open new stores, rather than acquire existing ones from competitors. Investment appraisal Investment appraisal is generally done on a per project basis, with a company projecting the cashflows, both positive and negative, associated with a project; and then calculating whether the net cashflow will be positive or negative, and by how much. This value can be calculated based on either the absolute value of the cashflows, or on the discounted value of the cashflows which takes into account the fact that cashflows occurring in later years will be less valuable due to inflation and other factors (Knott, 2004). However, when considering an investment in Kingfisher, this methodology is not appropriate, as the company is a continuous operation with no definite start or end point. Indeed, all the new stores the company opens are intended to remain operational for the foreseeable future, hence making it very difficult to calculate their rates of return and net present values. Whilst the company will undoubtedly have an internal method for doing this, perhaps taking the cashflows f or the first five years of operations, this method is not detailed in the annual reports. Nor does Kingfisher reveal details of the exact costs of the investment into stores or their cashflows in the annual reports, thus making it impossible to attempt such an analysis with the available data. As such, it is necessary to analyse the performance of Kingfisher’s overall business, from the point of view of an investor looking to buy shares. As such, the initial purchase of the shares represents the initial investment, and the return made on these shares can be taken to be the future cashflows for the purposes of the analysis. On this basis, it is necessary to look at the annual returns provided by Kingfisher, as well as the change in the value of the shares (Lumby, 1994). Kingfisher annual share price from May 2003 to May 2008 Date Closing Price 27/05/2003 257.25 27/05/2004 285.5 27/05/2005 259 26/05/2006 235.75 25/05/2007 252.75 27/05/2008 138.1 (Source: Yahoo Finance, 2008) Kingfisher earnings per share from 2003 to 2008 Year Earnings per share 2003 16.4 2004 17.4 2005 20.8 2006 12.2 2007 11.8 2008 11.7 (Source: Kingfisher, 2008) As can be seen from these graphs above, Kingfisher’s share price and earnings per share have both fallen over the period of the study. As such, one share purchased for 257 pence in 2003 would be worth just 138 pence in 2008, and the total dividend earnings per share would be just 90 pence. As such, the total return from an investment of 257 pence would be only 228 pence. This implies that an investment in Kingfisher over the past three years would have performed very poorly, with a return of -12.7% over five years, even without considering discount factors and net present values. Indeed, given that the positive cashflows have occurred after the negative cashflows, any investment in Kingfisher would have a negative net positive value for any positive discount factor. In addition, the earnings per share have fallen from 2003 to 2008. Within the period of the study, earnings per share rose from 2003 to 2005, before falling sharply between 2005 and 2006 and then remaining relatively constant. This fall is specifically mentioned in Kingfisher’s 2006 annual report as being due to a significant fall in profits from the UK market, which was driven by â€Å"rising energy costs, higher taxes and pension contributions and [consumer] confidence has been affected by a weaker housing market† (Kingfisher, 2008). This implies that Kingfisher’s investments in the UK have performed poorly over the past three years, and indeed the 2008 annual report shows that the UK investments have further weakened against the background of the global â€Å"credit crunch†. Whilst the credit crunch has affected all markets around the world, Kingfisher specifically points out that the high level of debt in the UK has created even more problems for consu mers, who have less money to spend as their debt payments have risen. As such, Kingfisher’s investments in the UK, which account for around 47% of the group’s total revenue, are unlikely to improve their performance in the near future. Sources of funding Kingfisher main sources of funding All in  £ millions 2003 2004 2005 2006 2007 2008 Total long term debt 1528 744.9 828.3 1255.5 1432 1620 Total equity 4463 4407 4387.3 4320.4 4421 4724 (Source: Kingfisher, 2008) Kingfisher is strongly dependent on equity as a source of funding, with total shareholder’s equity making up at least three times as much of the funding as long term debt. Short term debt has been excluded from these calculations, partly because short term debt appears to be used only to settle any cashflow issues, and partly because prior to the 2006 accounts short term debt was not declared separately from trade payables. As such, it would be impossible to compare short term debt across the entire period. It is worth point out that the decrease in debt from 2003 to 2004 is largely due to the sale of the Chartwell Land property portfolio mentioned above. The proceeds of this sale were largely used to reduce the level of long term borrowings, thus resulting in a significant drop between 2003 and 2004. However, following this sale, when the debt to equity ratio fell to just 0.17, the amount of debt has risen steadily, to the point where it reached 0.34 in 2008, the same level as in 2003. This rise has been accompanied by a small rise in the level of shareholder equity, but not to the extent that the total asset value has risen as seen in the investments section above. This implies that the store expansion and refurbishment programs mentioned throughout the Kingfisher annual reports during the period of the study have been funded largely by debt. This has caused the company’s debt to equity ratio to rise quite significantly over the period of the study, which has more than doubled the debt to equity ratio. This significant increase in the debt to equity ratio could be a cause for concern, as it potentially places a higher debt burden on the company which must be serviced from profits. As such, if the company’s fortunes continue to suffer due to the effects of the credit crunch, the company may have difficulty paying its debts and may suffer liquidity problems. However, in the 2008 financial statements the net finance costs on the debt are just  £62 million, whilst the operating profit is  £453 million. As such, the company can cover its interest more than seven times from profits, which means that this rise in the level of debt is not currently a significant concern. Of course, running counter to this is the fact that the global credit crunch is expected to increase the effective rates of borrowing, which could increase the interest payments as well as reducing the long term levels of consumer spending. As such, it is possible that the credit crunch will continue to reduce K ingfisher’s profits whilst increasing the interest cost, thus potentially creating financial troubles in the next few years. This potential issue is compounded by the fact that the company capitalised  £1 million of borrowing costs in 2007, and a further  £3 million in 2008, which may indicate issues in paying these loans out of profit. The major sources of debt finance for the business at the current time are medium term notes and other fixed term debt, which make up  £1,436 million of the debt. These have been placed on markets in the UK, Eurozone and United States and have raised capital at a net cost of between 4.1% and 6.9%. As such, the company has relied on non convertible loans raised on public markets. The majority of the remainder is made up of non secured bank loans. This indicates that, even if the company should encounter financial difficulties, it will not necessarily lose any of its property or have its equity diluted by convertible loans. Treatment of profits and dividend policy Year 2003 2004 2005 2006 2007 2008 Dividend per share (pence) 9.5 9.65 10.65 10.65 10.65 7.25 Earnings per share (pence) 16.4 17.4 20.8 12.2 11.8 11.7 (Source: Kingfisher, 2008) From 2003 to 2005, Kingfisher’s dividend grew by a reasonable amount, although this was not proportional to the increase in earnings per share over the period. This indicates that Kingfisher was using partly using the increase in earnings to boost the dividend, but mainly using it to build up the volume of reserves, pay back debt, and expand the company. As a result of this, the company allowed its earnings per share to rise by more than the level of the dividend. Following the decline in the UK market from 2005 to 2006, and the subsequent fall in the earnings per share for the company, Kingfisher attempted to maintain its dividend at 10.65 pence per share in spite of the fact that this left very little retained earnings. However, in 2008, following a significant fall in the share price, the dividend yield has also fallen to 7.25 pence in spite of the earnings per share remaining at the same level as in previous years. This implies that the company is now encountering difficul ties maintaining its dividend yield at this level, and thus is having to drop its dividend in order to accumulate further reserves. Unfortunately, there is no detail in the Kingfisher accounts around exactly why this reserve is being built up. However, it is interesting to note that the reserves have now been built up to the  £2.2 billion mark, after being maintained at around the  £1.9 billion mark for the period from 2005 to 2007. This may indicate that the company feels that the tough trading conditions will continue for some time, and hence there may be a need to retain more earnings to help cover interest payments in the future. Another potential explanation is that, as a retail company owning a significant amount of property, plant and equipment; Kingfisher has a significant level exposure to the property market in both the UK and France. As such, the company may feel that, with the property markets in the UK and France showing signs of weakness due to the credit crunch, there may soon be a need to revalue the property portfolio in each of these countries. Therefore, the reduced dividend and increase re serve may be an attempt to boost the equity and net asset value of the company in order to protect the value of the company against such a fall. However, the balance sheet tends to reveal a different potential explanation. The rise of  £300 million in the value of the reserves of the company has occurred at the same time as a  £300 million rise in the value of the inventory held by the company. This could be due to the fact that cost price inflation is significantly boosting the cost of inventory and the price of sales, and hence has increased the value of the inventory held by the company. However, the annual report indicates that cost price inflation for the company was just 4% over the previous year. As such, this cost price inflation is unlikely to have created a  £300 million rise in the value of inventory, which is a 20% rise in the total value of inventory. This implies that the rise in the value of the inventory is for another reason, potentially due to a lack of sales or by overbuying of replacement inventory. As such, this does not indicate that the company is making the best use of its profits, nor that it is efficiently pursuing a goal of maximising value for its shareholders. Part B) Fair Value When attempting to assess whether the current share price of Kingfisher Plc represents a fair value for the company, it is necessary to look both as the share price and the market capitalisation; which is the total market value of all the shares. This price is determined by the shares traded on a stock market where brokers buy and sell shares on behalf of their clients. For Kingfisher, the stock market is the London Stock Exchange, and Yahoo Finance (2008) quotes the current share price of the company as 128.2 pence. In addition, the 2008 annual report states there are 2,361 million shares outstanding. This gives the company a total market capitalisation of  £3.027 million as of the 18th August. One potential method of calculating the fair value of the company is through the net asset value of the company. This is because, provided the company can sell all its assets and pay off all its liabilities at their book value, it will realise its net asset value in cash. In addition, in theory the shareholders own a share of the net assets of the company equal to their share of the market capitalisation. Therefore, if the market capitalisation of the company was equal to the net asset value of the company, the share price would be at a fair value. For Kingfisher, the net asset value in the 2008 financial statements is  £4,724 million. This implies that a fair value for the market capitalisation would also be  £4,724 million, which is around 56% higher than the current value of the shares. This would further imply that a fair share price for the company would be 200 pence. However, this method is somewhat flawed because it assumes that all assets can be sold for fair value and al l liabilities can be settled at fair value. In reality, the only time when all assets and liabilities will be sold is if the business is wound up under bankruptcy or liquidity problems. As such, assets are most likely to be auctioned off by the creditors and shareholders are unlikely to receive a fair value for them. Indeed, assets such as inventory are often sold at less than ten per cent of their market value. As such, this method is likely to be unreliable, particularly for a business with such a large volume of inventory (Lumby, 1994). Another method of calculating the potential fair value of a company is to use the value of net earnings and compare this value to the historical price / earnings ratio to work out what the current fair price should be for the shares. Based on this method, the average price / earnings ratio of Kingfisher has been 16.18 over the past five year period. Year 2003 2004 2005 2006 2007 2008 Average Earnings per share (pence) 16.4 17.4 20.8 12.2 11.8 11.7 15.05 Share price (pence) 257.25 285.5 259 235.75 252.75 138.1 238.0583 Price / Earnings Ratio 15.68598 16.408046 12.45192 19.32377 21.41949 11.80342 16.1821 Applying this to the earnings per share over the past year of 11.7 gives an estimate of the fair value of the share price of 189.33 pence: this is 47% higher than the market value of the shares. As such, this also implies that the current market value of the shares is too low. However, valuing the company on this basis is also flawed, in that it assumes that the company will maintain its past performance, and that the past performance of the shares has been efficient. Indeed, for Kingfisher this is arguably even less of a relevant method by which to judge the shares, as Kingfisher is currently suffering significant problems in its main UK market. Therefore, attempting to value the company based on its past valuations assumes that the company is still performing as it did in the past, something which is arguably not the case. In addition, with many predicting that the Kingfisher’s UK market will continue to shrink, it is possible that the company’s ability to generate ea rnings will be further impaired, and its earnings per share ratio will fall below its average (Lumby, 1994). As such, and given that there is significant uncertainty over the future value of Kingfisher’s assets and liabilities as well as the ability of the company to generate earnings, it is difficult to come up with an analytical method for calculating the fair value of the company. Therefore it is necessary to use the efficient market hypothesis when attempting to value the company. This hypothesis is based on the view that the market produces the fair value of the shares of the company using all available information. As such, the market should already have priced in the potential for Kingfisher’s properties to decrease in value and the potential for the company to be unable to make as much money in the future. This is based on the argument that the market as a whole has access to all the information available, and also has experience in reading and judging signals regarding the value of a company. As such, if Kingfisher were currently trading at too high a price, people wo uld sell the shares until the value moved to a fair value. In contrast, were the company currently trading at too cheap a price, participants in the market would buy the shares until the value was driven up to a fair price. As such, the efficient market hypothesis implies that the current fair price for the Kingfisher shares is the price at which they are currently traded on the open market. Therefore, the fair price of the shares is 128.2 pence. However, the efficient market hypothesis is based on markets only being able to act on available information. As such, it is possible that there is a fundamental problem with Kingfisher which will affect the share price but which is not included in the publicly available information. In addition, the market price for the shares can be driven by factors such as investment banks buying up shares, or takeover rumours. Therefore, in the short term the market value of shares may not reflect their fair value, as the market may not have all the information or may be being driven by other factors. However, in the long term, the professional analysts who are employed by many of the banks and investment funds which buy and sell shares will be best able to value the share s, and hence the best estimate of the fair value of the shares is their current market value: 128.2 pence. References Kingfisher (2008) Kingfisher Plc. http://www.kingfisher.co.uk/ Accessed 16th August 2008. Knott, G. (2004) Financial Management. Palgrave MacMillan. Lumby, S. (1994) Investment Appraisal and Financing Decisions. Thomson Learning. Turner, G. (2008) The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis. Pluto Press. Yahoo Finance (2008) Kingfisher Share Price Chart. http://uk.finance.yahoo.com/q/bc?s=KGF.Lt=5y Accessed 18th August 2008.

Polymer Profiles: An Overview

Polymer Profiles: An Overview 4.4. POLYMER PROFILES: Hydroxy Propyl Methyl Cellulose (HPMC) Synonyms: Cellulose Hydroxypropyl methyl ether Functional Category: Release retardant, Coating purpose it used, film-former, suspending agent, stabilizing agent, tablet binder and viscosity increasing agent. Pharmaceutical application: Hydroxypropylmethylcellulose is widely used in oral formulations. It is used in contain solution of 2-20 % w/w in tablet coating of tablets. In aqueous coating low viscosity grades of Hydroxypropylmethylcellulose in aqueous coating solution used while higher viscosity grades are used with organic solvents. It is also used as a suspending and thickening agent in topical formulations. CARBOPOL Synonyms: Acritamer; acrylic acid polymer; Carbopol; carboxy polymethylene, polyacrylic acid; carboxyvinyl polymer; Pemulen; Ultrez Solubility: Carbopol is soluble in water, alcohol and glycerin. Functional Category: Bio adhesive, emulsifying agent, release- modifying agent, Suspending agent, tablet binder, viscosity-increasing agent. Pharmaceutical Applications: In tablet formulations, Carbomer are used as dry or wet binders and as a rate controlling Excepient. In wet granulation processes, water or an alcohol–water blend is used as the granulating fluid. Anhydrous organic solvents have also been used, with the inclusion of a polymeric binder. The tackiness of the wet mass can be reduced with the addition of certain cationic species to the granulating fluid. POLYMETHACRYLATES Description: Polymethacrylates are synthetic cationic and anionic polymers of dimethylaminoethyl methacrylates, methacrylic acid, and methacrylic acid esters in varying ratios. Several different types are commercially available and may be obtained as the dry powder, as an aqueous dispersion, or as an organic solution. Functional Category: Film former,tablet binder,enteric coating polymer Table 1.8. Solubility and Applications in Pharmaceutical Formulation or Technology: Type Supply form Recommended solvents Solubility/ permeability Applications Eudragit RL100 Granules Acetone, Alcohols High permeability Sustained release Eudragit RS 100 Granules Acetone, Alcohols Low permeability Sustained release Eudragit RS PO Powder Acetone, Alcohols Low permeability Sustained release GLYCERYL BEHENATE Synonyms: Compritol 888 ATO; 2,3-dihydroxypropyldocosanoate; docosanoic acid, 2,3-dihydroxypropyl ester; glycerol behenate; glyceryl monobehenate; tribehenin. Functional Category: Coating agent; tablet binder; tablet and capsule lubricant. Pharmaceutical Applications: In pharmaceutical formulations, glyceryl behenate is mainly used as a tablet and capsule lubricant and as a lipidic coating Excepient. It has been investigated for use in the preparation of sustained release tablets, and as a matrix- forming agent for the controlled release of water-soluble drugs. SODIUM ALGINATE Synonyms: Algin; alginic acid, sodium salt; Kelcosol; Keltone; Protanal; sodium polymannuronate. Functional Category: Stabilizing agent; Suspending agent;tablet and capsule Disintegrant; tablet binder; viscosity-increasing agent. Pharmaceutical Applications: In tablet formulations, sodium alginate may be used as both a binder and Disintegrant; It has been used as a diluent in capsule formulations. Sodium alginate has also been used in the preparation of sustained-release oral formulations since it can delay the dissolution of a drug from tablets, capsules, and aqueous suspensions. CHITOSAN Synonyms: 2-Amino-2-deoxy-(1,4)-ÃŽ ²-D-glucopyranan,deacetylatedchitin, Chemical Name: Poly-ÃŽ ²-(1, 4)-2-Amino-2-deoxy-D-glucose. Functional Category: Coating agent, film-forming agent, Mucoadhesive tablet binder and viscosity-increasing agent. Applications: It is used as a component of sustained release dosage form mucoadhesive dosage forms. XANTHAN GUM Synonyms: Corn sugar gum, Keltrol, Rhodigel, Vanzan NF, Xantural. Functional Category: Stabilizing agent; suspending agent; viscosity-increasing agent. Pharmaceutical Applications: Used in cosmetic and foods as a suspending and stabilizing agent. Although primarily used as a suspending agent, Xanthan gum has also been used to prepare sustained-release matrix tablets. GUAR GUM Synonyms: Galactosol; gaurflour; jaguar gum; meprogat; meyprodor. Chemical name: Galactomannan polysaccharide. Functional Category: Suspending agent, Tablet binder, Tablet disintegrant, Viscosity increasing agent. Applications in Pharmaceutical Technology: Used in solid dosage forms as a binder (up to 10%) and disintegrant. Used in oral and topical products as a suspending, thickening (up to 2.5%) and stabilizing agent (1%).Used in colon targeted drug delivery systems. Also, used in cosmetic and food products. POLY VINYL PYRROLIDINE (PVP) Synonyms:Kollidon;Plasdone;poly[1-(2-oxo-1-pyrrolidinyl)ethylene]; polyvidone; polyvinylpyrrolidone; PVP; 1-vinyl-2- pyrrolidine polymer. Functional Category: Disintegrant; dissolution aid; suspending agent; tablet binder. Pharmaceutical Applications: Primarily used in solid-dosage form. In tableting, Povidone solutions are used as binders in wet-granulation processes. Povidone is also added to powder blends in the dry form and granulated in situ by the addition of water, alcohol, or hydro alcoholic solutions. Carrier for drugs 10-25% of solution is used and in case of tablet binder, coating agent it is used in 0.5-5%. TALC Synonyms: Altalc; hydrous magnesium calcium silicate; hydrous magnesium silicate; Luzenac; Luzenac Pharma; magnesium hydrogen metasilicate; Magsil Osmanthus; Magsil Star; powdered talc; purified French chalk; Purtalc; soapstone; steatite; Superiore. Functional Category: Anticaking agent; Glidant; tablet and capsule diluent; tablet and capsule lubricant. Pharmaceutical Applications: Talc was once widely used in oral solid dosage formulations as a lubricant and diluent, although today it is less commonly used. However, it is widely used as a dissolution retardant in the development of controlled- release product. AEROSIL (COLLOIDAL SILICON DIOXIDE) Synonyms: Colloidal silica; fumed silica; light anhydrous silicic acid; silicic anhydride; silicon dioxide fumed. Functional Category: Adsorbent; Anticaking agent; emulsion stabilizer; Glidant; suspending agent; tablet Disintegrant; thermal stabilizer; viscosity-increasing agent. Pharmaceutical Applications: Its small particle size and large specific surface area give it desirable flow characteristics that are exploited to improve the flow properties of dry powders in a number of processes such as tableting. Colloidal silicon dioxide is also used as a tablet Disintegrant and as an adsorbent dispersing agent for liquids in powders. used to stabilize emulsions and as a thixotropic thickening and suspending agent in gels and semisolid preparations MAGNESIUM STEARATE Synonyms: Metallic stearate, Magnesium salt. Functional Category: Tablet and capsule lubricant, Glidant, Anti-Adherent. Pharmaceutical Applications: Tablet and capsule lubricant, Glidant, Anti-Adherent. MICROCRYSTALLINE CELLULOSE (MCC) Synonyms: Avicel PH; Celex; cellulose gel; Celphere; Ceolus KG; crystalline cellulose; E460; Emcocel; Ethispheres; Fibrocel; Pharmacel; Tabulose; Vivapur. Functional Category: Adsorbent; suspending agent; tablet and capsule diluent; tablet disintegrant. Applications in Pharmaceutical Formulation or Technology: Microcrystalline cellulose is widely used in pharmaceuticals, primarily as a binder/diluent in oral tablet and capsule formulations where it is used in both wet-granulation and direct compression processes. In addition to its use as a binder/diluent, microcrystalline cellulose also has some lubricant and disintegrant properties that make it useful in tableting.

Anglo-saxon Belief In Fate And Christianity :: essays research papers

The Unity of the Unknown and the Eternal Security: The Anglo-Saxon Belief in Christianity and Fate Imagine a life in which one is simply a pawn at the hands of a mysterious higher force stumbling and meandering through life's tribulations. Until Pope Gregory the Great was sent to spread Christianity throughout England, the Anglo- Saxons believed solely in this passive, victimizing philosophy. These pagans still clung to much of their heathen culture after the wave of Christianity swept through England leaving no one behind. Literature derived from this period (including Beowulf, "The Seafarer," and "The Wanderer") directly reflects the maintaining of Christian ideals, as well as the belief in fate's unknown and often grim path. For example, the epic poem, Beowulf , declares, "...Fate will unwind as it must!" (line 284). Meanwhile, the same work implies God has the authority in this great world by stating, "And all his glorious band of Geats/Thanked God their leader had come back unharmed," (598-599) as if God was the deciding factor in the great protector's health. The joining convincedness in God and fate influences the culture, outlook on life, and the various independent life paths of Anglo- Saxons. These early Germanic people believe "fate"- an anonymous power - controls the present, future and past; yet, they also believe the power of God is a resolute supremecy not to be denounced. Our earliest warriors put aside their heroic independence and let wyrd's foreign agency control their views and their lives' paths time and time again. These pagans even allow destiny to influence their view of life which was fatalistic and desolate. "The Wanderer" proves the Anglo-Saxons had little to live for and much to fear as it tells the tale of an anonymous man stripped from his gold-lord. This literary work illustrates stoic solitude and grim hopelessness by using phrases like, "...what a bitter companion/Shoulder to shoulder sorrow can be,"(lines 26-27) and "Wretchedness fills the realm of earth," (98). Along with their outlook on life as a whole, fate controls the pagans decisions and lack there of. "The Seafarer" shows an example of the Anglo-Saxons submissive role by voicing the story of a sailor suffering through hardships because he was meant to be a sailor and is drawn to the familiar sea. The sailor explains his painful lifestyle by stating, "...my soul/Called me eagerly out..." (lines 36-37) implying this harrowing lifestlye is not a conscious choice, but more of an obligation to something other than his mind and heart. Even the bravest warrior fell victim to this unsafe and unpredictable fortress. Beowulf, who is "...-greater/And stronger than anyone anywhere in this world, " (110-111), explained on his

Macbeth :: essays research papers

One thing leads to another. This is a statement most people are familiar with, especially if they read William Shakespeare’s Macbeth. It tells what happens to the tragic protagonist, Macbeth. At the start of the play, Macbeth is a highly praised and loyal nobleman admired by all until he becomes a victim of the witches. Their promises evoke his unrestrained ambition. From then on, Macbeth’s actions snowball out of his control and under the witches’ power. His unholy deeds trouble his sleep, and the innocent victims return to haunt him. Evil spirits take over his every move and thought. The luring prophecies, sleepless nights, hallucinations, and deceptive apparitions are all products of sorcery used to cloud Macbeth’s moral judgment and lead him to further degradation.   Ã‚  Ã‚  Ã‚  Ã‚  By pricking Macbeth’s desire for power and prestige with promising prophecies and giving him confidence with the apparitions, the witches lure him to commit evil deeds and to continue doing so endlessly. Their tempting prophecies bait Macbeth into their deceitful plot. Banquo, a fellow nobleman, warns him about the prophecies, “But ‘tis strange: and oftentimes, to win us to our harm, the instruments of darkness tell us truths, win us with honest trifles, to betray’s in deepest consequence'; (I, 3, 122-127). Banquo is a smart man, and it is unfortunate that Macbeth ignores his advice. To be sure that Macbeth self-destructs by his own sinful behavior, the sorceresses create prophetic images that ensure him security. Not knowing they are all part of the deception, Macbeth easily succumbs to their plan. He aimlessly kills, believing nothing can harm him, but he is dead wrong. The witches true intention is best revealed in Hecate’s orders, “And that distilled by magic sleights shall raise such artificial sprites as by the strength of their illusion shall draw him on to his confusion'; (III, 5, 26-29). Macbeth’s biggest misfortune is encountering the witches, and an even bigger mistake is to revisit them. The cunning scheme of the wicked women successfully leads Macbeth to evil and confuses him enough for him to lose command of his actions.   Ã‚  Ã‚  Ã‚  Ã‚  Even away from the witches, Macbeth still cannot escape their evil influence. By using hallucination, haunting spirits, and ghostly images, they over-power his ability to make right judgments. Macbeth’s hallucinating experience begins when he sees a dagger leading him to kill King Duncan. Macbeth’s reaction to the sight was, “Art thou not, fatal vision, sensible to feeling as to sight, or art thou but a dagger of the mind, a fatal creation, proceeding from the heat-oppressed brain?

Simpsons Theories and episodes :: essays research papers

When Bart snaps a picture of Homer dancing with a belly dancer at a stag party, it gets photocopied and soon all of Springfield has a copy. Homer becomes the talk of the town but almost ruins his marriage to Marge. Marge insists in making Homer take Bart to meet the bellydancer so he can learn that women aren't sex objects, because she fears he's getting a bad lesson out of all of this. Homer and Principle Skinner send Bart to France in exchange for an Albanian student for the Student Exchange Program. Bart soon learns this trip isn't all its cracked up to be, he is forced to live with two slave-driving French winemakers at the Chateau Maison vineyard. While Bart slaves away, the Albanian student student Adil Hoxha steals classified secrets from the Nuclear Power Plant and sends them to his country. The police soon finds him and ends him back to his own country. Meanwhile, Bart finds out they are putting anti-freeze in the wine and escapes his tormentors' vineyard, managing to speak enough French to tell the authorities and become a national hero. Homer buys Marge a bowling ball for her birthday, so she starts takin bowling lessons with a French bowling instructor. As her game improves, Marge and Jacques spend more and more time together until tahey're spending every night together bowling. Homer tells Marge his feelings and reminds her of her loyalty to the family and she comes back. Homer and Marge go on a romatic dinner and leave Bart, Lisa, and Maggie with Ms. Botz, who the kids recognize from the show "Armed & Dangerous" as the notorious Babysitter Bandit! Lisa runs toward the phone to call the Armed & Dangerous hotline when Ms. Botz cuts the phone line. She quickly ties up Bart and Lisa and goes rummaging through the house, grabbing things that tickle her fancy. Bart and Lisa's only hope is Maggie who crawled out of her crib and untied them. Marge being the worrying mother she is calls but of course, gets no answer so she decides she wants to go home and check up on the kids.

Organizational Behavior Synthesis paper Essay

The study of people at work is generally referred to as the study of organizational behavior. This chapter will start by defining the term organizational behavior and briefly reviewing its origins. Organizational behavior is the systematic study of the actions and attitudes that people exhibit within organizations. Each person regularly uses intuition or our â€Å"gut feelings† in trying to explain phenomena. For example, a friend catches a cold and we’re quick to remind him that he â€Å"didn’t take his vitamins†. The field of organizational behavior seeks to replace intuitive explanations such as this example with systematic study. The objective, of course, is to draw more accurate conclusions (Wilson 1994). What does organizational behavior study? Actions (or behaviors) and attitudes. The behaviors that get the bulk of attention in organizational behavior are three, which have proven to be very important determinants of employee performance. They are productivity, absenteeism, and turnover (Wilson 1994). The importance of productivity is obvious. Managers are clearly concerned with the quantity and quality of the work their employees are performing. But absence and turnover are particularly cause for concern because of the adverse affect it may have on an employee ’s productivity. In terms of absence, it’s hard for an employee to be productive if he or she isn’t at work. High rates of employee turnover increase costs and tend to place less experienced people into jobs (Daniels 1994). Organizational behavior is also concerned with employee job satisfaction, which is an attitude. There are three reasons why managers should be concerned with their employees’ job satisfaction. First, there is a link between satisfaction and productivity. Second, satisfaction appears to be negatively related to absenteeism and turnover. Third managers have a humanistic responsibility to provide their employees with jobs that are challenging and rewarding (Daniels 1994). The second part of organizational behavior’s definition that needs to be explained is â€Å"organization†. For our purposes organizational behavior is specifically concerned with work-related  behavior-and that takes place in organizations. An organization is a formal structure o f planned coordination, involving two or more people, in order to  achieve a common goal (Daniels 1994). Organizational behavior is about studying and understanding people and human nature. Do employee ever make efforts on behalf of their employing organization’s interests or fellow employees’ interest when it is not in their direct self-interest to do so? This question exists in any organization must be address. The problem addressed here is a conflict of self-interest. The question here should be very interesting to people in organization. People should try to understand and address counterintuitive behavior in certain situation (Young 1998). For instance, why does moral hazard exists in organization? Organizational behavior success or failure depends on its goal setting, such as group cohesiveness and productivity. In a case study of 2 groups several researchers have suggested that goal acceptance moderates the relationship between group cohesiveness and group productivity. In Study 1, goal acceptance was found to moderate the relationship between group cohesiveness and the quantity of performance of 40 machine crews in a paper mill located in the north eastern United States. In Study 2, the extent to which leaders fostered the acceptance of group goals was found to moderate the relationships between group cohesiveness and quantitative measures of group productivity in 71 insurance agency units located throughout the United States. The companies’ success or failure in this study will be explained in organizational behavior (Jacob 1985) Goals of Organizational Behavior The field of most organizational behavior has an amount of common goals. In order to reach these goals, people need to effectively predict, explain, and manage the behavior that occurs in our organizations. In order to change behavior, one needs to accept that any behavior is rational and logical to the person exhibiting it because his or her goals may differ from others. If an organization is able to predict which reward systems is most effective in motivating the employees, then one can explain the reasons for this effectiveness and describe how managers can enforce effective reward systems. Our everyday lives are about predictions. Predicting the behavior in an organization is usually wondering â€Å"when people will make ethical decisions, create innovative products, or engage in sexual harassment† (Johns 1996).  The behavior in our organizations licenses us the prediction of its future circumstance. Predictions are not always accurate, however. The field of organizational behavior offers a â€Å"Scientific foundation† (Johns 1996). That helps upgrade predictions of these events. But, being able to predict these organization behaviors do not guarantee a hundred percent that he can explain the reason why this particular behavior had developed. A manger needs to be able to get things accomplished, reach all goals, take control, and knows everything that is going on in their company I know that there varieties of management styles to be effective, depending on the situation. There are some cases when a manager acts without investigation, just looking for that quick solution to solve a problem usually results in an unhappy ending. If an organizational behavior â€Å"Can be predicted and explained, it can often be controlled or managed† (Johns 1996). A great manager would be able to predict a certain behavior and have an act on it before it’s too late. Remember, our lives would be more easier if we anticipate when our friends are anger, what our professors expect out of us, and whose lying and telling the truth, â€Å"Regardless of who we are our actions are in response to a variety of motivations† (Wilson 1994). When one understands, one will understand human behavior. Use the predicting. Explaining, and managing principles, and any manger will have the ability to reach your goals through the efforts of others. The four goals of organizational behavior are: 1. To describe systematically how people behave under variety of conditions 2. To understand why people behave as they do 3. To predict future employee behavior 4. to control & develop human activity at work Theory X and Theory Y Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s that have been used in human resource management, organizational behavior,organizational communication and organizational development. They describe two contrasting models of workforce motivation. Theory X and Theory Y have to do with the perceptions managers hold on their employees, not the way they generally behave. It is attitude not attributes. There are two kinds of reinforcement, positive and negative. â€Å"Positive reinforcement causes a behavior to increase because a desired, meaningful consequences follows the behavior. Negative reinforcement causes a behavior to increase in order to escape or avoid some unpleasant consequence† (Daniels 1994). Models of Organizational Behavior There are four major models or frameworks that organizations operate out of, Autocratic, Custodial, Supportive, and Collegial (Cunningham, Eberle, 1990; Davis ,1967): o Autocratic — The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. Custodial — The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation. Supportive — The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. Collegial — The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm. Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas over-lapping in the other models. The first model, autocratic, has its roots in the industrial revolution. The managers of this type of organization operate mostly out of McGregor’s Theory X. The next three models begin to build on McGregor’s Theory Y. They have each evolved over a period of time and there is no one best model. In addition, the collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm. References http://en.wikipedia.org/wiki/Theory_X_and_Theory_Y http://www.csupomona.edu/~msharifzadeh/chapter1.html http://www.nwlink.com/~donclark/leader/leadob.html http://www.referenceforbusiness.com/encyclopedia/Oli-Per/Organizational-Behavior.html

Australopithecus

The fossilized remains of this 3 year-old early human child are often referred to as belonging to ‘Lucy’s baby' since she was found only a few miles south from where Lucy was found Lucy over two decades earlier, even though the child's fossil is actually 100,000 years older than famous Lucy. She is nicknamed ‘Selam’ after the Amharic (Ethiopia’s official language) word for ‘peace,’ and is the most complete early human child known up until Neanderthal times. Prior to Selam’s discovery, researchers knew very little about early human growth patterns as the early human fossil record consists of few children. Because Selam’s baby teeth erupted in a pattern similar to a three-year-old chimpanzee’s, researchers now know A. afarensis children shared a chimpanzee’s fast growth rate. But her brain size indicates that a human growth rate was evolving. CT-scans of her skull show small canine teeth forming in the skull, telling us she was female. Her partial skeleton is made up of a nearly complete skull and torso, and several limb bones—her legs indicate she could walk upright, but other skeletal features showed she could also climb trees. The hyoid bone beneath her neck looks ape-like, and her gorilla-like collarbone and long, curved fingers show significant tree-climbing. Image Credit: Zeresenay Alemseged

HUM History and Methods of Science Essay

Social views and culture denoted scientist, in general, as individuals who exist different from the common society. This idea is mainly because scientists live with a strong conviction to their field and their reasoning is widely based on the empirical side of the environment they lived in. Because of this, scientist’ cultures and lifestyles are significantly affected with their governing philosophies and scientific principles. The aspect of communication is also included in the human cultures and philosophies that are affected by the conviction in the scientific world. In this idea, scientists do tend to communicate with their colleagues in a manner, which is significant based on their scientific principles. There communication is widely empirical in nature that they tend to express themselves and reason out through proving the validity of their statement in an empirical nature. Scientist’s opinions and ideas are always supported with factual and scientific proofs whenever they share it with their colleagues. Through this manner, scientist can and are ready to defend the validity of their statements whenever they communicate with their fellow scientist as they are all governed by their scientific principles and philosophies. Another common trend in the communication aspects of the scientist is that they tend to relate each of their opinions and ideas to other scientific concepts or factual events and phenomenon. This is probably habitual in nature, as their profession requires them to be open-minded and critical in their field. Their communication aspect is often critical and analytic in nature whenever they state something or dispute an idea. Hus, from this concepts and ideas, one can actually see that profession indeed such as the field of science can affect the human culture and personal behavior of an individual as with the case of the society of scientist. In this concept, the behavior of scientist towards their profession becomes habitual in nature thus affecting their innate and personal communication aspect in general.

Death of An Economy

My topic deals with Pakistan, its relationship with the IMF and World Bank, and its internal problems that are causing unemployment, poverty, economic crisis and hunger. I shall be analyzing the situation using the neo-classical theory, as it is what the economists of the Pakistan government and the IMF are using to alleviate the economic instability of the country. Situated in the sub-continent, Pakistan is a low-income country, with great promise for growth. Unfortunately, it is held back from reaching middle-income status by chronic problems like a rapidly growing population, sizable government deficits, a heavy dependence on foreign aid, recurrent governmental instability and large military expenditures. It is to address these fundamental faults in Pakistan†s economy that the IMF has initiated the Structural Adjustment Programs (SAPs) in the country. This is discussed in further detail later in the paper. Like all developing countries, Pakistan†s population is largely employed in the agricultural sector, which accounts for about 48 percent of the labor force. In today†s world the Industrial and Service sectors are the largest growing areas of a developed county†s economy. Yet Pakistan only employs 39 percent of its population in Service, and a minute 13 percent in Industry. This is a paltry figure, compared to the employment statistics of a developed country. Pakistan is also heavily dependent on a single export crop, cotton. Hence the country†s fortunes rise and fall with the cotton market. It is no wonder that there are so many poverty stricken people in Pakistan. When almost half the population is involved in a very volatile market, a lot of the time, a lot of people will be burnt by price fluctuations. The country is also subject to the mercy of the weather. Focussing on a major cash crop means very little diversification. This translates to mass hunger and hard times for the agricultural sector whenever the agrarian lands are ravaged by floods, or conversely, by droughts. Even more importantly, Pakistan†s agricultural sector is marked by large landowners, controlling most of the production. Hence, only a minimal amount of the profit from exports goes to the poor people working for the large farmers. It is these people who constitute a large portion of Pakistan†s population. It is also these people who are living in abject poverty in the rural regions of the country, devoid of the right to feed their families. This is a great illustration of a theme discussed in â€Å"World Hunger, Twelve Myths.† Lappe, Collins, Rosset and Esparza discuss the commonly believed myths about why hunger and poverty exist. In it they clarify this very important point: hunger does not exist due to a shortage of available food, but because of ‘fear† and ‘powerlessness,† resulting in the ‘anguish, grief and humiliation† felt by the hungry and poverty stricken. Pakistan is a classic example of this theory. Based on a feudal system, especially in agriculture, Pakistani society is primarily controlled by feudal overlords, (a.k.a. the politicians or relatives of politicians), who own or oversee most of the agrarian land and industrial base. Being above the law, due to their political influence, these corrupt people can literally get away with murder. Thus, keeping their laborers subdued and underpaid is no hard task. Anyone who dares to complain is used as an ‘example† for potential future unrest. As a result, the people in their ‘elakhas†, (controlled lands), remain destitute in the throes of poverty, unable to help themselves due to their lack of power and the fear of the ‘thekedars†, (large landowners). By a lack of power, I refer not to a dearth of physical prowess but to a scarcity of basic human rights. These are the same rights that people in developed countries take for granted. The right to vote for whomever one feels like is missing. Instead a lot of villagers are forced to vote for the local land owner due to a combination of fear and ignorance; a fear of the repercussions of a potential loss by the feudal lord and the ignorance of any means to escape this same overlord†s wrath. Very often there is also no choice of candidates. There are very few people willing to risk their own and their families† safety by running against their subjugators. All this goes against the very nature of the free market economy that Pakistan is supposed to be running. While the IMF and World Bank are using Neo Classical theory to address the nation†s problems in the capital, half the country is still being run under the feudal system. Till this system is broken, and the immense lower classes are empowered there is not a dent that can be made in the country†s poverty and hunger issues. Rather the problem will continue to grow right under the economists† noses. Pakistan is also set back by ethnic problems, having numerous groups including Punjabis, Pakhtoons, Sindhis, Balochis and Mujahirs. Speaking different languages, the different ethnic groups do not get along very well as is witnessed by the numerous clashes between Sindhis and Mujahirs in the violence torn city of Karachi. The language barrier also translates to a lack of mobility of labor, which is a key to economic success under neo-classical theory. Hence the large sparsely populated province of Balochistan is presently under utilized. Due to a lack of available labor, industries are tough to set up. If the language/ethnic barrier could be overcome, the rich lands of Balochistan could potentially become the saviors of Pakistan†s economy. Pakistan also has a very week industrial base. Being an ex British colony it suffers from a similar problem to the one ailing a number of the African and South American countries. This issue is that the colonists never bothered building up the necessary base for industrialization. While the rest of the world was busy building this base, greedy colonists who did not care about the country and thus paid no attention to its development were exploiting countries like Pakistan. Hence Pakistan is permanently playing catch up to the rest of the developed world leaving very little money for social services to help the situation of the poor. The literacy rate in Pakistan is also very low. In 1992, the official literacy rate for the adult population was said to be a low 36 percent. Even more dismal was the statistic that listed 45 women being educated for every man. With this dearth of qualified personnel, there is no room for economic growth as there are no new minds to head the growth. Women are also the primary food producers in Pakistan. If they are not being educated, it means that they are not up to date on the latest production techniques, which in turn translates to inefficiency and the aforementioned ignorance. Once again it all ties into the powerlessness that marks the hunger and poverty-stricken. Women represent 54 percent of Pakistan†s population. If they are not allowed to exercise their rights to an education and to vote, how can the country be expected to progress? It is like asking a man with one leg to run. Like other third world countries, in Pakistan, substandard housing, inadequate sanitation and water supply, and widespread malnutrition contribute to spread of disease and to high infant, childhood, and maternal mortality. The leading causes of death are gastroenteritis, respiratory infections, congenital abnormalities, tuberculosis, malaria, and typhoid fever, all preventable diseases. Unfortunately the poor, uneducated lower classes are not given enough attention by the corrupt officials running the country, which is resulting in their situation deteriorating year by year. These, along with other economic and social issues are causing immense hunger and poverty in Pakistan. Presently Pakistan is passing through an unprecedented economic crisis, made worse by the global recession. The turmoil in domestic markets and the imbalance between resources and liabilities threatens to roll back the modest levels of economic development and industrialization that Pakistan has achieved so far. Had it not been for a reasonably strong agricultural base, the situation would be much worse. This ‘situation† has been caused by a mixture of issues, including the near sightedness of politicians and their persistence in following politically popular, but economically disastrous policies. An example of this is the detonation of a nuclear bomb a year ago. Simply to show off to India and the rest of the world, as well as to raise their local popularity, the Pakistani government decided to go ahead with an unnecessary test that brought economic sanctions against them and also cost them a lot of their aid from western countries. However, much more important have been the structural reasons underlying this deterioration, all of which have been contributing to the growing feeling of desperation the hungry and poverty stricken have been experiencing. Before this paper begins finding solutions to the problems at hand, we need to remind ourselves of the key issues. 1) One major problem that Pakistan needs to deal with is the fact that its expenses are far more than its revenues. Partly due to decades of lax fiscal management, but more because of myopic policies in its external relations, the militaristic structure of the state and the narrow vision of its rapist elite, Pakistan is Rs 100 billion short of the money to simply keep its existing machinery operational. How is a third world country supposed to develop an infrastructure when it is spending more than its net revenues on only two items, debt servicing and defense? In fact, Rs 18 billion of its defense has to be financed to borrowing. The Pakistani government has not been governing; it has simply been acting as a debt-securing agency. 2) Lately the government has been touting the fact that it has achieved the IMF imposed budget defect target. What it neglects to mention that it achieved the target through questionable means. Firstly, it drastically reduced its developmental expenditure from 7.5 per cent of GDP in the early '90s to a paltry 3 per cent, which translates to a cutback of 140 billion in present prices. A cutback of expenditure of such extent in the governments purchases of private sector goods like cement, pipes and cables and services like engineering explains why a number of private sub-sectors are at the point of closing down, operating at a vastly reduced capacity. This is adding to the issues of hunger, poverty and unemployment being faced in Pakistan. The government has also reduced the amount it givers to the provinces by Rs 30 billion, transferring some of its debt to the provincial governments. In other words the government has done nothing to resolve the issue of structural defect. 3) What†s worse is that not only has developmental expenditure been sharply curtailed, but that the scarce resources set aside for infrastructure works have been diverted to less productive investments_like the new motorway and the new Lahore airport. This massive reduction of the public sector†s developmental activities is causing a contraction in employment opportunities for Pakistan†s growing number of middle class educated youth. This is particularly serious in the areas where the private sector is unlikely to locate due to the lack of infrastructure. Thus the really poor areas continue to live in poverty due to the government†s inability to provide adequate physical and social infrastructure or create an environment for private sector investment. It has also not been able to maintain law and order and is guilty of not living up to its contractual obligations which is further discouraging foreign and domestic investment in the country. The treatment of its foreign currency account holders and IPPs last year illustrates this point. 4) Pakistan suffers from the typical problems that all third world countries suffer. One of these is massive corruption at all levels, estimated at Rs 100 billion a year. This means that a large portion of national wealth has been stolen from the poor. No wonder, the country is unable to lift itself out of the quagmire of poverty and hunger. 5) Tax evasion is another issue that the government needs to address. Successive governments have failed to establish a tax culture due to an inequitable structure, which taxes different sources differently. An example of this is provided by the large farmers who, despite now getting higher international prices for their crop, are unwilling to pay the modest levels of provincial taxes. The political leadership itself does not pay its taxes diligently. Thus, unless companies owned by sitting ministers install invoice based systems for tax accounting, it will continue to be difficult to enforce retail taxes. Also, the repeated bowing down of the government to shutter-down threats of traders and the repeated refusal of large land-owners to meet their tax obligations is increasing the burden of taxes on the helpless poor, the organized sectors, and the honest people foolish enough to pay their taxes. If the rich are not willing to meet their responsibilities, how are the poor supposed to survive? 6) There is the additional problem of a gap of between 5 an 6 per cent of GDP per year between domestic national savings and investments which translates to approximately Rs 150 billion being financed from external borrowing. This further adds to the crippling debt that is allowing the IMF and World Bank to interfere in the formulation of domestic economic policies. 7) The external debt of around US$ 34 billion is more than 50 per cent of GDP, and four times the annual foreign exchange earnings. Pakistan can neither repay nor service this debt. So far I has only postponed the inevitable, default by piling up further debts at abominably high rates. 8) Pakistan†s exports compromise 0.2 per cent of world exports and diversification from a single crop economy has remained an elusive dream. Therefore to hope for exports to be the driving force of economic recovery, as the government is doing, would require an astronomical rise in exports, and the price of cotton. In other words it is impossible. 9) The country†s ability to export is also affected by sluggish world trade, which coupled with an over valued currency, is rendering Pakistan†s exports uncompetitive. With the rise in the price of oil, the gap between import bills and export receipts is widening. 10) Until now this gap has been met with remittances and short-term borrowing. But due to a decline in remittances for a number of reasons and Pakistan†s declining credit, this is no longer an option. It therefore seems that it is impossible to maintain the present levels of growth rates and imports as well as meet debt servicing. 11) Public sector industries are also deeply in the red due to over-manning, corruption, and the protection given to large defaulters of utilities. The combined debts of just WAPDA and KESC, (which deal with electricity and gas respectively,) are Rs 91 billion while the loans of 18 public sector enterprises is close to Rs 250 billion. 12) The government is offering 15 to 18 per cent interest rates on its saving schemes which is far to high for it to be able to generate high enough returns to service the debt and still have enough left over to finance developmental activities. 13) Most of Pakistan†s industry faces the issue of negative or nominal growth, while value-added industry is operating at 30% below capacity. The limited growth is due to a lack of comparative advantage, the lack of credit availability and a high interest rate. Despite inflation being well below double digits, interest rates are as high as 15 to 18 per cent on loans! This is too high to keep the present economy afloat, let alone raise it to a maintainable level of growth. 14) There is also a lack of confidence in the government by the private sector. How can a government that cannot even handle domestic peace issues be expected to turn around an economy that is in the throes of a downward spiral? Therefore the private sector has been occupied in short-term trading and currency speculations which do nothing for growth or the welfare of the state. 15) An obvious result of this situation is that the disparity between the rich and the poor has grown. The share of the poorest 20 per cent of households has fallen to 7 per cent while the richest 20 per cent are receiving over 45 per cent. The low rate of economic growth and the high rate of inflation over the last few years have left the poor with no buying power resulting in almost a third of the population living below the poverty line. There is also anger amongst the poor about the fact that the incidence of increased taxation has been heaviest for them; expenditures on services for them have declined. Social tensions are rising with the growth of the absolute number of poor, illiterate and jobless, as employment opportunities and wages decline due to the stagnating economy. Such conditions are hardly conducive to political and social stability, without which growth will remain a distant dream. On top of all of this, Pakistan is plagued by the curse of the IMF and World Bank. Constant defects in the current account of the balance of payments and depleting foreign exchange reserves is causing the extension of credit to become an exercise in haggling and bargaining. Each time there are negotiations along with a string of conditions attached to the loan. The release of credit is then delayed until each and every condition of the IMF has been met. The only way that Pakistan can now secure loans and vital extensions on its debt is to institute the Structural Adjustment Programs that have been drawn up by IMF economists. The problem is that the benefit of these programs is questionable. Most countries have suffered immensely from them. Instead of improving the economy, these programs have been destroying them. Unfortunately, like other countries that have yielded to the them, Pakistan is virtually being taken over by the IMF, along with the World Bank.